Enhancing flexibility in sustainable supply chains: strategies for Indonesian premium coffee

To ensure the flexibility toward sustainability of Indonesian premium coffee, it is critical to address the increasing demand and declining production. The research aims to map the premium coffee supply chain challenges from farming to distribution, identify the initiative strategies for its flexibility, and formulate strategic solutions to improve the supply chain’s flexibility. The study employed a mixed-methods design, incorporating both qualitative and quantitative phases to address the complexities of the premium coffee supply chain comprehensively. In-depth interviews with well-versed key informants are conducted to map the supply chain and identify challenges in enhancing its flexibility. Field participatory observations were conducted among farmers, traders, and cafe operators across Lampung, West Java, and Jakarta to complement the interviews. To determine the priority of challenges in the premium supply chain for enhancing flexibility, a hybrid method of Entropy-TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) is employed. The finding shows that the Indonesian premium coffee supply chain is hindered by eight key challenges that obstruct its development and flexibility. It can be categorized as primary initiatives (the first three priorities) and secondary initiatives. The primary initiatives consist of composing a marketing strategy, improving the productivity of smallholders’ farming, and mitigating market instability impacts mandated to ensure a foundation for the supply chain. Concurrently, these priorities need implementable programs for sustainable growth and market adaptability. The sensitivity analysis convinces of the robustness of the prioritized challenges for selecting the best scenario.