MATEC Web of Conferences
Volume 159, 2018The 2nd International Joint Conference on Advanced Engineering and Technology (IJCAET 2017) and International Symposium on Advanced Mechanical and Power Engineering (ISAMPE 2017)
|Number of page(s)||6|
|Published online||30 March 2018|
Design of Key Performance Indicators (KPI) for Sustainable Supply Chain Management (SSCM) Palm Oil Industry in Indonesia
Department of Industrial Engineering Indonesia Islamic University, Jl Kaliurang Km 14,5 Yogyakarta 55584, Indonesia
* Corresponding author: email@example.com
This paper aims to design key performance indicators (KPIs) for evaluating sustainable supply chain management (SSCM) for palm oil processing industry in Indonesia. Supply chain sustainability is the management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycle of goods and services. The method in designing KPIs using a triangulation method, ie combining of theory (literature study) with field surveys and validate with the opinion of the expert (expert judgment) as well as compatibility with existing regulations (Indonesian sustainable palm oil / roundtable on sustainable palm oil). There are 29 proposed KPIs for measuring SCM’s sustainable palm oil in Indonesia based on literature and expert judgment. In order to obtain a more precise performance, then the importance level of KPI will be measured using Analytic Hierarchy Analysis (AHP) method. According to the preferences of some managers of palm oil using AHP method showed that the economic factor is the most dominant indicator (62,92%), followed by environmental (18,93%) and social factors (18,15%). In subsequent studies, the results of the KPIs will be used to measure the index of sustainability in the palm oil’s supply chain industry in Indonesia.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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