Cost Analysis Of Supply Chain Management In The Steel Manufacturing Industry Using The Supply Chain Operations Reference 12.0 Version Approach

Abstract

The vision of "Golden Indonesia 2045" emphasizes significant progress through fair and comprehensive development across various sectors, with the steel industry identified as a cornerstone for this advancement. Reflecting on this mission, the Indonesian Iron and Steel Industry Association (IISIA) reports a steady increase in national steel consumption, rebounding from the 2020 pandemic decline. By 2023, projections indicate a 6.17% growth in steel consumption, alongside an anticipated 7.14% increase in domestic production. Despite these positive trends, the ASEAN region remains a significant steel importer, facing challenges such as excess capacity and the need to mitigate unfair trade practices. In the competitive landscape, companies like PT. XYZ must enhance efficiency and effectiveness to gain market share and profitability. This thesis utilizes the Supply Chain Operation Reference (SCOR) 12.0 Version to identify performance metrics that impact supply chain costs at PT. XYZ. The research focuses on reliability attributes, specifically targeting metrics such as the Cost of Goods Sold, Direct Material Cost, and Indirect Costs related to production. The findings reveal that the primary areas contributing to inefficiencies are Direct Material Cost and Indirect Cost Related to Production. By addressing these gaps, PT. XYZ can enhance its competitive edge and profitability. The study aims to provide actionable strategies for PT. XYZ to optimize its operations, aligning with the broader goal of fostering a robust and self-sufficient steel industry in Indonesia and the ASEAN region. Key objectives of this research include identifying loss-incurring variables at PT. XYZ and proposing actionable plans to enhance profitability. The outcomes will guide PT. XYZ in improving supply chain performance and achieving a competitive advantage in the increasingly dynamic steel industry.