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Procedia Computer Science 00 (2021) 000–000
ScienceDirect www.elsevier.com/locate/procedia
Procedia Computer Science 197 (2022) 453–460

Sixth Information Systems International Conference (ISICO 2021)

Model and implementation of rice supply chain management: A


literature review
Prasetyo Adi Wibowo Putroa, Erisvaha Kiki Purwaningsiha, Dana Indra Sensusea,*,
Ryan Randy Suryonoab, Kautsarinaa
a
Faculty of Computer Science, Universitas Indonesia , Depok 16424, Indonesia
b
Faculty of Engineering and Computer Science,Universitas Teknokrat Indonesia, Bandar Lampung 35142, Indonesia

Abstract

Strengthening the Supply Chain is one solution to problems in rice farming agriculture. Although Supply Chain Management
(SCM) for rice farming has been made, different parties are involved in each implementation. This difference occurs as a solution
for a problem with SCM implementation. This study aims to identify problems in rice farming SCM and related theories to solve
them. By implementing the Kitchenham Systematic Literature Review (SLR) approach from ACM, IEEE, and SCOPUS database,
this research creates a table of problems with its solution and finds an SCM model for rice farming based on Supply Chain
Operations Reference (SCOR) theory.
© 2021
© 2021 The
The Authors.
Authors. Published
Published by
by Elsevier
ELSEVIER B.V.B.V.
This is
This is an
an open
open access article under
access article under the
the CC
CC BY-NC-ND
BY-NC-ND license
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee ofofthe
Peer-review under responsibility of the scientific committee theSixth
SixthInformation
Information Systems
Systems International
International Conference.
Conference.
Keywords: Supply chain; Rice; SCM; SCOR; SLR

1. Introduction

The characteristics of rice farming in Indonesia are small-scale and scattered locations with varying productivity
and product quality levels [1]. As a result, there are many variations in demand according to the type of rice, but the
production locations are not evenly distributed. Now the problem of rice farming is increasing with the balance of
imported products. A strategy to strengthen the supply chain can be a solution to this problem. The supply chain
strengthening strategy is one of the government’s main policy directions in the Ministry of Agriculture Strategic Plan.
Other policy directions are increasing productivity, utilizing mechanization, product development, product promotion,
and expanding the agricultural product industry.

*
Corresponding author. Tel.: +62-21-786-3419; fax: +62-21-786-3415.
E-mail address: dana@cs.ui.ac.id

1877-0509 © 2021 The Authors. Published by ELSEVIER B.V.


This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the Sixth Information Systems International Conference.
1877-0509 © 2021 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the Sixth Information Systems International Conference.
10.1016/j.procs.2021.12.161
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The current government-owned rice farming Supply Chain Management (SCM) is different from its
implementation. A report by CIPS shows a comparison of the SCM owned by Bulog with the survey results on farmers
[2]. There are oligopsonistic differences that affect the upstream and downstream markets. Generally, the distribution
process between farmers and consumers includes intermediaries, millers, wholesalers, and retailers. Its oligopsonistic
is characterized by upstream and oligopolistic structures in the downstream markets. Several studies have also tried to
recommend SCM designed explicitly for compact agriculture in Indonesia based on actual supply chain
implementation [3].
In general, SCM covers suppliers, manufacturers, distributors, and retailers. These four components are linked by
financial and information frameworks, which require performance analysis, monitoring, and improvement regularly
[4]. Based on the analysis, a product’s supply chain for one place can be different from another to ensure the flows of
products, services, finances, and information [5], to improve the effectiveness and efficiency lines of goods, products,
and information flow across a supply chain [6], or long-term information sharing to complete products and processes
[7]. The three SCM adjustments above are carried out after identifying all the problems and related theories to solve
them.
This research was conducted as a systematic literature review to identify problems in rice farming supply chain
management and various ways to solve them. This study was driven by research questions: what are the existing
problem and solutions in rice supply chain management? Systematic Literature Review (SLR) is a methodologically
rigorous review of research results [8]. This methodology aims to aggregate all existing evidence on a research
question and support the development of evidence-based [9] [10] [11].
The writing structure is structured as follows: Section 2 describes related theories about SCM. Then, in section 3,
we describe how to carry out a systematic literature review. Next, section 4 describes data results, followed by
recommendations for synthesis in section 5, and concludes with section 6.

1. Literature Review

SCM is a tool for managing value-added activities down to the end customer [12]. SCM consists of critical
components, processes, and testing. Five critical components need to be prepared to get the most out of the supply
chain [13]:
1. Operations strategy: decide about how to produce goods and services. This strategy will affect and shapes
strategic supply, the entire supply chain, and investment chain management.
2. Outsourcing strategy: an outsourcing decision starts with analyzing the skills and expertise in the supply chain.
Outsourcing activities need to be considered for low strategic interest, better, faster, or cheaper.
3. Channel strategy: concerned with how to deliver products and services to buyers or end-users. This decision
will determine selling concerning market segments: whether the company will sell indirectly through
distributors, retailers, or directly to customers through the internet or direct sales force.
4. Customer service strategy: define the process based on the customer’s expectations and what they want about
the product profitability.
5. Asset network: assets such as warehouses, production equipment, order desks, and service centers that make
up the business have a significant benefit on supply chain performance. The benefit comes from the location,
size, and mission of these assets.
Apart from paying attention to critical factors, the supply chain management architecture must also pay attention
to integration with other supply chains. This integration is in the same company and involves other company processes
such as technology, product and service development, marketing and sales, customer support, and finance. There are
specific principles for each process design that will promote good integration between supply chains. The specific
principles are as follows:
1. Plan. This principle is involved in every SCM implementation process (source, make, deliver, and return).
Every execution process has a planning element. For example, plan source will determine the source of the raw
materials needed, and the amount of inventory produces. Plan deliver provides the information required to
commit to customer orders. Meanwhile, the plan for return offers the information required to schedule returns
and replacement orders.
2. Source. The source is defined as all sources of raw materials and services to be provided in the supply chain
process. These activities include purchasing, scheduling, receiving, checking, and authorizing supplier
payments.
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3. Make. The principle is about converting the resources obtained into goods and services by agreed terms and
specifications. These activities include testing, certification, and packaging.
4. Deliver. Deliver is all activities ranging from receiving customer orders, providing price quotes to collecting
payments from customers. Deliverers are associated with source, so they must also make orders visible to the
source, execute, and ensure those customers communicate. Shipping also includes all warehousing,
transportation, and distribution activities.
5. Return. Return concern about how previously sold products are supported, collected, and disposed of according
to the business policies and customer agreements. This process includes all activities from return authorization
to financial settlement. This principle usually includes returning defective, incorrect, or unsatisfactory;
maintained, repaired, and overhaul (MRO) based on a service agreement; return of excess inventory; and
recycling/repair/reuse.
The Supply Chain Operations Reference (SCOR) model is a methodology for managing supply chain activities and
processes. This methodology can be used as practical guidelines for analyzing SCM practices [12]. The performance
of the supply chain is measured using its model, development, and communication involving each component. SCOR
model combines some elements (e.g., business techniques, benchmarking, best business practices). It applies them to
the supply chain system to develop a comprehensive framework to increase supply chain management performance.
[14]. SCOR model proposed five main activities (plan, source, make, deliver, return and enable) embraces various
tiers along the supply chain [15].
SCOR model’s primary function is to describe the performance of the process. This model is a multi-functional
integrated model structure that combines benchmarking analysis, best practice analytical tools, and business process
reengineering. Guided supply chain management is achieved by integrating three process management ideas; business
processes relationship, business process performance standard scale evaluation, description of the business process
description standardization, and performance management measures optimization [16].
The effectiveness of an SCM model can be seen from the test results. This test is needed to ensure that the model
or application will provide the expected process effectiveness [13]. An adequate supply chain process architecture
satisfies four tests, namely: the test of strategic fit, the test of end-to-end focus, simplicity test, and integrity test. With
these four tests, it can be ascertained that the SCM of a product is in line with the organization’s supply chain strategy,
easy to implement, reliable, and supported by all organizational leaders.

2. Methodology

This study conducted three (3) research steps that refer to Kitchenham’s SLR; planning, implementation, and
reporting [17]. In the first stage, we formulated a protocol review using the PICOC formula (Population, Intervention,
Comparison, Results, Context). Next, we determined the research questions and criteria for the selection process,
namely inclusion and exclusion, formulating quality tests, data extraction, data synthesis strategies, and finally making
a schedule/timeline. Inclusion and exclusion criteria for this study: The article contains the keywords Supply Chain
Management, ranks Q1, Q2 according to scimagojr, year of publication (2017-2021), in English, and includes full-
text paper.
The search process was a manual search of specific conference proceedings and journal papers (Q1 and Q2 rank
based on scimagojr). We formulate a search string before doing an investigation, namely (supply chain management
OR SCM) AND (model OR framework OR technique OR application OR implementation OR concept OR model)
AND (farming OR paddy OR rice OR agriculture). The ACM, IEEE, and SCOPUS databases are the data sources
used for literature searches and then imported into the Mendeley software.
The second stage is implementation. At this stage, the paper search conduct based on the search string and found
474 articles. Then 32 papers were chosen due to excluding papers that did not discuss SCM problems and solutions
based on the titles and abstracts. Details of total sources. Those papers consist of ACM (2), IEEE (4), SCOPUS (26).
Finally, 19 articles were selected after conducting the quality assessment. Overall papers selection process is described
in Fig. 1 with detail list of publication as follow: [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31]
[32] [33] [34] [35] [36].
4456 PrasetyoPrasetyo
Adi Wibowo Putro etPutro
Adi Wibowo al. / Procedia Computer
et al. / Procedia ScienceScience
Computer 00 (2021)
197000–000
(2022) 453–460

Fig. 1. The selection process of final papers.

3. Result and Analysis

The SLR process obtained the Critical Success Factor (CSF) component and the SCM test component. Both are
necessary if we are going to create and implement the SCOR model. Although all procedures and each component
should be met, in practice, each research determines the key factors that determine needs, the focused SCM process,
and testing if using the SCM model.
From the results of the SLR, Fig. 2(a) explained that in building and compiling the SCM, most of the literature
found does not consider the fulfillment of the five CSF components, namely 29.47% of publications have not
considered the CSF components. For the literature that considers CSF, the components used vary, and not all five
components of CSF are used. Although not always used simultaneously, the variations of the five CSF components
are not too different and still meet the CSF SCM criteria.
For the models or applications proposed, most papers do not carry out tests. As explained above, this test is
necessary to ensure that the proposed model or application meets the objectives of SCM. Four stages of testing must
be carried out: strategic fit, end-to-end focus, simplicity, and integrity. As shown in Fig. 2(b), 71.1% of the
publications obtained have not been implemented. This implementation can be either an application or a basis for a
need’s analysis. Whatever type of implementation, 71,1% of the implementation was published without testing.

Fig. 2. (a) Percentage five components of CSF; (b) Percentage four components of Four tests of SC
Most problems on SCM exist on Plan and Delivers. Based on the review, five issues are identifying in those both
components of the supply chain. This number is not much different for the Source and Make components with four
problems encountered in the reviewed literature. The problem most often found in most supply chains is developing
a strategy or supply chain model [20] [21] [23] [24] [26] [30] [31] [32] [35] [36] using literature study to identify the
strategic components [19] [24] [25] [26] [35] [22] [33] [34]. Supply chain strategy development can use the theory of
the SCOR Model [20], E-SCM [21], Circular Economy Framework [23], Mixed-integer linear mathematical model
[24], Food Security [26], Risk Sharing [27], Supply Chain Sustainability [35], Supplier relationships [31], and System
Dynamics [32] [36]. The exact problem, the theory used as a solution, and the implementation of the SCM model are
listed in Table 1.
Prasetyo
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457

Table 1. The problem, solution, and implementation of SCM.

Process Problem Solution Theory Implementation

Plan 1. Farmer Community 1. HCI [18] 1. Social Movement [18]


Strategy [18] 2. SCOR Model [20] 2. Simulation [22]
2. SCM Development 3. Deep Rainforest Learning [22] 3. Statistical Survey [22]
Model [20] [23] [24] 4. Circular Economy Framework [23] 4. Decision Support System [26]
[26] [28] [30] [32] [35] 5. Mixed-integer Linear Mathematical Model [24] 5. Strategies increasing
[36] 6. Food Security [26] productivity and reduce costs
3. SCM Traceability [22] 7. Risk Sharing [28] [32]
[33] 8. Relationship Commitment [29] 6. Policy Recommendations [34]
4. Effects of SCM [29] 9. Sustainable Supply Chain Management Integration [30] 7. Policy Analysis [36]
5. SCM Technology 10. System Dynamics [32] [36]
Approach [34] 11. Blockchain [33]
12. Smart Farming [34]
13. Supply Chain Sustainability [35]

Source 1. Farmer Community 1. HCI [18] 1. Social Movement [18]


Strategy [18] [25] 2. SCOR Model [20] 2. Policy Recommendations [34]
2. SCM Development 3. Deep Rainforest Learning [22] 3. Policy Analysis [36]
Model [20] [23] [24] 4. Circular Economy Framework [23] 4. Simulation [22]
[26] [32] [35] [36] 5. Mixed-integer Linear Mathematical Model [24] 5. Statistical Survey [22]
3. SCM Traceability [22] 6. Food Hub [25]
[33] 7. Food Security [26]
4. SCM Technology 8. System Dynamics [32]
Approach [34] 9. System Dynamics [32] [36]
10. Blockchain [33]
11. Smart Farming [34]
12. Supply Chain Sustainability [35]

Make 1. Farmer Community 1. HCI [18] 1. Social Movement [18]


Strategy [18] [25] 2. Data Distribution Service [19] 2. Decision Support System [26]
2. SCM Development 3. SCOR Model [20] 3. Policy Recommendations [34]
model [20] [23] [24] 4. Deep Rainforest Learning [22] 4. Policy Analysis [36]
[26] [31] [32] [35] [36] 5. Circular Economy Framework [23] 5. Simulation [22]
3. SCM Traceability [22] 6. Mixed-integer Linear Mathematical Model [24] 6. Statistical Survey [22]
[33] 7. Food Hub [25] 7. Prototype in Small-scale
4. Effects of SCM [28] 8. Food Security [26] Agriculture IoT [19]
5. SCM Technology 9. Risk Sharing [28]
Approach [19] [34] 10. Supplier Relationships [31]
11. System Dynamics [32] [36]
12. Blockchain [33]
13. Smart Farming [34]
14. Supply Chain Sustainability [35]

Deliver 1. Farmer Community 1. HCI [18] 1. Sales Policy [27]


Strategy [18] [25] 2. SCOR Model [20] 2. Social Movement [18]
2. SCM Development 3. E-SCM [21] 3. Simulation [22]
Model [20] [21] [23] 4. Deep Rainforest Learning [22] 4. Statistical Survey [22]
[24] [26] [27] [28] [31] 5. Circular Economy Framework [23] 5. Decision Support System [26]
[32] [35] [36] 6. Mixed-integer linear mathematical model [24] 6. Policy Recommendations [34]
3. SCM Traceability [22] 7. Food Hub [25] 7. Policy Analysis [36]
[33] 8. Food Security [26]
4. Effects of SCM [27] 9. Business Competitiveness [27]
[28] 10. Risk Sharing [28]
5. SCM Technology 11. Supplier Relationships [31]
Approach [34] 12. System Dynamics [32] [36]
13. Blockchain [33]
14. Smart Farming [34]
15. Supply Chain Sustainability [35]

Return 1. SCM Development 1. HCI [18] 1. Social Movement [18]


Model [20] [23] [24] 2. SCOR Model [20] 2. Simulation [22]
[26] [27] [30] [31] [32] 3. Deep Rainforest Learning [22] 3. Statistical Survey [22]
[35] [36] 4. Circular Economy Framework [23] 4. Decision Support System [26]
2. Farmer Community 5. Mixed-integer Linear Mathematical Model [24] 5. Policy Recommendations [34]
Strategy [18] 6. Food Security [26] 6. Policy Analysis [36]
3. SCM Traceability [22] 7. Supplier Relationships [31]
[33] 8. System Dynamics [32]
4. SCM Technology 9. Blockchain [33]
Approach [34] 10. Smart Farming [34]
11. Supply Chain Sustainability [35]
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4. Discussion

The rice supply chain only involves three stakeholders, namely focal firms, suppliers, and customers. A focal firm
is a group of farmers who cultivate crops and process them to be ready for consumption. As for customers, it can be
cooperatives, retail stores, or individual buyers who buy for direct consumption. Meanwhile, suppliers could be a
provider of seeds, fertilizers, and other agricultural supporting equipment.
We proposed the SCM model for rice farming based on the analyzed literature, as seen in Fig. 3. The number of
stakeholders and the SCOR principles involved is also different from other supply chains. The farmer carries out the
Plan and Return process. Based on the existing literature, the farmer act as a focal firm that orders raw materials
directly from the producers and distributes them to customers. The Source and Deliver processes occur in all
distribution channels: customers, farmers, and suppliers.
Meanwhile, the Make process is only found in suppliers as producers of raw materials and farmers as focal firms.
The difference in the rice supply chain is the absence of product returns from customers. The inferiority of rice does
not impact returns, but it will make the Customer stop buying. With no returns, the Return component only exists in
the Production relationship to the Supplier.

Fig. 3. Proposed Rice Supply Chain Management


Plan and Deliver are the two main problems in the rice agricultural supply chain. Problems with the Plan
component, such as the SCM model and strategy, will affect the other four elements. These four components are still
in the farmer area as the production management or focal firm. Production management will liaise with upstream raw
material suppliers and downstream customers.
Rice agricultural raw materials can be in the form of fertilizers or seeds. Farmers get both from suppliers who
produce them directly. All references never cover suppliers of raw materials for making fertilizers. Inferior raw
materials can have an impact on the return of excess or fertilizer. Based on the explanation above, it can conclude that
in the Supplier management area, there are only Make, Deliver and Return components.
Customers can be other farmers or rice sellers at the downstream side of the rice agricultural supply chain. This
condition occurs because some farmers try to retain customers by forming farming communities to grind and consume
rice. Therefore, the Deliver component will be in the downstream part of the customer acts as a rice seller who will
crush the rice and then sell it to users or supermarkets.
There are five problems in rice farming SCM, with four issues in each component of the SCOR model. The 16
theories found in the literature can solve all existing problems, with 11 theories used in all SCOR model components.
The problem of the SCM development model is a problem with 11 alternative solutions that have not been used in
each component of the SCOR model
The rice farming supply chain can be implemented as an application or a business strategy. Application
implementation can be in simulation applications, android-based applications, or applications that apply IoT
technology to production management. Rice farming business strategy in SCM can be in decision support systems,
social movement strategies, increased production, or policy analysis.
The proposed SCM model is more straightforward than the SCM model for rice farming in Indonesia. Furthermore,
SCM of rice farming in Indonesia has not involved suppliers in providing equipment, seeds, and fertilizers for farmers.
The addition of stakeholders involved with a simpler model has the potential for business process improvement.

5. Conclusion

There are five potential problems and 16 theories that can be a solution in rice farming SCM. The SCM contains
three stakeholders and five management processes as in the SCOR model. Those three stakeholders on the SCM are
focal firms, suppliers, and customers. A new distinct management process was proposed based on the literature review.
Prasetyo Adi Wibowo Putro et al. / Procedia Computer Science 197 (2022) 453–460 459
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As a limitation of this research, overall research results are obtained based on literature results mainly conducted
outside Indonesia. Therefore, for further research, we need to compare the proposed supply chain management process
with existing business processes in Indonesia to propose business process improvement and implement it into one
system to provide a single system for the entire rice supply chain process.

Acknowledgements

This research was supported by E-Government and E-Business Laboratory, Faculty of Computer Science,
Universitas Indonesia

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