Effect of Supply Chain Management to Product Quality and Its Impact on Business Performance in Manufacturing Companies in Indonesia

Abstract:

Four-wheeled vehicle spare parts sales, in this case the tires, are constantly increasing in the market. This happens because of the mobility needs of the people of Indonesia are higher. PT. ITG, as a tire manufacturer, should be able to competitively produce tires able to compete with similar competitor for the sustainability of the company. Products sales continues to decline from January 2014, which reached 123.210 units and in December 2014 only reached 58.276 units. This shows a decline in the performance of the company. A surge in the number of complaints from distributor to a company majority due to poor product quality. Data analysis methods used to conduct this research is associative, where data is processed by the method of Structural Equation Modelling. Supply Chain Management indirectly has a significant influence on Business Performance by Product Quality as an intervening variable in the company.

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