A Conceptual Modelling of Digital Contract for Independent Palm Oil Supply Chain Systems

Author

Irawan Afrianto, S.T, M.T

Abstrak

This study aims to develop conceptual models of digital contract management for the independent smallholder oil palm agro-industrial supply chain performance system. Current limitations on price transparency among the palm agro-industry supply chain actors result in large disparities in the profits of the actors in the independent supply chain network. Another problem is the significant difference between the prices set bi-weekly by the government and those received by independent smallholders which range from 15% up 50% during the last two years observation. The method for this study (1) starts with a gap analysis, (2) develops business process analysis using BPMN and (3) designs system requirements using UML. The results obtained from this research will (1) bridge the price transparency between the actors in the independent palm oil supply chain, (2) make contract management more transparent, (3) increase the partnership of farmers, cooperatives and palm oil mills to ensure equality of independent oil palm supply chain actors from upstream to downstream.