Enhancing Sustainability of the Palm Oil Agro-Industry: A Study from the Leveraging Factors of Supply Chain Management

The imperative of sustainable development necessitates meeting present needs without compromising the well-being of future generations and the long-term health of our planet. Consequently, the promotion of new patterns of sustainable supply chain management practices is gaining momentum. This research endeavors to contribute to the implementation of sustainable chain management practices within the context of complex palm oil agro-industry enterprises. Specifically, the study aims to design a comprehensive framework to enhance the sustainability of the palm oil agro-industry. To achieve this, we employ the MultiDimensional Scaling (MDS) technique and analyze data using the Rap-Palm Oil (Rapid Appraisal for Palm Oil) method, which is grounded in the triple bottom line concept encompassing economic, social, and environmental dimensions. The findings reveal that supply chain management practices in palm oil agro-industry enterprises exhibit a high level of sustainability. Notably, factors enabling sustainability within the economic dimension include promotion reliability, responsiveness levels, and product quality. Within the social dimension, factors encompass workplace safety assurances, freedom of worship guarantees, and promotion of career paths. In the environmental dimension, factors comprise waste gas emissions management, utilization of environmentally friendly packaging, and efficient use of electrical and gas energy.