Track: Sustainability in Supply Chain, Enterprise Operations and Strategies including Food Supply Chain

Abstract

The palm oil industry is an important industry for the Indonesian economy. However many problems faced by the palm oil industry in Indonesia, especially related to the environment and social in various levels of production and consumption in the supply chain. This has resulted in poor performance and a lot of attention for improvement. This paper proposes methods for improving the performance of the palm oil industry using Sustainable Value Stream mapping (Sus-VSM). Sus-VSM is a methodology developed from traditional VSMs by adding three metrics to evaluate environmental sustainability and two metrics to evaluate social sustainability on production lines. In this study, sustainability index  is measured  using 29 metric indicator which been obtained from the previous research. A case study on one of  palm oil companies in Indonesia was conducted and resulted in a sustainability index score of 59.34 (in range 1-100) or highly fair, with the highest index in the economy (72.23) followed by Social 54.56 and Environmental Index 20 , 64.  Suggestions for improvement are given to improve the index sustainability, especially the Environment index.