PT sarana Tani Indonesia Makmur (PT STIM) is in the business of agricultural products and equipments. PT STIM's stores are located close to farming area which is normally located in Desa (village). In Indonesia, generally a Desa is relatively far located from the provincial city. The level of education of people and intensity of infrastructure development in the Desa is somehow lower than of the provincial cities. This condition stimulates certain challenges to the operation of PT STIM.

This paper will discuss specific problem faced by PT STIM that is targeted revenue per store has not been consistenly achieved. We contend that several factors contributed to the problem are : Fund for working capital & investment; Quality of human resources; marketing & sales activities, supply chain management.

We will further elaborate the problem in the area of supply chain management. Recommendation will be composed in three phases : quick win, medium term and long term. The long term recommendation will encompass several measures required in achieving ideal operation condition. For the long term measures required in measures in the two prior terms need to be implemented carefully.

The recommendations will be developed in five aspects : business process, IT system, organization structure, roles of supply chain units and operational key performance indicators. Through implementing recommendations, we argue that PT STIM will obtain strategic positioning required sustainable competitive advantage.





Research Location : PT Sarana Tani Indonesia Makmur (PT STIM)

Supervisor : Alex Iskandar Munaf

Accepted Date : 09/11/2009



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