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SUPPLY CHAIN PERFORMANCE MEASUREMENT MODEL AT
PT. METITO INDONESIA BASED ON BUSINESS INTELLIGENCE
POWER BI
Banggas Hanistia Pahlavi, Imam Djati Widodo
Universitas Islam Indonesia Yogyakarta, Indonesia
Abstract
Supply chain is one of the important aspects in a company. An effective supply chain can
help companies to increase efficiency, effectiveness, and profitability. The purpose of this
research is to develop a supply chain performance measurement model at PT Metito
Indonesia based on Power BI Business Intelligence. This research is a type of qualitative
research that uses a descriptive approach. The data collection technique in this research
was carried out by observation and literature study. This research was conducted at PT
Metito Indonesia which is located at Jl. Ampera Raya No. 18A, East Cilandak, Kemang,
South Jakarta. Data validity tests in this study include tests, credibility, transferability,
dependability, and confirmability. The research results show that measuring supply chain
performance at PT Metito Indonesia can increase its competitiveness by adopting
strategies that are more adaptive and responsive to market changes. Using BI Power BI
helps companies to be more proactive in making strategic decisions that have a direct
impact on increasing competitiveness in the market, increasing operational efficiency,
and strengthening the company's position in a competitive industry.
Keywords
:
performance, supply chain, business intelligence, power BI
INTRODUCTION
The business intelligence method is an important component of a company's ability
to achieve competitive advantage while increasing analytical efficiency for supply chain
management (Sylvia & Angela, 2019). It is proven that through business intelligence in
the supply chain can create opportunities to reduce costs and stimulate revenue growth
will be revealed, thus allowing companies to evaluate the supply chain as a whole from
the customer's point of view (Mathrani, 2014)
Business intelligence systems integrate and consolidate information to support
companies seeking supply chain effectiveness through vendor and customer loyalty and
retention (Mathrani, 2014). The success of business intelligence implementation can
improve data consistency based on data integration, higher levels of interactivity, easier
querying and analysis, and faster access to information (Mathrani, 2014). The essence of
using business intelligence is the processing of large amounts of data to increase needs
and make important decisions quickly (Li et al., 2023).
It was reporting from Binus University (2021) that the adoption of business
intelligence in Indonesia is still low. This is evidenced by the small Indonesian market
related to business intelligence of 72.96 million dollars in 2016 Aini & Nasrudin, (2023)
while the size of the global business intelligence market in the same year was US $ 19.40
Injuruty: Interdiciplinary Journal and Humanity
Volume 2, Number 12, December 2023
e-ISSN: 2963-4113 and p-ISSN: 2963-3397
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billion NEWSWIRE, 2019), which means the size of the business intelligence market in
Indonesia is only 0.37% of the global market.
Figure 1. Business Intelligence Market Size Top 3 Asia vs Indonesia
Source: Binus University (2023).
Based on the data above, the adoption of business intelligence in Indonesia is
included in the low category. In 2016 Indonesia's business intelligence market was 72.96
million dollars while Japan had a market of 631.58 million dollars, India amounted to
645.09 million dollars, and China amounted to 810.81 million dollars (Indriasari et al.,
2019). However, the use of business intelligence in Indonesia will experience growth in
2020, a significant growth of 44.44% in 4 years (Inkwood, 2018). The means that can be
used to carry out supply chain management with business intelligence is Power BI
(Bororing, 2022).
Power BI is a business intelligence tool that can process data and display it in
visualizations consisting of various forms of graphs to create dashboards, one method
that can be used, namely business intelligence (Mahebu & Samosir, 2023). According
from the Dunlop, (2015), the advantage of using Power BI in conducting company data
analytics, namely Power BI is equipped with Artificial Intelligence, provides ease of
analysis in sharing data, getting real-time access to information, getting support from
various data sources and does not require high costs.
Companies have made maximum efforts in increasing productivity, efficiency,
speed of service, convenience, and making various innovations to remain superior and
survive in the market (Rachbini, 2017). Business competitiveness in various industries
results in increased company competition in the form of effectiveness and efficiency in
terms of productivity is important, product and service quality is the most influential
factor regarding customer satisfaction for the sustainability of the company (Rakhman et
al., 2018).
Increasing efficiency can be done by integrating the company's supply chain
activities, so as not to become an obstacle to the supply chain operational planning
process. The concept of supply chain management (Supply Chain Management and SCM)
can manage various management functions in a relationship with other organizations in
forming an integrated and supportive system (Ikatrinasari et al., 2020). The key to
effective supply chain management is to make suppliers on the company's strategy to
meet changing markets (Ikatrinasari et al., 2020).
The need to increase company productivity and efficiency related to customer needs
is one of the reasons for the importance of monitoring changes in consumer preferences
and behavior so that companies can continue to adapt (Rachbini, 2017). Many companies
have applied management theory and practice to the supply chain. Supply chain
management that has been implemented does not provide efficiency and effectiveness
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when managing and maintaining supply, in order to maintain loyalty to the company
(Ikatrinasari et al., 2020).
All parties have an important role including distributors, suppliers, retailers,
manufacturers and customers to produce cheap, quality, and fast products. This underlies
a new concept called SCM (Cuandra et al., 2022). SCM is to expand and develop concepts
so that logistics management has a role to control the supply of goods between companies
and develop related things needed by consumers (Rachbini, 2016). SCM (Supply Chain
Management) is combining the activities of providing materials and services, converting
into unfinished goods and final products, and delivery to consumers (Latuconsina &
Sariwating, 2020; Lee & Ande, 2022).
The complexity often encountered by supply chain actors is that there is a conflict
of interest from each actor for the supply chain. Each actor has different objectives,
performance indicators, and optimization criteria (Aramyan et al., 2007). This does not
necessarily contribute positively to the entire chain performance because the increased
performance carried out by individuals can provide losses to other chain actors (Aramyan
et al., 2007). Conflicts of interest from various actors in this chain complicate the
availability of information. The relevance of information varies at each stage of the chain,
although it is critical to overall supply chain performance (Mathrani, 2014).
Supply chain measurement is a hot topic to be discussed in efficient and effective
supply chain management because supply chain measurement is considered to have a
large role in maximizing value, process integration, increasing responsiveness, and
reducing production time (Aramyan et al., 2007). In evaluating the success of a strategy
there are many different types of performance measures, both quantitatively and
qualitatively both have been used and many types of performance measures cause
difficulties for a company in choosing performance measures specifically (Aramyan et
al., 2007).
Research from Sitorus et al., (2020) discusses supply chain analysis using the
Supply chain operations reference (SCOR) model. Subhan et al., (2022) research
discusses KPIs (Key Performance Indicators). Research by Susanto et al., (1928) on
Supply Chain Management Performance Measurement with Supply chain operations
reference Model 9.0. Research by Putra et al., (2019) examines the supply chain
performance of UD Coffee company "Matt Coffee" in Bondowoso Regency using SCOR
Method version 11.0.
Kinding et al., (2019) provided an analysis related to the performance of a series of
Al-Ittifaq vegetable supplies to each member in order to meet common goals using the
SCOR (Supply Chain Operational Reference) model, analysis of internal attributes of
food Supply Chain Operational Reference card and external analysis of food Supply
Chain Operational Reference card. Sangari & Razmi, (2015) research discusses the role
of business intelligence (BI) to fulfill agility related to the supply chain context by
examining the relationship between BI competence, agile capabilities, and agile supply
chain performance.
PT Metito Indonesia is a subsidiary of Metito Group, a global company specializing
in water and wastewater treatment solutions and services (Gunawan et al., 2021). PT
Metito Indonesia focuses on providing water treatment solutions and services in
Indonesia. PT Metito Indonesia provides safe water treatment solutions for various
purposes, including drinking water treatment, industrial process water treatment, and
more. In addition, PT Metito is also engaged in Wastewater treatment, desalination, Water
Recycling and Environmental Services (Gunawan et al., 2021).
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Based on initial observations, it was found that currently PT Metito has not
implemented business intelligence with power BI which is why PT Metito does not have
a live high level management report which is a summary of supply chain activities and
traceability progress for both delivery and open orders that can be accessed easily. In
addition, PT Metito still uses a paper base and has not digitized data. Because PT Metito
does not have the right system to process large company data, currently PT Metito does
not have forecast calculations and Days on Hand which are used as a reference for
companies in predicting products that experience slow moving or fast moving. Based on
the presentation presented, researchers have an interest in conducting research on the
topic "Supply Chain Performance Measurement Model at PT Metito Indonesia Company
Based on Business Intelligence Power BI".
RESEARCH METHODS
This research is a type of qualitative research that uses a descriptive approach. One
of them is data examination (editing), classification (classifying), verification
(verification), analysis (analysing), and conclusion making (Sugiyono, 2013). Primary
and secondary data were used in this study. Interviews and direct observations with
company managers are primary sources of data. Secondary data sources come from
documentation, articles, and journals related to the research topic. Data collection
techniques in this study include literature studies by exploring articles, jhurnal and other
information relevant to research and direct observation. According to Sugiyono, (2013).
data validity tests in qualitative research include tests, credibility, transferability,
dependability, and confirmability. This study appointed PT Metito employees as research
subjects while the object of this study was a supply chain performance measurement
model through business intelligence using Power BI. This research was conducted at PT
Metito Indonesia located on Jl. Ampera Raya No. 18A, East Cilandak, Kemang, South
Jakarta.
Measurement of the entire performance of the supply chain is important because
measurement influences decision making through evaluation of past behavior and through
benchmarking opportunities. Inadequate value on performance measures can lead to
continuity problems in the short or long term, as decision makers need information about
operations to guide their decisions. To ensure sustainability, it is critical to work
efficiently and minimize costs throughout the supply chain. In addition, organizations in
the supply chain are interdependent on each other. Therefore, in addition to individual
organizational performance indicators, it is imperative to have a set of performance
indicators at the supply chain level (Triantafillou et al., 2001). The selection of
measurement methods in this study is arranged as follows:
1. Ontime Delivery which is one of the key performance indicators in the supply chain
that measures how often orders or delivery of goods are delivered on time according
to the schedule promised to customers. The choice of this method is important because
it can demonstrate the operational efficiency, reliability and quality of service of the
company.
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2. Total Order Quantity, this measurement method is useful for knowing the number of
orders processed by the company within a certain period of time. It is important to
understand how large the volume of orders that the company manages, and can be used
to analyze demand trends and possible future production needs.
3. Average Lead Time which refers to the average time it takes a company to process an
order from the time it comes in to it is delivered to the customer. This measurement is
important because it can provide an idea of operational efficiency, response
capabilities, and can also help in the identification of areas that need improvement in
the supply chain.
The choice of this measurement method is based on the importance of these aspects
in supply chain management. By measuring performance using these indicators and
integrating them into Business Intelligence platforms such as Power BI, companies can
generate more measurable and better interpreted data to make more effective decisions in
optimizing their supply chain performance. The flow of this research is divided into
several stages which will be presented in the description below:
1. Selection of Research Objects
2. Identify the Problem
3. Problem Formulation
4. Literature Study
5. Data Collection
6. Data Processing
7. Data Validity Testing
8. Discussion and Proposal for Performance Improvement
9. Conclusion and Advice.
RESULT AND DISCUSSION
Supply chain performance in a company must be measured because it is a key factor
in determining operational success and business sustainability. Supply chain performance
measurement allows companies to identify strengths and weaknesses in their supply chain
management. This provides important insights in terms of efficiency, effectiveness, and
adaptability of a supply chain. By measuring supply chain performance, companies can
monitor operational performance, identify critical points that may affect production and
delivery, and improve coordination between parts of the supply chain. In addition, supply
chain performance measurement allows companies to evaluate supplier performance,
manage risks associated with the supply chain, and adjust strategies to meet changing
market needs. By having a deeper understanding of supply chain performance, companies
can make better decisions, improve customer satisfaction, optimize costs, and maintain
competitiveness in a competitive market. Therefore, supply chain performance
measurement is not only important for internal monitoring, but also to ensure that
companies can face challenges and opportunities in a dynamic and rapidly changing
business environment.
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Supply chain performance measurement can be done by various methods, one of
which is based on business intelligence power BI. Business Intelligence Power BI is one
of the data analysis tools developed by Microsoft. The tool allows users to integrate data
from multiple sources, including inventory and supply chain data, and analyze that data
using a variety of analytics techniques such as data visualization and predictive analytics.
Business Intelligence Power BI can help companies make better decisions by providing
deeper insights into the performance of companies, customers, and supply chains. The
tool also allows users to create customizable dashboards and reports according to
company needs. The advantages of Business Intelligence Power BI are that it is easy to
use, has an intuitive interface, and can be integrated with various data sources such as
Excel, SQL Server, and SharePoint. In addition, this tool also has the ability to perform
data analysis in real-time and can be accessed from various devices such as desktops,
laptops, and smart phones.
The supply chain performance measurement model is implemented in PT Metito
Indonesia based on business intelligence power BI with the following results:
Figure 1 Inventory Management
Figure 2 shows inventory management data with sum of quantity by city, consisting
of Bekasi of 0.17M, South Jakarta of 0.04M, Makassar of 0.03M, and Bontang of 0.02M.
The total quantity is 0.1M. In addition, figure 1 also shows the sum of amount by city,
consisting of Bekasi of 0.15M, South Jakarta of 0.06M, Makassar of 0.04M, and Bontang
of 0.03M. The sum of the total values is 1M.
This data provides information about the quantity and value of inventory in each
city, which can be used to optimize inventory management in the company's supply chain.
By understanding this data, companies can determine more efficient and effective
inventory procurement and delivery strategies to meet customer demand and minimize
inventory costs.
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Figure 2. KPI SC Dashboard
Figure 3 shows KPI (Key Performance Indicator) data on SC Dashboard based on
customer name. Customers with the largest number of orders are Samsung at 277K,
followed by Smelting at 175K, Cogindo at 85K, Jawa Power at 69K, Indonesia Power at
63K, Rochtec at 40K, Thalassa Tirta at 32K, Sumber Indah at 29K, Energi Hero at 27K,
and Bexal Hubb at 0.0M. The total order quantity is 0.2M (200,000 kilograms).
This data provides information about supply chain performance for each customer,
which can be used to evaluate the company's performance in meeting customer demand
and optimizing inventory management. By understanding this data, companies can
determine strategies to improve supply chain performance for each customer, such as
improving production efficiency or improving timely inventory delivery to meet customer
demand.
Measurement of supply chain performance at PT. Metito Indonesia's Business
Intelligence Power BI has several benefits that can help companies improve their
operational efficiency and effectiveness. Here are some of the possible benefits:
1. Performance Monitoring
Supply chain performance measurement using Business Intelligence Power BI
allows companies to monitor their operational performance in real-time. Using
dashboards and reports provided by Power BI, companies can view key performance
indicators (KPIs) such as inventory levels, delivery times, and shipping costs. This
helps the company in identifying areas that require improvement and taking
appropriate actions to improve overall performance.
2. In-depth Data Analysis
Business Intelligence Power BI provides the ability to analyze data deeply and
thoroughly. Companies can combine data from various sources such as inventory
management systems, warehousing management systems, and production
management systems. By analyzing this data, companies can identify trends, patterns,
and relationships between various factors in their supply chains. This helps companies
in making better and strategic decisions.
3. Compelling Data Visualization
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One of the main advantages of Business Intelligence Power BI is its ability to
present data in the form of attractive and easy-to-understand visualizations. Companies
can create interactive dashboards with graphs, charts, and maps that facilitate
understanding of supply chain performance data. With effective data visualization,
companies can quickly identify patterns or anomalies in their supply chain
performance.
4. Faster Decision Making
Implementing Business Intelligence Power BI, companies can access data in
real-time and perform analysis quickly. This allows companies to make decisions that
are faster and responsive to changes in their supply chains. For example, if there is an
increase in demand from customers, companies can quickly see the available inventory
and take steps to meet that demand.
5. Improved Operational Efficiency
Companies can identify areas that require improvement and improve their
operational efficiency. For example, by looking at long delivery times or high shipping
costs, companies can look for solutions to optimize shipping processes and reduce
logistics costs.
Implementation of Business Intelligence (BI) Power BI based supply chain
performance model at PT. Metito Indonesia makes a major contribution to the company's
strategic decision making. The data analyzed and presented through BI Power BI provides
deep insights into supply chain performance, enabling management to take more
informed and targeted strategic decisions. Information generated from BI Power BI can
be used to formulate strategic decisions in the following ways:
1. Data on operational efficiency, such as processing time, lead time, or inventory levels,
can be used to identify areas that require improvement or optimization, enabling
companies to make more efficient process improvements, reduce operational costs,
and improve service quality to customers.
2. Information about supplier performance and supply chain reliability can help in
decision-making related to risk management and better supplier selection.
3. Analysis of market trends and consumer responses to products can provide important
insights for developing more effective marketing strategies and products that better
suit market needs.
Utilizing this information, PT. Metito Indonesia can improve its competitiveness
by adopting a strategy that is more adaptive and responsive to market changes. The use
of BI Power BI helps companies to be more proactive in making strategic decisions that
have a direct impact on increasing competitiveness in the market, improving operational
efficiency, and strengthening the company's position in a competitive industry.
CONCLUSSION
Measurement of supply chain performance at PT Metito Indonesia can be the key
to increasing the company's competitiveness in a competitive market. By adopting
strategies that are more adaptive and responsive to market changes, companies can
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strengthen their position and improve their operational efficiency. The use of BI Power
BI assists companies in achieving this goal by providing the information needed to take
the right strategic decisions. By using BI Power BI, companies can become more
proactive in making strategic decisions. Information obtained from Power BI allows
companies to view their operational performance data in real-time. This allows companies
to take quick and appropriate actions to improve their operational efficiency and respond
more adaptively to market changes. In addition, the use of BI Power BI also helps
companies improve their operational efficiency. By analyzing operational performance
data, companies can identify areas that require improvement and take necessary actions
to improve their operational efficiency. This can help companies in reducing their
operational costs and increasing competitiveness in the market.
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