Mapping of Supply Chain Risk in Industrial Furniture Base on House of Risk Framework

Abstract

Business success in unpredictable market conditions and volatility, business competition is no longer dependent on the ability of the company's business operations individual but based supply chain. Therefore, the effectiveness of the supply chain requires the synchronization of all entities involved in the supply chain of products or services. Strategy to build a strong supply chain needed to reduce market uncertainty. This study aims to map the risk agents and events risks that may arise as a result of the risks identified agent. Analysis of risk mapping is done by using the framework of the House of Risk (HOR). Data collection techniques using triangulation method that combines in-depth interview technique with a numbers of successful exporters and distributing questionnaires to 84 SMEs in the DIY furniture. The results of in-depth interviews to identify as many as 23 agents and 43 incidence risk of supply chain risk. To mitigate the risk is focused on a number of agents who have a value of the index  Priorities  Risk Agent (PRA) which has an index value of more than 400 and there are 5 top PRA index that must be considered is the lack of supervision or PRA 13; Production schedule changes or PRA 12; Often unpredictable requests or PRA 11; Needs of large and volatile materials or PRA 8 And technology is not compatible or PRA 9. Recommendations future studies need to use to control the operating life of the company and use the framework as a tool HOR 2 to develop supply chain risk mitigation strategies.

Keywords: Synchronization; HoR Framework; Risk Mapping; Priority of Risk Agent (PRA); Rrisk mitigation