Innovation

Application of the Supply Chain of Screen Printing Business

Fashion business will always exist, including boutique, wholesaler and retail, coveringgarment industry, either the one of factory or small scale. One of the businesses which are still recently in demand is screen printing which is mostly used for t-shirt fashion.

Sebagian besar usaha sablon masih berupa Usaha Kecil dan Menengah (UKM), di mana manajemen rantai pasoknya (supply chain) belum terpetakan secara jelas. Sentra UKM sablon yang cukup terkenal berada di
Bandung, Yogyakarta, dan Bali. Selain warganya memiliki banyak ide kreatif, tiga kota ini pun menjadi destinasi wisatawan domestik maupun mancanegara. Perlu sebuah lompatan dalam UKM untuk meningkatkan daya saingnya dengan bisnis-bisnis serupa, terutama yang berasal dari luar. Salah satunya dengan bantuan teknologi.

Most of the business in screen printing is still in small and medium enterprise or Usaha Kecil dan Menengah (UKM) where the supply chain has not been clearly mapped. Some UKM centres famous forthe screen  printing can be found in Bandung, Yogyakarta, and Bali. The people have many creative ideas and the three
cities have also been destination for domestic and foreign tourists. There should be some breakthroughs in UKMs in order to improve their competitivenesin facing similar business, particularly the one from other countries. One of them is the one using technology.

Therefore, this study tries to map the business process in UKMs of screen printing in the three cities. It also tries to design an application that can help them to improve their business to be more efficient and effective. There
are three steps managed by this study within these two recent years, i.e. Model Supply Chain Operation  Reference (SCOR), House Of Quality (HOQ) or Quality Function Deployment (QFD), and the application system design. In the first year, this study tried to interview 67 UKM practitioners in the three cities in order to map the supply chain management in each UKM. However, the supply chain in each UKM had actually not been managed effectively and efficiently since the UKM practitionershad not yet understood the business process they used tomanage. It is because there had not been any standard or mapping of the business process that can be used as guidance.

SCOR model is chosen as it is thought to be able to facecompetition and decrease the conflict in supply chain as in the competition forhaving qualified but cheap suppliers, consumers or trusted distributors. Generally, the UKMs of screen printingfound in the three cities have a relatively same SCOR model that involves planning, sources, production, delivery and return, though itis slightly different in the implementation. SCOR model is used to measure reliability, responsiveness, flexibility, costs and assets.

After mapping the supply chain management
in UKMs of screen printing, the next step is determining the aspects needed by customers from the business process the UKMs managed. This customer requirement is obtained through analysis process using QFD or HOQ derived from SCOR model. QFD or HOQ is one of the methods to understand costumers’ requirement
to be the future application design.

From the 21 variables asked, the researcher found five main factors required by customers of which the scores belong to the highest five score. The five variables are product order, production time, production cost, material order and payment order.

QFD or HOQ is one of data analysis methodsthat usesthe philosophy of a house (house of quality-HOQ) to explain the relation between customers and product (or service). House of quality is a part of the process in the quality function deployment using planning matrix in order to relate customers’ “requirement” with “how” the company will meet the “requirement” in the form of technical requirement that will be used as guidance for researchers in designing e-SCM (Supply Chain Management) application for the UKMs.

Having a form of a house, HOQ has several aspects including customer requirement, technical respons, relationship matrix dan our importance rating, correlation matrix, analysis competitor as well as target value and technical evaluation. However, not all of the HOQ aspects, like analysis competitor, are analyzed in this study. It is because this study does not try to compare one business to other ones, yet it only do the mapping.

Facing Some Political Issues, The Application Cannot be Impelemented

This study, which is aimed at designing this application, has not certainly come to the implementation step. It is because the application recently produced by the study is still in the form of prototype that involves five best customer requirement aspects. However, considering the response given by the practitioners in the three cities, the researchersare to a certain extent optimistic that the application is able to be used. It is because the  tractitioners and customers will feel helped, know and understand the business process flowchart the business has. Furthermore, the points the application have have already been in line with the requirements. However to come to the implementation step should still require some test involving some real data.

Besides, the impelementation of the application generated from this study is able to change the conventional
business patern of the UKMs. It is possible that certain parties having been comfortable with the conventional business pattern will bedisturbed by the application. It is because the e-SCM application makes the business process will tend to be open that welcome everyone. Meanwhile, in the previous method, it is possible that a certain parties will dominate the market. It is this political characteristic that sometimes can prevent the use of technology in helping and facilitating the business process in UKMs.

Besides, e-SCM is actually flexible in the implementation. This application can be used for business process in other types of UKMs. It of course involves somes adaptation since the business process in each industry is  probably different one another. However, gerally, it can still be generalized that it relates to the business process in general, i.e. the customers do the ordering and the merchandise is delivered to the customers. What makes it different is the process when producers order some materials to suppliers and do some production process, as well as when the products are send by the producers.

Pertaining to the output of the study, besides prototype, the researchers have also published the studies conducted in two recent years to international journals and proceedings. The first is at SCBTII 2015 entitled “Mapping Supply Chain Management Business Process Model at Small Medium Enterprises Printing Industry in Indonesia Using Supply Chain Operation References Variable (Bandung, Yogyakarta and Bali)”. The second one is published at the 3rd ISCLO (November 26, 2015) entitled “Learning Organization for SME Printing Industry trough Organizational Performance with SCOR level 1”. The last is inInternational Journal of Economics & Management ISSN (2348-0386) entitled “Determine The Characteristics of e-SCM for Small and Medium Enterprise in Screen Printing in Indonesia Using Supply Chain Operation Reference and Quality Function Deployment”.

Abstracted from the studyentitled “Perancangan Proses Bisnis Supply Chain Management untuk Usaha Kecil dan  Menengah Sentra Sablon Menggunakan Model SCOR (Supply Chain Operation Reference)”or “Designing Supply Chain Management for Small and Medium Enterprise of Screen Printing Using SCOR (Supply Chain Operation Reference)” of Dodie Tricahyono, Ph.D; Herry Irawan MM., MT; Ratih Handayani, ST., MM.
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