Int. J Sup. Chain. Mgt Vol. 9, No. 4, August 2020 1004 Analysis of Supply Chain Management Practices on Private Banks in Indonesia Armen, Ni Luh Putu Wiagustini 1 , Henny Rahyuda 2 , Luh Gede Sri Artini 3 1,2,3,4 Management Doctoral Program, Faculty of Economics and Business, Udayana University, Indonesia 1 ar_men@ojk.go.id Abstract— This study examines the role of profitability in mediating the effects of supply chain on market structure, GDP growth, inflation rates and exchange rates. This research was conducted at Bank Indonesia of all banking companies namely the National Non-Foreign Exchange Private Bank in Indonesia. Based on a purposive sampling technique, the number of samples (n) from data time series every year during the 2013-2017 period is 15 company samples, so the total sample of research for 5 years is 75 observations. The analysis used in this study is Path analysis or path analysis. Based on the analysis, overall credit risk at Non-Foreign Exchange Commercial Banks during the 2013-2017 period was influenced by internal factors (capital and liquidity ratios) and external factors (GDP growth) with Profitability as Moderating that occurred between the ratio of capital, liquidity and GDP growth to risk credit. Supply chain strategy has a significant positive effect on profitability at Non-Foreign Exchange Commercial Banks during the 2013-2017 period. Bank size has a significant positive effect on profitability in Non-Foreign Exchange Commercial Banks during the 2013-2017 period. Liquidity has a significant positive effect on profitability at Non- Foreign Exchange Commercial Banks during the 2013-2017 period. GDP growth has a significant positive effect on profitability at non-foreign exchange commercial banks during the 2013-2017 period. Inflation has no significant positive effect with profitability at Non-Foreign Exchange Commercial Banks during the 2013-2017 period. The exchange rate (exchange rate) has a significant positive effect on profitability at non-foreign exchange commercial banks during the 2013-2017 period. Supply chain strategy has a significant positive effect on credit risk at Non-Foreign Exchange Commercial Banks during the 2013-2017 period. GDP growth has a significant positive effect on credit risk at non-foreign exchange commercial banks during the 2013-2017 period. Inflation has no significant positive effect on credit risk at Non-Foreign Exchange Commercial Banks during the 2013-2017 period. The exchange rate (Exchange) has no significant positive effect on credit risk at Non-Foreign Exchange Commercial Banks during the 2013-2017 period. Profitability does not have a significant positive effect on credit risk at Non- Foreign Exchange Commercial Banks during the 2013-2017 period. Profitability only mediates the relationship between the ratio of capital, liquidity and GDP growth to credit risk. The management must establish metrics in supply chain and show a clear link on all performance indicators. Keywords— Supply Chain Management, Profitability, Credit Risk. 1. Introduction The present study aims to examine the idea of supply chain management in the financial institutions like banks in the region of Indonesia. After the detailed examination of existing literature current research work has developed a model for the supply chain in financial perspective with its physical implication as well. The banking position as a mediator between parties that have surpluses and financial deficits has placed banks as the institutions most vulnerable to risks, especially risks related to money [1]. One banking product that has a high risk is credit (financing) products, thus credit risk is one of the main threats faced by financial institutions and is very important for models of financial distress financial institutions [2]. Economic theory reveals that commercial banks act as lenders. Joseph et al., support the argument firmly stating that the traditional role of commercial banks is lending credit or loans. In this case, loans constitute the largest share of banking assets where interest is generated, which contributes greatly to the interest income of commercial banks. The nature of loan business is risky because commercial banks expose themselves to the risk of default by borrowers. This is commonly known as credit risk because it is stated as the ratio of problem loans to total gross loans [3]. Bad loans are loans that are ninety days or more past due or no longer generate interest [3]. Badar and Javid stated that loans are considered bad if they fail to pay or are closed to default, so it can be concluded that if the principal and interest ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)