Regional transportation development for development at fertilizer plants in North Sumatra (case study)

Department of Industrial Engineering, Universitas Sumatera Utara, Jl. Almamater Kampus USU, Medan 20155

^* Corresponding author: ikhsan.siregar@usu.ac.id

Abstract

Supply chain activity has an opportunity for the occurrence of risk. Therefore, risk management is needed in the handling of risk with the aim to minimize the risk level and impact of those risks. PT. XYZ of PT Pupuk Indonesia (Persero) engaged in the fertilizer industry. The main product produced is urea fertilizer. In the production process, the factory is supported by adequate production facilities and international standard technology. Currently, PT XYZ does not yet have risk management which explicitly discusses the proposed risk management along with the handling strategies required by the company. By looking at the current condition of the company, in order to achieve the goals to be achieved the company needs a good supply chain planning such as by identifying the risks that exist in the supply chain and preventive measures. Performed risk analysis and evaluation of potential supply chain companies using HOR (House Of Risk) tools. After the research there were 42 risk events and 42 risk agents. With the 80/20 pareto approach, 9 risk agents are planned for mitigation action. There are 11 recommended risk mitigation actions recommended to the company in the hope of addressing the risk of urea fertilizer supply chain.