Supply Chain and Logistics Cost Structure Analyses of Spices in Kulon Progo, Yogyakarta, and Magelang, Central Java

Spices have many benefits and occupy an important position in the economy of Indonesia. This study aimed to identify tiers in spices supply chain, to analyze the cost structure of logistic and suggest the right strategy of supply chain management. Spices in this study were limited to ginger and turmeric. Locations in this study were done in Kulon Progo, Yogyakarta, and Magelang, Central Java. This research was conducted by convenience sampling method through an in-depth interview with an interview guide to the respondents throughout the supply chain. The results showed that ginger and turmeric supply chains consist of four tiers; there are farmers, collectors, wholesalers/distributors, and market traders. Both ginger and turmeric, the dominant cost in farmers, wholesalers, and market traders were identified in material handling activity, while the dominant cost in collectors was identified in transportation activity. Strategic recommendations were given for each tier based on the analysis of logistics cost structure that has been done.