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Solution For Supply Chain Problems in the Palm Industry

Palm oil is one of the leading commodities of the economy and is the largest foreign exchange earner in the non-oil and gas sector. In Singapore, the price of oils and fats rose 6.2 per cent year on year in March, down from 6.7 per cent in February, data from the consumer price index showed. Singapore gets most of its palm oil from Indonesia and in 2020 imported US$228 million of it, according to the Observatory of Economic Complexity (OEC) which sources data from international trade database BACI. Importers and retailers currently have sufficient stocks of cooking oil within Singapore to meet our consumption needs, and importers are able to ramp up imports from alternative sources to mitigate the drop in supply from Indonesia. 

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However, there are still various problems in oil palm plantations. It usually causes disruption to the supply chain of the palm oil industry. One of the causes of the problem palm oil is the government’s policy that prohibits exports of crude palm oil as a follow-up to the cooking oil scarcity that occurred in 2022. This policy has an impact on the ineffectiveness of the palm oil supply chain because its production is not well absorbed. In response to these problems, one solution that companies can implement is by using HashMicro supply chain management software. The use of SCM software helps your palm oil company in managing stock and supply chains so that they run more efficiently. You can also get a price calculation for software based on your business requirements.To understand more about the problems in the palm oil industry and their solutions, you can read the following article.

problem palm oil

Source: ssms.co.id

Identifying Supply Chain Problems in the Palm Oil Industry

The scarcity of cooking oil that occurred in Indonesia in early 2022 caused the price of cooking oil to rise significantly. However, this policy is still not appropriate because it has a negative impact on the palm oil industry players. The problem that occurs due to the policy of banning the export of crude palm oil to the palm oil industry is the disruption of the supply chain of the palm oil industry. This is because basically most of Indonesia’s CPO production is intended for export. The existence of an export ban has resulted in the production of fresh fruit. Those bunches belonging to oil palm farmers are not being properly absorbed. In addition, the crude palm oil storage tanks become full and the stockpile becomes unaccommodated. Furthermore, the accumulation of crude palm oil stocks affects the production process and oil quality.

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The Usage of SCM Software as a Solution to Supply Chain Problems in the Palm Industry

Supply chain problems in the palm oil industry are serious. If the company is not managing the supply chain properly, there will be a buildup of palm oil stocks in warehouses. This then has an impact on the decline in the quality of palm oil. The impact is also on the disruption of the production process which will further cause losses to the company. Therefore, to manage the problems regarding the palm oil stock and supply chain, one of the companies that can choose is to implement the integrated Supply Chain Management Software from HashMicro. The software provides various advanced features that make it easy to manage stock for your business. The various benefits of using the HashMicro SCM software include:

Increase Efficiency

By using HashMicro’s Supply Chain Management Software, you will significantly reduce supply chain constraints in your palm oil industry. This is because various activities will run online and automatically. For example, when the inventory in the warehouse is running low, then you will automatically receive a notification. It is to then follow up so that there is no stock buildup or stock shortage.

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Well-Controlled Warehouse Management

The supply chain in your palm oil problem will be more controlled with the usage of SCM software. This is because there is an inventory management feature that can track the availability of goods automatically. It also makes inventory adjustments so that it can be controlled with reduced human-error.

On Time Delivery

The use of SCM software in the palm oil industry also allows deliveries to run on time. You can now set the entire cycle from ordering to delivery of goods automatically to be on time. You can also track and monitor the location of the courier through shipment tracking in real-time.

Sales Prediction

With an integrated SCM system, your palm oil sales are predictable. This is because the HashMicro SCM System has a planning and forecasting management feature that allows your company to know an accurate stock amount in the future. The predictions are obtained through analysis of pre-existing data so that sales can also be predicted well.

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Conclusion

The supply chain in your palm oil warehouse will be more controlled with the use of SCM software. This is because there is an inventory management feature that can track the availability of goods automatically. It also makes inventory adjustments so that you can control and reduce human-error. On Time Delivery The use of SCM software in the palm oil industry also allows deliveries to run on time. You can now set the entire cycle from ordering to delivery of goods automatically to be on time. You can also track the location of the courier through shipment tracking in real-time. And you can get all those benefits and many more just by integrating your business system with our advanced Supply Chain Management software. You can also get a free demo and free consultation of your company’s needs with business experts by clicking here.

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