Analysis of Green Supply Chain Risk in the Palm Oil Industry at PT PKS Rimba Mujur Mahkota Using the Green SCOR Method

Department of Industrial Engineering, Faculty of Engineering, Universitas Muhammadiyah Surakarta, Indonesia

^* Corresponding author: hari.prasetyo@ums.ac.id

Abstract

PT Rimba Mujur Mahkota PKS is a large company in the CPO processing sector in North Sumatra. It is the largest palm oil producing area in Indonesia, making many competing companies. In winning the competition, risk management is very important to be implemented in the company. Risks that result in environmental, social and political damage are important to consider in supply chain management so that changes to business processes regarding environmentally friendly issues are needed. This research aims to design a good green supply chain model for companies and mitigate some of the risks that are classified as high. The method used is Green SCOR by integrating risk mitigation. The Green SCOR design is used to map business processes that are well applied to the company. On the other hand, the matrix that has been described is used to identify the risks that occur in the company. From the results of the discussion, 41 types of risks were obtained and then risk calculations were carried out so that 9 risks were classified as very severe so that mitigation was needed. A total of 6 risks were treated by reducing, 2 risks were treated by sharing, and 1 risk was treated by avoiding. Further mitigation suggestions are given in the form of control by monitoring suppliers, overseeing own operations, implementing strict policies and standards, and collaborating with relevant parties, palm oil mills can control the risks associated with their production and ensure more sustainable practices.