The Impact of Supply Chain Collaboration in Logistic Service for Small Medium Enterprise in East Java, Indonesia

Fierce competition in the manufacturing field leads many manufacturing companies to shifttheirwayofwork.Thisshiftwasdonebyimplementingsupplychainmanagement practices. The companies collaborate by implementing supply chain collaboration, including collaboration between Small Medium Enterprise (SMEs) and Third Party Logistic (3PL) where both parties share the benefits and risks. This study aims to examine the impact of supply chain collaboration on customer satisfaction through logistic services. The data were collected from SMEs engaged as 3PL partners in the East Java region with a total of 75 SMEs. The questionnaires were distributed on 60 SMEs in which further proceeded by 42 SMEs with a response rate of 70 %. PLS (Partial Least Square) was used to process the data with the following results: i) supply chain collaboration influenced service quality relational logistics at 0.790; ii) supply chain collaboration did not have a significant impact on operational logistics service quality; Third, relational logistics service quality had a significant impact on operational logisticsservicequalityat0.466andcustomersatisfactionat0.197;Fourth,operational logistics service quality had an impact of 0.600 on customer satisfaction