Sustainable Supply Chain Framework Design in Indonesian Palm Oil Industry with IoT Integration

Abstract

Palm Oil Production has increased rapidly as the demand has also grown in recent years. The production of global palm oil mostly comes from Southeast Asia and South America. However, palm oil production also gives several negative impacts on society and the environment. Palm oil's negative impact has been a significant issue in most palm oil producers in the world, especially in Indonesia, which contributed the most significant portion of the world's palm oil production. Therefore, a sustainable supply chain management model for the palm oil industry needs to be conducted. The supply chain needs to consider social factors and the environment as crucial factors to create sustainability. This paper proposes a framework for a sustainable supply chain (SSC) with the integration of the Internet of Things (IoT) to meet company goals, achieve customer requirements, and also sustainability for the company, societies, and environment. The method for conducting the study is by comprehensive literature review. The most important finding is IoT that present in the study becomes an enabler to give visibility and transparency for the entire SSC as enhancement of technological use might give a significant benefit.