Supply Chain Strategy to Support the Independence of the Defense Industry

Abstract

The supply chain is a unified process and production activity starting from raw materials obtained from suppliers, the process of adding value that converts raw materials into finished goods, and the process of storing an inventory of goods until the process of sending finished goods to consumers. In the defense industry, the supply chain cannot be separated because of its role in regulating how defense products work, from raw materials to finished materials. The method of this journal is a literature review which is then processed using system thinking and SWOT analysis to solve the problem of the weak domestic Defense Industry supply chain. The results of the analysis of the literature review state that the supply chain has a vital role in the development and independence of the domestic defense industry. Problems with the domestic logistics system have contributed greatly to the weak domestic defense industry supply chain. In addition, dependence on imported raw materials for production also creates a potential threat that weakens the flow of the supply chain. Raw materials that are still imported are prone to embargoes so if that happens, the production flow of defense products will stop completely due to the absence of raw materials. Based on this study, good and integrated global supply chain management is recommended to be applied to the defense industry to overcome the weakness of the defense industry's supply chain.