Identification of relationships between criteria

Oct 13, 2025 by thesweetdesigns.com 81 views

Determining the Priority of the Distribution Center at PT. XYZ: Integration of Dematel and Balanced Scorecard Methods

Introduction

In today's competitive business landscape, effective supply chain management is crucial for companies to increase productivity and efficiency. PT. XYZ, a leading company in the industry, recognizes the importance of a well-structured system in choosing the most strategic distribution center. The aim is to optimize resource utilization, reduce logistics costs, and enhance customer satisfaction. To achieve this, PT. XYZ needs to determine the priority of its distribution centers using a reliable and comprehensive method.

Background

The Balanced Scorecard (BSC) is a strategic management tool that helps organizations identify and assess key performance indicators (KPIs) across four perspectives: financial, customer, internal, and learning & growth. By applying the BSC, PT. XYZ can identify the criteria that affect the determination of the priority of the distribution center. However, the BSC alone may not provide a clear understanding of the relationships between these criteria.

Methodology

To address this limitation, the Dematel method is proposed to determine the priority weighting in the distribution center assessment criteria. Dematel is a decision-making tool that helps identify the relationships between criteria and their indirect effects. By combining the BSC and Dematel methods, PT. XYZ can gain a deeper understanding of the complex relationships between the criteria and make more informed decisions.

Criteria Identification

Through the BSC, 18 important criteria in determining the priority of the distribution center were identified. These criteria are grouped into four perspectives:

*** Financial: Focus on profitability, efficiency, and return of investment.** *** Customer: Measuring customer satisfaction, customer retention, and market share.** *** Internal: Seeing internal processes, operating efficiency, and product/service quality.** *** Learning & Growth: Includes innovation, employee development, and technology infrastructure.**

Dematel Analysis

The Dematel method was applied to determine the priority weighting in the distribution center assessment criteria. The results show that the distribution center in Jakarta has the highest priority weighting value (0.3396). The next priority sequence is Pekanbaru (0.2233), Medan (0.1541), Brastagi (0.1101), Jambi (0.1007), and Aceh (0.0722).

Benefits of the Dematel and Balanced Scorecard Method

The use of the Dematel and Balanced Scorecard method in determining the priority of the distribution center provides several benefits for PT. XYZ:

*** Transparency and objectivity: transparent and objective decision-making process, because it is based on structured data and analysis.** *** Comprehensive Criteria: Comprehensive in considering various important aspects, including financial, customer, internal, and learning & growth perspectives.** *** Identification of relationships between criteria: Understanding the relationship between criteria and their influence on the priority of the distribution center.** *** Measured priority: Provide a strong basis for determining measurable and accountable priorities.**

Implementation of the Results

By applying the results of this analysis, PT. Xyz can:

*** Improving operational efficiency: optimizing the use of resources and reducing logistics costs.** *** Increasing customer satisfaction: Providing faster, responsive, and reliable services.** *** Strengthening competitive advantage: to be more competitive in the market by offering better products and services.**

Conclusion

The integration of the Dematel and Balanced Scorecard method has proven to be an effective approach in determining the priority of the distribution center of PT. XYZ. Its application can help the company achieve its strategic goals, namely increasing the productivity and efficiency of the company in supply chain management. By using this method, PT. XYZ can make more informed decisions, optimize resource utilization, and enhance customer satisfaction.

Future Research Directions

Future research can focus on applying the Dematel and Balanced Scorecard method to other industries or companies to validate its effectiveness. Additionally, researchers can explore the use of other decision-making tools, such as the Analytic Hierarchy Process (AHP), to determine the priority of the distribution center.

References

[1] Kaplan, R. S., & Norton, D. P. (1996). Using the Balanced Scorecard as a strategic management system. Harvard Business Review, 74(1), 75-85.
[2] Dematel, A. (1974). Decision making in complex systems. In A. Dematel (Ed.), Decision making in complex systems (pp. 1-15). Springer.
[3] PT. XYZ. (2022). Annual Report.
Frequently Asked Questions (FAQs) on the Integration of Dematel and Balanced Scorecard Methods in Determining the Priority of the Distribution Center at PT. XYZ

Q: What is the main objective of this study?

A: The main objective of this study is to determine the priority of the distribution center at PT. XYZ using a combination of the Balanced Scorecard and Dematel method.

Q: What are the benefits of using the Dematel and Balanced Scorecard method in determining the priority of the distribution center?

A: The use of the Dematel and Balanced Scorecard method provides several benefits, including transparency and objectivity, comprehensive criteria, identification of relationships between criteria, and measured priority.

Q: How does the Dematel method help in determining the priority of the distribution center?

A: The Dematel method helps in determining the priority of the distribution center by identifying the relationships between criteria and their indirect effects. This allows for a more comprehensive understanding of the complex relationships between the criteria.

Q: What are the four perspectives of the Balanced Scorecard used in this study?

A: The four perspectives of the Balanced Scorecard used in this study are:

Q: How many criteria were identified through the Balanced Scorecard?

A: A total of 18 important criteria in determining the priority of the distribution center were identified through the Balanced Scorecard.

Q: Which distribution center has the highest priority weighting value?

A: The distribution center in Jakarta has the highest priority weighting value (0.3396).

Q: What are the potential benefits of implementing the results of this analysis?

A: The potential benefits of implementing the results of this analysis include improving operational efficiency, increasing customer satisfaction, and strengthening competitive advantage.

Q: Can the Dematel and Balanced Scorecard method be applied to other industries or companies?

A: Yes, the Dematel and Balanced Scorecard method can be applied to other industries or companies to determine the priority of their distribution centers.

Q: What are the limitations of this study?

A: The limitations of this study include the use of a single case study and the potential for bias in the data collection process.

Q: What are the future research directions for this study?

A: Future research directions for this study include applying the Dematel and Balanced Scorecard method to other industries or companies, exploring the use of other decision-making tools, and validating the effectiveness of the method.

Q: What are the implications of this study for PT. XYZ?

A: The implications of this study for PT. XYZ include the potential to improve operational efficiency, increase customer satisfaction, and strengthen competitive advantage by implementing the results of this analysis.

Q: What are the recommendations for PT. XYZ based on the findings of this study?

A: The recommendations for PT. XYZ based on the findings of this study include:

Q: What are the potential applications of this study in other industries or companies?

A: The potential applications of this study in other industries or companies include determining the priority of their distribution centers, improving operational efficiency, increasing customer satisfaction, and strengthening competitive advantage.

Q: What are the potential limitations of applying this study in other industries or companies?

A: The potential limitations of applying this study in other industries or companies include the potential for bias in the data collection process, the use of a single case study, and the need for further validation of the method.