Distribution Network Optimization in the Peruvian Agro-Industrial Sector

Abstract

In recent years, palm oil has been established as the most-produced oilseed oil in the world—its production volume has increased from 41 million tons in the 2007/08 season to more than 76 million tons in the 2018/19 season—and a crucial part of the Latin American agro-industrial sector. However, following a slowdown in export growth due to the 2020 COVID-19 lockdown, there is a vital need for sustainable expansion alternatives such as the production of value-added oil-palm products. This chapter presents the business process integration methodology and strategies pursued by a palm oil producer in Peru to optimize the vertical growth of its operational processes within the Latin American palm oil agro-industrial sector, based on the SAP S/4Hana Business Modules: Materials Management (for purchasing), Production Planning (for making), Sales and Distribution (for selling), Controlling (for tracking) and Human Capital Management (for managing staff).