SUSTAINABILITY STRATEGIES IN DAIRY SUPPLY CHAINS: A MANAGERIAL MODEL FOR EFFICIENCY AND INDUSTRY RESILIENCE

Abstract

This study develops a sustainability management model for the dairy supply chain by integrating three analytical approaches: RAPFISH, Analytic Network Process (ANP), and the Balanced Scorecard (BSC). A case study was conducted at Agroindustry XYZ, one of Indonesia’s major dairy processors, which faces critical challenges including import dependency, demand volatility, and increasing environmental and operational pressures. The proposed model is built upon the principles of Sustainable Supply Chain Management (SSCM). As emphasized by Stevenson (2021), SSCM not only focuses on cost efficiency but also integrates environmental and social aspects into supply chain strategies. Christopher (2016) argues that SSCM is essential in a dynamic global environment where collaboration, transparency, and accountability are crucial. Ivanov (2019) further highlights that resilience and sustainability have become the foundational pillars of modern supply chains, replacing the outdated emphasis on cost and speed alone. Using RAPFISH, the sustainability status of Agroindustry XYZ’s dairy supply chain is diagnosed as sustainable. Strategic priorities identified through ANP emphasize the strengthening of human resources, digital traceability, and circular economy practices. Subsequently, BSC is employed to evaluate the implementation of these strategies through four performance perspectives: financial, internal processes, learning and growth, and customer/sustainability. This study offers a novel contribution by presenting an integrated managerial model based on five SSCM pillars: efficiency, resilience, environmental sustainability, social sustainability, and technology. The model provides both a theoretical and practical framework for improving supply chain performance in perishable agro-industrial sectors.