Supply Chain Management of the Plywood Industry in Indonesia

Abstract

The plywood industry in Indonesia experienced a heyday in the 1980s and experienced ups and downs in the following year. One of the causes of the decline in plywood production in several industries is the supply chain management of raw materials. This study aims to determine supply chain mechanisms related to the flow of product, flow of financial and flow of information at the plywood industry in South Sulawesi. Data collection techniques are carried out with initial observations, field surveys, interviews, and literature studies. Data analysis was performed using qualitative and quantitative descriptive analysis. The results show that the supply chain in plywood mills has a fairly complex link starting from product flow, financial flow and information flow related to raw material supply, inventory and sales. This company needs to implement an integrated supply chain management to help maintain the sustainability of plywood production so as to increase the company’s performance.