Enhancing Supply Chain Management Risk Mitigation: A House of Risk Methodology Applied to Brick Manufacturing in Aceh Besar Regency

Effective supply chain management is imperative for the seamless operation of manufacturing facilities, ensuring the timely delivery of goods and services to customers. However, the inherent complexity of supply chain systems introduces various risks and uncertainties that can significantly impact factory performance and the broader business sector. This research addresses the challenges faced by a brick manufacturing factory in Aceh Besar Regency, highlighting the absence of a well-structured risk management framework, inadequate mitigation planning, and suboptimal risk identification methods within the supply chain. To address these shortcomings, this study employs the House of Risk (HoR) methodology, utilizing it to identify risk events and agents within the supply chain. Mitigation strategies are designed based on the Aggregate Risk Potential (ARP). Data for the study were gathered through interviews and questionnaires completed by 12 respondents from three brick manufacturing factories and consumers. A combined quantitative and qualitative analysis approach, incorporating severity and occurrence risk levels assessed by each respondent, was used. The application of the Supply Chain Operation Reference (SCOR) model revealed 21 risk events and 23 risk agents. Notably, risk agents such as adverse weather conditions, weak contractual agreements with suppliers, adverse weather during production and delivery processes, and damaged products displayed the highest ARP values (649, 826, 1521, 473, 276) across key business processes (plan, source, make, deliver, return). In response to these findings, proposed mitigation strategies include executing tasks during inclement weather, managing raw material inventory, establishing fair long-term contractual agreements with suppliers, selecting appropriate transportation during adverse weather, and choosing high-quality suppliers. This research contributes to the field of supply chain management by addressing gaps in risk mitigation within the brick manufacturing sector. The combination of the HoR methodology and ARP provides a comprehensive framework for identifying, assessing, and mitigating risks, thereby enhancing the resilience of the supply chain. The results are particularly relevant for practitioners seeking effective strategies to manage risks in brick manufacturing and other similar industries.