Integrating ERM with HACCP for Enhanced Efficiency in SME Beverage Manufacturing: The Case of SME Beverage Manufacture Company in Rembang, Indonesia

Abstract

This study presents an approach to determining the most impactful risks faced by an SME beverage manufacturing company in Rembang, Indonesia. Indonesia’s food and beverage market is highly competitive, especially for small and medium-sized enterprises (SMEs) that aim to sustain and grow their businesses. Focusing more on their business strategy, these SMEs often overlook risk management, which can lead to significant losses. The study employs a methodology that combines Enterprise Risk Management (ERM) with Hazard Analysis Critical Control Points (HACCP) to detect and evaluate potential risks in the production process, ultimately providing recommendations for the best possible corrective actions to manage these risks. The ERM framework highlighted three major risks associated with defective products, water shortage, and blackout, while the HACCP analysis pinpointed five critical control points (CCPs) in the production process of boiling, cooling, mixing, filling/bottling, and packaging. Based on these results, the study suggests corrective actions of installing backup generators, securing additional water supplies, and implementing homogenizers will benefit the company.