Using Supply Chain Operation Reference Model and Failure Mode and Effect Analysis to Measure Delivery Performance of a Distribution System (Case Study: Lotte Mart Indonesia)

Abstract

This research was conducted to identify the supply chain model of PT. Lotte Mart Indonesia (LMI) and analyze the performance of its cross dock distribution system using the adjusted Supply Chain Operation Reference (SCOR) model. The products studied were the fastest moving drinks and dairy category.  The first level of performance indicator for Reliability attribute is Perfect Order Fulfillment which has the second level of performance indicators are % of Orders Delivered in Full, and On Time Delivery. The supply chain performance for 3 months in 2012 was good at 74%. The second level mapping found errors in the deliver stock (D1) and deliver retail (D4) procedures. The third level mapping found 4 erroneous procedures in the stock-out goods, receiving inappropriate order, delayed and damaged goods, and a gap between ordered and received goods.  Procedures were suggested to remedy these errors.