ASSISTANCE IN SUPPLY CHAIN MANAGEMENT AND COST OF QUALITY (COQ) CONTROL FOR COFFEE SMES AS HOTEL AND RESTAURANT SUPPLIERS IN LABUAN BAJO

Abstract

This community engagement initiative aims to enhance the capabilities of coffee Small and Medium Enterprises (SMEs) in Labuan Bajo, focusing on Supply Chain Management (SCM) and Cost of Quality (CoQ) control. The rapid growth of the tourism industry in Labuan Bajo has significantly increased the demand from the Hotel, Restaurant, and Catering (Horeca) sector, which requires a consistent and high-quality supply of local products, particularly coffee. The target audience for this program was coffee SMEs that are current or potential suppliers to the Horeca industry. The implementation method involved a pre-assessment, interactive workshops, on-site coaching to map supply chains, and practical guidance on identifying and calculating CoQ components (prevention, appraisal, and failure costs). The results indicate a substantial improvement in participants' understanding of SCM principles and the strategic importance of CoQ. Participants successfully mapped their value chains and began implementing simple quality checkpoints. This program provides SMEs with the practical tools to become more reliable and competitive suppliers, strengthening the local economic ecosystem by linking small producers to the high-value tourism market.