The relation of Indonesia’s strategic industry principles and Supply Chain Operations Reference (SCOR) Performance Attribute

Abstract

Article 33 of the1945 Constitution clearly states that all vital factors of production, called strategic industries, are controlled by the state and to be use for the prosperity of Indonesian people. This article implies that the strategic industries supply chain should be managed accordingly. The fourth amendment of the 1945 Constitution offers a macro framework as principles to conduct the supply chain. They are Togetherness, Efficiency of justice, Continuity, Environmental perspective and Self-Sufficiency. Furthermore, the framework can be used to build performance measurement indicators for the supply chain. Currently the method that is widely used to measure supply chain performance is the Supply Chain Operation Reference (SCOR). This study studied the relations of the strategic industries principle and performance indicators within the SCOR. Twelve professionals and researchers are interviewed as respondents to investigate those relations. More than 90% respondents agreed that; (1) the principle of togetherness is strongly related to Reliability, Responsiveness and Agility; (2) Efficiency of justice is strongly related to Responsiveness; (3) Continuity is strongly related to Agility; (4) Environmental Perspective is strongly related to Green Supply Chain, and; (5) Self-Sufficiency is strongly related to Responsiveness. Therefore, SCOR performance measurement attribute is related with the strategic industries principles.