Perpustakaan Digital ITB

Cost has been one of the most important things that would eventually determine the survival of a company. In the modern era of global monetary crisis and major economic downturn, every company must be able to sustain their competitive advantage by increasing profit and minimizing cost. Cigarette Industry is one of the unique industries in the world of fast moving consumer goods. It is often considered as a dying business that is striving to sustain its competitiveness by focusing on organic growth in different parts of the market. The supply chain is considered as one of the major contributor and determinant of a company’s spending (expenditures), and the supply chain in cigarette companies would be no exception. Philip Morris International (PMI) has taken an in-depth look toward its spending in the supply chain management. The company recognizes the field as a key area to be optimized and developed, especially in the procurement, where the company sources for raw materials and services from worldwide suppliers. As in many of other Philip Morris affiliates, DiM (Direct Materials) has been a major part of the spending for HM Sampoerna (HMS). It covered many critical items for cigarette production and supplied by qualified vendors throughout the world. For years, Sampoerna procurement team has conduct tender projects and negotiations with its main suppliers. It has developed many new suppliers from various parts of the world. However, globalization and increased level of competition from both similar and different segments in the industry had forced the company to change its mindset and look at new alternatives related with DiM supply chain. PMI always encourage its affiliates in developing DiM supply chain initiatives that would yield positive result and generate savings for the company. When most of the conventional method in the past are no longer contributing additional value, one of the key initiatives would be to focus on the collaborative model of supplier relationship management (SRM) with strategic suppliers that would take the company to higher level of supply chain integration, and also obtaining benefit beyond just product costs or short term benefit. This will be important in order to maintain the growth in value contribution for the company and to gain competitive advantage in the industry's supply chain. To ensure that the SRM activities are well coordinated and contribute real values to the company, a comprehensive framework/model needs to be established. The SRM should not become just another concept that does not provide any real benefit. It should be created based on the spirit of partnership, mutual benefit, and long term gain for both the company and its strategic suppliers. It should capture ideas and innovations that are creating growth and investment for the future. The main objective of this research was to develop and proposed the SRM framework that would become an annual program for Sampoerna. It was based on theoretical approach, actual internal database, and also considering the mutual interest of the company and its strategic partners. A pilot initiative was also conducted in order to create awareness and build engagement in the process. Despite its focus in the direct materials scope, it is expected that the model/framework would also be applicable for multiple purposes across different divisions within the company.