Continued Evaluation and Adjustment of Supply Chain Strategy

Oct 13, 2025 by recoveryshake.com 14 views

Introduction

PT. XYZ is a company that specializes in the production of building materials, particularly nails. Despite its focus on this niche, the company faces significant challenges in meeting consumer demand and ensuring timely distribution of its products to various distribution centers (DCs). In an effort to address these issues, PT. XYZ has embarked on a study aimed at measuring the performance of its supply chain. This study aims to provide an in-depth analysis of the distribution performance of PT. XYZ, utilizing the performance of Activity (POA) and Supply Chain Operations Reference (SCOR) as key metrics.

Background of the Study

PT. XYZ has traditionally relied on manual calculations to determine its distribution requirements, which has resulted in delays and inefficiencies in the shipping process. The company has never conducted a thorough analysis of its supply chain performance, assuming that issues such as late delivery and changes in shipment quantities do not significantly impact its operations. However, this study seeks to challenge this assumption by providing a comprehensive evaluation of the company's supply chain performance.

Methodology

This study employed the performance of Activity (POA) and Supply Chain Operations Reference (SCOR) as key metrics to measure the supply chain performance of PT. XYZ. The results of the analysis revealed that the reliability value of PT. XYZ reached 86.10%, while the availability value was 90.38%. However, several other performance metrics, including Delivery Performance, Perfect Order Fulfillment, Fulfillment Lead Time Order, and Production Flexibility, failed to meet the set targets. This indicates that there is still room for improvement in critical aspects of the supply chain.

Distribution Requirement Planning (DRP) Method

To address the distribution challenges faced by PT. XYZ, this study utilized the Distribution Requirement Planning (DRP) method to analyze distribution and determine when and how many products need to be sent to each DC. The DRP method involves forecasting demand using the Autoregressive Integrated Moving Average (ARIMA) model, which enables the estimation of demand for the next 12 months. Additionally, the study calculated the Economic Order Quantity (EOQ) and Safety Stock for each DC to ensure optimal product availability.

Results and Discussion

The application of the DRP method yielded significant results, with a decrease in order frequency by 24.72%. This reduction in order frequency enables the company to make more efficient shipments and reduce costs associated with product delivery. Furthermore, the study found that the implementation of the DRP method resulted in improved distribution performance, enabling PT. XYZ to meet consumer demand better and on time.

Conclusion

This study highlights the importance of measuring supply chain performance and applying the right distribution methods to improve operational efficiency. By conducting regular performance analysis and optimizing the distribution system, PT. XYZ can overcome existing problems and contribute to better customer satisfaction. Going forward, PT. XYZ needs to continue to evaluate and adjust its supply chain strategy to adapt to changes in market demand and maintain competitiveness in the building material industry.

Recommendations

Based on the findings of this study, the following recommendations are made:

Continued Evaluation and Adjustment of Supply Chain Strategy: PT. XYZ should continue to evaluate and adjust its supply chain strategy to adapt to changes in market demand and maintain competitiveness in the building material industry.
Implementation of Regular Performance Analysis: The company should conduct regular performance analysis to identify areas for improvement and optimize its distribution system.
Investment in Technology and Infrastructure: PT. XYZ should invest in technology and infrastructure to support the implementation of the DRP method and improve its distribution performance.
Training and Development of Supply Chain Personnel: The company should provide training and development opportunities for its supply chain personnel to enhance their skills and knowledge in distribution planning and management.

Limitations of the Study

This study has several limitations, including:

Limited Scope: The study focused on the distribution performance of PT. XYZ and did not consider other aspects of the company's operations.
Data Availability: The study relied on historical data, which may not reflect the current market conditions and demand patterns.
Methodological Limitations: The study employed a single method (DRP) to analyze distribution, which may not be suitable for all companies and industries.

Future Research Directions

Future research should focus on the following areas:

Development of a Comprehensive Supply Chain Strategy: Researchers should develop a comprehensive supply chain strategy that considers multiple aspects of the supply chain, including distribution, procurement, and logistics.
Implementation of Advanced Technologies: Researchers should investigate the implementation of advanced technologies, such as artificial intelligence and blockchain, to improve supply chain performance and efficiency.
Evaluation of the Impact of Supply Chain Disruptions: Researchers should evaluate the impact of supply chain disruptions on distribution performance and develop strategies to mitigate these disruptions.

Conclusion

In conclusion, this study highlights the importance of measuring supply chain performance and applying the right distribution methods to improve operational efficiency. By conducting regular performance analysis and optimizing the distribution system, PT. XYZ can overcome existing problems and contribute to better customer satisfaction. Going forward, PT. XYZ needs to continue to evaluate and adjust its supply chain strategy to adapt to changes in market demand and maintain competitiveness in the building material industry.

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the distribution performance of PT. XYZ based on the performance of Activity (POA) and Supply Chain Operations Reference (SCOR) to identify areas for improvement and optimize the distribution system.

Q: What are the key metrics used to measure supply chain performance in this study?

A: The key metrics used to measure supply chain performance in this study include reliability, availability, delivery performance, perfect order fulfillment, fulfillment lead time order, and production flexibility.

Q: What is the Distribution Requirement Planning (DRP) method, and how is it used in this study?

A: The DRP method is a planning technique used to determine the distribution requirements of a company. In this study, the DRP method is used to analyze distribution and determine when and how many products need to be sent to each distribution center (DC).

Q: What are the benefits of implementing the DRP method in this study?

A: The benefits of implementing the DRP method in this study include a decrease in order frequency by 24.72%, which enables the company to make more efficient shipments and reduce costs associated with product delivery.

Q: What are the limitations of this study?

A: The limitations of this study include a limited scope, limited data availability, and methodological limitations.

Q: What are the recommendations for PT. XYZ based on the findings of this study?

A: The recommendations for PT. XYZ based on the findings of this study include continued evaluation and adjustment of its supply chain strategy, implementation of regular performance analysis, investment in technology and infrastructure, and training and development of supply chain personnel.

Q: What are the future research directions based on the findings of this study?

A: The future research directions based on the findings of this study include the development of a comprehensive supply chain strategy, implementation of advanced technologies, and evaluation of the impact of supply chain disruptions.

Q: What are the implications of this study for PT. XYZ and the building material industry?

A: The implications of this study for PT. XYZ and the building material industry include the importance of measuring supply chain performance and applying the right distribution methods to improve operational efficiency, and the need for continued evaluation and adjustment of supply chain strategies to adapt to changes in market demand.

Q: What are the potential applications of this study in other industries?

A: The potential applications of this study in other industries include the use of the DRP method to analyze distribution and determine when and how many products need to be sent to each DC, and the use of key metrics such as reliability, availability, and delivery performance to measure supply chain performance.

Q: What are the potential limitations of applying the findings of this study to other industries?

A: The potential limitations of applying the findings of this study to other industries include differences in industry characteristics, market conditions, and supply chain structures.

Q: What are the potential future research directions based on the findings of this study?

A: The potential future research directions based on the findings of this study include the development of a comprehensive supply chain strategy, implementation of advanced technologies, and evaluation of the impact of supply chain disruptions.

Q: What are the potential implications of this study for the development of supply chain management practices?

A: The potential implications of this study for the development of supply chain management practices include the importance of measuring supply chain performance and applying the right distribution methods to improve operational efficiency, and the need for continued evaluation and adjustment of supply chain strategies to adapt to changes in market demand.

Q: What are the potential applications of this study in the development of supply chain management practices?

A: The potential applications of this study in the development of supply chain management practices include the use of the DRP method to analyze distribution and determine when and how many products need to be sent to each DC, and the use of key metrics such as reliability, availability, and delivery performance to measure supply chain performance.

Q: What are the potential limitations of applying the findings of this study to the development of supply chain management practices?

A: The potential limitations of applying the findings of this study to the development of supply chain management practices include differences in industry characteristics, market conditions, and supply chain structures.