SUPPLY CHAIN RISK MANAGEMENT EVALUATION ON UNCONTROLLABLE RISKS IN AUTOMOTIVE INDUSTRY OF PT. ASTRA INTERNATIONAL – HONDA SALES OPERATION

Abstract

Supply chains have become more interdependent and complex since the globalization. Although it has given much advantages, at the same circumstances it also creates the company becomes defenseless to risk which can affect the adverse impact for the organization. The disruption on supply chain caused by the uncontrollable risks which happened several years ago have proven that a small ripple can cause major waves. When the disruption is not well-controlled by the company, it will impact the whole supply chain partners. This research objective is to discover the most effective mitigation strategy that is needed to minimize the impact of uncontrollable disruption towards the supply chain. The researcher uses a qualitative approach to achieve the objectives using a case study of the leading motorcycle automotive distributor and retailer in Indonesia which is PT. Astra International - Honda Sales Operation. The Miles and Huberman model theory and SWOT analysis theory is used by the researcher to do the data analysis and data verification. Analysis reveal that PT. Astra International - Honda Sales Operation combined risk mapping and financial impact mapping to identify and quantify the risk as a baseline to create the best mitigation strategies. They also use the combination of risk sharing, system integration, flexible transportation, and revenue management as their best mitigation strategies to reduce the impact of uncontrollable disruptions.