Supply Chain Risk Mitigation Strategy of Gayo Arabica Coffee Using House of Risk Method in Bener Meriah Regency

Abstract

AbstractThe decline in the selling value of Gayo Arabica coffee produced by farmers in Bener Meriah Regency indicates that there has been a phenomenon of price stability disturbance. One of the reasons is related to the quality standards of the coffee produced. elements in handling in every process of activity starting from the cultivation process to post-harvest carried out will cause risk events that can worsen the quality of gayo arabica coffee produced, it is necessary to map the existing system so that it can identify risk events that arise. The method used in this study is the House of Risk (HOR). This HOR method serves to analyze and prioritize the sources of risk causes (risk agents) and establish priority risk mitigation strategies that can reduce risk agents. By mitigating risks in the Gayo Arabica coffee supply chain, it is expected to reduce existing risks and the supply chain can run optimally. Based on this study, analyzing the supply chain using the HOR method, there were 32 risk events and 46 risk agents grouped into 31 risk agents. Using HOR I method, it measures the severity of risk events, occurrences of risk agents, and produces an Aggregate Risk Potential (ARP) value where 28 risk agents are prioritized to be resolved where the three risk agents whose priority is to be reduced are the mistakes of collectors in the technical quality control process (A12), poor planning from farmers (A31), and poor quality green bean packaging (A18).HOR II produces 14 mitigation strategies and 8 mitigation strategies are prioritized based on the value of effectiveness and level of difficulty. The three priority mitigation strategies are compiling and establishing SOPs for Gayo Arabica coffee cultivation which is integrated with current coffee plantation technology (PA11), collaborating with fertilizer and packaging companies (PA09), and providing quality control training to conduct quality assessments in accordance with SNI standard (PA06). KeywordsSupply chainGayo Arabic coffeeHouse of Risk method