Performance Measurement in the Agroindustrial Supply Chain of

Passion Fruit Syrup in North Sumatra Province

Kimberly Febrina Kodrat

, Sukaria Sinulingga

, Humala Napitupulu

, Rika Ampuh Hadiguna

Postgraduate Doctoral in Faculty Technique, Technique of Industry,

Universitas Sumatera Utara

Institute of Teknologi Medan, Medan, Indonesia

Faculty of Technique, Universitas Sumatera Utara.

Faculty of Technique, Universitas Andalas

Keywords: Supply chain performance, Agroindustrial of Passion Fruit Syrup, SCOR

Abstract: Passion fruit syrup is one of a typical and famous fruit as the souvenir in the form of processed products

from North Sumatra Province, especially Medan City. Nowadays, the sustainability of processed products of

passion fruit syrup is facing an increasingly competitive market. It is therefore necessary to measure the

performance of a superior supply chain supported by the procurement of raw materials that are managed

effectively and efficiently. Supply chain performance is an indicator of the success of agroindustry companies

in running their business processes. Performance measurement of agroindustry supply chain is needed to

control and to determine the performance position of agroindustry produced. The purpose of this study was

to identify and analyze the conditions of the supply chain of passion fruit syrup agroindustry and to measure

the supply chain performance of passion fruit syrup agroindustry in North Sumatra Province. The method for

analyzing the conditions of the supply chain of passion fruit syrup agroindustry used a long-term relationship

approach. To measure the performance of the agro-industry supply chain, the Supply Chain Operation

Reference (SCOR) and AHP approach were used. The results showed that the supply chain performance of

passion fruit syrup agroindustry in North Sumatra Province was 76.90% and categorized medium indicating

that coordination among actors in the supply chain has not been well established.

1 INTRODUCTION

Passion fruit (passifloraceae) is one of the strategic

commodities. Its use as a raw material makes passion

fruit syrup has nutritional value and rich in vitamin

C which is beneficial to human body health. This

plant grows in a rough area and widely found in Karo

regency of North Sumatra Province which is famous

as horticulture center with the clarity of climate and

fertile soil, so it is potential for the development of

fruit-based agro-industry. Up to this present time,

passion syrup has become a distinctive commodity

(trade mark) as the fruit of visitors from Medan City.

Passionfruit syrup agroindustry has the potential

to be developed and is one type of supply chain

systems that is very interesting to study. Also, it is

able to present the supply chain of agroindustry

widely because it involves multi-stakeholders

(farmers, collectors, processors, and retailers).

The preliminary survey shows that coordination

among actors in the supply chain of passion fruit

syrup is not well established due to the unfavorable

flow of information and communication regarding the

price and quality of the desired fruit of agroindustry.

This is caused by the collecting parties never

informed to the farmers regarding the standard of

fruit quality desired by agro industry. Beside, the

quality and quantity issues are also a problem where

collectors often can not supply passion fruit to the

industry in accordance with the number of orders. The

collectors do not really care about it because they are

not only supplying fruit to the industry but also out of

Brastagi City and traditional markets with much

lower quality standards and higher prices than the

passion fruit juice industry. If the passion fruit is not

accepted by the juice industry, the collectors sell to

traditional and modern markets with a larger margin.

Chopra and Meindl (2004) states that supply

chains are companies that work together to create and

deliver a product into the hands of the end user. In

order to fulfill the consumer's wishes, one way that

can be applied is by applying supply chain

management that is coordination and control of all

activities in the supply chain. According to Lambert

230

Kodrat, K., Sinulingga, S., Napitupulu, H. and Hadiguna, R.

Performance Measurement in the Agroindustrial Supply Chain of Passion Fruit Syrup in North Sumatra Province.

DOI: 10.5220/0010041002300239

In Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology (ICEST 2018), pages 230-239

ISBN: 978-989-758-496-1



et al (1998), customer satisfaction can be realized if

there is coordination and collaboration including the

flow of goods, money and integrated information

among those actors in the supply chain, sending them

on time and with good quality.

From the above conditions, it is necessary to

improve coordination among supply chain actors so

that the purpose to satisfy customers can be achieved.

According to Pujawan (2005), the spirit of

coordination must be based on the realization that the

strength of a supply chain depends on the strength of

the elements in it. A healthy agroindustry does not

mean anything if its suppliers can not provide quality

and timely raw materials. Coordination and

collaboration in the supply chain can be achieved if

there is a long-term relationship. Here, the long term

understanding is not regarding the emphasis on the

length of the relationship that has been established,

but more emphasis on the desire to establish

relationships in the long term among supply chain

actors (Ganesan, 1994).

Challenges and business problems in the agro-

industry sector have also been found in applying

supply chain management (Vorst, 2006). The

emergence of problems of agro-industry supply chain

management is caused by the characteristics of

agricultural commodities, namely: a)perishable,

b)bulky and c)seasonable and d)quality varies. Those

doers throughout the supply chain are from farmers

as suppliers, sales as suppliers, freight services as

third party logistics, manufacturing industries as

manufacturers, finished product delivery services,

distributors and retailers must take into account the

main characteristics of the agricultural commodity .

With a more effective and efficient supply chain

management application, it is expected to improve

the coordination among supply chain actors in the

passion fruit syrup agroindustry in Medan City,

especially in the flow of information. If the

performance of the supply chain is good, of course,

the purpose of the supply chain to satisfy the desires

of consumers can be realized and will have a high

competitiveness that can ultimately provide benefits

to each of the supply chain actors. It is therefore

important to assess the performance of the supply

chain to determine the current level of performance

and be able to identify remediation solutions that can

be made to improve the performance of the upcoming

supply chain.

2 RESEARCH METHODOLOGY

2.1 Location of Research

The research was conducted in Brastagi City (as

passion fruit horticulture center and passion fruit

extract) and in Medan City as production and

marketing center of passion fruit syrup agroindustry.

The location of the study was chosen purposively

with the consideration that the location is a passion

agro-industry center.

2.2 Reseach Method

This research method used descriptive observational

technique. Configuration of supply chain of passion

fruit syrup was analyzed through APO (Asian

Productivity Oganization) approach which sees the

four aspects of network structure, business process,

resources and supply chain management so that the

objective of supply chain model of passion fruit syrup

agro industry is known. Measurement of supply chain

performance with SCOR (Supply Chain Operation

Refference) approach was used to analyze the

performance of supply chain members in each

performance matrix. The actual value of the supply

chain matrix was combined with the AHP weighted

results obtained by organizing expert opinion. Supply

chain value- added analysis is needed to see the

continuity of the supply chain calculated through the

Hayami value-added mathematical model in the PT X

processing section which has a high supply chain

performance. Supply chain of passion fruit syrup as a

system is able to integrate supply chain players from

suppliers to retailers (upstream-downstream).

2.3 Sample Determination Method

Determination of respondents in this study was done

purposively. Respondents in this study were farmers,

suppliers, agroindustry (syrup and syrup) and passion

fruit syrup retailers. The number of respondents in the

supply chain were 7 farmers, 5 suppliers, 3 extract

agroindustry, 7 syrup agroindustry and 6 retailers.

2.4 Method of Collecting Data

The phases of data collection are aimed to collect

information on respondent's identity and perception

about post harvest process, fruit and product quality,

sales data, stock of material and finished product and

performance of agroindustry actors. The information

was obtained from the questionnaire distribution, and

then it is processed in order to be interpreted. The data

Performance Measurement in the Agroindustrial Supply Chain of Passion Fruit Syrup in North Sumatra Province

231

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obtained will be used for the analysis of current

conditions, measuring the performance of the

marking syrup agroindustry supply chain and

calculating the added value and conducting the

assessment of its suppliers.

2.5 Instrument Validation

The initial step before the actual pretest is done by

distributing the initial questionnaires and interviews

to several respondents. From the interview, some

statement items or questions must be changed

regarding the structure of the sentence. Furthermore,

a questionnaire was conducted to determine the level

of validity and reliability of the questionnaire as a

means of measuring the research.

2.5.1 Validity

Questionnaires can be regarded as a good measuring

tool if the questionnaire is able to demonstrate

conformity with the object to be measured. Validity

shows the accuracy and appropriateness of a

measuring instrument in performing its measurement

function. The result of the research is valid if there is

similarity between the data collected with actual

reality so that the data collected can represent the

population under study. The validity of the

questionnaires was tested using item analysis

techniques, that is knowing consistency between the

item scores with the overall score. Consistency can be

seen in the correlation coefficient between each item

with the overall score. Validity test is done by using

Pearson Product Moment correlation technique with

equation as follows:

r x y = (1)

Remarks

r x y = correlation between items item with total

score of all items

x = value scores on each question or statement

from all respondents

y = total score of all questions or statements of all

respondents

n = sample size

The significance test is done by t test (5%

significance level) with the formula:

t =



(2)

d f = n-2 (3)

Remarks :

n = sample size

r = correlation between item items with total score of

all items

The instrument question item is valid if the t-count

is greater than or equal to t-table, and vice versa. In

this study, the calculation of validity is fully assisted

with SPSS program version 19. Validation is done to

prove that the design results of this supply chain

performance measurement feasible to be applied in

the company. The validation technique used in this

research is face validity technique, that is asking for

opinions from people who have knowledge about the

problem and can assess whether the theory underlying

conceptual model of design of supply chain

performance measurement system is correct and

acceptable.

2.5.2 Reliability

Reliability measurement is aimed to show the

stability and consistency of the measuring instrument

(questionnaire) in measuring the concept to be

measured. Reliability indicates the extent to which a

measuring instrument is reliable. If a questionnaire is

used twice to measure the same symptoms and the

measurement results are relatively consistent then the

questionnaire can be said to be reliable, in other

words the reliability of the consistency of the

measuring instrument (questionnaire) in measuring

the concept to be measured. The high reliability of a

measuring instrument is shown by a number called

the reliability coefficient. At this stage, reliability

testing was performed during the initial data

collection of 30 respondents based on the rule of

thumb popularized by Roscoe (1975) using

Cronbach's Alpha technique (Sinulingga, S., 2011).

The Cronbach's Alpha formula is as follows :

)

(

k

(1-

) (4)

Remarks:

Ri = reliability value

ΣSi = the number of variance score of each item

St = total variance and k = number of items









))()()([

2222

YYnXXn

YXxyn

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3 PROCESSING METHOD

3.1 Identification of Supply Chain

Agroindustry of Passionfruit Syrup

The supply chain of passion fruit syrup agroindustry

is identified by descriptive-qualitative method

supported by the opinion of practitioners, field

observation and literature study. The identification of

the supply chain of passion fruit syrup is adapted from

the method of development of supply chain according

to APO (Asian Productivity Organization) modified

by Van der Vorst (2006) as can be seen in Figure 1.

This supply chain identification approach can

describe supply chain through four main elements ,

that is:

1. The chain structure describes the scope of the

chain and the role of chain members and the

agreements that make up the chain.

2. The business process chain is a series of structured

and scalable business activities to produce a

certain output for consumers.

3. Network and chain management describes

coordination to carry out processes in the supply

chain by members.

4. Chain resources are used to produce products and

deliver them to consumers.

Figure 1. A frame of Supply Chain Analysis (Van der

Vorst, 2006

3.2 Analysis of Supply Chain

Agroindustry of Passionfruit Syrup

The analysis of supply chain conditions is done with

a long-term relationship approach using the "Likert"

toolkit consisting of three levels or categories. Scores

that exist on each question or indicator will be

summed to produce a cumulative score of each

respondent.

This analysis is supported by an assessment or

evaluation of supply chain conditions using a long-

term relationship approach (satisfaction, trust,

communication, dependence and commitment) based

on the opinions of selected respondents involved in

supply chain of passion fruit syrup agroindustry,

namely farmers, suppliers, agroindustry and

passionfruit syrup agroindustry ss well as retailers.

Interview results of each variable on each supply

chain node is then grouped into three classes based on

the cumulative score obtained. Classification of long-

term relationship variables in this study can be seen

in Table 1 below:

Table 1: Classification of long –term relationship variable

Variable 1 2 3

Satisfaction Not-satisfied Satisfied

Very

Satisfied

Trust Not Trust Trust Trust

Communication

Bad Medium Good

Dependency

Low Medium High

Commitment

Low Medium High

3.3 Performance Measurement of

Passionfruit Agroindustry

Measurement of supply chain performance follows

SCOR 11 model that is standard guideline that can

assist company in evaluating performance through

identification and calculation of supply chain

performance matrix (Kasi 2005). The SCOR model is

formulated and formed into four levels of AHP

decision hierarchy, namely business processes,

performance parameters, performance attributes and

performance matrices that can be seen in Figure 2.

The business process consists of planning,

procurement, cultivation, processing and delivery.

Performance parameters consist of value added, risk

and quality, while the description of attributes and

performance matrices are shown in Table 2.

Measurement of supply chain performance is a

performance measurement system that aims to help

the monitororing of the running of supply chain

management in order to run properly, efficiently and

effectively. With the performance, measurement os

achievement will be known, the problem can be

known and can be searched for solution so that

problem is not widespread. An integrative

performance measurement system includes farmers,

suppliers, agrindustries and retailers with the aim to

satisfy consumers.

Performance Measurement in the Agroindustrial Supply Chain of Passion Fruit Syrup in North Sumatra Province

233

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Table 2: Atribute and Matrixof chain flow performance of

passion fruitsyrup Agroindustry

Performance

atribute

Definition Performance

Matrix

Reliability The performance of

company in

fulfilling the

demand of

consumers in

accordance with

what they want to

add the trust of

ers.

Order fully

delivered

Timely

delivery

Best goods

condition

Responsivity The time required

by the company to

fulfill the demand of

consumers.

Cycle time to

get raw

material

Cycle time of

rocessing

Agility The ability of

supply chain in

giving response due

to the change of

market in order to

win the market

com

etitiveness.

The ability of

the change of

production

capability

Fleksibility of

production

Cost The required cost

to run supply chain

Processing

cost

Maintenance

cost

The first stage is to make the design or structure

of chain performance measurement of Hierarchical

structure of supply chain of passion syrup with SCOR

approach in this research can be seen in Figure 2.

Expert opinion is required to clarify the model and

weighting priorities against the hierarchy constructed

using α of 0.5 in accordance with the AHP technique.

The use of assessment techniques in AHP is more in

line with ambiguous human linguistic languages so

that decisions are obtained in accordance with real

situations (Dargi et al, 2014). Expert judgment results

translated through the consistency index (CI) in the

study was <0.1. This weighting result is then

combined with the actual value of the supply chain

matrix so that the supply chain performance is

obtained. Flow chart measurement of supply chain

performance of passion fruit syrup agro industry is

shown in Figure 3.

Figure 2: Hirearchy of Scoring of Matrix of Measurement

of Supply Chain Performance of Marquisa Agroindustry

Figure 3: Flow Diagram Model of Measurement of

Performance of Supply Chain of passion fruit

syrupAgroindustry

3.4 Value Added Analysis

In every business, added value is required for the

investor to earn an attractive rate of return, that is

exceeding the level of income on a secure investment

such as bank deposits or other investments. The

distribution of added value or profit throughout a

supply chain must be fair and agreed upon by all

members of the supply chain to maintain cooperation

and sustainability (Li and YuanYuan, 2005). The

added value is the difference from the output value to

the material cost and the input processing. The

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calculation of added value in the supply chain of

passion fruit syrup agroindustry from upstream to

downstream is done by Hayami mathematical method

(Hayami et al., 1987). The Hayami value-added

technique can be seen in Table 3. The added value is

an increase in the value of a commodity as it adds

further input or processing in a production process

(Coltrain et al. 2000). Equitable distribution of value

added to supply chain members is a special attraction

for investors to join the business (Hidayat 2012).

Table 3: Calculation of Value-Added with Hayami

Method

No Variable Value

Output, Input dan Harga

1 Output (ltr) (1)

2 Raw Material (Kg) (2)

3 Direct Labor (HOK) (3)

4 Conversion Factor (4) =(1) / (2)

5 Coefisient of Direct

Labo

(HOK/ltr

month)

(5)= (3) / (2)

6 Output Price (Rp/ltr ) (6)

7 Labor Wage (Rp/HOK) (7)

Acceptance and Profit

8 Raw material price

(Rp/ltr)

(8)

9 Other inputs price

(Rp/ltr)

(9)

10 Output value (Rp/ltr) (10) = (4) x (6)

11a Value-added (Rp/ltr)

Nilai tambah (Rp/Kg)

Nilai tambah

(

(11a) = (10)-(8)-

(9)

11b Value-added ratio (%) (11b)=(11a) /

(10)x(100)%

12a Dierct Labor Income

(Rp

month)

(12a)=(5)x(7)

12b Direct Labor market (%) (12b)=(12a) /

(11a)x100%

13a Profit (Rp/month) (13a) = (11a) –

(12a)

13b Profit Level (%) (13b) = (13a) / 10

x 100%

Remuneration of production

factor owne

14 Margin (Rp/month) (14) = (10) – (8)

a Direct Labor income (%) (14a) = (12a) /

(

)

x 100

b Other input contribution

(

)

(14b) = (9) / (14) x

100%

c Company profit (%) (14c) = (13a) /

(

)

x 100%

4 RESULTS AND DISCUSSION

4.1 Overview of Regional Research

Karo district with capital Kabanjahe is one of the

regencies in North Sumatra Province. This district has

an area of 2,127.25 km2 and a population of

approximately 500,000 inhabitants. The district is

located in the Karo highlands, Bukit Barisan North

Sumatra, 77 km from Medan City.

Brastagi Disitrict is as one of the districts located

in Karo District, North Sumatra Province. The area of

Karo Regency is divided into 17 districts. Berastagi is

the second largest city in the highlands of Karo after

Kabanjahe Town. In addition, it is one of the popular

tourist cities in North Sumatra Province, also as a

horticultural product center.

The economic activities of the people in Berastagi

are centered on vegetable, fruits and tourism

production, which is one of the largest vegetable and

fruit producing centers in North Sumatra Province,

even exported to Singapore and Malaysia.

Figure 4 Map of Karo District

4.2 Identification of Supply Chain of

Passionfruit Agroindustry

The identification of supply chain of passionfruit

agro-industry is descriptively adapted from the

method of supply chain development according to

APO which is verified by Van der Vorst (2006)

Figure 1. In Figure 5, it can be seen the flow pattern

of supply chain of passion fruit syrup agroindustry

where the flow of goods flows from upstream to

downstream that is from farmers and suppliers that

provide raw materials for production at the level of

extract agroindustry and passion fruit syrup

agroindustry. After the passion fruit syrup product,

the flow of goods leads to the final consumer through

the retailer. The flow of money is from downstream

to upstream and the information flows from upstream

to downstream and vice versa. This is the way of how

the explanation of the flow of goods, money and

Performance Measurement in the Agroindustrial Supply Chain of Passion Fruit Syrup in North Sumatra Province

235

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information of each stakeholder agro-industrial sake

of passion fruit syrup in Medan.

Figure 5. Flow pattern on supply chain of passion fruit

syrup agroindustry

Remarks:

= Goods Flow

= Money Flow

= Information Flow

4.3 Supply Chain Analysis of

PassionFruit Agroindustry

In the supply chain of passion fruit syrup agroindustry

there are three kinds of flow that must be managed

namely, the flow of goods, money and information.

By analyzing supply chain conditions using long-

term relationship variables (satisfaction, trust,

communication, dependency and commitment) can

be seen whether coordination is running smoothly or

is still constrained. Long-term relationships can

generate benefits including improved market access

and reliable market information (Low, 1996). The

results of supply chain analysis of passion fruit syrup

agroindustry can be seen in Table 4 below:

Table 4: Average value of long-term relation variable

Supply

Chain 

Average score Variable

Satisfacti

on Trus

Communi

cation

Depend

ency

Commitme

PT –

PM 1,93 2,27 2,47 2,27 2,50

PM –

AG 2,40 2,40 2,20 2,80 2,60

AG –

PCR 2,57 2,85 2,14 2,28 2,00

PCR –

AG 2,00 2,33 2,50 2,33 2,67

AG –

PM 1,85 2,28 2,14 2,42 2,00

PM –

PT 2,00 1,80 2,20 2,20 2,20

Total 12,75 13,93 13,65 14,30 13,97

% 18,58 20,30 19,89 20,84 20,36

Source: Primary Data Processed, 2015

From the result of average calculation, all

variables can be known regarding the highest score

and percentage up to the lowest.in the following

graphic, it can be seen the percentage and score of

average variable.

Graphic 6. Average score of long term relation variable

4.4 Measurement of Supply Chain

Performance

Supply chain system is one type of complex system.

The characteristics of a complex system are: a). High

uncertainty, b) influenced by time, c) involving

multiple parties and conflicts of interest. The supply

chain system of agro-industry can be identified and

analyzed and measured by looking at it as a complex

system, because the three conditions required as a

complex system have been met.

Principles in measuring the supply chain of

passion fruit syrup agroindustry are integration,

coordination and collaboration in order to optimize

the function of the three physical flow, information

and capital. The urgency of supply chain

measurement is to ensure the sustainability of passion

fruit supply so that passionfruit syrup can be

produced at the request of the customer and

passionfruit farmer as the supplier obtains benefit in

the form of competitive passion sale price.

Measurement of supply chain performance in this

research using scor 11 model which describes supply

chain in three performance attributes namely

reliability, responsiveness and asset. Each of these

performance attributes has several performance

indicators. The results of each of these performance

indicators will be known to what extent the

achievement of supply chain performance of

passionfruit agroindustry using internal

benchmarking so that it can be given solution to

improve supply chain performance in the future.

The underlying scor as a model for measuring the

performance of the supply chain is the ability to

analyze supply chains within a systematic framework,

improve communication among supply chain

members, and evaluate and build more efficient

supply chain models (hwang et al. 2008 and

netheginia et al. 2013). The designed performance

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measurement models consist of business processes,

performance parameters, attributes and supply chain

performance measurement matrices, formed in the

hierarchy of ahp decisions can be seen in figure 7 and

the result of pergormance measurement in table 5.

Table 5: Scoring result of performance measurement of

supply chain of passion fruit syrup agroindustr

Supply

Chain

Doers

Performance

(%)

Remarks

Farmers 75,36 Medium

Collectors 82,99 Good

Semi-

products

Aid i

81,64 Good

Agroindustry

Dewi

79,72

Medium

Gundaling 69,43 Low

Brastagi 69,30 Low

GK 82,13 Good

Sarang

Tawon

*82,63 Good

Pohon

Pinang

82,24 Good

Piramid

Unta

82,55 Good

Retailer 77,68 Medium

Average 78,69 Medium

Figure 7. Hirearchy of Scoring of Matrix of Measurement

of Supply Chain Performance of Passion Fruit Syrup

Agroindustry

4.5 Calculation of Added Value

The calculation of added value is done only on the

agronomic company which has the highest

performance value among the 7 passion fruit syrup

agroindustry companies (82.63) available and

hereinafter referred to as PT. X can be seen in Table

Table 6: Calculation of Value-Added with Hayami

Method

No Variable Value

Output, Input dan Harga

1 Output (ltr) 12.500

2 Raw Material

(

25.000

3 Direct Labo

(

HOK

)

3.120

4 Conversion Facto

0,5

5 Coefisient of Direct Labor

(

HOK/ltr

month

)

0,1248

6Out

ut Price

(

/ltr

)

625.000.000

7 Labor Wa

(

/HOK

)

45.000.000

Acceptance and Profit

8 Raw material price (Rp/ltr) 125.000.000

9Other in

uts

rice

(

/ltr

)

75.000.000

10 Out

ut value

(

/ltr

)

312.500.000

11a Value-added (Rp/ltr)

Nilai tambah (Rp/Kg)

112.500.000

11b Value-added ratio

(

)

12a Dierct Labor Income

(Rp

month)

5.616.000

12b Direct Labor market (%) 5

13a Profit

(

/month

)

106.884.000

13b Profit Level

(

)

34,202

Remuneration of

roduction factor owne

14 Ma

gin (Rp

month) 187.500.000

a Direct Labor income (%) 3

b Other input contribution

(%)

x 1000

c Company profit (%) 57

Based on the calculation of the added value of PT

X, the ratio of value added 36 and the profit rate

obtained is 34.2%. This added value ratio is low,

which can be affected by the low conversion factor

due to the quality of human resources. Factor

conversion of raw materials into low products such as

high waste production and low productivity of the

factory. Improved value added can be done by

increasing the productivity of factory and labor

supported by machine revitalization and

improvement of human resource quality. The amount

of value added in the processing part occurs because

of the many additional inputs and processes on the

main raw material. This is in accordance with

Setiawan (2009) that the increase in added value can

occur due to the introduction of input or increasing

the value of prices or processes.

4.6 Suplier Selection

From the analysis of supply chain performance

above, it can be concluded that there is an upstream

supply chain problem that is the supply of raw

material which is not in accordance with keingginan

Performance Measurement in the Agroindustrial Supply Chain of Passion Fruit Syrup in North Sumatra Province

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or agro-industry standard, so that the selection of

potential suppliers become alternative solution for the

improvement of supply chain performance on passion

fruit syrup agro industry. This is in accordance with

the opinion of Hou and Huang (2002) stating that the

successful implementation of SCM was first

determined by the supplier selection strategic

decision. Supplier selection is one way that can be

taken to improve supply chain competitiveness (Lee

et al., 2001; Main et al., 2011). From supplier

selection result, it is obtained supplier 2 that has the

highest value, can be seen in Figure 8.

Figure 8 Supplier Selection

5 CONCLUSIONS AND

RECOMMENDATIONS

5.1 Conclusion

1. In carrying out the supply chain activities of

passion fruit syrup agroindustry, the coordination

among supply chain actors is still not well

established in the flow of information on the

nodes of agro-industry-suppliers and suppliers-

farmers

2. The supply chain performance of passionfruit

agro-industry in North Sumatera Province is

categorized moderate, with average achievement

of 9 performance indicators (performance matrix)

consisting of: full delivery order, delivery

accuracy, perfect goods condition, cycle time to

get raw material, Processing cycle time, flexibility

of production speed, ability of change of

production speed, processing cost and

maintenance cost is 76,90%.

5.2 Saggestion

Some suggestions that can be given based on the

results of this study are:

1. To improve the coordination of the supply chain

of passionfruit agro-industry in North Sumatera

Province, especially on the flow of information,

each supply chain should improve the

coordination, especially at the supplier-supplier

node, in order to fulfill the consumer's desire to

create a quality, cheap product and fulfillment

time Fast and precise orders.

2. To improve the performance of the supply chain

especially in order to fulfill the order of

consumers to be more timely and with good

quality agroindustry should use fewer suppliers

with optimal performance or contract with

potential suppliers.

3. This performance measurement model can be

applied to other agro-industries by adjusting the

performance measurement matrix.

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