Urgency in managing the risk in supply chain amongst Indonesian manufacturing companies

Abstract

This study is an attempt to highlight steps to be taken by business organizations through supply chain risks management to make sustainable development a reality. This study is based on the exploratory study done to investigate the importance of supply chain risks management. The survey data was obtained from 10 manufacturing firms in Indonesia. The survey was conducted using structured interviews directed to the supply chain representative in each firm. The results indicate that most of the managers admitted that their respective companies could not fulfill the demand if disruption of supply chain risk occurs and therefore, it is necessary to manage the risks by developing supply chain risk strategies. In addition to this, companies should develop strategies that can mitigate the impact of these risks. Supply chain risks management, therefore can play significant role in achieving the triple bottom line of social, environmental and economic benefits and therefore, contributing to sustainable development of the society. © Medwell Journals, 2010.