Mitigating supply chain risks of concentrate feed for the dairy cows through smart supply chain implementation

Abstract

Purpose: This research aims to mitigate risks within the MAKO (concentrate feed for the dairy cows) supply chain by integrating the House of Risk (HOR) method with the application of smart supply chain technologies based on the Internet of Things (IoT). The objective is to enhance operational efficiency, reduce risks throughout the supply chain, and strengthen the company's competitiveness by leveraging technology at every stage of supply chain management.

Design/methodology/approach: This research was conducted using the House of Risk (HOR) method to identify, evaluate, mitigate, and manage risks within the MAKO (concentrate feed for the dairy cows) supply chain. Mitigation actions for prioritized risk agents were implemented through the application of smart supply chain technologies, including e-procurement systems, barcode systems, and a website-based database utilizing the Internet of Things (IoT) to monitor supply chain flows in real time.

Findings: The research identified 28 risk events and 25 risk agents within the supply chain, with 12 risk agents prioritized for mitigation. Based on the results of proactive action design, 13 risk mitigation actions were proposed. The priority mitigation actions included training on the use of smart supply chain technologies, developing website-based databases to integrate internal and external data, implementing barcode technology for warehouse management, and adopting e-procurement technology for procurement processes.

Research limitations/implications: This research is limited to identifying risks in the MAKO (concentrate feed for the dairy cows) supply chain and designing the user interface for smart supply chain technologies based on the Internet of Things (IoT), without full-scale system implementation.

Practical implications: The findings contribute to the development of smart supply chain management systems tailored for businesses operating within the livestock sector.

Social implications: This research encourages improved digital literacy and technological transformation readiness among livestock sector entrepreneurs.

Originality/value: This research integrates the House of Risk (HOR) method for risk mitigation with the application of smart supply chain technologies, including e-procurement systems, barcode systems, and website-based database using Internet of Things (IoT), within the specific context of the livestock sector.