Supply Chain Risk Management: An Approach to Reduce The Agricultural Product's Logistics Costs

Abstract

Characteristics of perishable agricultural products led to an expensive logistics costs and the need for specific treatment along the supply chain to the consumer. The differences in treatment as well as the acceptance of risk in each tier supply chain lead to different ways of mitigating the risk. The use of the combination method of risk management and supply chain management can be done to improve the performance supply chain. By reducing the potential risk the possibility of damage due to transportation and distribution can be reduced. Results of the research have been done in some cases (corn and fresh vegetables) and combined with fulfillment of inventory by the service level that occurs is an alternative to reduce the logistics cost. Keywords : perishable, ISO 31000, risk mitigation, supply chain, logistics cost