Risk measurement of supply chain for soy sauce product

Soy sauce is one of the fermented-soybean product that is widely used as a food flavoring. The high demand of soy sauce requires Company X, as producers, to ensure that consumer needs are always met. Therefore, it needs the help of many stakeholders, including suppliers and distributors to support the continuity of production. Since many members are involved, Company X needs to maintain the optimal performances. One of which is by applying supply chain risk management. This study aimed to identify and analyze supply chain risk in the soy sauce production process. Firstly, all activities carried out by supply chain members were mapped using Supply Chain Operational Reference (SCOR) approach. Secondly, the potential risk of these activities was analyzed using House of Risk Phase 1 (HOR-1) method. 16 risk events and 19 risk agents were identified based on SCOR approach and HOR-1 method. Following the risk identification stage, the priority rank of risks was analyzed using Aggregate Risk Priority (ARP). The results showed that there were 5 priorities of risk agents required to be mitigated, i.e. human error, misorder of product, power outage, raw materials variants, and disruptions during product transportation. This study suggests risk mitigations as follows: to give rewards, punishments, and work motivation to workers; to alter and enhance SOP of ordering, storing, distributing, and supplier cooperations; to use electricity generator during the production process; to control the quality of raw materials; and to regularly maintain the distribution vehicle.