Supply chain analysis of cocoa seeds in Narmada, West Lombok, Indonesia

Abstract

Abstract The aims of this study are to: (1) analyze the cocoa bean supply chain network in Narmada District, West Lombok, NTB; (2) Analyze the performance of the cocoa bean supply chain in Narmada District, West Lombok. The research used a descriptive method, while the data collection was carried out using a survey technique, the data was analyzed descriptively using the Food Supply Chain Network (FSCN) and Supply Chain Operating Reference (SCOR) analysis framework. The results showed that: (1) The cocoa bean supply chain network in Narmada District, West Lombok NTB, namely: (a) The ultimate goal of the cocoa bean supply chain is within and outside the island of Lombok (Bali and Java), while the development objectives are to pay attention to the level of content, the cut of one of the actors in the supply chain and the uniformity of prices; (b) Supply chain management is about selecting partners that are determined based on factors such as proximity of location, size of purchasing scale, and ease of trade of cocoa beans. The agreements that occur between links are made informally (orally) with cash transactions. Lack of government assistance for cocoa bean supply chain actors; (c) The supply chain structure includes 2 channels, namely channel I (farmers, village collectors, village collectors’ traders, sub-district collectors, wholesalers, inter-island traders) and channel II (farmers, village collectors, wholesalers, off-island traders) Lombok) where each supply chain has a different role. The supply of cocoa beans from the Lombok Island region has not been able to meet the demands of the processing industry; (d) Supply chain resources consist of different physical resources for each member of the chain according to the activities they perform, technological resources still use simple equipment, human resources use labor within and outside the family and capital resources are still limited by the use of own capital and loans; (e) The supply chain business process consists of 3 flows, namely product flows, funds flows and information flows, which are distributed evenly and smoothly. The risks faced by each link in the chain are related to price fluctuations, production damage and market congestion, and the way to build trust is to seamlessly communicate and sell to the same players. (2) The performance of the cocoa bean supply chain, which is in a superior position that must be maintained, namely perfect order fulfilment, delivery performance and asset management (channels I and II), supply cycle order fulfilment and flexibility. The performance that must be improved again to a higher position is the order fulfilment cycle (parity) and flexibility (advantage) in channel II, with the costs incurred by channel I being greater than those of channel II.