ANALYZING SUPPLIER RISK AND RISK MANAGEMENT OF COCONUT SUPPLY CHAIN (A CASE STUDY OF SUPPLIERS IN PT ROYAL COCONUT KAWANGKOAN)
Abstract: Risk is the
possibility that an undesired outcome-or the absence of a desired outcome
disrupts a business process. Suppliers should be able to predict their possible
risks that might be happened in their business. This study aims to identify
supplier risk for coconut supplier and to give insights about the risk
management. Identified perceived risks are classified as performance and
relational risks managed by trust and control mechanisms. This is a qualitative
study. Eight coconut suppliers had been interviewed for collecting data. Six
supplier risks in performance risks and relational risks were identified.
Relational risks include untrustworthy partner, unsatisfactory product quality,
and delay in product delivery. Performance risks include vehicle damaged, lack
of human resources, and shortage of raw materials. This research also identified
trust-based mechanisms for supplier risks include farmer development and
performance feedback. Control-based mechanisms for supplier risks include
performance measurements and contractual agreement. The suppliers should try to
implement the strategy of building trusts include goodwill trust and competence
trust, and control such as output control, social control, and behavior
control, simultaneously to help minimize relational and performance risks in
the business.
Keywords: supply chain
management, supplier, risk, risk management
Penulis: Santa Tamuntuan,
Sifrid S. Pangemanan, Ferdinand J. Tumewu
Kode Jurnal: jpmanajemendd180344
