Track: Industrial Services

Abstract

This research aims to identify risks that arise in the procurement and warehouse departments, determine the factors that contribute to the emergence of risks, obtain the right approach in managing risk as to the scope of the company's Supply Chain Management. This research was carried out in a manufacturing company; the data was obtained and analyzed using the FMEA (Failure Mode and Effect Analysis) method. This method is effective because it can provide a comprehensive picture of the process of risk arising in the supply chain. The approach used in managing risk will follow the Australian/New Zealand Risk Management Standard SA/NZS 4360:1999. The results showed that it is obtained that events that can become risks have a tremendous impact on company activities, especially the procurement and warehouse departments if they do not get attention in the management process. The risks that arise are strategic, technical, and operational and can be managed by treating Mitigate Risk, Transfer Risk, Avoid Risk, and Retain Risk with a Supply chain Risk Management  approach