The Alliance Strategy in Supply Chain Management of Indonesia’s Defense Industry

The alliance strategy is an agreement between a company and another institution in good cooperation. To optimize alliance strategies, companies must be able to balance their performance supply chain management. This research was conducted to formulate a conceptual alliance strategy in Indonesia's defense industry's supply chain management system. The data was collected through literature reviews, observations, and interviews. Every information that has been collected is validity tested using triangulation. The data analysis was carried out qualitatively. The results of the study show that the conceptual alliance strategy of Indonesia’s defense industry is prepared by establishing three basic substances in an integrated manner. The first is to determine the national goals to be achieved (ends). The second is determining the resources to be used (means), and the third is determining how to utilize existing resources to achieve goals and targets (ways). The end or goals of the alliance strategy of Indonesia’s defense industry are manufacturing and MRO independence. The means of alliance strategy in Indonesia’s defense industry are all items constructed in Indonesia’s defense industry supply chain management, which consists of the primary equipment industry, the main and supporting component industry, the component and support industry (supplies), and the raw material industry. The ways of alliance strategy in supply chain management of Indonesia’s defense industry is by collaboration through domestic and international cooperation. It has challenges in volatility, uncertainty, complexity, and ambiguity (VUCA).