Halal supply chain risk management using the House Of risk (HOR) method in the Madura halal industrial area

• Main Authors: Prastiti, Novi, Rahmawati, Diana, Al Ayubi, Muhammad Anas, Sofiya, Diana
• Format: Conference Proceeding
• Language: English
• Subjects: Cardboard; Damage; Industrial areas; Natural disasters; Risk analysis; Risk management; Suppliers; Supply chains
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0222991

As a country with the largest Muslim population in the world, providing halal guarantees is very important. For this reason, the Indonesian government through the Ministry of Religion encourages industials to provide halal products. The product that is the object of research is crab cakes from CV Anfival. UD Anvifal faces risks in various stages of its supply chain which can affect the quality and halalness of its products. The method used in this research is House of Risk (HOR), which consists of two stages. The first stage is risk identification, which involves mapping halal supply chain activities by dividing business activities into five main stages: planning (plan), resources (source), production (make), delivery (deliver), and return (return). At this stage, risk analysis is carried out to identify risk events and risk agents that have the potential to disrupt the supply chain. The second stage is risk handling, where mitigation strategies are designed for risk agents that need to be addressed immediately. Mitigation priorities are based on Aggregate Risk Potential (ARP) calculations. Based on the identification results, 79 risk events were obtained and 38 risk agents were obtained. Of the 38 risk agents that were obtained, 20 risk agents were selected with a cumulative ARP of 95.13%, which has the potential to cause risk events, so they will be handled first, namely (A24) there is no clear production plan, (A6) completion of production is not on time., (A4) lack of a structured recording system, (A25) halal license or BPOM is not very important (A2) lack of work experience, (A23) sudden demand, (A17) dependence on one cardboard supplier, (A7) internal communication which is not good, (A30) the occurrence of natural disturbances or natural disasters, (A16) dependence on one plastic packaging, (A1) lack of concern from workers in supporting the company’s progress (A21) poor communication with customers, (A15) dependence on one supplier crabs, (A33) entry of parasitic animals (A9) number of workers deemed adequate (A31) damage to means of transportation (A32) damage to machines or production equipment.