Risk Mitigation Analysis Of Supply Chain Crumb Rubber Raw Materials At PT. Bakrie Sumatera Plantations Tbk

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Overcoming Risks in Crumb Rubber Supply Chains: In-depth Analysis of PT. Bakrie Sumatera Plantations Tbk

The supply chain activity at PT. Bakrie Sumatera Plantations Tbk, like any other organization, is vulnerable to various risks. Risks such as miscalculations in raw material procurement, delayed deliveries from suppliers, or internal company constraints can disrupt operational flow and threaten profitability. To minimize these potential losses, appropriate risk mitigation strategies are necessary.

The Importance of Risk Mitigation in Supply Chain Management

Risk mitigation is a critical aspect of supply chain management, as it helps organizations to identify and address potential risks before they become major issues. By implementing effective risk mitigation strategies, organizations can minimize the impact of risks on their operations and ensure business continuity. In the context of PT. Bakrie Sumatera Plantations Tbk, risk mitigation is essential to ensure the smooth operation of the crumb rubber supply chain.

The House of Risk Model: A Framework for Risk Mitigation

This study uses the House of Risk model as an analytical framework to identify and mitigate risk in the Crumb Rubber supply chain at PT. Bakrie Sumatera Plantations Tbk. The House of Risk model is a widely accepted framework for risk management, which consists of four main components: risk identification, risk evaluation, risk mitigation, and risk monitoring.

Phase 1: Risk Identification and Evaluation

This phase focuses on identifying all potential risks that may occur in the Crumb Rubber supply chain. The study succeeded in identifying 11 risk events and 19 risk agents. Furthermore, an evaluation of severity (severity) and the possibility of occurrence of each risk was conducted. The results of this evaluation were then used to calculate the Aggregate Risk Priority (ARP) value, which shows the urgency of handling each risk.

Risk Identification

Risk identification is the process of identifying potential risks that may occur in the supply chain. In this study, 11 risk events and 19 risk agents were identified. The risk events include:

  • Raw material procurement errors
  • Delayed deliveries from suppliers
  • Internal company constraints
  • Equipment maintenance issues
  • Production process disruptions

The risk agents include:

  • Suppliers
  • Customers
  • Employees
  • Equipment
  • Raw materials

Risk Evaluation

Risk evaluation is the process of assessing the severity and possibility of occurrence of each risk. In this study, a severity and possibility of occurrence scale was used to evaluate each risk. The results of this evaluation were then used to calculate the ARP value.

Phase 2: Implementation of Risk Mitigation Strategy

After identifying and evaluating risks, the second phase focuses on the development and application of mitigation strategies. Research shows that the most effective mitigation strategies are divided into two main areas:

Risk Mitigation in Suppliers

Mitigation strategies focused on suppliers generally involve the procurement of raw materials. For example, companies need to ensure that all raw material specifications are clearly listed in the purchase contract to prevent mistakes and discrepancies.

Risk Mitigation in Companies

Companies need to have an internal risk mitigation strategy, especially related to the maintenance of equipment and production processes. This is important to ensure the smooth running of operations and prevent the cessation of the production process due to technical problems.

Priority Action: Minimizing Risks with Careful Planning

This study highlighted two priority mitigation actions that needed to be applied by PT. Bakrie Sumatera Plantations Tbk and its suppliers:

Clear Goods Demand

The company must avoid the demand for raw materials that are unclear and sudden. Detailed specifications and careful planning can help prevent errors in ordering, late delivery, and mismatch of raw materials.

Communication Improvement

Effective communication between the company and suppliers is very important to prevent risk. Companies need to build strong relationships with suppliers and build transparent communication systems to ensure all parties have the same information.

Conclusion

By implementing a structured risk mitigation strategy, PT. Bakrie Sumatera Plantations Tbk can increase supply chain resistance and minimize potential losses. This strategy not only helps the company achieve optimal production targets, but also increase the confidence of stakeholders and build competitive advantage in the rubber industry.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • Implement a risk management system: PT. Bakrie Sumatera Plantations Tbk should implement a risk management system to identify, evaluate, and mitigate risks in the supply chain.
  • Develop a risk mitigation strategy: The company should develop a risk mitigation strategy that includes clear goods demand and communication improvement.
  • Train employees: Employees should be trained on risk management and mitigation to ensure that they understand the importance of risk mitigation in the supply chain.

Limitations of the Study

This study has several limitations, including:

  • Limited scope: The study only focused on the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk.
  • Data collection: The study relied on secondary data, which may not be accurate or up-to-date.
  • Risk mitigation strategies: The study only focused on two risk mitigation strategies, which may not be comprehensive.

Future Research Directions

Future research should focus on:

  • Expanding the scope: Future research should expand the scope of the study to include other supply chains and companies.
  • Collecting primary data: Future research should collect primary data to ensure accuracy and reliability.
  • Developing a comprehensive risk mitigation strategy: Future research should develop a comprehensive risk mitigation strategy that includes multiple risk mitigation strategies.

Introduction

Risk mitigation is a critical aspect of supply chain management, and it is essential to understand the risks associated with the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk. In this article, we will answer some frequently asked questions (FAQs) related to risk mitigation analysis of supply chain crumb rubber raw materials at PT. Bakrie Sumatera Plantations Tbk.

Q1: What is risk mitigation, and why is it important in supply chain management?

A1: Risk mitigation is the process of identifying and mitigating potential risks that may occur in the supply chain. It is essential in supply chain management because it helps organizations to minimize the impact of risks on their operations and ensure business continuity.

Q2: What are the common risks associated with the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk?

A2: The common risks associated with the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk include raw material procurement errors, delayed deliveries from suppliers, internal company constraints, equipment maintenance issues, and production process disruptions.

Q3: How can PT. Bakrie Sumatera Plantations Tbk minimize the risks associated with the crumb rubber supply chain?

A3: PT. Bakrie Sumatera Plantations Tbk can minimize the risks associated with the crumb rubber supply chain by implementing a risk management system, developing a risk mitigation strategy, and training employees on risk management and mitigation.

Q4: What is the House of Risk model, and how is it used in risk mitigation analysis?

A4: The House of Risk model is a widely accepted framework for risk management, which consists of four main components: risk identification, risk evaluation, risk mitigation, and risk monitoring. It is used in risk mitigation analysis to identify, evaluate, and mitigate risks in the supply chain.

Q5: What are the two priority mitigation actions that PT. Bakrie Sumatera Plantations Tbk should take to minimize risks in the crumb rubber supply chain?

A5: The two priority mitigation actions that PT. Bakrie Sumatera Plantations Tbk should take to minimize risks in the crumb rubber supply chain are clear goods demand and communication improvement.

Q6: How can PT. Bakrie Sumatera Plantations Tbk ensure that its suppliers are reliable and can deliver high-quality raw materials?

A6: PT. Bakrie Sumatera Plantations Tbk can ensure that its suppliers are reliable and can deliver high-quality raw materials by building strong relationships with suppliers, establishing clear communication channels, and conducting regular audits and assessments.

Q7: What are the benefits of implementing a risk mitigation strategy in the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk?

A7: The benefits of implementing a risk mitigation strategy in the crumb rubber supply chain at PT. Bakrie Sumatera Plantations Tbk include increased supply chain resistance, minimized potential losses, and increased confidence of stakeholders.

Q8: How can PT. Bakrie Sumatera Plantations Tbk measure the effectiveness of its risk mitigation strategy?

A8: PT. Bakrie Sumatera Plantations Tbk can measure the effectiveness of its risk mitigation strategy by tracking key performance indicators (KPIs) such as supply chain resistance, potential losses, and stakeholder confidence.

Q9: What are the limitations of this study, and how can they be addressed in future research?

A9: The limitations of this study include limited scope, reliance on secondary data, and limited risk mitigation strategies. These limitations can be addressed in future research by expanding the scope of the study, collecting primary data, and developing a comprehensive risk mitigation strategy.

Q10: What are the future research directions for risk mitigation analysis of supply chain crumb rubber raw materials at PT. Bakrie Sumatera Plantations Tbk?

A10: The future research directions for risk mitigation analysis of supply chain crumb rubber raw materials at PT. Bakrie Sumatera Plantations Tbk include expanding the scope of the study, collecting primary data, and developing a comprehensive risk mitigation strategy.