Resilience assessment model for biodiesel supply chain: an Indonesian case study

Abstract

Biodiesel is a significant energy resource that yields sustainable economic, social, and environmental benefits. The escalation of global tensions has contributed to increased uncertainty in the energy industry, including in the biodiesel sector. The biodiesel supply chain is frequently exposed to various risks from upstream to downstream supply chain. The ability to respond effectively to disruptions is vital for ensuring the long-term sustainability of the supply chain. Hence, supply chain resilience must be developed. The objective of this study is to design a resilience assessment model by connecting vulnerability factors with capability factors in a relationship matrix. A comprehensive review of the literature and rigorous experts’ opinions are the foundation for this model. The Indonesian biodiesel supply chain can be utilized as a case study to develop strategies based on this assessment to boost business resilience. Some research methods are used in this research such as review literature, questionnaires, expert opinions, and discussion. The assessment model matches various vulnerabilities, including turbulence, external pressure, and resource limits, to capabilities, including flexibility in sourcing, flexibility in order fulfillment, capacity, visibility, adaptability, and collaboration in supply chain resilience. The capability of risk sharing with partners and supplier contract flexibility are common strategies employed by the company to mitigate potential risks and uncertainties, particularly those arising from pricing and supply volatility. This research shows the relationship between vulnerabilities and supply chain capabilities, which enables managers to better prioritize SC capabilities based on the outcomes of the evaluation matrix. This study is also providing valuable insight for the policy implication to promote collaborations amongst Indonesian’s biodiesel supply chains.

Keywords:

• Supply chain resilience
• resilience assessment model
• biodiesel
• palm oil
• uncertainty

Disclosure statement

No potential conflict of interest was reported by the author(s).