The Influence of Vendor Costs and Service Quality on SRM through Company Trust at PT Batara Integra Nusa

Abstract

The success of Supplier Relationship Management (SRM) in the supply chain logistics industry highly depends on the synchronization of performance and effective operational management of vendors. This study aims to analyze the effect of Vendor Cost and Vendor Service Quality on SRM with Corporate Trust as an intervening variable at PT Batara Integra Nusa. A quantitative approach with an explanatory design was used through a census method of 78 employees. Data analysis used Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0. The results of structural testing show that Vendor Cost has no significant effect on Corporate Trust and SRM. In contrast, Vendor Service Quality and Corporate Trust have a significant effect on SRM. Corporate Trust is proven to mediate the effect of Vendor Service Quality on SRM, but does not mediate the effect of Vendor Cost. The recommendation for PT Batara Integra Nusa is to focus efforts on improving Supplier Relationship Management through enhancing vendor service quality and strengthening corporate trust by maintaining cooperation with vendors who are responsive, consistent, and able to fulfill cooperation commitments.