Risk Analysis and Mitigation in Supply Chain Fashion Company

Abstract

This study aims to identify the nature of the highest level of risk, identify the risk cause that should be a priority for the business, and identify the proper risk reduction strategy in the fashion company’s supply chain. The data analysis method uses the Interpretive Structural Modeling (ISM) method, then the Risk Priority Number (RPN) and the Risk Reduction Number (RMN) are used to complete them. The result of this research is that the forecast error is the type of risk with the highest level. The source of the risk, which must be a priority for the company, is that suppliers do not ship the goods on time. The most appropriate risk mitigation strategy is to add manufacturer options to overcome these risks. The results show that the methods used help top management identify, analyze, prioritize risks in the company’s supply chain activities and help them to focus on formulating effective mitigation strategies.