Track: Supply Chain Management (SCM)

Abstract

The trend of using cosmetic products in Indonesia is not only exclusively for women but also has expanded for men and children. Until 2019, the Indonesian government recorded 797 domestic cosmetic companies from small, medium, and large scale, which increased compared to 760 companies in the previous year. The cosmetics industry's performance also grew by 5.59% in 2020 and contributed to foreign exchange for export with USD 317 million, increasing 15.2% compared to the previous year. Supply chain flow in business activities is undoubtedly a complicated issue to discuss because the activities, connections, and interrelationships between elements from upstream to downstream are full of risks and uncertainties. This study aims to conceptualize a supply chain risk model in the Indonesian cosmetics industry to ensure the development of appropriate risk mitigation strategy. This research used qualitative data in a questionnaire assessment by experts, processed using a Content Validity Index (CVI) approach. A total of 20 sub-indicators have been successfully validated from 36 sub-indicators by five experts in the cosmetics industry with an average I-CVI value of 0.91.The trend of using cosmetic products in Indonesia is not only exclusively for women but also has expanded for men and children. Until 2019, the Indonesian government recorded 797 domestic cosmetic companies from small, medium, and large scale, which increased compared to 760 companies in the previous year. The cosmetics industry's performance also grew by 5.59% in 2020 and contributed to foreign exchange for export with USD 317 million, increasing 15.2% compared to the previous year. Supply chain flow in business activities is undoubtedly a complicated issue to discuss because the activities, connections, and interrelationships between elements from upstream to downstream are full of risks and uncertainties. This study aims to conceptualize a supply chain risk model in the Indonesian cosmetics industry to ensure the development of appropriate risk mitigation strategy. This research used qualitative data in a questionnaire assessment by experts, processed using a Content Validity Index (CVI) approach. A total of 20 sub-indicators have been successfully validated from 36 sub-indicators by five experts in the cosmetics industry with an average I-CVI value of 0.91.