Pacific Medan Industri, a leading producer of palm oil, faces significant challenges with its scrap distribution system, which currently relies on manual processes. This manual system has been identified as having several major issues, including inaccuracies in data recording and management, delays in the shipping process, and ineffective coordination between various units within the supply chain. These issues not only lead to low operational efficiency but also risk disrupting customer satisfaction and diminishing the company's competitive edge in an increasingly competitive market. This study aims to address these problems by optimizing the scrap distribution system through the application of Supply Chain Management (SCM) principles. Using a qualitative approach that includes literature review, in-depth interviews with stakeholders, and relevant documentation analysis, this research explores the various weaknesses present in the current manual scrap distribution system. The analysis reveals significant shortcomings, such as inefficiencies in data management, lack of integration between units resulting in poor coordination, and slow shipping processes that hinder productivity and customer satisfaction. As a solution, the study proposes the development of a SCM-based information distribution system. This system is designed to address the identified weaknesses by leveraging current technology to automate distribution processes, improve data accuracy, expedite shipping times, and enhance communication and coordination between units in the supply chain. The implementation of this system is expected to enhance overall operational efficiency, improve scrap management, and ensure better coordination across the entire supply chain. It is anticipated that PT. Pacific Medan Industri will benefit from increased operational efficiency, improved customer satisfaction, and a strengthened competitive position in the market through the adoption of this SCM-based information distribution system. Keywords: Supply Chain Management, Scrap, PT. Pacific Medan Industri.
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