OPTIMIZATION OF RICE SUPPLY CHAIN MANAGEMENT TO IMPROVE EFFICIENCY AND FOOD SECURITY

Abstract

Rice supply chain management has a crucial role in improving distribution efficiency and supporting food security. This study aims to analyze factors that affect the effectiveness of the rice supply chain, including production factors, distribution and logistics efficiency, market and economic factors, government policies, and the application of technology and digitalization. Using  the Structural Equation Modeling (SEM) method, the results show that only the Distribution & Logistics and Policy & Regulation factors  have a significant influence on the effectiveness of the rice supply chain. Distribution and logistics efficiencies that include transportation, warehousing, and supply chain coordination are proven to improve smooth supply and reduce distribution costs. Meanwhile, government policies such as subsidies and import-export regulations play a role in maintaining price stability and ensuring the availability of rice for the community. On the contrary, production factors, market and economic factors, as well as the application of technology and digitalization did not show significant influence in this study. Therefore, a strategy to improve logistics infrastructure and harmonize government policies is needed to ensure the sustainability of a more efficient and competitive rice supply chain.