GREEN CHAIN MANAGEMENT FOR FURNITURE INDUSTRIES

Jailani¹, G051150041

Department of Information Technology For Natural Resources Management,

Bogor Agricultural University, Jalan Raya Tajur Km.6, Bogor 16720, West Java, Indonesia

Background

                Processing industry has an important role for the Indonesian economy. Some sectors of the industry is a major source of state revenue, one of which is the furniture industry.

            Indonesian furniture industry development can not be separated from the support of Indonesia's natural resources are abundant in the form of vast forests that supply raw materials furniture industry and other industries. Support natural resources has not made such a large furniture industry is growing rapidly. According to the Ministry of Industry (2008), in recent years based on the data, the timber industry and forest products have been growing rapidly in competitor countries such as China, Malaysia and Vietnam that do not have their own raw material. Decreased production of furniture industry caused by factors limited raw materials. The result of the further degradation of Indonesia's forests and supply chain management is not good.

            In addition to the study of SCM, public attention is also drawn to environmental issues, known as the Green Chain Management (GCM). Environmental issues become an important global issue in recent years. In connection with the increase in population and industrial impact on the environment, environmental issues are becoming more frequent attention. The concept of sustainability has been widely used as a framework in the development of various activities, both economic activities and non-economic activities.

            Seeing the importance of the furniture industry and many problems faced in its development, encouraging to do research from the standpoint of the Green Chain Management (GCM).

Figure 1. Industrial process hierarchy furniture from materials to the consumer

Discussion

Figure 1. Dynamic models of Indonesian Furniture Industry

            From figure 1 and 2 above can we explained that in developing the Indonesian furniture industry has to do with the approach of the four perspectives: green procurement, green manufacturing, green distribution and reverse logistics. From every perspective consists of several objective which has some performance indicators. As for the indicator-indokatornya can be described in the table below.

Perspective	Indicator
Green Suply Chain Management	The ability of providers to undertake reforestation wood in order to avoid scarcity of raw materials n
Green Manufacture	The efficiency of energy use in the processing of wood into furniture such as electricity and fuel
	Efficient use of raw materials. Each timber must be able to be processed into useful household furniture, this is done to minimize waste
	Conformity percentage substance use, wood preservatives. avoid using dyes which have a negative impact on the environment
	Human resource management. conduct training for employees related to environmental management
	Waste utilization. The liquid waste generated from the manufacturing process of furniture must be in accordance with the concept of environmental impact assessment.
Green Distribution	Use of packaging that can be recycled
	Utility transport in the distribution of products
	The accuracy of the amount sent to the customer with a total production
	Efficient use of storage in the storage of products
	Fuel efficiency in the distribution process
	Furniture defective utilization products in storage
Green Costumer and Consumer	Management back to the defective product. expected that the consumer to be able to take advantage of returning the defective product to be something useful. Or the consumer can trade up to the manufacture

Conclusion

            Expected by the criteria drawn up from the table, can be used as a reference in order to realize the Green Chain Management in the field of furniture industry in Indonesia. because in addition to the business aspect, we also need to be able to think about the environmental aspects of the products created.