SUPPLY CHAIN MANAGEMENT

STUDY CASE : SUPPLY CHAIN STRUCTURE OF ORGANIC RICE IN

TANI SEJAHTERA FARM
created to fulfill the task subject of Rekayasa Rantai Pasok Produk Pertanian
academic year 2016

Group 5

Hana Rianti Nurfaridah

150610130048

Indriani Nugrahwati

150610130049

Sintia Afriyanti

150610130051

Nurul Fazri

150610130121

AGRIBUSINESS B

DEPARTMENT OF AGRIBUSINESS
FACULTY OF AGRICULTURE
PADJADJARAN UNIVERSITY
Bandung-Sumedang Highway Km 21 Jatinangor 45363
28th March 2016

Supply Chain Management

Study Case : Supply Chain Structure of Organic Rice in
Tani Sejahtera Farm

Company Profile

Doc : http://tani-sejahtera.blogspot.co.id/
Tani Sejahtera Farm is a business company in agriculture. The business
company was founded by Mr. Sugeng Teguh Santoso, who is a lawyer. These
agricultural businesses started from a hobby and then continued into a profitmaking business unit. Tani Sejahtera Farm consists of two locations, there are the
location of offices and plantations. Office location is in Kemang Village, Kemang
Subdistrict, Bogor District. The fields of plantations is in the Candali Village,
Rancabungur Subdistrict and Pabuaran Village, Kemang Subdistrict, Bogor
District. In 2011, these enterprises began to grow annual plants woods such as
mahogany and teak, but until now the results have not been harvested.
Cultivation system that is applied to all commodities, namely organic
systems. This system has been developed from inception Tani Sejahtera Farm. The
reasons for using an organic system is more natural, healthy, and inexpensive. So
organic system is easy to do. Fruit commodities that cultivated organically is
guava and Jamaica cashew, while for organic vegetable crops such as kale,
eggplant, cayenne pepper, and spinach. Organic rice is on of a crop that is grown
and cultivated. TSF has a wide variety of organic rice. For example, from the
color can be divided into black rice, red rice, brown rice and white rice.
At this time, in order to commodities organic rice, Tani Sejahtera Farm is a
business entity engaged subsystem on farm until the downstream subsystem.
These enterprises cultivate organic rice, sort, pack, label to market organic rice to
retailers of organic products and also sell directly to the final consumer. Marketing
is done through exhibitions and online.
Supply Chain Structure

The structure of organic rice supply chain can be analyzed through the
supply chain members and the role of each member as well as elements contained
in the supply chain such as products, markets, stakeholders, and the competitive
situation. Supply chain members are actors who are members or engage in
product flow, financial flow, and the information flow. Consumers end into one
piece in the structure of the supply chain for the end consumer is also involved in
the flow of product, financial, and information. The structure of the supply chain
of organic rice in Tani Sejahtera Farm can be called a supply chain network.

Supply chain of organic rice in Tani Sejahtera Farm is network supply chain.
Members of the supply chain is made up of 11 partner from farmers group. Tani
Sejahtera Farm, two retail organic product classified as retail organic product and
end consumer. The organic products retailers are MM Organic and Vegatable, and
Ming Organic and Vegetarian Foods.

Partner Farmers do seeding, land preparation, planting, maintenance and

harvesting the organic system.

Tani Sejahtera Farm is business entity that acts as an intermediary between the
farmers and the retail product patners and intermediaries between the farmer
and end consumer. Tani Sejahtera Farm do organic rice cultivatiton,

transporting, sorting, packaging, labeling and marketing of organic products in

retail and end consumer as well as agricultural training.

Retailing organic products aims to meets and satisfy the needs of the end
consumer. There are two retail of organic products are MM Organic and

Vegetable, Ming Organic and Vegetarian Foods.

End Consumer is a member of the supply chain of organic rice that last and be
the ultimate goal of supply chain. End consumer to receive and buy organic
rice from the previous supply chain members.
Supply Chain Management
Tani Sejahtera Farm very concerned about supply chain management to

maintain the quality of the products they produce. The quality of organic rice
produced is assured. Pesticide residue-free, white, clean, fluffier, and enjoy tasty
is the quality of this supply chain. This organic rice products have been certified
by authorized bodies, namely LIPI that the product does not contain pesticide
residues. This product has not received due process of acquiring ISO organic
complex that has not been done. All members of the supply chain must maintain
the quality of the product well. Target market organic rice products are generally
intended for the domestic market. This is because the productivity of low organic
rice cultivation. Target markets can also be seen from the efforts of market
segmentation, integrated quality, and chain optimization. Organic rice market
segmented in the upper middle class.
For marketing Tani Sejahtera Farm does not define specific criteria for
retailers who will be a partner to sell its products. While the organic products
retail has some criteria in selecting suppliers as its partners, there are:
The supplier must attach a certificate or certificate of residue-free organic

pesticide.
The quality of organic rice products according to the agreement.
Trustworthy and willing to accept the complaint and fix it.
In the agreement on the system of cultivation, the division of the production

cycle, the selling price of the farmers, and the sales amount of organic rice among
farmers partner with Tani Sejahtera Farm determined by partner farmers. While
the agreement made between Tani Sejahtera Farm with retail in terms of sales
price of organic rice, quality and quantity is not agreed upon in writing.

Transactions system that occur in the supply chain of organic rice is cash
and carry as well as non cash. Transactions conducted by Tani Sejahtera Farm
with partner farmers transactions using cash and carry system. While the non-cash
transaction system used between Tani Sejahtera farm to the retailer.
Capital resources used partner farmers and Tani Sejahtera Farm in the
development of farming comes from private capital and lending relationships. In
assisting the development of organic rice farming Tani Sejahtera Farm utilizes
several technologies that sealer machine and hand tractors. As for the greater
development of this organic rice farming has become difficult because of the lack
of direct support from the government.
Supply Chain Advantages
The advantages of organic rice supply chain Tani Sejahtera Farm are : the
first, Marketing and Supply Chain Clear Goals. The marketing strategy used is
STP (segmentation, targeting, positioning). There are two objectives to be
achieved in the supply chain includes the organic rice market and development
objectives. Goal organic rice market is the domestic market. This organic rice
products intended for consumers who are already aware of the quality of life or
health of individuals and the environment.
Target development is always trying to achieve supply chain are developing
skills, both hard skills and soft skills in the partner farmers to apply organic rice
cultivation technology to be more productive crops. Marketing mix used is 4P
(product, place, price, promotion). Organic products sold are certified free of
pesticide residues from LIPI with 93 / IPH.1.04 / KS.08 / 2008. The price offered
Tani Sejahtera Farm also vary due to the diversity of products sold. Organic rice is
sold at a price of Rp. 12,000 / kilograms.
The second is that Shaped Structure Supply Chain Network or can be
called A Supply Chain Network. Because the shape of the network, the type of
supply chain combines vertical and horizontal models. Members of the supply
chain consists of eleven partner farmers, Tani Sejahtera Farm, two retail of
organic products (MM Organic and Organic Vegetable and Ming and Vegetarian
Foods), and the final consumer.
The third is the Farmer's Share the Cost Benefit Farmers. Farmer's
share by Kohls and Uhl (2002) is the percentage of the price received by farmers

from the price paid by consumers in exchange for services performed in the farm
produce. The price received by farmers for their crops organic rice Rp. 6,500 /
kilograms. It can be said, the price received quite high.
The fourth one is the existence of Value Added which is the amount of
value added created and acquired the entire supply chain of organic rice. The
added value is measured is the value-added in 2011 due to the amount of output of
farmers and Tani Sejahtera Farm fluctuate so that the data used is data in 2011.
Value-added supply chain Rp. 76.41 million. Tani Sejahtera Farm became a
member of the supply chain of organic rice that gives the highest contribution in
the creation of value-added supply chain of organic rice by 42 percent.
And the fifth is the presence of Inventory Control. Tani Sejahtera Farm
operates a policy of periodic review in replenishing supplies of organic rice in the
warehouse. Implementation of periodic review carried out because there are
fluctuations or variations of organic rice demand from end consumers and retail of
organic products as well as the number of bookings organic rice farmers changing
partners follow the number of farmers' crops partners that are not fixed.
Continuous review Prosperous Farm Farmer did not apply for the retail supply of
organic products want organic rice supplied every month.
References
http://journal.ipb.ac.id/index.php/fagb/article/view/8868
http://repository.ipb.ac.id/bitstream/handle/123456789/58152/H12pns.pdf?
sequence=12&isAllowed=y