International Journal of Social and Local Economic Governance (IJLEG) E-ISSN: 2477-1929
Vol. 4, No. 1, April 2018, pages 20-25 http://ijleg.ub.ac.id
20
SUPPLY CHAIN ANALYSIS OF RICE SEEDS:
SUPPLIER RELATIONSHIP MANAGEMENT PERSPECTIVE AT
MALANG REGENCY, EAST JAVA, INDONESIA
Rini Dwiastuti, Riyanti Isaskar , Tri Wahyu N. , Anisa Aprilia, Putri Budi S.
Agriculture Faculty, Brawijaya University, Malang, Indonesia
Email: rinidwi.fp@ub.ac.id
Abstract
The aim of this research is to analyze supplier relationship management by two schemes of cooperation
in rice seeds production, Farmer to Partner Farmers I (PF I) and Partner Farmers I to Partner Farmers
II (PF II). Determination sampling methods are by multistage sampling and snowball sampling.
Meanwhile, statistic descriptive by depth interview is used in this research to analyze the importance
level of indicators in considering relations to rice seed suppliers. Condition in supply chain management
among UD ABC, PF I, and PF II has been running well. They all agree that quality supplier selection,
supplier integration, and effective procurement process are crucial indicators. Moreover, Seed
Overseeing and Certification Agency (BPSB) should give accompaniment between rice seed firms and
their supplier related to fulfilment of rice seed needs.
Keywords: supply chain, supplier relationship management, rice seed
1. INTRODUCTION
Supplier relationship management are
required to organize differently and expand the
supply foundation in order to continuously repair
its performance, and important issue in supplier-
buyer relationship management that has attracted
much research attention appropriate to
knowledge sharing and innovation for value
creation. Then supplier relationship management
ability involve institution processes and routines
oriented at initiation, development, and the
ending of supplier relationships (Forkmann,
Henneberg, Naudé, & Mitrega, 2016; Su &
Yang, 2017). Meanwhile, the seed industry of
agricultural has expanded the mixed system that
more effectively harmonize newly introduced
hybrids variety (Burer, Jones, & Lowe, 2008).
Successful relationships which have high
levels of innovation must necessarily have
contracts with at least medium levels of
contractual obligation detail, as well as the
highest levels of trust (van der Valk, Sumo, Dul,
& Schroeder, 2016). To acknowledge residual
supply-management mechanisms such as the
demands from farm cooperatives and
agricultural marketing is vital for maintaining
agricultural sustainability while to operate
supply management in an era of interrelated
global agricultural trade will be very complex
and challenging (Graddy-Lovelace & Diamond,
2017).
For companies that follow a sustainability
strategy, the majority of stakeholders need to be
taken into account in the context of a stakeholder
group. Supply chain management orientation is
also required before a chain can perform to a
triple-bottom line. Then, the commitment to
merge the members of the supply chain such as
make joint decisions, share knowledge or ability
to access knowledge, integrate technology and
logistics, seeking partner development, etc. It
may be considered a precondition for fulfilling a
commitment to viability (Beske, Land, &
Seuring, 2014).
Thus, it is imperative that suppliers along
the supply chain find a better way for the
suitability of supply and demand to reach the
optimal level of cost, quality and customer
service and will allow it to compete with other
supply chains (Wisner, Joel D. Tan, Keah-
Choon, & Leong, 2012), while uncertainty
handling in agricultural supply chain
management has absorbed great attention
(Borodin, Bourtembourg, Hnaien, & Labadie,
2016).