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Supply Chain Analysis of Sand Sugar Commodities in Pangkalpinang City
Darman Saputra1*, Christianinggrum1
1 Faculty Economic, University Bangka Belitung, Indonesia
*Corresponding Author: [email protected]
Accepted: 15 September 2020 | Published: 30 September 2020
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Abstract: Sugar demand which tends to increase due to sugar (granulated sugar) is one of the basic needs of the community which is quite strategic because it becomes one of the sources of calories in the structure of public consumption. Bangka Belitung Islands Province is an archipelago region where almost all basic commodities are imported from outside the region such as sugar, for example, from Lampung Province. The price of granulated sugar in Bangka Belitung Province is very volatile, many of which are factors that influence it. The Department of Industry and Trade of the Province of Bangka Belitung Islands said that the stock of sugar in a number of distributor warehouses totalling 167 tons or still sufficient to meet the needs of the public to welcome the fasting of Ramadan this year. As much as 167 tons of granulated sugar are distributed in four distributor warehouses namely CV Sumber Alam Lestasi 20 tons, CV Arisa 20 tons, UD Mawar Jaya Belitung 77 tons and CV Elisabet 50 tons and are brought in gradually, so it is certain that the commodity will not experience scarcity that will burdensome community economy in the face of COVID-19. Supply chain or supply chain is a concept where there is a regulatory system related to product flow, information flow and financial flow (financial). The fluctuating price of sugar chili is caused by inefficient supply chain management arrangements. Efficient supply chain management can be achieved if the management and supervision of distribution channel relations is carried out cooperatively by all parties involved. The form of supply chain management really needs special attention.
Keywords: sugar, supply chain, pangkalpinang
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1. Introduction
The purpose of this study is to determine the supply chain mechanism related to product flow, information flow, financial flow and how the level of efficiency in the commodity of sugar in the City of Pangkalpinang.
2. Literature Review
Supply chain
Li (2007: 5) explained that the definition of the supply chain is as follows: "It is a set of interrelated activities and decisions to integrate suppliers, manufactures, warehouses, transportation services, retailers and consumers efficiently". Thus goods and services can be distributed in the right amount, time and location to minimize costs to meet consumer needs.
And emphasizing all activities in meeting the needs of consumers in which there is a flow and transformation of goods ranging from raw materials to end consumers and is accompanied by
a flow of information and money. Furthermore, the supply chain is an organizational system of people, technology, activities, information, and resources involved in the process of delivering products / services from suppliers to consumers. Activities in the supply chain convert natural resources, raw materials and components into finished products to be distributed to end consumers.
Supply Chain Management
Levi, & S. Levi (2003) define Supply Chain Management as an approach used to achieve efficient integration of suppliers, manufacturers, distributors, retailers and customers. This means that goods can be produced in the right amount, at the right time, and at the right place with the aim of achieving a minimum overall cost of the system and also reaching the desired service level.
Managing the Supply Chain
For an entrepreneur, according to Pujawan (2005) supply chain management consists of five areas, namely; 1. Product development, conducting market research and product development by involving suppliers, distributors, and retailers. 2. Procurement, the procurement of materials and raw materials by selecting suppliers, evaluating supplier performance, monitoring supply chain risks, and fostering and maintaining relationships with suppliers. 3.
Planning and control, demand forecasting activities, capacity planning, production and supply planning. 4. Production and quality control, activities to conduct production and quality control. 5. Distribution, distribution network planning activities, scheduling shipments, maintaining relationships with shipping service companies, monitoring customer service levels.
3. Methodology
Types of research
This type of research included in descriptive research or categorized in qualitative research methods using survey methods that describe, explain and interpret a phenomenon that occurs in an object and qualitative data, namely data that is described in words or sentences according to categories to obtain a conclusion ( Julian, 2004)
Place and time of research
In this study, the authors determine the location or place of research, namely in the City of Pangkalpinang. The time used to conduct research and data collection required is 2 months, namely January and February.
Research Informant
In qualitative research do not use the term population, because qualitative research departs from certain cases that exist in certain social situations and the results of the study will not be applied to the population, but transferred to other places on social situations that have similarities with social situations in the cases studied. The sample in qualitative research is not named respondents, but as a resource, or participants, informants, friends and teachers in research (Sugiyono, 2013: 39). Determination of research informants is as follows:
Table 1: Informant Data
No Profession Location
1 Pedagang Besar Gula Pasir Development Traders 2 Pedagang Tradisional Development Traders 3 Pedagang Tradisioanl Market Trader
Source: Field Findings
32 Research Operational Standards
This research is carried out studies such as conducting a literature study both reading through internet media and through literature studies which then to further conduct problem analysis, formulation and determine the benefits of research and then limit the problem within the framework adapted to this research. This study requires primary data collection, namely the source of data derived from the informant's opinion and observations, obtained directly from the original source. Data taken in the form of interviews using a list of questions, recording and documentation based on field observations.
Data source
Sources of data in this study are divided into two sources, namely: 1) Primary data, namely, data obtained directly from informants along the sugar sugar supply chain, especially data obtained based on interviews and discussions with informants. 2) Secondary data, i.e., which is sourced from information from relevant agencies.
Operational Data Analysis Method
The data analysis technique in this study uses descriptive qualitative analysis, which is a recording procedure to describe and describe the state of the object under study based on the available facts (Budiman, 2013). The objective to be achieved from the use of descriptive analysis techniques is to seek research by describing systematically, factually, and accurately from a fact on events that occurred in the commodity sugar in Pangkalpinang. The research procedures in qualitative analysis according to Miles and Huberman (1992), namely as follows:
1) Data Reduction
Data obtained at the research location (field data) is outlined in a detailed or detailed description or report. Field reports by researchers are reduced, summarized and selected main points, focused on important matters and then sought patterns.
2) Presentation of Data
Presentation of data is intended to make it easier for researchers to see the overall picture or certain parts of the focus of research.
3) Draw Conclusions / Verification
Data verification in qualitative research is carried out continuously throughout the study. Since the beginning of entering the field and during the data collection process, the researcher tried to analyze and look for the meaning of the words collected namely: look for patterns. The theme of concurrent relationships, things that are arising, hypotheses or the like to be outlined in conclusions that is still tentative.
Descriptive Research Object
Pangkalpinang City Development Market and Morning Market is a staple shopping center in Pangkalpinang. The market is also a source of survey objects from BPS and Bank Indonesia in Bangka Belitung Province because it is considered able to meet descriptive data.
4. Research result
Sugar Commodity, City of Pangkalpinang
The supply of sugar from central regions such as Java, Medan, Palembang, and others is still going smoothly. There are no obstacles in the supply of commodity supplies because the crossing routes in these waters are still declared safe to be passed by cargo carriers. However, at the beginning of this year the price of sugar rose due to problems with disrupted distribution lines and failed harvests in the sugar center area (Bank Indonesia Bangka
Belitung Province). Based on the latest data, officers in the field recorded 155 tons of sugar stock and an average price of Rp13,833 (babelprov.go.id).
Mechanism of Product Flow, Information Flow and Financial Flow in the Supply Chain Sugar Commodities in Pangkal Pinang City.
In the sugar commodity supply chain in the City of Pangkalpinang there are three mechanisms in the supply chain. Clearly, the results in the form of structural form in the supply chain from farmers in the area of sugar producers to traders and consumers in the City of Pangkalpinang are illustrated in Figure 1 below:
Figure 1: Flow Patterns in the Pangkalpinang City Granulated Sugar Supply Chain
1) Farmer b. Traders of Collector c. Wholesalers 2) Traders in the Market e. Consumer
Based on Figure 1 about the flow patterns in the sugar supply chain in Pangkalpinang City, it is shown that the supply chain mechanism of sugar commodities in Pangkal Pinang City is generally divided into 3 types, namely product flow, information flow and financial flow.
There are 5 members of the chain involved in the mechanism of the supply chain of sugar commodities in the City of Pangkalpinang, which consists of:
1) Farmers
Cayenne pepper farmers are institutions or chains that act as the main producers in the sugar sugar commodity supply chain in the City of Pangkalpinang. Farmers here come from central sugar producing regions such as Lampung and Java.
2) Trader collectors
Traders are the first marketing intermediaries involved in the distribution of granulated sugar.
3) Wholesalers
Large traders are one of the links or market institutions that distribute large amounts of sugar and these large traders also take from collectors in the central sugar-producing regions.
4) Traditional Trader
Traditional sugar traders are marketing institutions that deal directly with consumers.
5) Consumer
Sugar consumers are links who consume or utilize cayenne pepper for their own needs.
The sugar supply commodity supply mechanism has several aspects that need to be considered in relation to product flow, information flow and financial flow. The product flow in the management of the granulated sugar supply chain is the distribution of products from
A B C
E D
34 farmers, collectors to large traders so that the products arrive at Bangka Belitung. The information flow relates to the communication process between the chains involved in the sugar supply chain which includes farmers, collectors, large traders, traditional traders and customers, while the financial flow is the distribution of value in rupiahs in which the financial flow consists of costs paid and profits that are paid received by every link involved in the granulated sugar supply chain. The flow of finance is also very influential on distribution transportation. If the distribution channel is obstructed, it will cause scarcity of sugar in the market, which will also cause expensive prices for sugar.
5. Conclusion
Based on the results of the discussion and the problem, conclusions can be drawn namely:
1) Supply chain mechanism related to product flow, information flow, financial flow in the sugar sugar supply chain in Pangkalpinang City has not been effective because the availability of transportation supply is still inadequate, for example there must be an expansion of ports in the Pangkalpinang area, there is no warehouse for large scale sugar stock storage.
2) There are 5 links that play an active role in the supply chain of cayenne pepper in Pangkal Pinang City, namely: (a) Farmers; (b) Trader collectors; (c) Wholesalers; (d) Trader Tradition; and (e) Consumers.
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