Supply Chain Risk Management in Warehousing for Perishable Products Using Interpretive Structural Modelling and House Of Risk (Case Study: PT.X)
Niken Anggraini Savitri, Yhuwana Rahayu

Institut Teknologi Sepuluh Nopember

Abstract

Due to the complexity and critical operations, supply chain for perishable products has some potential risks that could appear along the chain. Therefore, risk management in the supply chain is important to avoid potential risks in the future and to manage the performance as well as keeping the competitive advantage. This research aims to identify the risks in the supply chain for perishable products with focus on the warehousing sector. Using a case study of PT X, one of the startup company that provides logistics service mainly in warehousing, this research evaluates the occurrences and causes of these risks, identifies priority areas for risk management, and provides recommendations for risk mitigation actions in PT X^s business processes. The Supply Chain Operations Reference (SCOR) model is used to identify the business processes in PT X^s supply chain. From the business process, 32 risk events are identified. Afterward, Interpretive Structural Modeling (ISM) is performed to assess the interrelationships between the risk elements and determine the priority risk elements among the risk events which results in 10 key risk events. These risk events are then prioritized using the House of Risk (HOR) Phase I, which results in seven priority risk agents. The final step is HOR Phase II, where six preventive actions are formulated as risk mitigation strategies.

Keywords: Supply Chain, Risk Management, House of Risk, Interpretive Structural Modeling

Topic: Business and Economic