the analysis of supply chain performance measurement

(1)

THE ANALYSIS OF SUPPLY CHAIN PERFORMANCE MEASUREMENT USING SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL.

CASE STUDY OF MUBADALA PETROLEUM INDONESIA

By

Laksmi Puspasari 13111096

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

August 2016

Revision after the Thesis Defense on July 28^th 2016

(2)

Laksmi Puspasari STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Laksmi Puspasari

____________________________________________

Student Date

Approved by:

Parhimpunan Simatupang, MBA

____________________________________________

Thesis Advisor Date

Dr.rer.nat. Linus Pasasa

____________________________________________

Thesis Co-Advisor Date

Eric Jos Nasution, MBA, MA, Ph.D

____________________________________________

Dean Date

(3)

Laksmi Puspasari ABSTRACT

THE ANALYSIS OF SUPPLY CHAIN PERFORMANCE

MEASUREMENT USING SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL. CASE STUDY OF MUBADALA PETROLEUM INDONESIA

By

Laksmi Puspasari

Parhimpunan Simatupang MBA, Advisor Dr.rer.nat. Linus Pasasa, Co-Advisor

SWISS GERMAN UNIVERSITY

The purpose of this research is to analyze the current performance measurement system and the key performance indicator implemented in the Supply Chain Management Department at Mubadala Petroleum Indonesia. This research is qualitative research in form of interviews using secondary data, which were collected from the company reports and in-depth interviews with the Supply Chain Management Manager, Supply Chain Management Contract Administrator, and Procurement Coordinator. The current performance measurement system were analyzed using Supply Chain Operations Reference (SCOR) Model which consists of five attributes, reliability, responsiveness, flexibility, cost, and asset management.

Based on the results of this research, it was analyzed that the current performance measurement of delivery time is below the target, the order fulfillment within the time schedule is still on target, the responsiveness of direct appointment from the procurement team to the user is exceeding the target, the supply chain management flexibility respond time is still within target between requisition from user and the procurement start, also for the supply chain management cost and the asset

(4)

Laksmi Puspasari performance, order fulfillment cycle, and supply chain response time are the important factors of supply chain performance measurement. As a result, this research has shown that company should focus on planning in the procurement process, assess the supplier’s performance, and the investment in SCOR Model could be used to improve the effectiveness and performance of the supply chain management practices.

Keywords: Supply Chain Management, Performance Measurement, SCOR Model, Performance Measurement System

(5)

Laksmi Puspasari

(6)

Laksmi Puspasari DEDICATION

Dedicated to my inspiring parents,

sister and brothers,

For the unlimited support and trust encouraged me to be the best of myself whose love and support sustained me throughout,

Thank you.

(7)

Laksmi Puspasari ACKNOWLEDGEMENTS

First and foremost, praise to Allah SWT, the Almighty and the Giver of abundant blessings. Secondly, I would like to express my deepest gratitude to my precious family, my beloved father Sarwono Hadinoto, M.H, my beloved mother Lily Ribawanti, S.H., my sister Rizqi Widyasari, M.T, my brothers Fitramukti Wibowo, S.H. and Sadhyo Prabhasworo, S.Ked for their unlimited support throughout my four years at Swiss German University. Your continuous love have formulated my outlook, determination, motivation and perspective that will sculpt my future.

Importantly, I would like to thank my thesis advisor, Mr. Parhimpunan Simatupang, MBA and my co-advisor Dr. rer. nat. Linus Pasasa, for his inspiration, guidance, and advice in this past months and for the whole research process. I would also give thanks to Mr. Stephen Rohrlach for his assistance with the grammar corrections.

I owe my deepest gratitude to Ms. Ivonny Desilva, Ms. Nur Habibah, Mr. Andreas Kuswardono and all staff from Supply Chain Management Department at Mubadala Petroleum Indonesia. Thank you very much for the opportunity to collect data for this thesis purpose and providing me the opportunity to be interned in this company.

Next, I would like to thank my friends in International Business 2012 for the good times, beautiful friendship, endless support and exchanges of knowledge and skills.

Last but not least, I would like to say thank you to the Swiss German University for offering me an amazing place to acquire knowledge.

(8)

Laksmi Puspasari TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 6

ACKNOWLEDGEMENTS ... 7

CHAPTER 1 – INTRODUCTION ... 12

1.1 Background ... 12

1.2 Company Background ... 13

1.3 Research Problem ... 16

1.4 Research Questions ... 17

1.5 Research Objectives ... 18

1.6 Scope of Limitation ... 18

1.7 Significance of Study ... 19

1.8 Chapter Summary ... 19

CHAPTER 2 - LITERATURE REVIEW ... 20

2.1 Framework of Thinking ... 20

2.2 Supply Chain Management ... 21

2.2.1 Concept of Supply Chain Management ... ….. 21

2.2.2 Definition of Supply Chain Management ... 21

2.3 Supply Chain Performance Measurement... 22

2.3.1 Definition and Scope ... 22

2.3.2 Approaches... 23

2.4 Supply Chain Operations Reference (SCOR) model ... 26

2.4.1 SCOR Model background ... 26

2.4.2 SCOR Model Framework ... 28

2.5 Previous Studies ... 37

2.6 Study Differences ... 40

(9)

Laksmi Puspasari

CHAPTER 3 – RESEARCH METHODS ... 42

3.1 Research Process ... 42

3.2 Research Model ... 43

3.3 Type of Study ... 44

3.4 Data Sources & Collection ... 44

3.4.1 Type of Data ... 45

3.4.2 Interview Guideline ... 45

3.5 Data Analysis ... 46

CHAPTER 4 - RESULTS AND DISCUSSION ... 50

4.1 Analysis using SCOR Model ... 50

4.1.1 Level 1 Analysis... 50

CHAPTER 5 – CONCLUSION AND RECOMMENDATION ... 64

5.1 Conclusion ... 64

5.2 Managerial Implication ... 65

5.3 Recommendation for Further Research ... 66

GLOSSARY ... 67

APPENDICES ... 69

REFERENCES ... 82

CURRICULUM VITAE ... 85