Risk analysis of milkfish supply chains in Semarang using house of risk approach to increase the supply chain resilience

Abstract

This research aims to identify, measure and analyse the operational risk in supply chain of milkfish at Semarang. The supply chain activities emphasize on cooperation between parties to reduce risks in all stage of supply chain. Risk event occur are the return of fish to suppliers due to the poor quality, damaged product during the production process, and customer complaints due to improper order services. These problems result on out of stock of fresh fish, low customer satisfaction, and financial loss for the fish processing industries and distributors. Therefore, it is important to identify, measure and analyse the risks that probably occur in the supply chain from harvest area to end customer. The house of risk method used to analyse the supply chain risk and Supply Chain Operation Reference (SCOR) approach used to divided the business process into 5 main processes i.e., plan, source, make, deliver and return. The data collection was done by deep interview and spread questionnaires to industries manager and staff. The risk identification result shows that 7 risk events occur in the production process and 8 risk events in delivery process. These two processes have highest risk event number. The highest risk severity is found on Chlorine contaminated products. Based on severity value, some recommendation was formulated to reduce the impact of occurred risks to increase the supply chain resilience.