Supply Chain Risk Mitigation Using Supply Chain Risk Management (SCRM) Approach

Abstract

Supply chain is an important factor in domestic and international trades, which determines the extent of the efficiency and effectiveness of the order, the production process until distribution of goods from production centers or import to the consumer level. PT. Barata Indonesia (Persero) uses Make To Order production strategies that has experienced problems in the supply of raw materials, especially non- acceptance by the target date. This research uses Supply Chain Risk Management (SCRM) approach, which identifies the impact of the risk event and probability of risk agents on the risk of supply, operational and demand. For identifying the risks, House of Risk (HOR) was used, which consists of two phases. The results of the first phase of risk assessment: there were 23 risk events and 17 risk agents covering 4 supply risk, 16 operational risk and 3 demand risk. From these results, the sequence of aggregate risk potential (ARP) is obtained, from the largest to the smallest. In second phase, the selected risk agents were correlated with the proposed of mitigation strategies, there were 9 supply chain risk mitigation strategies that were assessed level of relationship both of them, so mitigation strategy were selected.