Analysis of Operational Planning and Supply Chain of Used Cooking Oil to Support the Export of Biofuel Raw Materials: A Case Study of PT Biofuel Unggul Lestari

Nanang Aprianto; Tantri Yanuar Rahmat Syah; Edi Hamdi

doi:10.69693/ijim.v4i3.2740

Authors

Nanang Aprianto Universitas Esa Unggul
Tantri Yanuar Rahmat Syah Universitas Esa Unggul
Edi Hamdi Universitas Esa Unggul

DOI:

https://doi.org/10.69693/ijim.v4i3.2740

Keywords:

Used Cooking Oil, Operational Planning, Supply Chain, Cost Focus, Biofuel, Traceability

Abstract

Utilizing Used Cooking Oil (UCO) as a biofuel feedstock offers significant potential for development within the renewable energy supply chain. However, the UCO business faces challenges regarding supply availability, quality consistency, operational efficiency, inventory control, and the need for product traceability. This study aims to analyze the operational planning and supply chain of PT Biofuel Unggul Lestari (PT BUL) in supporting UCO exports for biofuel production. A descriptive approach using a case study method based on PT BUL's business plan was employed. The analysis covered operational design, cost-focus strategy, supply chain management, inventory control, quality management, digital technology utilization, and projections for operational costs and investment. The analysis revealed that PT BUL designed a supply chain comprising collection partners, UCO pickup, processing and storage, export operations, and international buyers. A cost-focus strategy is implemented through partnerships with collectors, facility efficiency, logistics control, transparent payment systems, and the use of digital technology. Established quality standards include FFA ≤3%, moisture ≤0.5%, and impurities ≤0.1%, while the supply readiness target is set at a minimum of 70% of buyer requirements. The inventory system selectively utilizes FIFO and JIT methods, with maximum storage periods of 7 days for raw UCO, 14 days for pre-processed UCO, and 30 days for ready-to-ship UCO. Projections indicate that UCO volume will rise from 800 tons in the first year to 1,800 tons in the fifth year, while operational costs will increase from IDR 9.96 billion to IDR 22.18 billion. The initial investment requirement is IDR 3.04 billion. These results demonstrate that the integration of procurement, quality, inventory, logistics, and digitalization is crucial for supporting PT BUL's operational readiness for the export market.

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