Abstract:
Because of the current geopolitical conflict, vessels are compelled to change their
customary routes, causing delays that cascade across the global supply chain. This
paper examines the risks associated with extended logistics delays induced by the
Red Sea conflict, with a specific focus on PT X, one of Indonesia biggest distributor
of raw materials for the personal care industry. From 314 total shipments that
arrived in PT X January-August 2024, among 230 shipment was delayed. The goal
is to identify the cause of the delays and provide alternate ways to reduce the effects
of the issue. This paper employs Failure Mode and Effects Analysis (FMEA) and
Fault Tree Analysis (FTA) to identify the causes of the delays: challenges in getting
timely vessel schedules, restricted container availability, and disruptions in raw
material supply caused by broader supply chain issues. To address these challenges,
several potential solutions were suggested, such as improving internal staff training
to increase flexibility, expanding the logistics network, and holding regular monthly
feedback meetings to ensure continuous monitoring and adaptation of the supply
chain strategy. By implementing these strategies, PT X can be better handling the
disruptions caused by the Red Sea conflict.
