THE ROLE OF BUSINESS PARTNERSHIP AND SUPPLY CHAINS MANAGEMENT OF SMALL-MEDIUM ENTERPRISES IN SURABAYA.

SCM will face increasingly serious challenges, as the complexity of consumer demand and intercompany relationships in the value chain are increasing. Research on supply chain analysis and design in enhancing competitive advantage is important for companies of both large and medium scale. Supply chain management essentially covers the scope of work and responsibility. All activities related to the flow of materials, information, and money along the supply chain are activities within the scope of supply chain management. This study investigate the role of business partnership and SCM to increase SMEs competitive advantage. This study found that the focus of the evaluation of potential business partners is to get an integrative partnership. Integrative relationships add value to market supply. Companies involved in a business partnership should be able to create value or at least provide added value to market supply. The creation of this value depends on the firm\'s core capabilities that tend to be limited because the technology required to produce the product requires a high cost and complex business environment. To increase the company\'s ability to create value, the company must be able to get potential business partners and can manage the partnerships formed so that each party can enjoy the benefits generated from the cooperation.