Mediating Role of Strategic Supply Management on Performance

The environmental uncertainty of business plays an important role for the implementation of supply chain management. Sustainability of operation process is strongly influenced by the continuity supply of raw materials and parts, as well as the production process used. Indonesian pharmaceutical industry is one industry that is full of a lot of interest because it is directly related to the public health. Moreover, almost 90% of the raw materials of pharmaceutical industry in Indonesia are imported, which means the supply chain in this industry is also highly dependent on the stability of business environment. The study was conducted on 247 pharmaceutical companies in Indonesia to determine the effect of demand uncertainty, supply uncertainty, and technological uncertainty on strategic supply management and performance. The analysis showed that demand uncertainty is the only variable that does not affect the supply management strategic. Another finding is that there is influence of strategic supply management on the suppliers’ performance and buyers’ performance.