Managing risks in the Indonesian seaweed supply chain
Citable Link (URL):http://resolver.sub.uni-goettingen.de/purl?gs-1/14183
Seaweed supply chains in Indonesia, especially carrageenan and agar products, are subject to risks arising both inside the participating companies and in their external networks. Uncertainties in yield, quality, price, and infrastructure in one part of the supply chain can affect the whole chain. To ensure a sustainable seaweed industry, an appropriate supply chain risk management (SCRM) is needed. There are four critical steps in SCRM: identifying seaweed supply chains, identifying and categorizing risks, assessing risks, and mitigating risks. To identify seaweed supply chains, we conducted field research, in-depth interviews, and literature studies. The field survey was conducted in the Provinces of South Sulawesi, West Java, East Java, Banten, and West Nusa Tenggara. The seaweed supply chains were modeled by the software Umberto to get a better understanding of material and energy flows between the key members. To identify and categorize the risks, we started with the risks mentioned in the existing literature works, and then applied the Delphi method to analyze the potential risk sources, their causes, and their impacts. To assess risks, we used a semiquantitative approach through the face-to-face interviews to generate a risk map showing the likelihood, and impact of adverse events. Afterward, the risk intensity was categorized based on the value of the responses and classified into five categories: negligible, marginal, critical, most critical, and catastrophic risks. The mitigation strategies considered sustainability (environment, economy, and social) and risks criteria. Multi-criteria decision analysis was used to evaluate these strategies.