Results and Discussion Analysis of Supply Chain Management in Indonesian Creative Industries: An AHP Approach

454 Tab. 1 Nine-point Pairwise Comparison Scale Numerical Value Definition 1 equal importance 3 weak importance over one another 5 strong importance 7 very strong importance 9 absolute or extreme importance 2, 4, 6, 8 Intermediate values between two adjacent judgments The data was analyzed by following several steps. Firstly, the goal, criteria, and alternatives are identified. Secondly, the pair wise comparison matrices of all criteria and alternatives are constructed. Thirdly, the weights of criteria and local weight are determined by using normalization procedure. Finally, local weight is synthesized and it is followed by normalizing the global weights. All the data was processed on Microsoft Excel Software. Tab. 2 The Stages of AHP Hierarchy Goal Criteria Sub Criteria Determine supply chain management practice in creative industries Demand ManagementDM share information with supplierDM1; forecasting DM2; planning capacityDM3 Cash FlowCF provide loan to the customerCF1; pay the obligation to supplierCF2; share information to supplierCF3 Customer RelationshipCR effectively meet customer orderCR1; efficiently meet customer orderCR2; meet customer demand with high qualityCR3; flexibilityCR4 Supplier RelationshipSR adversarial relationshipSR1; long term relationshipSR2; supplier involvement in quality programSR3 Product DevelopmentPD supplier involvement in product designPD1; customer involvement in product designPD2

4. Results and Discussion

AHP is one of methods for solving managerial and technical problems with complex decision. The AHP procedures will construct the criteria into sub criteria as presented on Tab. 2. Then, the criteria can be analyzed by independent pair comparison analysis, which is available on Tab. 3. The rank of criteria and sub criteria can be identified by comparing the local weight. The priority vector is similar to the local weight. Meanwhile, the global weight is obtained by multiplying the local weight with higher priority of the criteria. Tab. 3 Pairwise matrix for comparison between criteria Criteria Demand Management DM Cash Flow CF Customer Relationship CR Supplier Relationship SR Product Development PD Demand ManagementDM 1 0.2 0.2 0.2 0.1 Cash FlowCF 5 1 3 3 3 Customer Relationship CR 5 0.3 1 0.1 6 Supplier RelationshipSR 5 0.3 7 1 5 Product Development PD 7 0.3 0.2 0.3 1 455 Tab. 4 Pairwise comparison of demand management Tab.5 Pairwise comparison of cash flow Tab.6 Pairwise comparison of customer relationship Sub Criteria Effectively meet customer order CR1 Efficiently meet customer order CR2 Meet customer demand with high quality CR3 Flexibility CR4 Effectively meet customer order CR1 1 0.33 0.33 0.5 Efficiently meet customer order CR2 3 1 3 3 Meet customer demand with high quality CR3 3 0.33 1 3 Flexibility CR4 2 0.33 0.33 1 Tab.7 Pairwise comparison of supplier relationship Sub Criteria Adversarial relationship SR1 Long term relationship SR2 Supplier involvement in quality program SR3 Adversarial relationship SR1 1 0.2 0.5 long term relationship SR2 5 1 3 supplier involvement in quality program SR3 2 0.33 1 Sub Criteria Share information with supplier DM1 Forecasting DM2 Planning capacity DM3 Sub Criteria provide loan to the customer CF1 pay the obligation to supplier CF2 share information to supplier CF3 Share information with supplier DM1 1 0.2 0.2 Provide loan to the customer CF1 1 0.2 0.33 Forecasting DM2 5 1 0.5 Pay the obligation to supplier CF2 5 1 3 Planning capacity DM3 5 2 1 Share information to supplier CF3 3 0.33 1 456 Tab. 8 Pairwise comparison of product development Sub Criteria supplier involvement in product design PD1 customer involvement in product design PD2 supplier involvement in product design PD1 1 7 customer involvement in product design PD2 0.14 1 Tab. 9 The Global Weight Criteria Local Weight Sub Criteria Local Weight Global Weight Demand Management DM 0.041 DM1 0.090 0.004 DM2 0.353 0.014 DM3 0,556 0.023 Cash Flow CF 0.355 CF1 0.106 0.038 CF2 0.633 0.225 CF3 0.260 0.092 Customer Relationship CR 0.177 CR1 0.067 0.012 CR2 0.400 0.071 CR3 0.400 0.071 CR4 0.133 0.024 Supplier Relationship SR 0.306 SR1 0.122 0.037 SR2 0.648 0.198 SR3 0.230 0.070 Product Development PD 0.122 PD1 0.875 0.107 PD2 0.125 0.015 Tab. 9 shows that creative industries should focus on controlling the cash flow as the most important issue in managing supply chain management compare to others. In addition, the following issue is to maintain relationship with supplier and it is nominated as the second important issue in supply chain management practice. Furthermore, customer relationship, product development, and demand management are nominated as the rank third, fourth, and fifth respectively. For the sub criteria, supplier involvement in product design has high local weight if compared to other sub criteria in this study. Meanwhile, pay the obligation to supplier has the highest global weight so that the creative industries should have proper control to manage the cash flow. Managing the cash flow is part of the capability to sustain the performance of supply chain management practice. Thus, it depicts that creative industries expend more effort to reduce the risk compared to other aspects. The scale of business is another reason to keep their business on the track.

5. Conclusion