Analysis of Supply Chain Coordination of Soybean in East Java, Indonesia

Abstract

Local soybean has not been able to compete than the import of soybean, both in terms of price and quality. To improve the competitiveness required training cooperation among participants of supply chain from farmers to agro-industry based on soybean. This mutual cooperation can be achieved if there is coordination system and to determine the extent of the coordination system has been applied, it is necessary to research the level of coordination in supply chain. The problem of the research is how the level of coordination in supply chain of soybean coordinated and uncoordinated, whether the variables that differentiate both of soybean supply chain, then how to coordinate the variables relationship in the forms of discriminant function. The research method includes factor analysis, cluster analysis and discriminant analysis. The result shows that a significant difference between the level of coordination in soybean supply chain, where the average discriminant score of soybean  supply chain coordinated greater than the soybean supply chain which not coordinated. Then the variables that make the performance of both different soybean supply chain is Logistics Synchronization (SL), Alignment of Incentive (PI) and Collective Learning (PK) with discriminant model: zScore = -7.017 + 1.871SL + 1.994PI + 3.153PK. The government needs to improve the training of coordination system, thus the supply chain into a union that the members are interrelated and interdependent, where every member of supply chain has the responsibility against the overall supply chain performance.

Keywords: supply chain, coordination system, logistics synchronization, alignment of incentives, collective learning