Analysing Factors That Affect UD. S Competitiveness to Suppliers

Abstract

The thesis investigates factors that affect UD. S competitiveness to suppliers. UD. S is a family business in husk rice milling sector. One of the major problem that UD. S is facing is the need of raw materials that hasn't been fulfilled, although the availability is high. Besides, there is also the business competition in obtaining raw materials from suppliers. The aim of this research is to investigate factors that affect UD. S competitiveness toward suppliers. This research used quantitative method, which is exploratory factor analysis. The population is the suppliers of rice husk in Jember city. The samples are 30 respondents of suppliers that deliver rice husk to UD. S. The data is collected by questionnaires of Likert scale. Each respondent filled the questionnaire once. The questionnaires items had been tested to be valid and reliable. In this research, there are 10 variables to be analysed, which are price, quantity, geographic location, service, payment, bonus, trust, informal relationship, dependence, and contract. The result of factor analysis based on respondents survey is that there are four factors that simplifies the previous 10 variables. The factors are specification, relational, responsibility, and geographic location. Specification factor includes price, quantity, bonus, and contract variables. Relational factor includes service, trust, and informal relationship factors. Responsibility factor includes payment and dependence factors. Meanwhile, geographic location factor includes geographic location variable. The conclusion of this research is that there are four factors that affect UD. S competitiveness toward suppliers, which are specification, relational, responsibility, and geographic location. By considering that factors UD. S may have high level of competitiveness toward suppliers that is hopefully capable of fulfilling the need of raw materials.