Supply Chain Analysis of Red Cayenne Commodity in Andir Market, Bandung

Abstract

The imbalance of existing products with market demand will make the price of red cayenne commodities in the Andir Market in Bandung increase or decrease. Andir Market is one of the central suppliers of chili commodities in Bandung and its surroundings. The red chili supply chain in Bandung is related to the distribution process which includes product flow, information flow, and financial flow. Chili supply chain efficiency can be achieved if all parties involved can be monitored and managed so as to form distribution channel relationships. The purpose of this study is to determine the product flow, information flow, and financial flow of red chili products so that they can balance the flow of demand and supply to be more effective and efficient. The method used in this research is direct observation and interviews with respondents. Based on the results of the research on the supply chain of red cayenne at the Andir Market, Bandung, it was found that the flow of products in the form of red chilies, the flow of information from farmers connected to each link involved, and financial flows in the form of payment fees and profits obtained in each link based on the process. The distribution of red chili where the payment transactions used will affect the performance of each link in the chain. The results of the profit share value of the red chili commodity supply chain at Andir Market, Bandung have been running efficiently. The results showed that there were four product distribution channels, namely farmers (83.37%) – collectors (5.38%) – wholesalers (5.38%) – retailers (5.38%), farmers (88.64%) – wholesalers (5.68%) – retailers (5.68%), farmers (93.98%) – retailers (6.02%) and farmers (93.98%) – wholesalers (6.02% ). The four distribution channels get a profit and a margin value of 100% which shows the maximum efficiency value of all distribution channels.