An Analysis of Supply Chain Risk Management in a Manufacturing Fermented Vegetable Canning

Abstract

The paper aims to study and analyze supply chain risk management in a fermented vegetablecanning manufacturer. We identified risk factors both internal and external factors in 13 areas. The thirtyinvolved officers were interviewed to evaluate on risks and impacts. The top three of risk factors includethe risk of insufficient raw material, the risk of high raw material prices and the risk of non-standard rawmaterial quality. The cause and effect diagram was applied to analyze the supply process risks. Theoperations of suppliers or growers affect supply risks significantly. The results of multiple regressionanalysis show that a number of plant areas, the date of cessation of water before cutting yields, the 3leaf-weight percentage, the rot percentage, the percentage of flowering and the percentage of wrappedhead are significantly associated with total quantity of raw material. The qualities of raw material requiredare vegetable with 3 leaf-cut, wrapped head, no rot and non-flowering. The analysis of supply chain riskmanagement can be used as a guide to determine the risk management strategy and SWOT analysis couldbe used as a tool to solve and protect the future risks. The fourth strategies consist of proactive strategy,preventive strategy, change strategy and reactive strategy. However, the risk management needs to be awareof cooperation and implement from all levels within the organization that risk management can then becarried out successfully according to the strategy and policy.

Keywords : Supply Chain Risk Management / Multiple Regression Analysis / SWOT Analysis