Track: Supply Chain Management

Abstract

This case study was conducted in the Indonesian government's palm oil agro-industry. This company shows that pollution from exhaust emissions is the most pollution data during the palm oil processing process. This study aims to determine how much environmental impact is caused and strategies to minimize environmental impacts in the supply chain in the oil palm agro-industry. The problem-solving approach is carried out by identifying supply chain strategies ranging from oil palm plantations to crude palm oil (CPO) using the SCOR model and life cycle assessment methods. Furthermore, the calculation of greenhouse gas emissions in the palm oil agro-industry is carried out using the environmental impact analysis method. The results of this study indicate that the analysis of greenhouse gas emissions in the palm oil agro-industry involves the plantation process unit is 62 Kg CO2-Eq/ton CPO, the distribution process unit is 1069 Kg CO2-Eq/ton CPO and the CPO production process unit is 49 Kg CO2-Eq/ton CPO. The most significant emission occurs in the distribution process unit in the supply chain strategy in the palm oil agro-industry. The implication of this study is to provide a solution to overcome the problem by recommending the efficient use of trucks and the transportation distance from the plantation to the factory. In the palm oil agro-industry, it is better to use trucks with a larger capacity so that later this can reduce the number of trucks and reduce truck fuel used in transportation activities.