Supply chain flows of sago business in Polewali Mandar Regency, West Sulawesi Province

Abstract

Sago palm is a potential starch-producing plant capable of providing economic benefits to the local community. However, its utilization still needs to be improved. Hence, optimal supply chain management is expected to control the availability of sago starch and other processed sago products to be more effective and sustainable. This study aims to analyze three supply chain flows: information flow, product flow and financial flow. This research was conducted from June to December 2022 at a sago starch production center in Polewali Mandar Regency, Independent Agricultural and Rural Training Center (P4S) of Cahaya Duta Palili. The samples in this study were purposively selected, which were 30 sago farmers, an owner of sago processing company P4S Cahaya Duta Palili, an owner of Sabar Jaya Rempah Shop, and ten consumers. The analytical method used is a mixed method using data analysis techniques, namely qualitative descriptive analysis and marketing margins. The results showed that P4S has the highest profit margin, with a cost of Rp 250,000, and P4S can make a profit of Rp 2,750,000 per production. The product and financial flows have been running well and effectively, but the flow of information to supply chain actors between farmers and P4S needs to run more efficiently. This is due to a lack of communication and information between them. Farmers do not know when P4S needs raw materials, which can hinder the flow of products, finances and information in each supply chain.