Supply chain risk analysis of tempeh using modified failure mode and effects analysis

Abstract

Risks and their associated sources of risks in the supply chain of tempeh vary either due to improper raw material handling, inappropriate production processes or improper product handling by salespersons. This research aims to identify the risks that occur in the tempeh supply chain at XYZ Company, conduct analysis and evaluate risks and provide a proposed risk mitigation strategy. Primary data were obtained through direct observation in the field and in-depth interviews of the actors involved in the tempeh supply chain. Identification of risks that occurred in the tempeh supply chain was conducted using SCOR approach. Risks were identified based on supply chain activities that occurred in the Plan, Source, Make, Deliver, Return business processes. Risk analysis was carried out using Modified Failure Mode and Effect Analysis (FMEA) approach. The results showed that there are eleven risk events that must be taken into consideration for preventive program. The risk events are distributed in Plan business process (3), Source (1), Make (4), Deliver (2) and Return (1). The preventive program for avoiding the risk events occurring should give precedence on controlling Fluctuating demand (A1), Suddenorder (A4), Indiscipline of workers (A14) and Close down of consumer's business (A18).