THE ROLE OF COST REDUCTION AND INVENTORY OPTIMIZATION ON THE PARTNERSHIP IN PURCHASING AND LOGISTICS, AN EMPIRICAL STUDY OF FOOD AND BEVERAGE COMPANIES FROM INDONESIA
Abstract
Supply chain management is of primary importance in industries operating in an
archipelago country like Indonesia. This study aimed to determine the effect of cost reduction and inventory optimization on the partnership in purchasing and logistics on purchasing and logistic performance. This study focuses on food and beverage manufacturing
companies in Indonesia. This research uses quantitative methods and descriptive research
types. The population in this study is managers of manufacturing companies in Indonesia.
The questionnaires obtained were 74 respondents, then respondents who came from manufacturing companies were 50 respondents who met the research criteria. This study indicates several findings: cost reduction and inventory optimization affect the partnership in
purchasing and logistics but do not affect purchasing and logistics performance. Furthermore, partnership in purchasing and logistics affects purchasing and logistic performance.
The results show that the partnership strategy is essential for manufacturing companies,
especially food and beverages because cost reduction and inventory optimization need to
involve several companies with more resources to increase purchasing and logistic performance.

