ANALYSIS OF SUPPLY CHAIN COLLABORATION FOR PERFORMANCE IMPROVEMENT SUPPORTED BY THE ADVANTAGE OF BATIK SMEs

ABSTRACT: The concept of supply chain collaboration has been a key success factor in supply chainmanagement to improve business performance. This concept is the best way to gain a competitive advantage andimprove business performance. In addition, competitive advantages can bridge or support the level of supplychain collaboration in order to improve the performance of the Batik Small and Medium Enterprises (SMEs)business in Kulon Progo, Yogyakarta Special Region. This research was conducted using a qualitative researchdesign and the research technique used was a case study. The result of this research is that business performance(on-time delivery) can be built through supply chain collaboration supported by various competitive advantagestrategies in 40 Batik SMEs in Kulon Progo. As many as 40 Batik SMEs in Kulon Progo have successfullyimplemented supply chain collaboration and are able to implement a competitive advantage strategy, namelyusing the best prices coupled with quality, trust and innovation regarding the types, motifs and raw materials ofbatik aimed at customers so that business performance can increase optimally.

Keywords – Supply Chain Collaboration, Competitive Advantage, Business Performance, Batik SMEs in KulonProgo