Abstract
Slaughter House PT X is a company engaged in the production, trade, and distribution of chicken meat that having a role to provide the needs of raw material in a form of fresh chicken meat in the chicken meat processing industry. However, this company has the potential to experience a variety of supply chain risk that can disrupt the company’s business processes. The purposes of this study are to identify risk events that have been potentially occurred, identify priority risk agent based on Aggregate Risk Potential (ARP) value, and determine the priority sequence of a risk mitigation strategy in Slaughter House PT X. This study uses the Supply Chain Operation Reference (SCOR) to mapping the company’s supply chain activity. Thereafter House of Risk (HOR) method is used to identify, analyze, evaluate, and designing mitigation strategy to minimize potential occurrence of risk agent. The results of the study showed that there are 33 risk events and 32 risk agents identified. Then, based on the result of risk evaluation, there are 15 priority risk agents for mitigation action. There are 11 proposed mitigation strategies to be implemented in Slaughter House PT X.
Highlights
Chain management is not a new thing for the company nowadays
The goals of the research are to identify risk events that potentially occurred within the business process in chicken slaughter house PT X, identify priority risk agents based on Aggregate Risk Potential (ARP) value that causes the risk to occur within a business process in chicken slaughter house PT X and determine the priority sequence of applying proposed risk mitigation based on Effectiveness to Difficulty Ratio (ETD) value on chicken slaughter house PT X
There are 33 risk events that potentially arise in the business process chicken slaughter house PT X among others are error in determining the needs of live chicken, required size of live chicken is unavailable, the farm cannot fulfill the order, live chicken size that has been received is inappropriate, and shackle rail plummeted
Summary
Chain management is not a new thing for the company nowadays. The company should have to manage and run the supply chain to fulfill customer needs [1]. The complexity of multiple stakeholder within the supply chain structure and the number of uncertainties poses challenge in supply chain management. The emergence of risks in supply chain activity becomes unavoidable. To reduce and overcome the various risks that occurred within the supply chain, it will be required to undertake a continuous improvement of supply chain performance by overcoming and preventing various risks which potentially occurred [2]. Chain risk management becomes an effort to manage the risks that have been occurring along the supply chain flow
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