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Procurement Risk Management to Improve Supply Chain Performance
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Abstract. This research aims to analyze the impact of logistics integration and procurement risk management on supply chain performance in
goods distribution for fast-moving consumer goods (FMCG) companies. The SEM method uses Smart-PLS software version 3.3. The
respondents are 202 companies from the economic sector, logistics centers, and transportation service providers. The study results show that
information sharing and supplier integration have a significant positive impact on supply chain performance through sharing information
about plans, volumes, key performance indicators (KPIs), on-schedule delivery status, and transportation management systems. The novelty
of this study is that it shows that procurement risk management is proven to moderate the impact of information sharing on supply chain
performance. However, procurement risk management does not reduce the impact of long-term supplier relationships and integration on
supply chain performance. It was clear that deliveries were not going well, as deliveries were made in response to demand via the spot market
due to truck availability and high prices. Long-term relationships do not have a significant positive impact on supply chain performance.
Keywords: FMCG, Logistics integration, Procurement risk management, Supplier integration, Supply chain performance.
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electronic file
Journal of Management World 2025,
2025
Journal of Management World 2025, 1: 771-780
DOI: 10.53935/jomw.v2024i4.797
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