Volume 6, Issue 2, February – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Analysis Supply Chain Management Performance

Using SCOR Method in Compressor Distributor
Company at PT. Pola Petro Development
David Sinagaa*, Sugiyono Madelanb, Ahmad Badawib
Operational Management, Magister Manajemen, Mercubuana University, Indonesia

Abstract:- Supply chain management analysis is one of I. INTRODUCTION

the activities required in the supply chain of a company.
PT.Pola Petro Development (PT.PPD) as a distributor of Currently the competition in the business world is so
compressor machines must improve its services in line tight, all companies compete with each other to market their
with complaints from customers such as delays in products with various types of promotions and the best
requested items and goods sent do not match what was service. In an internet age, especially since the world is hit
ordered. This research aims to determine supply chain by the Covid19 pandemic, businesses today lie in how a
performance at PT.PPD by the Supply Chain Operation company is able to create products or services that are
Reference (SCOR) method. The analysis technique used cheaper, more qualified, and faster available compared to its
in this study uses a metric system to assess the business competitors. So that it forces the company to
performance of the supply chain consisting of level 1, improve the performance of its company in order to be able
level 2 and level 3. This research shows that supply chain to provide satisfactory service to all its customers, in other
performance is not efficient because the results of level 1 words the company that can meet the wishes of customers,
metric measurement are Perfect Order Fulfillment then the company will be superior.
(POF) and Order Fulfillment Cycle Time (OFCT) is
below the set benchmark value. The actual POF value Aside from the price, speed of delivery and suitability
was 89.98% under the superior benchmark value of 98% of goods shipped is a factor that is often complained by
and OFCT actual 89 days is below the superior customers. This is also the case with PT. Pola Petro
benchmark value of 60 days. Analysis to find the root of Development(PT. PPD) as a compressor engine sales
the problem using a fishbone diagram, and identify company under the brand Sullair, often get complaints about
solutions to problems that occur. the inseriance of goods sent with demand and delays in
delivery.
Keywords:- SCOR Model, Supply Chain Management,
Fishbone Analysis. Based on data collected from January 1, 2017 to
December 31, 2019, PT. PPD experienced some complains
such as incompatipati an inappropriate item being sent and a
delay in the goods being shipped. Here is a summary of the
mistakes that have occurred in 2017 to 2019.

Tabel 1.1. Late goods data

TYPE OF UNIT QTY LATE QTYORDER

YEAR PERCENTAGE (%)
( UNIT ) ( UNIT )
COMPRESSOR DRYER
2017 13 UNIT 3 UNIT 16 278 5.8%
2018 19 UNIT 9 UNIT 38 317 11.9 %
2019 14 UNIT 2 UNIT 16 297 5.4 %

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TYPE OF UNIT QTY

YEAR DELIVERY REMARKS
COMPRESSOR DRYER

278 UNIT Order type DLQ 1200XHC, but sent type DLQ
2017 3 UNIT 2 UNIT
1200XHHC

Order type WS 3710, but sent type WS3708. Order type

2018 8 UNIT 4 UNIT
317 UNIT SRCG3890WE but sent type SRCG 3890E
Order type voltage motor 6000 VAC, but sent type 380
2019 4 UNIT - 297 UNIT VAC, Type DS-250HWC
Table 1.2. Incorrect goods on delivery

From the table above shows that the problem is not From the explanation above, it can be concluded that
only in the delay of delivery, but in the case of the wrong performance measurement is a measurement action that is
type of goods sent from the factory is also a problem that carried out on various activities in the value chain in the
must be addressed immediately because it results in loss and company. The measurement results are then used as
loss of customer trust to PT. PPD. One way to measure the feedback that will provide information achievements of the
performance of Supply Chain Management (SCM) as a implementation of a plan and the point at which the
whole is to use the SCOR (Supply Chain Operation company requires adjustments to planning and control
Reference) method. SCOR is a reference model of Supply activities.
Chain operations designed by the Supply Chain Council
(SCC). SCOR is able to map part of the Supply Chain series 2.2. Supply Chain Management
of activities in detail. The term Supply Chain Management (SCM) began to
appear in the late 1980s which then began to be widely used
The preliminary study was conducted by conducting in the 1990s. Before that, the company used more terms like
an interview with customers PT.PPD to see how important "logistics" and "operations management" than the terms
the urgency to do research using SCOR. In addition to the SCM (Hugos, 2003). By combining various definitions
interview process, questionnaires will also be distributed to developed by several sources, the definition of Supply Chain
respondents who are key persons in the Supply Chain PT. is obtained as "a network consisting of several companies
PPD, such as sales branch managers and marketing. (including suppliers, manufacturers, distributors and
retailers) that cooperate and engage both directly and
Based on the formulation of existing problems, the indirectly in meeting customer demand, where the
objectives obtained from this research, namely as follows: companies perform the function of material procurement,
the process of transforming materials into semi-finished
1. Measuring the performance of the Supply Chain products and finished products, and distribution of finished
Management division at PT. PPD. products to the end customers. While the definition of SCM
2. Find the cause of performance problems in the Supply by Geraldin, Pujawan, and Dewi (2007) "material flow
Chain Management division at PT. PPD. management is information and financial through a network
3. Provide alternative solutions to the performance problems of organizations (suppliers, manufacturers, logistic
of the Supply Chain Management division at PT. PPD. providers, wholesalers / distributors and retailers) that aims
to produce and deliver products or services to consumers
II. LITERATUR EREVIEW effectively and efficiently".

2.1. Performance Measurement 2.3. SCOR(Supply Chain Operations Reference).

Performance measurement is basically a key factor in According to Pujawan (2005), Supply Chain
developing an organization effectively and efficiently, Operations Reference (SCOR) is a reference model of
because it is supported by better policies or programs on the supply chain operations. SCOR is a process-based model.
resources used in the organization. According to Wahyudi SCOR divides supply chain processes into five processes
(2002) Performance measurement is a systematic description consisting of:
or description of the associated strengths and weaknesses of 1. Plan ( Planning Process), which is a process that
a person or group. According to Simamora (2004) balances demand and supply to determine the best action
Performance measurement is a process used by in meeting the needs of procurement, production, and
organizations to evaluate the implementation of employees' delivery.
individual work. Whittaker and Simons (2000) define 2. Source (Procurement Process), namely the procurement
Performance measurement as a method of assessing process of goods and services to meet the demand.
progress that has been achieved compared to a set goal. 3. Make (Production Process), which is the process to
transform raw materials into products that customers
want.

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4. Deliver (Delivery Process), which is a process to meet industrial and geographic approaches.The objectives of
the demand for goods and services that include order implementing the SCOR model in the company according to
management, transportation, and distribution. SCC (Council 2010) are:
5. Return, the process of returning or receiving product
returns for various reasons. 1. Evaluation of the performance of the supply chain.
2. Can identify gaps of performance.
SCOR is developed and supported by an independent 3. Efficiency in redesigning supply chain network and
non-profit called the Supply Chain Council (SCC). SCC optimization.
institute of prtm consulting agency and McGrath from AMR 4. Enlarge/increase operational control of the core standard
Research. (Robin Todd: 1996). SCC became developed due of the process.
to the formation of a consortium by 70 practitioners from 5. Reporting management and organizational structure are
companies located in the American West. In general, more efficient / faster.
industry practitioners define SCM as a definition of the 6. Equation of competence of team skills in the supply
desired process and measurement between consumer and chain with strategic objectives
supplier. 7. Detailing the game plan for launching (introducing) new
businesses and products
The SCOR model's ability to define the relationship 8. Systematic merging of supply chains that capture the
between the process and what elements are influential in that advantages of the project.
process and the scope covered encompasses all existing
demand elements. SCOR models are based on descriptions For more details can be seen in figure 2.1. about
that occur in the supply chain with inter-organizational, Supply Chain Operation Refrence (SCOR) as below:

Figure 2.1. Level SCOR

2.4. Tools Of SCOR • The Lost Opportunity Measure

There are several tools used in applying the SCOR • The Cancelled Orderd Measure
model to evaluate supply chain performance. The following • The Market Share Measure
is a brief explanation of some of these tools.
2. Fishbone Analysis
1. Gap Analysis Fishbone diagram is one of the methods or tools in
Gap analysis is used when performing level 1 analysis, improving quality. Often this diagram is also called a Cause-
which is to calculate the amount of value of improvement And-Effect diagram. The inventor was a Japanese scientist
(oppportunity) if the target set for each metric can be in the '60s. Named Dr. Kaoru Ishikawa, a scientist born in
achieved. The amount of opportunity for internal metrics 1915 in Tokyo Japan who is also an alumnus of chemical
can be calculated directly. But for customer-facing the engineering At the University of Tokyo. So it is often also
amount of opportunity is calculated using one of the called the Ishikawa diagram. The method was originally
following 3 methods (Bolsstorff, 2006) more widely used for quality management. Fishbone
diagrams are used when we want to identify possible causes

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of problems and especially when a team tends to fall General Manager, Procurement Manager, Delivery
thinking on routines (Tague, 2005, p. 247). Fishbone Supervisor, Warehouse Supervisor, Inventory Control of 1
diagrams will identify the various potential causes of a person each, Division Manager as many as 2 people, Branch
single effect or problem, and analyze the problem through Marketing Manager 6 people, Procurement Admin as many
discussion and brainstorming sessions. as 4 people and Sales Marketing as many as 18 people.

In the analysis process level 3. SCOR model uses Interview data to 20 resource persons and secondary
additional tools, namely fishbone analysis. In Bolsstorf data, namely delivery data from 2017 to 2019 from the
(2006) it is explained that fishbone analysis is used to trace delivery section that becomes the basis of data processing in
the root cause in one of the processes (plan, source, make, the research needed for variable calculation in SCOR
deliver, return) with the lowest performance based on the method.
evaluation results of level 2. Fishbone analysis or causal
diagram is depicted in the form of fish bone diagram as seen 3.2. Analysis Method and Processing Data
in Figure 2.2. below. Data management and analysis methods needed to
make it easier for researchers to manage data, and create the
targets needed in research. Both primary and secondary data
that are successfully collected, the data will be separated
from quantitative data in the form of numbers, or qualitative
data is sorted from quantitative data and then ready to be
analyzed. Data analysis techniques used to manage and
analyze the data that has been collected consists of stages of
data management. Calculations used using standard
calculations listed in the performance of SCOR are as
follows:

2.4.1. Perfect Order Fulfilment ( POF )

POF is the percentage of orders sent complete and in
time in accordance with customer demand and goods sent do
not haveeven quality. How to determine POF is as follows:
Figure 2.2. Fishbone diagram

III. RESEARCH METHODOLOGY

3.1. Design and Research Type

This research is a discovery due to delays in the
delivery of compressor engines that are analyzed and found
potential causes, then control and monitoring of the
variables so that it can properly reduce the delay of delivery
and incompatipati something sent to the customer's order. 2.4.2.Order Fulfilment Cycle Time(OFCT)
Data created by Supply Chain Operation References
(SCOR) approach is poured in the form of Standard OFCT is the amount of time (days) required from the
Operating Procedure (SOP) in each line. order received until the product is received at the customer's
place. The amount of OFCT value can be measured from the
This type of research will be done with descriptive average number of days needed, ranging from customers
methods. The data used is qualitative data, where in the ordering goods to goods to the hands of customers.
research process used includes an overview of research
objects and problems that occur in the research object and 2.4.3.Cost OfGood Sold (COGS)
based on and mapping the SCOR 11.0 process from level 1 COGS is the direct cost for materials and the cost of
to level 3. wages needed to make a product. COGS is defined as The
Cost of Sales.
The population in this study is a number of employees
who are directly involved in the process of company 2.4.4.Cash To Cash Cycle Time (CTCCT)
activities that began from the time the order was received This metric (Table 1) measures the speed at which the
from the customer, ordering goods to the factory, the supply chain converts inventory into money. The shorter the
process of receiving goods from the factory to the PT time it takes, the better the supply chain. Good companies
warehouse. PPD until the process of shipping goods from have short cash-to-cash cycles. Three (3) components,
the warehouse PT. PPD to customer. Employees who are CTCCT is calculated as follows:
directly related to the activities that are being conducted
research amounted to 36 people consisting of: Director,

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2.4.5.Gap Analysis integrated from production or assembly, fabrication,

Gap analysis is used when performing level 1 analysis, distribution and after-sales service of marketed products.
which is to calculate the amount of value of improvement or The company offers solutions to air and gas needs problems
opportunity if the target set for each metric can be achieved. for all companies that require wind or gas energy in their
company's operations. PT.PPD was established in mid-2005
2.4.6.Fishbone Analisys which aims to coordinate thoroughly to three companies
Fishbone analysis is carried out by gathering several distributors of compressor machines and beverage packing
supply chain experts who have adequate experience and machines that have been established first.
expertise regarding problems occurring in the performance
of the supply chain, as well as providing views and opinions Because the company is engaged in distributors, in its
in identifying all considerations why the problem occurs. operation PT PPD does not conduct the production process.
PT PPD is only a company that sells products produced by
IV. RESULT AND DISCUSSION outside companies and marketed in Indonesia. As an
overview of the supply chain of PT. PPD can be seen in
4.1. Overview Of Supply Chain at PT.PPD figure 4.1. below.
PT. Pola Petro Development(PT. PPD) is an air and
gas compressor service provider in Indonesia, vertically

Figure 4.1. Work Flow Supply Chain Management PT. PPD

Supply chain in PT. PPD begins with the request to 4.2. Analysis Performance Supply Chain Management
purchase machines from the marketing department to the PT.PPD.
procurement department both for stock and goods that are in Analysis and evaluation of supply chain performance
accordance with the customer ordered directly based on the in PT PPD is conducted using SCOR Model version 11.0.
purchase order (PO) to the marketing section. The The analysis will be done through several stages or levels
procurement department will make a purchase to the factory that are interconnected with each other. The following is an
according to the goods ordered by the marketing department analysis for each level at PT PPD.
and the marketing department provides information to the
warehouse if the goods ordered from the factory will arrive 4.2.1.Level 1 (Bussines Objective)
at the warehouse at least 2 (two) days before the estimated Analysis conducted at level 1 begins with defining the
goods arrive. After the goods arrive at the warehouse, the company's business objectives. To find out the business
warehouse department provides information back to the objectives of PT. PPD, conducted a series of interviews to
procurement section that the machine ordered has come and several company leaders, namely Division Manager Unit,
the data is immediately entered into the ERP system Division Manager Product Support (Technician
(Enteprise Resource Planning) so that the marketing &Sparepart), Branch Manager Marketing and Warehouse
department also knows that the ordered goods are available Supervisor and obtained answers that the business objectives
in the warehouse. After the machine data is entered in the of PT. This PPD is providing the best level of service to all
ERP system, the marketing department makes a request customers, namely:
through the ERP system to the warehouse to deliver the 1. Provide the best service level to all customers without
machine to the customer. errors and delays in delivery by using delivery

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performance indicators and responsiveness to customer objectives. . For the first business purposes the data
demand. available are Perfect Order Fulfillment (POF) and Order
2. Increase the company's profit (profit) by using indicators Fulfillment Cycle Time (OFCT) and for the second purpose
of supply chain cost and asset management efficiency. the available data are Cost of Goods Sold (COGS) andCash
to Cash Cycle Time (CTCCT) metrics as shown in table 4.1
After knowing the above business objectives, the next below.
step is to measure the metrics on SCOR that fit the business

Table. 4.1. Actual and benchmark data performance measurement

Based on table 4.1. above that the POF metric value in the
actual data is still far below parity, while the main objective After setting the target performance, the next step is to
of the company is a high level of service with a POF target perform a Gap Analysis that aims to calculate the difference
of 98%, this means that the company does not provide a between the actual and targeted conditions. In the Gap
great opportunity for errors in terms of delivery. Similarly, Analysis table that will be presented first determines the
the OFCT metric is still above parity value, which means opportunity. Based on the SCOR Model there are several
that the increase in speed in delivery must be further methods used to calculate the amount of opportunity for
improved. Both of these metrics should be able to be in a POF and COGS metrics. The method chosen to calculate
superior position because both are in line with PT's main POF and COGS metrics in this study was The Lost
business objectives. PPD is providing the best level of Opportunity Measure Method. With this method it can be
service to its customers.The metric for the second business known the amount of opportunities lost to earn certain
objective is to increase the company's profit, with THE income with performance-based POF and COGS at this
COGS metric in the actual data being between parity and time.. The decrease directly indicates an increase in gross
advantage values, while CTCCT in the actual data is above profit or operating profit as seen in Table 4.2. below:
parity value.

Table. 4.2. Opportunity performance measurement

4.2.2.Level 2 supply chain of PT will be presented. PPD, starting from the

In level 2 mapping, each core process in the SCOR process related to the purchase of compressor machines to
Model is displayed in more detail than the company's supply suppliers, warehouse activities to the process of delivery of
chain processes. In the SCOR process there are three major machines received by customers. The mapping done at level
parts of the process, namely planning, execution and enable. 2 is then analyzed all the existing parts and to get the right
In this section, a detailed description of the processes in the information, the author conducts interviews with people who

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know the process in their respective sections. The level 2 Causes of untimely delivery of goods at PT. PPD can
mapping can be seen in the Chart Figure 4.2 Level 2 be traced through delivery and source process which can be
mapping below. seen in table 4.3. below:

Figure. 4.2. Opportunity performance measurement

Table. 4.3. POF and OFCT, delivery & source

In table 4.3. it appears that the POF value process on level 2 analysis. In the level 3 mapping will be explained in
delivery is about 89.98% and OFCT 89 days. While in pof more detail the problems that occur over all activities in the
source by 94% and OFCT 85 days. It can be seen that the source process as seen in Figure 4.17 below. Current
value on the source is slightly better than the delivery. But configuration (as is process). The picture shows the
the cause of the amount of delivery value depends on the management of the process of ordering compressor
source. If the source is problematic then delivery will also machines to the factory until the arrival of goods in the pt
be problematic. But if compared with superior value, both warehouse. PPD consisting of inputs, process elements and
from the source value and delivery still have not reached or outputs.
approached the superior value. To determine the root cause
that occurs in the source process is needed a tool called Fish Based on the results of the interview obtained
Bone, and analysis of the root cause will be done at level 3 information that the most problems in the process elements
in the SCOR method. are sections S2.2, S2.5, S2.8 and S2.16 so that the part will
be analyzed with fish bone diagrams. More detailed
4.2.3. Level 3 explanation of the four source processes in level 2 mapping
Level 3 mapping analysis is done to see more detailed above will be explained in more detail below.
source process, because it has low performance based on

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Figure . 4.3. Level 3 Flow Supply Chain PT.PPD

4.2.3.1. Process S2.2

Figure . 4.4. Fishbone diagram process S2.2

If seen from the fish bone diagram, it can be seen that sales marketing can not directly make a purchase order compressor
machine because it is constrained by equipment that is not available when needed and in terms of methods constrained by the
system that must be done through applications located on the computer. While from the human side, the sales marketing also can
not manage well because there is a relatively long distance difference and this makes a sales marketing there is a sense of tiredness
and cendrung do delay until it is in the office again.

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4.2.3.2. Process S2.5

Gambar . 4.5. Fishbone diagram process S2.5

In the S2.5 process, it is seen that the position of General Manager (GM) causes the long-lasting factor of bookering goods
to pbarik to be longer. This is because each booking document must go through a GM while GM time is always busy with other
affairs for the company.

4.2.3.3. Process S2.8

Figure . 4.6. Fishbone diagram process S2.8

In the process S2.8 factor of errors in ordering goods kepabrik because the order data that has been made by sales marketing
retyped manually by the purchasing admin. If seen from the human side then this is the cause of the error factor because man must
have limited ability that can not guarantee what he did everything without mistakes.

4.2.3.4. Process S2.16

Figure . 4.7. Fishbone diagram process S2.16

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In this S2.16 process, the problem is almost the same In table 4.4. below shows the main problems and
as the S2.5 process, which distinguishes only in the position causes of the problem and proposed improvements offered
of office. If at S2.5 in the position of GM, then in the based on the results of the root cause search using fish bone
process of S2.16 this happens in the position of manager of analysis.From the fishbone summary table it can be seen that
Dvision Operation. the biggest factor that causes delays in ordering the goods
kepabrik is the length of the administrative system that must
After it is known that some problems that occur in the be passed only to issue a booking document plus the
source part that causes the delivery part to be disrupted and personnel who are responsible in the process of publishing
identification of the main cause of the problem, then the document is not always be ready to do his job because
continued by finding solutionsapplied and approved by there are other tasks to do. Plus if there is one of the
management to be able to improve the process and personnel who is in a state of illness or leave can not
performanceof supply chain management PT. PPD is immediately be replaced quickly to be replaced his status as
especially the delivery part but that is caused by the source a responsibility of the process, because it is not supported
process. So what needs to be done improvement is on the systemically but must be done by outside parties as the
source process, namely the process of ordering goods to the operator of the erp system that already has a cooperation
factory. agreement with the company PT. PPD.

Table. 4.4. Fishbone summary

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V. CONCLUSIONS [3]. Didik Setiawan Nugroho Suseno, & Niken

Sulistyowati. (2018). Analysis of Performance Supply
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the increase in revenue that can be achieved is able to 2456-0766
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