IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT TO REDUCE PRODUCTION COSTS

Suwanda Suwanda

Authors

Suwanda Suwanda Universitas Krisnadwipayana, Jakarta, Indonesia

Keywords:

Supply Chain Management, Production Costs, Inventory Management, Transportation Management Systems, Lean

Abstract

Supply Chain Management has become a crucial element in optimizing production and distribution processes. By implementing this concept effectively, companies can achieve operational efficiency, reduce waste, and ultimately reduce production costs. This research aims to explore and analyze the application of Supply Chain Management as a strategy to reduce production costs in a specific industrial context. This research uses a qualitative approach with descriptive methods. The research results show that implementing supply chain management with a focus on cost reduction strategies, operational optimization and sustainable practices has a positive impact on company efficiency and sustainability. The adoption of technology such as inventory management software and transportation management systems successfully automates processes, reduces errors and simplifies supply chain operations. Lean strategies, such as reducing overproduction and lead times, also play a role in improving operational efficiency. Additionally, sustainable practices, including waste reduction and use of renewable energy sources, not only support environmental sustainability, but also result in long-term cost savings.

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