SUPPLY CHAIN PERFORMANCE OF CALIFORNIA PAPAYA COMMODITY (CARICA PAPAYA (L). VAR CALINA).– Miftah et al.

SUPPLY CHAIN PERFORMANCE OF CALIFORNIA PAPAYA
COMMODITY (Carica Papaya (L). Var Calina)
Himmatul Miftah1, Riri Setyawati1, Arti Yoesdiarti1,
Ita Novita1, Tiara Amanda Lestari2, Ikhsan Qodri
Pramartaa1
1
Departement of Agriculture, Universitas Djuanda,
Indonesia
2
Departemen of Food Technology, Universitas Djuanda,
Indonesia

Volume 3 Issue 3
(December 2022)
e-ISSN 2722-6395
doi: 10.30997/ijar.v3i3.233

ABSTRACT

ARTICLE INFO
Article history:
Received: 17-10-2022
Revised version received: 16-11-2022
Accepted: 21-12-2022
Available online: 25-12-2022
Keywords:
Marketing
process,

functions,
supply

supply

chain

chain

performance,

California papaya supply chain operation
reference (SCOR).
How to Cite:
Miftah, H., Setyawati, R., Yoesdiarti, A.,
Novita, I., Lestari, T. A., & Pramartaa, I.
Q. (2022). SUPPLY CHAIN PERFORMANCE
OF CALIFORNIA PAPAYA COMMODITY
(Carica

Papaya

(L).

Var

Calina). Indonesian Journal of Applied
Research

(IJAR),

3(3),

166-174.

https://doi.org/10.30997/ijar.v3i3.233
Corresponding Author:
Himmatul Miftah
himmatul.miftah@unida.ac.id

The study aims to determine the marketing function, supply
chain process, and supply chain performance of California
Papaya suppliers to find solutions to problems that arise in the
fruit commodity supply chain, namely, failure to achieve the
realization of supply achievement according to
recommendations. The research location at KN Jaya Farm
Rancabungur Bogor Regency is from May 2022 to August
2022. Data collection methods through interviews and
observations. The respondents were one-person farmers,
seven suppliers, and one-person distributors. Data analysis is
carried out descriptively and quantitatively analyzes supply
realization compared to supply chain operation reference
(SCOR) standards to determine supply chain performance
achievements. Research shows the marketing functions
carried out: sales and purchase activities, exchanges, physical
functions: Packaging, transportation, facility functions:
financing, standardization, risk protection, and market
information. The supply chain process is the activity of the
flow of goods, the flow of money, and the flow of
information. Supply chain performance analysis consists of
planning, procurement, delivery, and returns. The
achievement analysis results in each matrix show that the
realization of the supply chain has been carried out beyond
the standards recommended by SCOR. The research
concludes that the exchange function, the physical part, and
the facility function carry out the marketing function. The
supply chain process includes the activity of the flow of
goods, money, and information. Supply chain performance
has met the standard by 67% and the non-standard by 33% of
the number of metrics recommended by SCOR. The
recommendation of this study is to recruit suppliers from
locations in the West Java region so that the metric component
can 100% meet the standards and apply digital systems to
ensure the efficiency and effectiveness of supply through
blockchain technology.

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SUPPLY CHAIN PERFORMANCE OF CALIFORNIA PAPAYA COMMODITY (CARICA PAPAYA (L). VAR CALINA).– Miftah et al.

1. INTRODUCTION
The strategic position of the Indonesian region is very influential; there is the production
of various kinds of fruits that grow well in locations with tropical climates. Fruits, as a
horticulture commodity, have a charm for the community. The varied shape and colors of the
fruit are the attraction of each type. The increasingly high demand for fruit can provide benefits
for agricultural business actors. The national production of Papaya fruit from 2015 – 2019 has
increased from 851,532 tons in 2015 to 986,992 tons in 2019. The average papaya fruit
production for five years is 901,101 tons (Central Bureau of Statistics, 2019). In addition to
showing aspects of production, horticulture development is currently more focused on
improving quality and being market-oriented. Agricultures must understand consumers'
interests and needs so that farmers can produce appropriate and well-distributed products for
better selling prices (Febriani, 2011). Papaya fruit production center area (Carica papaya L.)
Calina IPB-9 varieties in Indonesia include West Java Provins. The national production of
papaya in Indonesia in 2019 reached 986,992 tons. It amounted to 89.2 88 tons of the total
national production of papaya supplied from the province of West Java (Central Bureau of
Statistics, 2019).
California Papaya production in West Java in 2019-2020 increased, but the number
of California Papaya requests exceeded the amount of production. This causes an imbalance
between supply and demand. The imbalance can lead to the emergence of risks and the loss of
opportunities to obtain profits from each supply chain actor, which ultimately affects the
performance of members of the California Papaya supply chain. The condition of inequality
in the supply of papaya Calina is also experienced by Malaysia, where Papaya Calina from
Riau Province can be exported to Malaysia due to a lack of supply of papaya (Agricultural
Quarantine Agency, 2019). The case in Pakistan is reported that During the pandemic period,
the shortage of supplies of basic agricultural necessities, such as rice, vegetables, wheat flour,
and eggs, has caused fear among suppliers and buyers due to the disruption of supply networks
(Paul & Chowdhury, 2020). Measuring supply chain performance is essential because it
maintains supply stability to end consumers, improves the efficiency of warehouse use and
transportation facilities, shortens shelf life during the distribution process, reduces risks, and
increases opportunities for revenue from supply chain actors. Moreover, in the global era, an
efficient distribution strategy and supply chain management are needed in line with the
revelation that competitive pressure in the global market requires companies to establish
efficient distribution planning and inventory management in the Diep supply chain (Diep &
Chaysiri, 2022).
The importance of papaya supply chain research is to maintain the supply stability
available to meet customer demand. Similar research has also been conducted on the garlic
commodity, stating that supply availability is an essential factor in influencing the
performance of the garlic supply chain because, without a stable and regular supply, the
performance of the garlic supply chain will be disrupted (Purwanto & Ismail, 2020). In the
broccoli commodity, it was also reported that the cause of the inefficient supply chain included
insufficient supply and less timely delivery (Adwiyah, 2017). Similar research has been
conducted by Alam et al. (2021). The causes of inefficient supply chain performance are
quality assurance, insufficient supply, and untimely delivery.
This research evaluates supply chain performance to optimize the California Papaya
supply chain. Supply chain performance measurement is carried out to fix supply chain
problems before they have a significant impact and to control the coordination of supply chain
actors in meeting consumer demand (Chopra & Meindl, 2007). Since supplier performance
critically affects overall supply chain performance (SCP), identifying and evaluating SCPs
through standard indices is an integral approach to identifying problems and improving SCP
(Tansakul et al., 2022). The specific purpose of this study is that the research aims to determine
the marketing function and supply chain process and measure supply chain performance in
California Papaya suppliers.
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2. METHODS

2.1. Research Location and Time
The research was conducted from May 2022 to August 2022. The determination of
research location was chosen intentionally (purposive), namely at KN Jaya Farm in Mekarsari
Village, Rancabungur District, Bogor Regency, considering that KN Jaya Farm is a large
supplier that connects farmers with modern retailers’ papaya Calina in Jakarta, Bogor, and
Bekasi areas.
2.2. Respondent Determination Method
The respondents in this study consisted of 1 California Papaya farmer, one distributor
conducted by purposive sampling, and seven suppliers who supplied to the distributor carried
out by accidental sampling. The respondent as a distributor is KN Jaya Farm. KN Jaya is a
hereditary business venture focusing on papaya Calina commodities since 2003. KN Jaya
Farm has a warehousing area of 400 m2 consisting of a warehouse, sorting place, and parking
lot. KN Jaya Farm also has other assets, such as vehicles consisting of 5 truck cars, two tub
cars, and three motorcycles; the total number of employees at KN Jaya Farm is 18 people,
while the employees involved in the California Papaya business are ten people. Over the past
year, KN Jaya Farm has fostered partner farmers in the district area of Bogor, Cianjur,
Sukabumi, Tanggamus, and several districts in Lampung Province and Banten Lampung
Province with an average total of 150 tons per month. The selection of KN Jaya Farm as a
research location followed the recommendations of the Bogor Regency Food and Agriculture
Security Service. As many as seven respondents are suppliers who routinely supply Calina
papaya from Sumberjo, Way Kanan, Tanggamus, Lampung Province, as many as three people
from Sukabumi one person, Banten as many as one people and two Cianjur people. The
determination of supplier respondents is carried out by the accidental sampling method. The
Accidental sampling method is carried out with the consideration that respondents can be
interviewed directly at the distributor location during the handling of papaya delivery and, at
the same time, can observe the standardization and sorting process.
The demographics of respondents showed that the distribution of sex at the supplier
level at KN Jaya Farm was 100% male. This happens because suppliers think men have to
work and have more vital energy, while women are enough to be good homemakers. The
percentage of respondents' age is equal, namely the age of <30, as many as one person with a
percentage of 14%, the age group of 30-40 as many as four people with a percentage of 57%,
and the age group of 41-50 as many as two people with a percentage of 29%. Judging from
the last education respondents have taken, most of the respondents to California Papaya
suppliers at KN Jaya Farm are four junior high school students with 57% and senior high
school as many as three people with a percentage of 43%. Judging from the length of farming
respondents of California Papaya suppliers at KN Jaya Farm is classified as having been in
running a business selling California Papaya for a long time, can be seen from the data above,
namely 1-5 years as many as six people with a percentage of 86%, and 5-10 years as many as
one person with a percentage of 14% of the total. The more extended California Papaya trading
business experience supports the performance of each of the marketing agencies because the
business experience that has been carried out will positively influence the profit and
sustainability of activities in buying and selling California Papaya.
In terms of gender at the distributor level at KN Jaya Farm, it is 100% male. The
percentage of the respondent age group is the same, namely the age of 41-50 years, as many
as one people with a percentage of 100%. Judging from the last education taken by
respondents, California Papaya distributors at KN Jaya Farm have high school / vocational
education with a percentage of 100%. Judging from a long time of trying to farm respondents
of California Papaya distributors at KN Jaya Farm is classified as having been running a
California Papaya business for a long time, it can be seen from the data above, which is ten
years with a percentage of 100%. California Papaya trading business experience has 19
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(nineteen) years of supporting experience in running a California Papaya business which is
quite long and can provide opportunities for California Papaya business actors in marketing
California Papaya at KN Jaya Farm so that it can help farmers and suppliers in running this
California Papaya business. The 14-day field interview process at the KN Jaya Farm location
2.3. Data Sources and Types
The data used in this study consisted of primary data and secondary data. Secondary
data is from the Central Bureau of Statistics and SCOR reference data. Primary data were
obtained from farmers, suppliers, and distributors through interviews and direct observation
by filling out questionnaires at the KN Jaya Farm location.

2.4. Data Processing and Analysis Methods
The interview data was processed, followed by descriptive and marketing institutional
analysis to answer the distribution function and supply chain activities. Supply chain
performance analysis is carried out utilizing supply chain performance at KN Jaya Farm can
be measured through performance matrices. Some performance matrix components include
lead time order fulfillment, order fulfillment cycle, supply chain flexibility, cash-to-cash cycle
time, and daily inventory. The interview results of seven supplier respondents found the actual
average value of each matrix component, then compared it with the target/ideal and calculated
the achievement of the matrix. If the actual value exceeds the target/outstanding value, the
matrix achievement value is the final value in the SCOR calculation (SCC, 1996). This method
is also used to measure the performance of the poultry supply chain (Bukhori et al., 2015).
3. RESULTS AND DISCUSSION
3.1. Marketing Function
The marketing process carried out by California Papaya farmers generally involves
suppliers, namely collecting merchants. Transportation of California Papaya fruit from each
supplier location using a pickup car directly to the distributor KN Jaya Farm. The marketing
function, it can be seen in Table 1.
Table 1 Functions of California Papaya Marketing Actors
Marketing Function
Exchange
Purchase
Sales
Physical
Packaging
Transportation
Facilities
Financing
Standardization
Risk Insurers
Market Information

Farmer

Supplier

Distributor

√

√
√

√
√

√

√
√

√
√

√
√

√
√
√
√

√
√
√

Source: Primary Data (processed)

2.2. California Papaya Supply Chain Process
2.2.1. The flow of Information, Goods, and Money
The flow of information, goods, and money is the linkage between supply chain agencies
in terms of supplying and meeting their supply needs. Fauziah et al. (2021) also state this
supply chain activity that there are three functions in the marketing function: the exchange
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function, the physical function, and the facility function. This supply chain activity is in line
with the process of supply chain activity in the sago agro-industry. It is stated that the supply
chain flow pattern consisting of raw material flow, product flow, financial flow, and
information flow is going well and smoothly (Timisela et al., 2014). The flow of information
related to market price info, goods availability, and payment systems. California Papaya
information, goods, and money flow can be seen in Table 2, while supply chain conditions can
be seen in Table 3.
Table 2 California Papaya information, goods, and money flow at KN Jaya Farm, 2022
Types of Flow Commodities
Information
Marketing information from
the market to the distributor
because suppliers routinely
send California Papaya every
day to KN Jaya Farm

California Papaya
Distributors take
California Papaya
from farmers and
suppliers every day

Money Item
Money was paid
in cash after the
papaya arrived
at the KN Jaya
location

Source: Primary Data (Processed)
In line with what was researched by Wuwung (2013) mentions the same thing in the
supply chain, an efficient operation of the supply chain depends on the full and accurate flow
of information data related to the product requested from the retailer to the customer.
Table 3 Supply chain condition flow
Descriptive
Papaya California
Analysis
Structure
Supply chain actors consist of farmers, suppliers, and distributors
Supply Chain -KN Jaya Farm’s cooperation with farmers and suppliers based on a belief
Management
system
-Transaction system that is for one day and paid in cash
- The quantity of supply, standard, and delivery time have been determined
Supply Chain -Each supplier fosters farmer partners in turn so that it can supply California
Resources
Papaya sustainably
-Some suppliers cultivate California Papaya directly, and some buy directly from
local farmers so that they can supply California Papaya to KN Jaya Farm
Chain Business The supply chain process at California Papaya is carried out in a general trading
Process
pattern starting from farmers being sold to suppliers and then selling to
distributors KN Jaya Farm.

2.2.2. Supply Chain Performance with SCOR Method
The supply chain process using the SCOR method consists of five processes: planning,
sourcing, making, delivering, and returning. Supply Chain SCOR method also means the
process of purchasing, sourcing, production, and distribution through the flow of materials and
information (Miradji, 2014). Supply Chain Management Analysis at PT. Monier in Sidoarjo
Balance Economics, Business, Mgt, and Acc. J.10p 19. The SCOR component can be seen in
Table 4.
Table 4 Components of the Supply Chain Operation Reference (SCOR)
Marketing
Agency
Farmer

SCOR Components (Planning, Procurement, Shipping, and Returns)
Farmers needed to calculate the right time and situation to plant California
Papaya.
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Suppliers plan, procure, and ship California Papaya to KN Jaya Farm. The
delivery process is carried out by the supplier using a truck. Delivery of
California Papaya to KN Jaya Farm requires transportation costs; the supplier
pays transportation costs. The goods that do not pass the sorting will be returned
to the supplier or deducted 15% from the original price because they do not meet
the criteria.
Planning and procurement are held in order to supply and distribute California
Papaya. If goods are damaged during delivery, then according to the agreement,
the selling price is reduced, but the buyer receives all the goods.

Supplier

Distributor

Source: Primary Data, 2022 (Processed)
A performance matrix can measure supply chain performance at KN Jaya Farm; several
components include order fulfillment lead time, order fulfillment cycle, supply chain
flexibility, cash-to-cash cycle time, and daily inventory. The calculation of the California
Papaya SCOR matrix at KN Jaya Farm can be seen in Table 5.
Table 5 Calculation of the California Papaya SCOR matrix at KN Jaya Farm
No

Matrix

1
2
3
4
5
6
7
8
9

% Orders fully shipped
% Delivery performance on schedule
% Number of requests fulfilled
% Perfect condition
%Orders sent are complete and on time
% California Papaya stockpile
% Product delivery problems
% Percentage of defective products
% Returns of damaged products

Actual
Value
98%
95%
98%
97%
98%
99%
5%
2%
2%

Target/Ideal
95%
100%
100%
95%
95%
100%
10%
5%
7%

Matrix
Achievements
103% *
95% **
98% **
102% *
103% **
99% **
0,5% *
2,5% *
0,28% *

Source: Primary Data, 2022 (Processed)
Description :
*Meets SCOR reference standards
**Has not met SCOR reference standards
Matrix: The component used to calculate the SCOR matrix
Actual value: The value obtained from the average supplier's final result
Ideal target: The standard of value used as a reference
Matrix achievement: Final value in SCOR calculation
Table 5 shows that metrics no, 1,4,5,7,8, and 9 have met the ideal target as
recommended (67 %), but matrix components 2, 3, and 6 still need to be met (33 %). The
delivery performance has not been following the schedule (point 2) due to the constraints of a
relatively long distance from the farmer's location to KN Jaya Farm, namely the location from
Sumberjo Village is 345 km away, the Tanggamus location is 365 km, and the Right Way is
440 km. Distance constraints are a severe concern because distance differences require serious
handling. This was also revealed by Goni et al. (2022) that transportation plays an essential
role in the supply chain context because it is infrequent for a product to be produced and
consumed in the exact location. Therefore, a successfully implemented supply chain strategy
must require proper transportation management. In addition to distance constraints, the
delivery process is also constrained by the schedule of crossing queues from Sumatra Island
to Java Island. This was also expressed by Simbolon et al. (2022) in a study that concluded
that one of the factors for the effectiveness of an integrated intermodal transportation node is
the connectedness/affordability factor (connectivity) which influences an effective intermodal
transportation node. Thus KN Jaya can focus more on sources of papaya procurement in West
Java and Banten, which do not require connectivity between modes of transportation. The
percentage of KN Jaya's demand has yet to be met (point 3) because the location of the area
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of origin Sukabumi and Cianjur districts are still experiencing the Fusarium outbreak, so many
papaya farmers in that location failed to harvest. The supply at KN Jaya still needs to be met
(point 6) due to the impact of the unmet number of shipments from suppliers. Thus, to
minimize the fulfillment of supply chain criteria, an external strategy is needed, namely
mapping marketing areas that are not affected by disease attacks. In papaya plants resulting in
crop failure. This is in line with what Domnina et al. (2022) conveyed: through supply chain
risk management strategies, the focus should be on external environmental analysis and supply
chain sustainability.
Based on the results in Table 5, it can be concluded that the supply chain performance
of fulfilling orders for KN Jaya Farm suppliers is better than equivalent research conducted by
Abi Anwar et al. (2022), which stated that the results of measuring the performance of PT.
ABCXYZ with the SCOR method on the perfect order fulfillment metric component of 88%.
The achievement of meeting standards following SCOR recommendations in the marketing
supply chain is strongly supported through the use of marketing technology using electronic
media, as Purwanto & Ismail (2020) revealed that the perception of the use of E-Marketplace
applications affects the perception of consumer benefits. This is because the ease of operation
of E-marketplace services affects users; moreover, sales and purchase transactions become
more effective and efficient. Business actors supplying papaya to KN Jaya Farm can take
advantage of a good distribution network model in the e-commerce business and provide
quality services through a fast and low-cost delivery period for equipment and materials to
consumer locations that can provide more competitive prices for customers (Abdul & Evitha,
2019). In the end, the goal to be achieved from an integrated supply chain management, among
others, is to guarantee that products are received by consumers at competitive prices, fast, of
good quality, and easily accessible. One of the things that can be used as an indicator of success
is cost efficiency along the supply chain so that product prices at the consumer level become
competitive (Budiono & Syaichu, 2016). Identical to the papaya commodity, corn products
from farmers to final consumers must be able to be carried out at an efficient cost. The use of
supply chain technology can also be used Blockchain technology in line with what was
conveyed in the agricultural product supply chain research that for practitioners to adopt
blockchain technology to carry out agricultural supply chains during pandemic situations.

4. CONCLUSION
The Marketing function is the exchange function in the form of purchase activities
carried out by suppliers; all marketing actors carry out the sales function. Suppliers and
distributors carry out the physical function in the form of packaging, and all marketing actors
carry out transportation. The facility's function is that farmers and suppliers carry out
financing, suppliers and distributors carry out standardization, suppliers and distributors carry
out risk insurers, and all marketing actors carry out market information. California Papaya
supply chain processes consist of information, goods, and money flows. California Papaya
marketing information starts from retail requests to distributors and then is informed to
suppliers who have collaborated. The flow of California Papaya goods starts from the
distributor buying California Papaya to farmers, and the supplier then sends it to the distributor
and then sends it to retail. California Papaya money flow is paid in cash to the supplier after
the distributor receives the California Papaya. California Papaya supply chain actors consist
of farmers, suppliers, distributors (KN Jaya Farm), and retailers. Supply chain performance,
such as planning, procurement, shipping, and returns, has proceeded according to the criteria
in each supply chain institution. The achievement value on each matrix component has shown
results that follow the standards recommended by SCOR as much as 67% of the total matrix
components, namely the matrix of fully delivered orders, the perfect condition of goods, orders
sent entirely and on time to KN Jaya consumers, product delivery constraints, percentage of
damaged products and product returns. Meanwhile, 33% have yet to reach the standard,
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namely delivery performance according to the schedule, the number of requests met, and the
supply of California Papaya in KN Jaya.

ACKNOWLEDGMENT
We thank to Ministry of Education, Culture, Research and Technology of The Republic of
Indonesia (Grant: Penelitian Terapan Unggulan Perguruan Tinggi) and DRPM Universitas
Djuanda.

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