Assessment of Green Supply Chain Management Implementation

using Green SCOR Approach:

Batik SME Tourism Jarum Village, Klaten

Retno Setyorini and Erlin Sabatian

Department of Business Administration,Telkom University, Bandung, Indonesia

Keywords: Green Supply Chain Management, Green SCOR, Importance Performance Analysis, SMEs.

Abstract: Batik is an artwork that has a high value. In 2009, the United Nations Educational, Scientific and Cultural

Organization (UNESCO) established batik as a world cultural heritage. This has an effect on the increasing

demand for batik production. Increasingly production of Batik is also contributing to the environmental

problem due to the waste. Batik and textile industry is one of the producers of liquid waste originating from

the coloring process. Besides the highly color substance, industrial waste from Batik and textile also consist

of murky and thick synthetic materials. This colored liquid waste is the reason for the environmental problem.

The color of liquid waste that was produced by a small textile industry mostly is a non-degradable organic

compound that causes environmental pollution, especially water. The aim of this research is to implement

Batik Green Supply Chain Management on Tourism Jarum Village SME, Klaten to obtain a percentage of

69% which means it includes into the good category. This study uses a quantitative method with the type of

research is applied research, with there are 28 Batik SMEs as the respondents. The analytical method used is

with Important Performance Analysis (IPA). The results showed that in performance the implementation of

Green Supply Chain Management in the UKM Batik Jarum Tourism Village, Klaten received a percentage of

69% which means it was in a good category. The results of the analysis using the IPA method show that there

are 5 statements that are the company's top priorities in making improvements, namely P4, P7, P9, P10, and

P25.

1 INTRODUCTION

In order to participate in the sustainable development,

SME sector must have capability to produce a

qualified product and one with excellent

competitiveness and innovation so that it can lead to

consumer satisfaction and good effects on the

environment, so that it is necessary for a step to

produce a green product starting from production and

until to consumers.

From results of a research conducted by Nurdalia

in Santosa, Susanty & Tania (2017), there is an

ineffective use of wax in the batik production stage,

since there is spilled remaining wax or mark of used

wax in the batik process that cannot be used anymore.

There is an ineffective use of dye due to an error in

the weighting of the amount of required dye,

attaching or sediment in the used place, or spilled

coloring place when it is poured.

Wax use inefficiencies are approximately 60%,

the use of dyes ranges from 0.07% to 54.58% per

year, and water use is estimated at between 10% and

30% per year. This inefficiency will aggravate

environmental performance due to the high level of

waste released as Non-Product Output (NPO). In

addition, there is also another arising negative effect

namely wastewater from the process of making batik

containing Biological Oxygen Demand (BOD) of

366.45 kg/day, Chemical Oxygen Demand (COD) of

620.4 kg/day and Total Suspended Solid (TSS) of to

83.9 kg/day. In addition, wastewater originating from

the process of batik production also produces oil fats

of 0.0000108 kg/day and CNH-N of 0.0004431

kg/day (Suhartini, 2012).

Based on interviews conducted with consumers

from natural batik pioneers in Jarum Tourism Village,

there are 28 batik SMEs in the batik center, and 10 of

them are environmentally friendly batik SMEs. Ten

batik entrepreneurs in the batik Jarum Tourism

village center have applied the Green Supply Chain

Management (GSCM) concept. Based on the results

358

Setyorini, R. and Sabatian, E.

Assessment of Green Supply Chain Management Implementation using Green SCOR Approach: Batik SME Tourism Jarum Village, Klaten.

DOI: 10.5220/0008431203580362

In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 358-362

ISBN: 978-989-758-408-4

of interviews with the owner of batik business, he

explained that in the process of producing natural

batik, a reuse system was used in wax used to do

batik, the use of dyes obtained from the furniture

industry's wood waste, the use of dyed water is used

several times a day, the use of coloring materials is

used for several dyeing processes and recycle process

in the use of packaging made from recycled paper,

coloring waste is used as fertilizer and use of

remaining batik patchworks is another valuable

product.

By the description, it is expected that each

business actor can prepare a program to eradicate any

existing negative effects, as described in Law

Number 32 of 2009 concerning protection and

management of life environment and by the

development of consumer awareness on

environmental issues requiring company to start to

implement friendly environmental regulations, such

as implementation of reuse, remanufacturing, and/or

recycling in the business implementation.

Implementation of various regulations related to

environmentally sound aspects in a business is an

implementation of Green Supply Chain Management

(Djunaidi, Mufid & Sholeh, 2018).

From results of the interview with Mr. Sarwidi as

the natural batik pioneer as well as the owner of Batik

Natural SME in Tourism, Jarum Village Klaten

described that Batik SME in Jarum Village has

implemented GSCM practice in the business but for

the measurement of GSCM implementation is yet

applied. To assess the implementation of GSCM, it

can use Green Supply Chain Operation Reference

(Green SCOR) approach. Implementation of Green

SCOR model can identify supply chain performance

indicators showing a company supply chain process

so that it can be used as an evaluation to improve

company performance (Anggani, Syawarni &

Wahyuniardi, 2017)

Thus, it is necessary for batik SME to implement

GSCM practice in order to minimize any arising

problems in business practices. This research aims to

conduct an assessment on the implementation of

GSCM practice in Tourism Jarum Village Klaten by

making an assessment using Green SCOR approach.

2 RESEARCH METHODS

Population.

According to Sugiyono (2013), a population is a

regional generalization consisting of objects/subjects

that have certain qualities and characteristics set by

researchers to be studied and then drawing

conclusions. The populations used in this study are all

SME members in Tourism Jarum Village Klaten,

namely, there are 28 SMEs.

Samples.

According to Sugiyono (2013), the sample is part of

the number and characteristics of the population. In

this study, it uses a saturated sampling technique.

According to Sugiyono (2013), saturated sampling is

a sampling technique if all members of the population

are used as samples. This is often done if the

population is relatively small, less than 30 or wants to

make generalizations with very little errors. So, in this

study, researchers use all 28 members of the Batik

SMEs in Tourism Jarum Village as the samples.

Data Collection Technique.

According to Sugiyono (2014), Data collection

techniques applied in quantitative research can be

done by tests, questionnaires, interviews, structured

observations. In this study, it uses questionnaires,

interviews, observation and literature studies.

Variable Operationalization.

Research variable is an attribute, property or value of

people, object or activity with specific variations set

by researchers to be studied or drawn a conclusion

(Darmawan, 2013) which can be seen in table 1.

Table 1: Variable Operationalization.

Variable

Dimension

Indicators

Plan

Plans to minimize harmful energy and material use

(P1, P2)

Plan for control and hazardous material storage (P3,

P4)

Plans for cleaning ordinary waste and hazardous

waste (P5, P6)

Plan for adjustments from all supply chain activities

(P7, P8)

Source

Selecting suppliers with a positive environmental

record (P9, P10)

Selecting environmentally friendly materials (P11,

P12)

Determining packaging requirements (P13, P14)

Determining shipping requirements to minimize

transportation and maintenance requirements

(P15,P16)

Make

Schedule production to minimize energy

consumption (P17, P18)

Managing waste results during the manufacturing

rocess (P19, P20)

Managing emissions (air and water) from the

manufacturing process (P21, P22)

Deliver

Minimizing the use of packaging material (P23,

P24)

Plan for delivery to minimize fuel consumption

(P25, P26)

Return

Schedule of aggregate transportation and shipping to

minimize fuel consumption (P27, P28)

Source: Researcher Processing, 2018

Assessment of Green Supply Chain Management Implementation using Green SCOR Approach: Batik SME Tourism Jarum Village, Klaten

359

According to (Indrawati, 2015) validity shows the

extent to which a measuring device can measure what

is willing to be measured so that it can be said that

higher validity of a measuring instrument will lead to

the increasingly possible measuring device to hit the

target. In this test, it uses a significance level of 5%

(α = 0.05) and is obtained r-Table of 0.374. Looking

at the results of data processing, it shows that results

of the validity test of this study are valid with R

arithmetic values greater than R Table (0.374) (R

arithmetic > R Table) then the statement is valid and

can be understood or accepted by the respondents.

According to Suhartanto (2014), an instrument is

said to be a reliable measuring device is it is used to

measure similar items to give consistent results. The

following table 2 is the results of reliability testing

results of questionnaire data from 28 respondents.

Table 2: Results of Reliability Test.

Statements

(N of items = 25)

Cronbach’s Alpha Notes

Performance 0,943 Reliable

Expectation 0,947 Reliable

Source: Testing Results of SPSS version 23, 2018.

Based on the results of questionnaire data

reliability test shown in the Table above, the

Cronbach's Alpha coefficient is greater than 0.70

which is equal to 0.943, so the category can be said to

be reliable.

3 RESULTS AND DISCUSSION

3.1 GAP Analysis

In this study, it is obtained the average results of all

statements of performance and expectations. To

determine the gap value, it can be seen from the

difference between the performance and expectation

values. The following is the results of a gap analysis

between performance conditions and expectations.

Based on the Table.3, all statements have negative

gaps. This indicates that the actual conditions in the

field are still not in accordance with the expected

conditions.

Table 3: GAP Analysis.

Source: Researchers’ Processing Results, 2018.

3.2 Important Performance Analysis

According to Hideki & George (2011), Important

Performance Analysis (IPA) is an evaluation tool

used to determine attribute priority that must be

corrected and can be used as guidelines in strategic

development". In addition, it is also explained that the

two-dimensional science model is divided into 4

quadrants with importance on x-axis and performance

on the y-axis as the following figure 1.

Based on the Cartesian diagram Figure, it is

obtained results of variable mapping based on its

priority scale with IPA method as follow:

ICIB 2019 - The 2nd International Conference on Inclusive Business in the Changing World

360

Figure 1: Cartesians diagram of importance performance analysis. (Source: Testing results of SPSS version 23, 2018).

I-Quadrant.

The existing attributes in this quadrant represent

necessary areas to be improved by being the top

priority as follows:

(P4) SMEs implement an environmental management

system; (P7) SMEs plan for coloring waste treatment;

(P9) SMEs choose suppliers that produce

environmentally friendly waste; (P10) SMEs choose

suppliers who implement environmental management

systems in their production processes; (P25) SMEs

are scheduling deliveries directly to consumers to

reduce overall transportation

II-Quadrant.

The existing attributes in this quadrant represent the

company strengths and pillars, the following is the

company prides, namely:

(P2) SMEs plan to reduce hazardous materials in the

production process; (P5) SMEs calculate the amount

of waste produced from the production process; (P14)

SMEs use recyclable packaging; (P17) SMEs make

production schedules to minimize energy

consumption; (P19) SMEs recycle produced dye

waste during the production process; (P20) SMEs

recycle produced fabric waste during the production

process; (P23) SMEs do not use plastic packaging in

each product unit; (P24) SMEs do product packaging

using reusable materials

III-Quadrant.

The attributes in this quadrant are considered not

important and result in no treats for the company, as

follow:

(P8) SMEs plan the implementation of WWTP; (P15)

SMEs choose the shortest route in the process of raw

material transportation; (P16) SMEs reduce the use of

transportation fuels by using vehicles based on the

company demand capacity; (P21) SMEs manage the

results of waste water in the production process with

the presence of WWTP; (P22) SMEs switch from the

use of wood to gas in the batik process in order to

reduce air pollution; (P27) SMEs make delivery

scheduling according to slots.

IV-Quadrant.

This quadrant shows any attributes with much

pressure given by the organization, thus the company

must reflect to these attributes, instead of focusing on

this quadrant, it is better for the company to allocate

solutions to improve I quadrant. The following is the

attributes in the IV quadrant:

(P1) SMEs plan to minimize energy consumption in

the production process; (P3) SMEs have a place to

store non-organic raw materials (wax for batik

making); (P6) SMEs plan to use wax; (P11) SMEs use

environmentally friendly raw materials; (P13) SMEs

use packaging from environmentally friendly

materials; (P18) UKM puts HR according to the

needs of each production unit.

Assessment of Green Supply Chain Management Implementation using Green SCOR Approach: Batik SME Tourism Jarum Village, Klaten

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After determining results from I quadrant until IV

quadrant, it is obtained 3 statements including in

median points (P12; P26; P28) meaning that

performance and expected one is well-adjusted since

the gap value is similar to zero.

Based on the IPA analysis conducted by the

researchers, this research focuses on I quadrant since

this Quadrant includes any necessary aspects to

improve and used as the main priority and the

statements above include in the plan (P4; P7), source

(P9; P10) and deliver (P25) dimensions. This implies

that in the GSCM implementation, these three

dimensions are the companies main priority for

improvement since the aspects in this quadrant are yet

applied appropriately.

4 CONCLUSIONS

Based on the research results, it can draw some

conclusions that are expected to answer any problems

formulated in this research. The conclusions are as

follow:

1. Based on the descriptive analysis results

regarding expectation value from the Green

Supply Chain Management implementation in

Batik SMEs in Jarum Tourism Village, Klaten, it

is obtained the percentage of 89% from total

average importance value with an excellent

category. This indicates that there is a very

important importance value on the

implementation of Green Supply Chain

2. Based on the descriptive analysis results

regarding performance value from the Green

Supply Chain Management implementation in

Batik SMEs in Jarum Tourism Village, Klaten, it

is obtained the percentage of 69% from total

average importance value with the good category.

This indicates that there is the implementation of

Green Supply Chain in Batik SMEs, Jarum

Tourism Village, Klaten has been good. However,

it is still necessary for improvement in some

aspects which still have scores below the good

category namely by applying environmental

management system, WWTP implementation

plan, selecting supplier producing environmental

friendly waste, selecting supplier applying

environmental management system in the

production process, selecting the shortest route in

the process of raw material transportation,

reducing the use of transportation fuels by using

vehicles based on the company demand capacity,

managing the results of waste water in the

production process with the presence of WWTP,

switching from the use of wood to gas in the batik

process in order to reduce air pollution, making

delivery scheduling according to slots

3. Based on the analysis results of Important

Performance Analysis, it can be seen 5 statement

items as the main attention for improvement

namely applying environmental management

system, making plans for coloring waste

management, selecting suppliers producing

environmental friendly waste, selecting supplier

applying environment management system in the

production process and scheduling direct

transportation to consumers to reduce overall

transportation.

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