Risk identification of supply chain system in coffee processor: A case of Indonesia

Abstract

Coffee is one of Indonesia's top agricultural products, earning US$815,933,000 on an export basis, with 8.93% (64,804 tons) of the production coming from East Java (Indonesian Central Bureau of Statistics, 2019). Coffee processors face many uncertain conditions in the supply chain, which are commonly referred to as risks. Risk management is important in any business process to optimize, monitor, evaluate and maintain the continuity of business strategy and resources. This research aims to analyze and mitigate risks in the coffee processor's supply chain system. Risk identification and analysis, aggregate risk potential (ARP) score, risk evaluation and treatment, and effective to difficulty (ETD) score were implemented in this study. This study found that the risk drivers have the most significant relationship with the 28 listed risk events. On the other hand, 10 mitigation strategies have a strong relationship with these risk agents and have high effectiveness and lower difficulty.