Supply chain risk analysis using house of risk model on digitizing of warung tegal

Abstract

Warung tegal in Indonesia is one of the SMEs that needs to adapt to digitalization because its existence remains intact so that it’s able to advance the country’s economy. The strategy that can be done to develop SMEs warung tegal is to manage the supply chain by implementing industry 4.0. This condition can create a risk that could have a negative impact on business processes over a long period of time. This research was conducted to identify, analyse, and provide strategies for handling risks that may arise in the supply chain in digitizing warung tegal. The method use is the House of Risk to determine the priority of the handling strategy, and the Supply Chain Operation Reference (SCOR) method to identify risks in each activity. The results of this study indicate that there are 20 risk events and 38 risk agents. There are 15 risk agents are prioritized for handling strategies using the Pareto 80/20 principle, and there are 22 treatment strategies proposed to reduce the possible risks that occur in the supply chain activities of warung tegal.