International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064 Index Copernicus Value (2013): 6.14 | Impact Factor (2015): 6.391 Volume 6 Issue 4, April 2017 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Assessment of Fresh Cut Vegetables Supply Chain Performance and Its Partnership at Bogor Indonesia Suhartini 1 , Rina Oktaviani 2 , Heti Mulyati 3 1, 2, 3 Management and Business, School of Business, Bogor Agricultural University, Jl Raya Pajajaran, Bogor, Indonesia Abstract: Vegetable has a contribution as a fiber source for human health. PT Sayuran Siap Saji is an agribusiness company has contributed to provide fresh cut vegetable products for retailers in Jakarta, Bogor, Depok, Tangerang and Bekasi areas. Therefore, it is needed to measure supply chain performance and analyze partnerships between farmer, company, and retailers. The purpose of this research is to measure the supply chain performance of fresh cut vegetables and to analyze the factors that influence the long-term partnership between farmers, company and retailers. The supply chain performance was measured by SCOR model which its priority was calculated by MPE method. Partnership between farmers and the company used Factor Analysis, while the company and the retailer measured by customer satisfaction. Farming analysis calculated the farmer profit and value added of the company used Hayami method. The results show that reliability metric is the first priority with the weight score 0.2911. The other metrics of vegetables supply chain performance are responsiveness (0.2404); flexibility (0.1963); cost (0.1518; and an asset (0.1203). The farmers from Bandung were the highest performance of the vegetable supply chain. Assessment of supply chain performance of farmers from Bogor and Garut were shown in the second and the third ranking. The farmers in Bandung are supported by modern facilities and they produce Paprika which the other farmers do not cultivate it. Farming analysis for R/C ratio of mustard green commodity was 2.44%, Tomatoes was 2.07% and Lettuce head was 1.87%. B/C ratio for mustard green commodity was 1.44%, Tomatoes was 1.07% and Lettuce head was 0.87%. BEP for mustard green commodity was IDR. 7 430, Tomatoes was IDR. 7 422, and for Lettuce head was IDR 9 155. ROI ratio of mustard green was 140%, tomatoes was 200%, and Lettuce head was 140%. ROI ratio indicates that this farming gives profit for farmers. Value added ratio for company showed for mustard green commodity was 66.21%, for Tomatoes was 71.65% and Lettuce head was 75.06. The main factors influencing significantly to the long-term partnership between the farmers and the company are the aid to market product and guidance and tutoring from the company. The highest factor of customer satisfaction receiving by the retailer is vegetables return (score 5). It indicates that retailer is laid on the requirement of product return from PT Sayuran Siap Saji to support their business processing. Keywords: analysis factor, farming analysis, Hayami method, MPE, partnership, SCOR, value added ratio 1. Introduction Changes of people mindset in Indonesia for consume vegetables as natural fiber have an impact of increasing its consumption on their daily diet. The consumption level of Indonesian people based on income and expenditure category presents in Figure 1 (Statistic Center of Bureau, 2016) Figure 1: Average consumption of vegetable of Indonesian people based on the income and expenditure category from 2010-2014 year PT Sayuran Siap Saji is one of the companies that concerns to produce fresh cut vegetables, cutting and packing vegetables. The company distribute to some food retailers in Jakarta, Bogor, Depok, Tangerang and Bekasi area, such as: Bakmi Gajah Mada, 7 Eleven, Domino, Sate Khas Senayan, Pizza Marzano, Rejuve, D' Crepes, TGI Fridays, Moss Burger, Daihatsu, Johny Rocket, Nam Nam Resto, Langgan Segar, Darmawan Park, Sopra & Opera, Purantara, Hisana FC, and Family Mart. The types of fresh cut is made from broccoli, mustard greens, tomatoes, lettuce head, cabbage, cauliflower, long beans, carrot, beetroot, cucumber, spinach and paprika. The retailers are fast food restaurants serving fresh cut as processing vegetables on their menu, like topping for pizza and vegetables mix for salad and noodles. All activities of company are related to supply chain performance. The partnership among farmers and company has been conducted by written contract to provide vegetables stock. Unfortunately, PT Sayuran Siap Saji faced some problems related with supply chain performance, for example stock product, productivity level, harvest period, partnership and satisfaction level between the farmers and retailers, etc. Neely in Shepherd and Gunter (2006) [2] explained that measurement of performance is a process to measure a successful and efficient all activities. Partnership will impact to the long-term cooperation between all involved parties, such as the farmers, company and retailers. PT Sayuran Siap Saji has partnership with farmer from Bogor, Bandung and Garut city to keep supply of vegetables. Three commodities with highest production are: mustard green, tomatoes and Lettuce head. Farming analysis is calculated by three highest productivities. The factors that influence the partnership will be analyzed in purpose to improve the performance and solve the occur problems. From these reasons, it is important to: Paper ID: ART20172248 DOI: 10.21275/ART20172248 511