Supply Chain Risk Management in Fried Shallot SMEs

Abstract

SMEs of fried shallot are faced with various risks in the form of raw material constraints, errors in planning, operating machines, defective products, government policies, complaints, and others. The methods used in this study are descriptive analysis, supply chain operation reference (SCOR), and risk analysis using the House of Risk (HOR) method. The risk analysis HOR 1 shows that the most significant risk agents of supliers level, was farmers who fail to harvest (AP10) with total score 572 that accounted for 19.8% of problems. Risk agents with the highest ARP scores at the SMEs level are labor negligence (AI9) that account for 12% of problems. The risk agent with the highest ARP value at the retail level was a forecasting miscalculation (AR1), with a total score 243 that accounting for 14.17% of problems. The result of the HOR 2 assessment selected primary preventive actions suggested to be implemented first, in supplier, namely farmer partnership by creating a 2-3 harvest cycles (PAP4). The primary preventive action strategies for SMEs are record and analyze shallots needs based on fixed requests from customers (PAI 7). The primary preventive action for retail is collaborating with SMEs with almost the same type and quality (PAR1).