Abstrak: Competition power as the key to get competition excellence as the level of firms ability in: flexibility, innovation, quality, and cost reduction. The competitiveness can be achieved be several ways, one of them is supply chain management. Supply chain management is a set of business partnering network which involves the downstream relationships and upstream relationship which create the superiority of goods or services into its ultimate customers. Upstream supply chain management can be defined a set of approaches which integrates the manufacture firm and its supplier in order that the goods can be produced and distributed in correct quantity, correct place, and correct time to minimize the cost and satisfy the customer needs. The upstream supply chain management practices is very closed related into the implementation effectivities of three aspects: supplier development, supplier partnering, and Just- in- Time (JIT) purchasing. The synchronization of the supplier firm and its buyer firm in upstream supply chain management will affect the performances of both supplier firms and buyer firms in the same time.

Keywords: Upstream, supply chain, keunggulan bersaing

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