Development of Monitoring Reverse Logistic System for Leather Tanning Industry using Scor Model

Abstract

PT Endies Leather Company Indonesia Sejahtera (Elco) is a Small and Medium Business (SME) that manufactures garment leather tanning and gloves as the main business. In the last six quarters of sales, PT Elco obtained claims from customers every quarter, resulting in a return process, which is the retrieval of products from customers to the company for certain reasons. At this time, the monitoring system of the return process at PT Elco is still very minimal, and only a few Key Performance Indicators (KPIs) are monitored. This study aims to determine the KPI in the business process of returning the tanning industry. The KPI will be mapped into the Supply Chain Operation Reference (SCOR) model. In this study there were 13 verified KPIs and will be categorized based on the attributes of performance in SCOR, namely reliability, responsiveness, agility, cost, and asset management. All Indicator are searched for weight value per each attribute by using the AHP method and by using the normalization snorm de boer will get the performance value of each indicator. By multiplying the weight value per attribute with the indicator performance value, the performance value of each attribute will be obtained in percent units which will later be input into the monitoring system so that the monitoring system can show metrics, numbers and data visualization. The implementation of this monitoring system is expected to help companies make decisions that are related to the return process accurately and quickly based on the data entered.