Analysis of Crude Palm Oil Supply Chain using Food Supply Chain Network (FSCN): A Case Study

Abstract

Palm oil industry is one of the leading industrial sectors in Indonesia. In order to fulfill CPO demand as well as increasing of CPO sales, a research to analyse the supply chain flow of CPO was conducted. This research was conducted in ABC company, which is a privately owned business entity engaged in oil palm plantations located in South Tapanuli Regency, Indonesia. Analysis of supply chain had been done by using Food Supply Chain Network (FSCN) to define the integration of key business processes provided by original suppliers that provide products, services, and information from end users to customers and other stakeholders. Result of this research clearly defined the supply chain process with a clear flow of material, information and finance. The key process of CPO supply chain is the distribution of raw materials of CPO, namely fresh fruit bunches (FFB) which were collected from privately owned oil palm plantations and nearby community gardens, then processed in mills, deliver to storage tank, and export to customers. Analysis of this case study provided a clear description of CPO supply chain and may let further researchers to easily examine the potential risks at each stages and actors of CPO supply chain.