Value Chain Analysis to Cost Efficiency

DOI

10.2991/icame-18.2019.75How to use a DOI?

Keywords

Value Chain Analysis, Cost Efficiency, Competitive Advantage.

Abstract

This study aims to find how the implementation of value chain to achieve competitive advantage and cost drivers on primary activities and support activities at PT Makassar Agirsarana Utama (PT MAU). PT MAU is an exporting company that develops corn cob meals (CCM) business to meet export demand to Orient Generalize Co., Ltd. located in Naoetsu, Japan. This company utilizes agricultural waste that is corn cob to be a commodity with economic value that has not been utilized optimally in production centers in all regions of South Sulawesi Province. Value chain analysis is expected to provide a strategy to perform cost efficiency in achieving competitive advantage. This research is qualitative approach. The result shows that the activity that use the biggest cost is operational 36,36%, followed by out logistic 28,60%, company infrastructure 17,48%, human resource management 10,70%, purchasing 4,01%, and entrance logistic 2,86%. The primary activity in CCM production is the cost of non-value-added activities resulting in non-value added costs in operational activities, out logistics, human resource management and corporate infrastructure. By using the value chain analysis, the company cannot eliminate such activities because it is important for long-term business of PT Makassar Agrisarana Utama (PT MAU) so that it is necessary to costs reduce consisting of labor costs, machine rental cost, container rental cost, office travel cost and consumption cost.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Swandani
AU  - Anita De Grave
AU  - Alimuddin
AU  - Grace T. Pontoh
PY  - 2019/08
DA  - 2019/08
TI  - Value Chain Analysis to Cost Efficiency
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 704
EP  - 712
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.75
DO  - 10.2991/icame-18.2019.75
ID  - 2019/08
ER  -