Comprehensive Analysis of Supply Chain Risk in the Goat Milk Industry in East Java: Scor-FMEA Approach

The goat milk industry in East Java is an important sector for the local economy dominated by small businesses with complex supply chains. The goat milk industry in East Java faces many supply chain risks that have the potential to disrupt the operation and efficiency of the supply chain. The objective of this study is to conduct a comprehensive risk analysis on the goat milk supply chain in East Java and formulate mitigations. This study is a qualitative and quantitative research. The research was conducted in three major goat milk producing regions in East Java: Lumajang, Malang, and Banyuwangi. Data were collected through interviews with 173 dairy goat farms, 27 intermediaries, and 7 dairy company representatives. Potential failures were found using the SCOR matrix. FMEA was then used to assess and analyze risks, considering the frequency of occurrence (O), severity (S), and detectability (D) of each failure. The higher the calculated RPN value, the more likely the failure is to occur. The identification results show that the 3 risks with the highest values are fluctuating milk prices, milk quality not in accordance with physicochemical quality, and packaging leakage during delivery. The results of risk mitigation analysis using AHP found that the priority risk mitigation is by training and improving the competence of supply chain actors with a score of 0,365 and a consistency value of 0,04.

Keywords | East java, Goat milk, Risk analysis, Supply chain