Examining Sustainable Supply Chain Management (SSCM) Performance in the Palm Oil Industry with the Triple Bottom Line Approach

Abstract

The palm oil industry has emerged as one of the leading producers and exporters, as supported by data from the Central Bureau of Statistics in 2021, which indicates that Indonesian palm oil exports reached an impressive value of USD 18.44 billion, or IDR 258 trillion, in 2020, marking 18.43 percent growth compared to the previous year. Furthermore, the domestic markets for palm oil and palm kernel oil remain substantial despite improvements in export quantities. Various industries, including cooking oil refineries, specialty fats, shortening, margarine, bath soaps, and oleochemicals, present potential markets for palm oil (CPO) and palm kernel oil (PKO). The palm oil industry encompasses four related subsectors, namely growers, millers, refiners, and oleochemicals, forming an integrated value chain from upstream to downstream. The current focus on environmental, economic, and social sustainability drives companies to adopt internal green activities and expand their efforts toward sustainable supply chain management (SSCM). Implementing SSCM practices is often seen as economically beneficial, as research has demonstrated their positive impact on corporate performance from a resource perspective. Many green management applications are utilized in the palm oil industry. This study examines and highlights existing sustainable management practices across the entire palm oil supply chain, focusing on producing high-quality palm oil. This study utilized a systematic review methodology. A total of 62 articles were analyzed, which involved an extensive review of the relevant literature to identify research trends, gaps, and issues. This study contributes to the body of knowledge by expanding the theory of organizational readiness to prepare globally competitive palm oil products. The research findings hold practical significance for practitioners and academics by providing a comprehensive road map for implementing green management applications at the organizational level in the palm oil industry’s upstream-to-downstream chain.