Ahmad Shalihin, Clarisa D Sihombing, Sukaria Sinulingga

Risk Identification and Mitigation in the Halal Black Tea Orthodox Supply Chain Using SCOR and House of Risk

Introduction

Risk identification and mitigation in the halal black tea orthodox supply chain using scor and house of risk. Identify and mitigate risks in the Halal Black Tea Orthodox supply chain using SCOR and House of Risk. Address delays and machine failures for improved supply chain resilience.

Abstract

The plantation sector such as tea has a complex supply chain. The production process that takes place at PTPN IV Tobasari Tea Unit is not free from various problems. Delays in the raw material processing process often occur due to raw materials not arriving according to schedule. Delays are supported by disruptions to processing machines that can hinder or even stop the production process. Therefore, it is necessary to design mitigation actions to minimize and prevent risks that occur. This study aims to identify risk-causing factors using the Supply Chain Operation Reference (SCOR) and formulate effective risk mitigation policies based on priority risk agents using the House of Risk (HOR) approach. The results of risk identification at House of Risk showed that there were 21 risk events with 4 priority risk agents where the cumulative frequency value of Aggregate Risk Potential (ARP) was 76.82%. Effective and easy mitigation actions based on the Effectiveness to Difficulty value are to conduct analysis and evaluation of employee performance. These findings provide practical implications for improving supply chain resilience in the tea industry, particularly in addressing delays and machine failures through targeted risk mitigation strategies.

Review

This paper addresses a pertinent challenge within the complex landscape of the plantation sector, specifically focusing on the Halal Black Tea Orthodox Supply Chain at PTPN IV Tobasari Tea Unit. It effectively highlights common operational vulnerabilities such as raw material delays and machine breakdowns, which are critical impediments to production efficiency. By aiming to identify risk-causing factors and formulate targeted mitigation policies, the study sets out to provide practical solutions for enhancing supply chain resilience, thereby contributing meaningfully to the field of supply chain risk management within specialized agricultural contexts. The methodology employed leverages two recognized frameworks: the Supply Chain Operation Reference (SCOR) model for systematic risk identification and the House of Risk (HOR) approach for prioritizing risks and designing mitigation strategies. SCOR offers a structured lens through which to map and understand supply chain processes and their potential failure points, while HOR provides a robust quantitative tool for evaluating risk agents and the effectiveness versus difficulty of various mitigation actions. This combined methodological approach ensures a comprehensive and data-driven analysis, lending significant credibility to the study's findings regarding the identification and prioritization of supply chain risks. The study successfully identified 21 distinct risk events, consolidating them into 4 priority risk agents responsible for a substantial 76.82% of the Aggregate Risk Potential (ARP). A particularly noteworthy finding is the recommendation of "analysis and evaluation of employee performance" as the most effective and easily implementable mitigation action. This insight suggests that human factors are critical in addressing operational delays and machine failures within this specific supply chain. The practical implications are clear: the identified strategies provide actionable steps for PTPN IV Tobasari to significantly improve its supply chain resilience, offering valuable lessons that could be transferable to other tea industry players facing similar operational challenges.

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