Supply chain performance for a traditional shipbuilding industry in Indonesia
Benchmarking: An International Journal
ISSN: 1463-5771
Article publication date: 15 June 2021
Issue publication date: 10 February 2022
Abstract
Purpose
Study in supply chain performance research on the shipbuilding industry is lacking. The purpose of this research is to study and provide guidelines to improve the performance of traditional shipbuilding supply chains in Indonesia.
Design/methodology/approach
The paper develops an empirical study gathered from a traditional shipbuilding industry, its suppliers, and customers. This study consists of three sections: the traditional shipbuilding industry, the suppliers, and the individual supplier scores. The internal and external performances in this study are measured using Supply Chain Operations Reference (SCOR) metrics. The SCOR model identifies five performance measurement attributes, including reliability, flexibility, responsiveness, cost and assets. Instead of using “responsiveness,” this study applies the schedule performance index, and supplements “cost” with the cost performance index in order to accurately reflect the traditional shipbuilding supply chains processes.
Findings
By analyzing SCOR metrics in the traditional shipbuilding industry, it has been found that the ideal shipbuilding supply chain metrics are order fulfillment, flexibility, asset turnover and total supply chain costs. The lowest performance metric value in the traditional shipbuilding industry is the cost of goods. Some improvements are proposed to lower the high cost of ship building. An integrated economic ordering system in collaboration with all the suppliers is one of the most effective ways to reduce the cost of the traditional shipbuilding supply chains. The implementation of SCOR metrics enables management to identify the critical issues to improve.
Research limitations/implications
The study applies SCOR metrics to improve the traditional shipbuilding supply chains performance. The study is limited because the data collected are based on one shipbuilding industry only.
Originality/value
To the author's knowledge, this is the first empirical analysis on the implementation of SCOR metrics to the traditional shipbuilding industry. The analysis to improve the traditional shipbuilding supply chains performance can provide managerial insights to other industries.
Keywords
Acknowledgements
This research was supported by Directorate General of Research and Development, Ministry of Research, Technology, and Higher Education, Indonesia under grant Basic Research in 2019, No. 1616.10/PL19/LT/2019.
Citation
Praharsi, Y., Jami'in, M.A., Suhardjito, G., Reong, S. and Wee, H.M. (2022), "Supply chain performance for a traditional shipbuilding industry in Indonesia", Benchmarking: An International Journal, Vol. 29 No. 2, pp. 622-663. https://doi.org/10.1108/BIJ-05-2020-0232
Publisher
:Emerald Publishing Limited
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