Supply Chain Management Analysis using SEM Method in Keripik tempe Industry

Abstract

Small Medium Enterprise (SME) gives main contribution to Indonesian’s economic development. Keripik tempe industry in Sanan, Malang is one food industry and one of SME which has to improve its competitivess in order to raise its profit, through the development of Supply Chain Management (SCM). However, the implementation of SCM in SME has many difficulties such as the material supply, buying power, and equipments. The research aims is analysing relationship between variable of material supply, buying power, and equipment to the performance of SCM by analysing the flexibility of shipment and logistic cost. Deployment of questioners was conducted to 200 owners of keripik tempe industries. Data was analyzed by Structural Equation Modeling (SEM). The result indicated that owners of keripik tempe industries should give attention to material supply to achieve best performance of business and SCM. Increacement of material supply can be solved through good relationship between supplier and involved in business cooperation.