Sustainable supply chain management practices in the Agri-palm industry: A comprehensive impact assessment of the Indofood Agribusiness CPO Division
This title has been presented on Thursday, December 14, 2023 at 11.35-11.45 GMT+7.
Abstract
This title has been presented on Thursday, December 14, 2023 at 11.35-11.45 GMT+7.
This study examines sustainable supply chain management practices in the Agri-palm Industry, with a particular focus on Indofood Agri-Business in Indonesia. The key goals are to identify and analyse Indofood Agri Business's present sustainable supply chain management practises, as well as determine the potential influence of sustainability practises on overall supply chain performance. SCOR theoretical framework was used to map the sustainability of the supply chain processes and operations in the agri-palm industry. The study examined current supply chain management practices and identified gaps in ideal sustainability standards by employing the Analytic Hierarch Process (AHP) model. The findings from the study showed significant improvement in sustainability practices over the years. The was zero clearance of primary forest, degradation of high conversation value areas now planting on peat regardless of depth or burning. Also, there was a 2% reduction in energy consumption intensity in mills and a 14% decrease in absolute energy consumption in refineries as well as a 2% reduction in GHG emissions from estate and palm oil mill operations. Additionally, there study identified no traces of child labour along the supply chain of the agri-palm industry. This was a result of a robust labour policy which eliminates all forms of child labour across the supply chain. The study recommends the usage of renewable energy sources such as solar and wind as an alternative to diesel and electricity. Also, the study recommends that Indo-agri palm should engage more in afforestation projects outside its jurisdiction as part of its corporate social responsibility to contribute to GHG reduction in Indonesia.
