Developing strategic planning of green supply chain in refinery CPO company

Abstract

We are conducted a research at the company of the manufacturing CPO into cooking oil, margarine and materials of oleochemical industries. Today palm oil based industries are facing global challenges related to environmental issues. To against these challenges, it is necessary to have an environmentally friendly supply chain. However, the limited resource owned by the company requires the integrated environmental strategy with the company’s business strategy. The model is developed based on management orientation towards external pressure, internal key resources and competitive advantage that can be obtained as the decision factor. The decision-making method used is Analytical Network Process (ANP). The results obtained institutional pressure becomes the criterion with the greatest influence on green supply chain initiatives and sub criteria of customer desires and stakeholder integration having the most significant influence on green supply chain initiatives. There are five green alternative initiatives that can be done: green product design, greening upstream, greening production, greening downstream and greening post use. For green supply chain initiative, greening upstream is the best priority.