Performance measurement of the relationship between farmers-cooperatives-industrial processing milk in a dairy supply chain: A balanced supply chain management scorecard approach

This research has several purposes. First, identify the metrics on each perspectives in the balanced supply chain management scorecard. Second, develop the scale of measurement of each metric. Third, utilize the analytical hierarchy process to measure the relative importance of each metric and perspective, and fourth, measure the current performance of each metric and give some feedback. As a pilot testing, the object of this research was represented by the relationship between the individual dairy farmers and two selected dairy cooperatives located in Semarang District and also by the relationship between two selected dairy cooperatives and the industrial milk processing which is where the cooperative sells its milk. There were 28 metrics used in this research and the result of measurement indicated that the performance of the relationship between farmers, dairy cooperatives, and industrial processing milk had total score 2.82. The total score was subject to improve since the highest total score could be achieved was 5. Then, among 22 metrics, 10 metrics should be improved since those metrics have high importance but low performance.