Development of sustainable procurement monitoring system performance based on Supply Chain Reference Operation (SCOR) and Analytical Hierarchy Process (AHP) on leather tanning industry

Industrial Engineering, Faculty of Industrial Engineering, Telkom University, 40257 Bandung, Indonesia

^* Corresponding author: arditya.nurwaaly@gmail.com

Abstract

the industrial sector in Indonesia is increasing from year to year, the increase of the industrial sector is due to the increase of export and domestic demand. Indonesia is also an option for industrial sector because Indonesia is a strategic area besides the cost in Indonesia is quite low. Increased industry will cause environmental damage due to the waste generated and the resources used. environmental damage is increasingly felt, so the government makes the regulation that is Law No.3 of 2014 which contains one of them is the industrial obligation in protecting the environment. the current perceived environmental damage makes people increasingly concerned about the importance of maintaining the environment so as to make changes in product specifications demand. Rules and changes in demand, the industry must implement the aspect of sustainable supply chain management (SSCM). SSCM has an understanding that is integrating financial, environmental, and social in the supply chain. In the implementation of sustainable supply chain required Key Performance Indicator which aims to monitor and measure the performance of companies in the application of sustainable. KPI obtained from the implementation of the SCOR model is by mapping the business process of the company in SCOR model, so that obtained 14 KPI in accordance with the company's business processes and support the sustainable implementation. KPI obtained is verified on the company to obtain KPI that can be applied at this time and got 8 KPI selected which then done weighting using AHP, weight is used to calculate the sustainable performance of company. In performing monitoring and performance measurement tools are needed in monitoring. currently the company has not monitoring system so that company can not monitor and measure performance well which resulted barrier of company in applying of sustainable supply chain.