Risk Mitigation Strategies for the Sustainable Supply Chain of Herbal Product : Integration SCOR-FMEA Siti Asmaul Mustaniroh*, Arya Maulana, Andan Linggar Rucitra, Naila Maulidina Lu^ayya
Department of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Brawijaya, Building F, 5th floor, Veteran St. Malang, East Java, Indonesia 65145
*asmaul_m[at]ub.ac.id
Abstract
Batu City has significant potential for cultivating diverse plants, with empon-empon (traditional herbal plants) production increasing by 3.6% in 2023 compared to 2022. This growth supports the expansion of derivative product manufacturing, which continues to attract market demand. SME Jamu XYZ, a producer of empon-empon-based herbal medicine, relies on a sustainable supply chain for business continuity. At the supplier level, economic challenges include price fluctuations and substandard raw material deliveries, with about 20% damaged or unusable, causing financial losses. The short shelf life of finished products further raises the risk of losses if sales are delayed. At the enterprise level, social challenges arise from consumer perceptions that traditional products are less appealing than other health products. Environmentally, untreated disposal of empon-empon residue risks pollution.This study identifies and prioritizes risks and proposes mitigation strategies for the sustainable empon-empon herbal medicine supply chain at SME XYZ using the Supply Chain Operations Reference (SCOR) model and Failure Mode and Effect Analysis (FMEA). The SCOR model maps risks across supply chain activities while integrating sustainability aspects. FMEA evaluates risks based on Severity, Occurrence, and Detection to generate Risk Priority Numbers (RPN), which are ranked using Pareto analysis. Four priority risks were identified for each actor: collectors (E14, E15, E21, E20), traders (E1, E10, E13, E14), and SME XYZ (E6, E7, E17, E18). These indicate critical vulnerabilities requiring immediate action. Future research should focus on targeted, actionable strategies to strengthen supply chain resilience and sustainability.
