The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia

Globalization brought new opportunities to logistics providers worldwide, especially in the Mexico, Indonesia, South Korea, and Turkey (MIST) countries. However, this attractive opportunity also came with high risk due to the complexity of the global supply chain. Third-party logistics providers nee...

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Main Authors: Sintia Putri Pradita, Pornthipa Ongkunaruk, Thaweephan Leingpibul
Format: Article
Language:English
Published: University of Brawijaya 2020-04-01
Series:Industria: Jurnal Teknologi dan Manajemen Agroindustri
Subjects:
Online Access:https://industria.ub.ac.id/index.php/industri/article/view/589
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author Sintia Putri Pradita
Pornthipa Ongkunaruk
Thaweephan Leingpibul
author_facet Sintia Putri Pradita
Pornthipa Ongkunaruk
Thaweephan Leingpibul
author_sort Sintia Putri Pradita
collection DOAJ
description Globalization brought new opportunities to logistics providers worldwide, especially in the Mexico, Indonesia, South Korea, and Turkey (MIST) countries. However, this attractive opportunity also came with high risk due to the complexity of the global supply chain. Third-party logistics providers need to be prepared to minimize the risks by utilizing risk management to ensure a smooth supply chain operation. This case was conducted with a major Indonesian third-party logistics (3PL) provider, utilizing the Supply Chain Risk Management Process (SCRMP) to control and monitor all risks that can arise in the company. The structure of the method can be divided into four phases: risk identification, risk measurement/risk assessment, risk evaluation, and risk mitigation/contingency plans. The purpose of this research is to validate how the SCRMP concept performs in challenging contexts such as the Indonesian 3PL industry. The study also bridged the theoretical-practical gap by helping practitioners gain valuable insights to manage risks in the company and provided appropriate risk mitigation. The results showed that there are seven unacceptable risks requiring risk mitigation and control. Risk mitigation strategies were then recommended, based on the risks that were categorized as the most critical and unacceptable. The recommendation is expected to reduce the risks that occur in the Indonesian cold chain.
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spelling doaj.art-7fa684d1e8db401eba1c409ab536ab462022-12-21T23:19:28ZengUniversity of BrawijayaIndustria: Jurnal Teknologi dan Manajemen Agroindustri2252-78772549-38922020-04-019111010.21776/ub.industria.2020.009.01.1The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in IndonesiaSintia Putri Pradita0Pornthipa Ongkunaruk1Thaweephan Leingpibul2Kasetsart UniversityKasetsart UniversityWestern Michigan UniversityGlobalization brought new opportunities to logistics providers worldwide, especially in the Mexico, Indonesia, South Korea, and Turkey (MIST) countries. However, this attractive opportunity also came with high risk due to the complexity of the global supply chain. Third-party logistics providers need to be prepared to minimize the risks by utilizing risk management to ensure a smooth supply chain operation. This case was conducted with a major Indonesian third-party logistics (3PL) provider, utilizing the Supply Chain Risk Management Process (SCRMP) to control and monitor all risks that can arise in the company. The structure of the method can be divided into four phases: risk identification, risk measurement/risk assessment, risk evaluation, and risk mitigation/contingency plans. The purpose of this research is to validate how the SCRMP concept performs in challenging contexts such as the Indonesian 3PL industry. The study also bridged the theoretical-practical gap by helping practitioners gain valuable insights to manage risks in the company and provided appropriate risk mitigation. The results showed that there are seven unacceptable risks requiring risk mitigation and control. Risk mitigation strategies were then recommended, based on the risks that were categorized as the most critical and unacceptable. The recommendation is expected to reduce the risks that occur in the Indonesian cold chain.https://industria.ub.ac.id/index.php/industri/article/view/589risk managementsupply chain risk management processthird-party logistics providers
spellingShingle Sintia Putri Pradita
Pornthipa Ongkunaruk
Thaweephan Leingpibul
The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
Industria: Jurnal Teknologi dan Manajemen Agroindustri
risk management
supply chain risk management process
third-party logistics providers
title The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
title_full The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
title_fullStr The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
title_full_unstemmed The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
title_short The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia
title_sort use of supply chain risk management process scrmp in third party logistics industry a case study in indonesia
topic risk management
supply chain risk management process
third-party logistics providers
url https://industria.ub.ac.id/index.php/industri/article/view/589
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