Application of Data Envelopment Analysis in evaluating Retailer Performance Efficiency from Supply Chain Operations Reference (SCOR) Perspective Wike Agustin Prima Dania (a*), Alvina Ovilia Ardiasti (a), Wendra Gandhatyasri Rohmah (a)
Agroindustrial Technology Department, Faculty of Agricultural Technology, Universitas Brawijaya
Veteran Street, Malang 65145, Indonesia
*wikedania[at]ub.ac.id
Abstract
Retailer performance plays a critical role in enhancing supply chain operations and achieving a competitive advantage in the food industry. It directly impacts customer satisfaction, profitability, and overall supply chain effectiveness. CV. LMN is one of Indonesian apple cider drink manufacturers, involving 36 retailers in distributing the product to the market. Although the success of the marketing process relies on the retailer, this company has neglected to assess its performance. The aim of this research is to assess the retailers^ performance using Data Envelopment Analysis (DEA) from the Supply Chain Operations Reference (SCOR) Perspective. The DEA model applied in this study is a Constant Return to Scale (CRS) output-oriented that focuses on maximizing the output generated by given a fixed level of inputs. The result shows that six retailers are marginally efficient. It indicates that they have to improve their performance and get closer to the efficient frontier related to cash-to-cash cycle time, order received damage free, fill rate, and customer complaints. They could benefit from implementing strategies such as reducing inventory levels, applying safety stock, negotiating with distributors regarding the payment terms, improving material handling during storage, and pre-checking the product before delivering it to the customers.
