Red Chili Supply Chain Risk Assessment in Jember Regency

Abstract

Red chili (Capsicum annum L.) is one type of horticultural commodity with a high level of consumption and production. Jember Regency is one of the regencies in East Java Province where the cultivation of large red chilies is quite high. The results of preliminary observations in the field indicate that several problems have occurred, such as an imbalance in the distribution of risk among supply chain actors. Farmers as the main actors in the supply chain have the highest risk of crop failure due to seasonal uncertainty. Supply chain analysis and evaluation will provide information about the problems contained in the supply chain, which will then identify the risks causing the supply chain to be less than optimal and determine the direction of continuous, effective, and efficient improvement in the supply chain of large red chilies. This study aims to minimize or eliminate the impact of risks that occur during large red chili supply chain activities in the Ambulu District. This research was conducted by applying the SCOR model for supply chain activity mapping and the House Of Risk (HOR) model for supply chain risk management. The identification results show that large red chili supply chain activities in Ambulu District have four activity patterns, then there are 28 risk events and 24 risk agents that occur in large red chili supply chain activities. Based on the calculation results, the results are in the form of seven risk management strategies in the large red chili supply chain which consist of conducting routine evaluations, choosing the right pesticides, collaborating with the local government, conducting routine treatment on plants, training workers, farming management, and counseling on the selection of the right seeds to farmers.