Analysis Of Driving And Inhibiting Factors For The Application Of Sustainability Supply Chain Management (SSCM) At Sei Mangkei Palm Oil Mill

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Analysis of Driving and Inhibiting Factors for the Application of Sustainability Supply Chain Management (SSCM) at Sei Mangkei Palm Oil Mill

Introduction

In today's world, where environmental concerns are at an all-time high, companies can no longer afford to ignore the issue of sustainability if they want to remain competitive in the global market. Sustainability Supply Chain Management (SSCM) has become a crucial aspect of any business, and its effective implementation can have a significant impact on a company's reputation and bottom line. One such company that is facing the challenges of implementing SSCM is Sei Mangkei Palm Oil Factory, a part of PT Perkebunan Nusantara III and a state-owned enterprise (SOE). Despite the application of SSCM, the factory still faces several obstacles that hinder its effectiveness. This study aims to identify the driving and inhibiting factors in the application of SSCM at Sei Mangkei Palm Oil Factory using the ISM-TOPSIS approach.

Background

Sei Mangkei Palm Oil Factory is a significant player in the palm oil industry, and its commitment to sustainability is crucial for its long-term success. However, the factory faces several challenges in implementing SSCM, including:

  • Lack of adequate information for top management
  • Insufficient budget allocations for sustainability initiatives
  • Low technological efficiency
  • Unclear regulations
  • Differences in perceptions among stakeholders

These challenges highlight the need for a comprehensive analysis of the driving and inhibiting factors in the application of SSCM at Sei Mangkei Palm Oil Factory.

Methodology

This study uses the ISM-TOPSIS approach to analyze the driving and inhibiting factors in the application of SSCM at Sei Mangkei Palm Oil Factory. The ISM (Interpretive Structural Modeling) method is used to identify the relationships between the various factors, while the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method is used to evaluate the relative importance of each factor.

Results

The results of the ISM analysis show that several aspects are very influential on the successful implementation of SSCM at Sei Mangkei Palm Oil Factory, including:

  • Developing infrastructure and facilities
  • Access to advanced technology
  • Application of sustainable waste management
  • Integration of sustainable operations in the company's five-year plan

Conversely, the inhibiting factors include:

  • Infrastructure that is not yet optimal
  • Insufficient technology
  • Non-uniform perceptions among stakeholders

The results of the TOPSIS method show that the integration of sustainable operations in a proactive plan has the highest value (v = 0.8765), followed by an adequate budget (v = 0.6204), infrastructure support (v = 0.5032), access to advanced technology (v = 0.3122), and enforcement of regulations and public awareness about sustainable products (v = 0.3122 and v = 0.2780). Meanwhile, the application of sustainable waste management gets the lowest value (v = 0.2423), indicating the need for more attention to this aspect.

Discussion

The results of this study highlight the importance of several factors in the successful implementation of SSCM at Sei Mangkei Palm Oil Factory. The integration of sustainable operations in a proactive plan is the most critical factor, followed by an adequate budget, infrastructure support, access to advanced technology, and enforcement of regulations and public awareness about sustainable products. Conversely, the application of sustainable waste management is the least critical factor, indicating the need for more attention to this aspect.

Conclusion

In conclusion, this study highlights the importance of several factors in the successful implementation of SSCM at Sei Mangkei Palm Oil Factory. The results of this study provide valuable insights for the company to improve its SSCM practices and contribute to sustainability. By improving communication and agreement among stakeholders, allocating sufficient and efficient budgets, investing in the latest technology, and proactively complying with existing regulations, Sei Mangkei's oil palm factory can not only contribute to sustainability but also build a positive reputation in the eyes of consumers who are increasingly aware of the importance of environmentally friendly products.

Recommendations

Based on the results of this study, the following recommendations are made:

  • Develop infrastructure and facilities to support sustainable operations
  • Invest in advanced technology to improve efficiency and reduce waste
  • Integrate sustainable operations in the company's five-year plan
  • Allocate sufficient and efficient budgets for sustainability initiatives
  • Improve communication and agreement among stakeholders
  • Proactively comply with existing regulations and public awareness about sustainable products

By implementing these recommendations, Sei Mangkei's oil palm factory can improve its SSCM practices and contribute to sustainability, ultimately building a positive reputation in the eyes of consumers.
Q&A: Analysis of Driving and Inhibiting Factors for the Application of Sustainability Supply Chain Management (SSCM) at Sei Mangkei Palm Oil Mill

Introduction

In our previous article, we discussed the analysis of driving and inhibiting factors for the application of Sustainability Supply Chain Management (SSCM) at Sei Mangkei Palm Oil Mill. This Q&A article aims to provide further insights and answers to common questions related to the study.

Q: What is Sustainability Supply Chain Management (SSCM)?

A: SSCM refers to the management of supply chains in a way that minimizes the negative environmental and social impacts of business operations. It involves the integration of sustainability principles into all aspects of supply chain management, from sourcing to delivery.

Q: What are the driving factors for the application of SSCM at Sei Mangkei Palm Oil Mill?

A: The driving factors for the application of SSCM at Sei Mangkei Palm Oil Mill include:

  • Developing infrastructure and facilities to support sustainable operations
  • Access to advanced technology to improve efficiency and reduce waste
  • Application of sustainable waste management
  • Integration of sustainable operations in the company's five-year plan

Q: What are the inhibiting factors for the application of SSCM at Sei Mangkei Palm Oil Mill?

A: The inhibiting factors for the application of SSCM at Sei Mangkei Palm Oil Mill include:

  • Infrastructure that is not yet optimal
  • Insufficient technology
  • Non-uniform perceptions among stakeholders

Q: What is the importance of integrating sustainable operations in a proactive plan?

A: The integration of sustainable operations in a proactive plan is the most critical factor in the successful implementation of SSCM at Sei Mangkei Palm Oil Mill. This involves developing a clear and comprehensive plan that outlines the company's sustainability goals and objectives.

Q: How can Sei Mangkei's oil palm factory improve its SSCM practices?

A: Sei Mangkei's oil palm factory can improve its SSCM practices by:

  • Allocating sufficient and efficient budgets for sustainability initiatives
  • Investing in the latest technology to improve efficiency and reduce waste
  • Improving communication and agreement among stakeholders
  • Proactively complying with existing regulations and public awareness about sustainable products

Q: What are the benefits of implementing SSCM at Sei Mangkei Palm Oil Mill?

A: The benefits of implementing SSCM at Sei Mangkei Palm Oil Mill include:

  • Improved reputation and brand image
  • Increased customer loyalty and retention
  • Reduced costs and improved efficiency
  • Improved relationships with stakeholders and suppliers
  • Compliance with regulatory requirements and industry standards

Q: How can Sei Mangkei's oil palm factory measure the success of its SSCM initiatives?

A: Sei Mangkei's oil palm factory can measure the success of its SSCM initiatives by:

  • Tracking key performance indicators (KPIs) such as energy consumption, water usage, and waste reduction
  • Conducting regular audits and assessments to identify areas for improvement
  • Engaging with stakeholders and suppliers to gather feedback and insights
  • Monitoring and reporting on progress towards sustainability goals and objectives

Conclusion

In conclusion, this Q&A article provides further insights and answers to common questions related to the analysis of driving and inhibiting factors for the application of Sustainability Supply Chain Management (SSCM) at Sei Mangkei Palm Oil Mill. By understanding the driving and inhibiting factors, Sei Mangkei's oil palm factory can improve its SSCM practices and contribute to sustainability, ultimately building a positive reputation in the eyes of consumers.