Lean Supply Chain Strategies for Accelerating Business to Government (B2G) Demand Fulfillment in The Electronics Manufacturing Industry

Abstract

Abstract - This study introduces a novel approach to improving supply chain performance in Business-to-Government (B2G) operations by integrating a lean perspective with multi-criteria decision-making tools. As the B2G segment contributes 40% of PT XYZ’s total revenue making it the company's most significant business stream its operational efficiency is critical. However, the company has experienced substantial delivery delays, leading to a government-issued warning and financial penalties totaling IDR 106,493,988 in Q2 of the 2023 fiscal year. To address this issue, we applied the Balanced Scorecard (BSC) framework to assess supply chain performance across four key perspectives comprehensively. We then employed the Analytical Network Process (ANP) method to identify strategic alternatives for improving demand fulfillment. The analysis revealed that cost emerged as the most critical criterion, accounting for 50.1% of the total weight. Consequently, the study recommends reducing total inventory by repurposing slow-moving goods into new bundled products. The study identified customer delivery lead time weighted at 9.8% as a key focus area from the BSC perspective, showing PT XYZ needs to prioritize delivery speed in future order management.

Keywords – Lean, Business to Government (B2G), ANP, BSC