Articles

Analysis of Clove Supply in Jombang District Regency, East Java Province, Indonesia (Case Study CV Mega Tiga Anugrah)

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Cloves are an agricultural commodity that has great potential. CV Mega Tiga Anugrah is a clove supplier located on Java Island, where the clove supply is obtained from farmers from various regions on Sulawesi Island. This research aims to analyze product flows, money flows and information flows as well as the supply chain actors’ activities. This research uses a descriptive qualitative method with a case study approach. The research results show that the clove supply chain mechanism starts from the flow of products from farmers, small collectors, medium collectors, large collectors, and CV companies. Mega Tiga Anugrah, until they reached the cigarette factory. The flow of information in the clove supply chain is well integrated between supply chain actors, while the flow of money occurs by the agreement of the supply chain actors. Supply chain activities consist of two actors in the supply chain, namely the main and supporting actors. The main actors are farmers, small, medium, and large collectors, and the CV Mega Tiga Anugrah company. Meanwhile, the supporting actors include transport workers, factory workers, and the Cigarette Factory Company PT Hanjaya Mandala Sampoerna Tbk.

Important Factors on Make or Buy Strategy for Margin Improvement on Consumer Goods Company

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Consumer goods industry have tight a competition in the market. Therefore, companies that operate in this kind of industry should continuously improve sustainable competitive advantage. The strategy to increase competitive advantage is not through innovation but also requires cost leadership so that the company obtains an adequate profit margin. One of the efforts to gain cost leadership is that companies need to choose between make inhouse production or buy goods directly from appointed third party supplier. This study based on qualitative research methodology aims to discuss the important factors for building a business case on the make or buy options. Data for analysis purpose are obtained from interviews with individuals representing one of the leading multinational companies operating in Indonesia that produces personal care, hygiene and home care. Interviews results are written in transcript, coded and mapped to illustrate the keywords mentioned by respondents then being categorized as important factors or not. The result of the study showed that cost, capability, capacity, quality, service level and technology are important factors on consideration make or buy. Cost factor also consider projection volume, transportation and investment.