Design the Supply chain risk mitigation with supply chain risk management approach in spring bed factory

Abstract

A risk is often described an event, a change in situation, or a consequence. It can be handled or eliminated by using risk management. The objective of the research was to identify some factors which caused the lateness in delivering raw materials until it comes on time at spring bed factory, a company which produces spring beds. Within these 2 years the company has had the problem of providing raw materials which are often delivered late so that the company cannot meet consumers’ demand punctually. In consequence it suffers financial loss. The research used HOR (HOR I and HOR II) by identifying risk event and risk agent. The result of the identification with HOR I risk agent, it was found that the lateness was caused by the lateness of ship arrival, the lateness in supplying raw materials, dependency on parent company. To mitigate risk agent, mitigating strategy (HOR II) was organized such as making work contract with suppliers that came from parent company in order to communicate directly with suppliers, procuring raw materials from 2 weeks to 2 months before they were needed, and doing multiple routes.