Supply Chain Management of Agro-Industry in Indonesia

Vegetable products in Indonesia has the potential to be developed into a leading export commodity. However, the vegetable commodity, considered still not able to compete. This is because the vegetables from Indonesia are still not able to provide quality assurance, supply, and timeliness of delivery. One of the major constraints in vegetable supply chain is planning, socialization and delivery. At the company level (Agro-Industry), supply chain management is one of the backbone of business success in winning the competition. Agro-Industry Supply Chain will involve a series of vegetable vegetable supply, processing, supply and delivery to customers. Customers want a quantity of vegetable supply according to plan requirements, A good level of quality and delivery schedule as planned. Fluctuations in demand and decline in quality are all factors to consider in the vegetable supply chain management. Serial supply chain is formed from the components of transport, production, inventory and distribution is planned taking into account the key factors of customer satisfaction oriented.

Agro-Industry Supply Chain Management (SCM) in the operational need to be supported by a technical decision to accommodate the customer and product supply. So far, this is still rare to find a discussion of the supply chain of fresh vegetables. Previous models are not specific to agro-industry issues. Therefore, it is actually necessary for supply chain optimization model agro-fresh vegetables.

One of the key factors to consider in the vegetable supply chain is supply. The Company is not fully capable of producing vegetables because of capacity constraints and other economic considerations. So that suppliers outside the company’s presence is necessary to meet the demand. Determination of the amount of vegetable supply is able to bring together the decision to boost the supply and demand fluctuations. So that the required matching techniques to assist management in determining the amount of supplies.

Agricultural Supply Chain Scheme 

(Vorst, J.G.A.J. van der, 2004. Supply Chain Management: Theory and Practice. In : T.Camps, P. Diederen, G.J. Hofstede, B.Vos (Eds). The Emerging World of Chains & Networks. Hoofdstuk: Elsevier)

The picture above is the flow of products at every level of the supply chain in the context of overall agricultural supply chain networks. Each company is positioned at a point in the network layer. Discussion of supply chains and agro-industry has been carried out to date continue to developed along with the dynamics of the business.

One technique that is suitable to be able to assist management in determining the amount of supply is fuzzy logic. Also, it can also use the network flow algorithm to solve the problem of distribution. Another method: Programa linear and simulation models. Vegetable supply chain is one of the problems that interesting to study and develop models of decision making.