Track: Supply Chain and Logisitcs Competition

Abstract

The supply chain is a network that involves organizations, resources, activities and technologies in the creation and sale of products, from suppliers of raw materials to subsequent manufacturers to consumers through delivery. However, supply chains are often vulnerable to risk of uncertainty. Risk in the supply chain is the exposure to the occurrence of a loss or injury that would affect the overall supply chain of the supply chain. In this study, the supply chain is assessed through analysis of the risks occurring in the supply chain in the real industry. The purpose of this study is to identify the existing risks in the supply chain in the food manufacturing industry in Malaysia. This study was conducted through interviews and questionnaires. Information and data obtained are used for risk analysis to identify the types of risks encountered in the supply chain through the Analytical Hierarchical Process Technique (AHP) method. In conclusion, the risk analysis in the supply chain can determine the highest risk types in the supply chain which is the risk of competition among companies (53%) and factors that cause such risks are competition from other manufacturers (86%) as well as market entry (14%). Furthermore, measures to overcome and mitigate these hazards can be carried out once risks are identified.