Assessing The Supply Chain Risks of an Indonesian Electricity Company

Anugrah Kesuma; Ratih Dyah Kusumastuti

doi:10.35877/454RI.qems2542

Anugrah Kesuma Faculty of Economics and Business, Universitas Indonesia, Salemba, Jakarta Pusat, 10440, Indonesia (ID)
Ratih Dyah Kusumastuti Faculty of Economics and Business, Universitas Indonesia, Salemba, Jakarta Pusat, 10440, Indonesia (ID)

https://doi.org/10.35877/454RI.qems2542

Keywords: Risk assessment, risk identification, risk matrix, supply chain risk

Viewed = 0 time(s)

Abstract

Energy is a crucial necessity for human societies, and access to electrical energy plays a significant role in economic development. A state-owned enterprise (SOE) is entrusted with the provision of electrical energy across Indonesia. The objective of this study is to identify and assess risk factors within the supply chain of primary distribution materials at SOE. The identification of risk factors was based on a comprehensive review of literature across various industrial sectors, further validated through consultations with senior managers at the company. For the assessment of these risks, the study employed the modified Decision Matrix Risk Assessment methodology, which involves evaluating risks based on their likelihood and impact. This evaluation was conducted through surveys distributed to 66 respondents, including planning managers, distribution managers, and commercial managers across all regional and distribution main units in Indonesia. Two risk categories with five sub-categories and a total of 27 risk factors were identified. Supply-related risks are the most significant compared to the other four sub-categories. Scarcity of raw materials, lack of capacity flexibility, and failure to make delivery requirements are in the top three rankings. This research can enrich the supply chain risk literature and provide valuable insights for utility managers in understanding supply chain risks.

References

Abdel-Basset, M., & Mohamed, R. (2020). A novel plithogenic TOPSIS- CRITIC model for sustainable supply chain risk management. Journal of Cleaner Production, 247, 119586. https://doi.org/10.1016/j.jclepro.2019.119586

Alshibli, F., Alqarni, K., & Balfaqih, H. (2024). Informatics in Medicine Unlocked Analyzing the causes and impact of essential medicines and supplies shortages in the supply chain of the Ministry of health in Saudi Arabia : A quantitative survey study. Informatics in Medicine Unlocked, 45(December 2023), 101457. https://doi.org/10.1016/j.imu.2024.101457

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1–13. https://doi.org/10.1016/j.ejor.2015.12.023

Barbosa-Póvoa, A. P., & Pinto, J. M. (2023). Resilient supply chains – robustness and dynamics in the context of industrial gas supply chains. Computers and Chemical Engineering, 179(July). https://doi.org/10.1016/j.compchemeng.2023.108435

Chang, C. H., Xu, J., & Song, D. P. (2015). Risk analysis for container shipping: From a logistics perspective. International Journal of Logistics Management, 26(1), 147–171. https://doi.org/10.1108/IJLM-07-2012-0068

Chapman, R. J. (2001). The controlling influences on effective risk identification and assessment for construction design management. International Journal of Project Management, 19, 147–160. www.elsevier.com/locate/ijproman

Chen, Z., Hammad, A. W. A., & Alyami, M. (2024). Building construction supply chain resilience under supply and demand uncertainties. Automation in Construction, 158(February 2023), 105190. https://doi.org/10.1016/j.autcon.2023.105190

Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (Vol. 5). Sage Publications.

de Oliveira, U. R., Muniz, M. de A., Anaia, L. A., & Rocha, H. M. (2022). Medication supply chain risk management for a brazilian home care provider: a business sustainability study. Cleaner Logistics and Supply Chain, 3(May 2021). https://doi.org/10.1016/j.clscn.2021.100018

Defence System Management College. (1989). Risk Management Concept and Guidance.

Domínguez, C. R., Martínez, I. V., Piñón Peña, P. M., & Rodríguez Ochoa, A. (2019). Analysis and evaluation of risks in underground mining using the decision matrix risk-assessment (DMRA) technique, in Guanajuato, Mexico. Journal of Sustainable Mining, 18(1), 52–59. https://doi.org/10.1016/j.jsm.2019.01.001

Duong, A. T. B., Pham, T., Truong Quang, H., Hoang, T. G., McDonald, S., Hoang, T. H., & Pham, H. T. (2023). Ripple effect of disruptions on performance in supply chains: an empirical study. Engineering, Construction and Architectural Management, 31(13), 1–22. https://doi.org/10.1108/ECAM-10-2022-0924

Energy Networks Australia. (2024, April 11). Organization. https://www.energynetworks.com.au/about/

Fan, Y., & Stevenson, M. (2018). A review of supply chain risk management: definition, theory, and research agenda. International Journal of Physical Distribution and Logistics Management, 48(3), 205–230. https://doi.org/10.1108/IJPDLM-01-2017-0043

Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455–470. https://doi.org/10.1016/j.ijpe.2015.06.032

Hallikas, J., Karvonen, I., Pulkkinen, U., Virolainen, V. M., & Tuominen, M. (2004). Risk management processes in supplier networks. International Journal of Production Economics, 90(1), 47–58. https://doi.org/10.1016/j.ijpe.2004.02.007

Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk - Definition, measure and modeling. Omega (United Kingdom), 52, 119–132. https://doi.org/10.1016/j.omega.2014.10.004

Hou, H., Chaudhry, S., Chen, Y., & Hu, M. (2017). Physical distribution, logistics, supply chain management, and the material flow theory: a historical perspective. Information Technology and Management, 18(2), 107–117. https://doi.org/10.1007/s10799-015-0229-1

Hou, J., & Zhao, X. (2020). Toward a supply chain risk identification and filtering framework using systems theory. Asia Pacific Journal of Marketing and Logistics, 33(6), 1482–1497. https://doi.org/10.1108/APJML-05-2020-0342

Jüttner, U., Peck, H., & Christopher, M. (2003). Supply chain risk management: outlining an agenda for future research. International Journal of Logistics Research and Applications, 6(4), 197–210. https://doi.org/10.1080/13675560310001627016

Lee, H. L. (2004). The triple-A supply chain. Harvard Business Review, 82(10), 102–112.

Manuj, I., & Mentzer, J. T. (2008). GLOBAL SUPPLY CHAIN RISK MANAGEMENT. Journal of Business, 29(1), 133–155.

March, J. G., & Shapira, Z. (1987). Managerial Perspective on Risk and Risk Taking. Management Science, 33(11), 1404–1418. http://dx.doi.org/10.1016/j.jaci.2012.05.050

Papageorgiou, L. G. (2009). Supply chain optimisation for the process industries: Advances and opportunities. Computers and Chemical Engineering, 33(12), 1931–1938. https://doi.org/10.1016/j.compchemeng.2009.06.014

Pradhan, S. K., & Routroy, S. (2014). Analyzing the supply chain risk issues for an Indian manufacturing company. Journal of Advances in Management Research, 11(2), 144–162. https://doi.org/10.1108/JAMR-11-2012-0047

PT PLN (Persero). (2021). Rencana Umum Penyediaan Tenaga Listrik Tahun 2021-2030. https://web.pln.co.id/stakeholder/ruptl

Reniers, G. L. L., Dullaert, W., Ale, B. J. M., & Soudan, K. (2005). Developing an external domino accident prevention framework: Hazwim. Journal of Loss Prevention in the Process Industries, 18(3), 127–138. https://doi.org/10.1016/j.jlp.2005.03.002

Undang-undang Nomor 30, 255 (2009). Tentang Ketenagalistrikan

UN Water. Water, food, and energy. https://www.unwater.org/water-facts/water-food-and-energy

Rostamzadeh, R., Ghorabaee, M. K., Govindan, K., Esmaeili, A., & Nobar, H. B. K. (2018). Evaluation of sustainable supply chain risk management using an integrated fuzzy TOPSIS- CRITIC approach. Journal of Cleaner Production, 175, 651–669. https://doi.org/10.1016/j.jclepro.2017.12.071

Sharma, A., Kumar, D., & Arora, N. (2024). Supply chain risk factor assessment of Indian pharmaceutical industry for performance improvement. International Journal of Productivity and Performance Management, 73(1), 119–157. https://doi.org/10.1108/IJPPM-01-2022-0035

Truong, H. Q., & Hara, Y. (2018). Supply chain risk management: Manufacturing- and service-oriented firms. Journal of Manufacturing Technology Management, 29(2), 218–239. https://doi.org/10.1108/JMTM-07-2017-0145

Vafadarnikjoo, A., Moktadir, M. A., Paul, S. K., & Ali, S. M. (2023). A novel grey multi-objective binary linear programming model for risk assessment in supply chain management. Supply Chain Analytics, 2(April), 100012. https://doi.org/10.1016/j.sca.2023.100012

World Bank. (2023) Access to electricity (% of population) - Sub-Saharan Africa https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=ZG

Yu, M. C., & Goh, M. (2014). A multi-objective approach to supply chain visibility and risk. European Journal of Operational Research, 233(1), 125–130. https://doi.org/10.1016/j.ejor.2013.08.037

Zsidisin, G. A. (2003). A grounded definition of supply risk. Journal of Purchasing and Supply Management, 9(5–6), 217–224. https://doi.org/10.1016/j.pursup.2003.07.002

Zsidisin, G. A., Ellram, L. M., Carter, J. R., & Cavinato, J. L. (2004). An analysis of supply risk assessment techniques. International Journal of Physical Distribution and Logistics Management, 34(5), 397–413. https://doi.org/10.1108/09600030410545445