Value Chain Optimization of Woodcraft Industry
Ahmad Ma’ruf, Jaliatul Ingtianah, Gnadhea Karuni Esa, Dimas Kusuma Aji

Abstract
The competitiveness of the industry is influenced by the effective value chain. Effort to improve the competitiveness mostly done simultaneously and collaboratively between government, local government, and the industrial agent. The aims of this study are to identify supply chain, value chain analysis, to identify role activity of every party in value chain, and to formulate the strategy to optimize the value chain and the competitiveness of small and medium woodcraft industry (SME). This study was a statistic descriptive research using primary data obtained from observation and interview, and case study in two woodcraft industrial centers: Genjahan Village and Kedungkeris Village Yogyakarta. This study found that there are two models of supply chain in wood furniture industry, model 1: the raw material sources are from farmer, sawmill labor, SME agent, and customer, whereas the Model 2: gets additional source from wood seller. The highest value added is obtained by the SME. Value chain optimization aimed to enhance competitiveness through group institutional strengthening.

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