Supply Chain Management

HOUSE OF
RISKS
PT Cisarua Mountain
Dairy Tbk

Presented by Group 3
 OUR TEAM
Alya Aqilah Izzullhaq
Vina Januar Nur A
503120195
5031201020

Azra Zeta Fitri Ludyta Reyvlando Rizal Amelgo

5031201044 5031201058
Supply Chain Management

TOPIC
1 Company Profile 4 House of Risk II

Identify Supply Chain Conclusions and

2 Network 5 Recommendations

3 House of Risk I Tim Kami

Supply Chain Management

COMPANY PROFILE
PT Cisarua Mountain Dairy Tbk

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PT CISARUA MOUNTAIN DAIRY TBK

PT Cisarua Mountain Dairy Tbk (“Cimory” or the “Company”)

is a leading producer of Premium Dairy and Premium
Consumer Foods products in Indonesia
Established in 2005, Cimory is a category creator in the dairy
and consumer foods product categories, with a strong track
record of product innovations.
Cimory’s leadership in product innovation and digital
marketing expertise, as well as its temperaturecontrolled
distribution model, has positioned the Company as a producer
of differentiated products with a premium price, which
contributes to our high profitability
On December 6, 2021, Cimory entered a new chapter in its
journey, following the successful listing of its shares on the
Indonesia Stock Exchange (ticker symbol: CMRY)
VISION
To become a public company that produces and
distributes protein-based food and beverage
products for the people of Indonesia
LINE OF BUSINESS
Processing Industry
Agriculture, Forestry dan Fisheries
Wholesale and Retail Trading
Transportation and Warehousing

MISSION
To produce high-quality, protein-based food PRODUCTS
products Dairy Products
Cimory Fresh Milk = UHT Milk and Fresh Milk
Cimory Yogurt = Mini Yogurt, Yogurt Drink,
Cimory Squeeze and Cup Yogurt
VALUES COMPANY Consumer Foods
Ready-to-Eat Products = Kanzler Singles
MACRO Ready-to-Cook Products = Kanzler Sosis,
Motivated, Active, Cooperative, Responsible, Kanzler Nugget, Besto Sosis and Besto Seafood
and Ownership
 Supply Chain Management

Identify Supply
Chain Network
Company : PT Cisarua Mountain Dairy Tbk
Product : Milk and yogurt
 SUPPLIER DISTRIBUTOR RETAILER

Warehousing in Sentul, West Java,

Small Scale Dairy Farmers (17,498 Hypermarkets, Supermarkets and Minimarkets (> 10,000
distributes products to the West (>
Farmers) outlets)
50 points)

Warehousing in Pasuruan, East Java,

Local Suppliers (106 Farmers) distributing products to the east (> Merchant Partnership in Indonesia >500 traders
50 points)

Indonesian Farmer Srikandi Wholesalers and small shops >25.000 throughout

Program (1000 Farmers) Indonesia

Sentra Miss Cimory (179 Stores)

Miss Cimory (has 4,164 female sales agents with around

>400,000 miss Cimory has distributed products to
households in Java, Bali and Sumatra

Catering Service Industry >50 Catering agents, etc

Catering Service Industry >50 Catering agents, etc

Others : Has a fleet of 175 refrigerated trucks (outsourcing)

 Supply Chain Management

House of Risk I
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 Risks Identification

Business Process Sub processes Risk Events Code Severity (1-10)

Demand forecasting Inaccurate forecast E1 5

Production planning and

Errors in production planning and scheduling E2 5
scheduling
Plan
Capacity planning Errors in capacity assessment and management E3 5

Inventory planning Error in determining optimal inventory levels to meet market demand E4 5

Supplier assessment Failed to assess suppliers in accordance with company standards E5 8

Supplier performance evaluation Supplier performance has decreased and is not in accordance with the initial contract E6 8
Source
Error in the type and number of items sent by the supplier E7 8
Procurement process
Damage of items from suppliers E8 8

Lack of availability of raw materials E9 7

Production process
Make Decreased volume of milk production E10 8

Packaging process Lack of packaging E11 5

 Determining optimal number and location The number of production facilities is not optimal E12 8
for facilities The location of production facilities is not strategic E13 8

Mode of transportation is not available E14 8

Transportation mode selection
Transportation is not roadworthy E15 8

The route chosen consumes more time and costs E16 5

Deliver Optimizing routes Incidental route changes E17 5

The route must be passed by several different types of vehicles E18 4

Transportation capacity management Overloaded vehicle capacity E19 4

Overload on product storage E20 4

Warehousing of finished products Shortage in product storage E21 7

Temperature controlled and shelf life of products that are not maintained E22 6

Product inspection and evaluation There was a miss when evaluating the product that was returned E23 5

Return Product grouping errors (defective products/damaged products/expired

E24 4
Sorting and categorization products/customer dissatisfaction)

Increased losses from returned products E25 6

 Risk Agent Idenification

Code Risk Agent Occurance

A1 Fluctuating changes in market demand 4

A2 Network (channel) trading experienced a decrease in demand 2

A3 Spread of Foot and Mouth Disease (FMD) 4

A4 Inability of suppliers to provide raw materials 4

A5 Inappropriate agreements or contracts with suppliers 3

A6 Negligence of workers during production 4

A7 Accidents during the production process 2

A8 The production machine is down 2

A9 Damage to cold chain management 7

A10 Fire in the supply warehouse 4

A11 Damage to the refrigerated truck fleet 4

A12 Accidents or other disturbances during the process of shipping goods 2

From the analysis above, there are 25 identified risks and 12 risk agents.
Calculation of the correlation between severity and occurrence shows that the
three risk agents that must be prioritized are:
Fluctuating changes in market demand
Damage to cold chain management
Damage to refrigerator truck fleet

And three risk agents that are least prioritized are:

Accidents during the production process
Spread of Foot and Mouth Disease (FMD)
Decrease in demand of network (channel) trading
 Supply Chain Management

House of Risk II
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 Order of Priority Treatment Strategy

No Risk Mitigation Strategy Code

1 Fluctuating changes in market demand PA1

2 Damage to cold chain management PA4

3 Spread of Foot and Mouth Disease (FMD) PA2

4 Fire in the supply warehouse PA6

Inappropriate Contract Agreements with

5 PA5
Suppliers

6 Worker Negligence During Production PA3

Based on the results of House of Risk II, it can be seen that there are five priority
sequences of handling strategies starting from fluctuating changes in market
demand, damage to cold chain management, outbreaks of foot and mouth
disease, fires in inventory warehouses, inaccurate contractual agreements with
suppliers, negligence of workers during production with a description of the
causes of risk as follows inventory monitoring and planning, conducting regular
audits on suppliers and distributors, implementing biosecurity and medical zones,
repairing fire-resistant building materials, seeking and adding alternative
suppliers, implementing and practicing stricter SOPs, with an aggregate risk
potential value of 1788 in calculation errors in inventory control while the lowest
aggregate risk potential value is 573 in worker negligence during production.
The highest total effectiveness in the mitigation planning strategy is the
calculation error in inventory control of 1788. Meanwhile, the difficulty in
implementation is found in finding alternative suppliers and distributors in the
moderate category. The difficulty level certainly affects the effectiveness and
efficiency of a mitigation plan through material and building improvements
and inventory monitoring and planning, with proactive actions focusing on
inventory monitoring and planning.
 Supply Chain Management

Conclusions &
Recommendations
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From the analysis of PT Cisarua Mountain Dairy Tbk's Supply Chain Network Structure, 25 types of risk and
12 risk agents with the highest risk were found, namely fluctuations in changes in market demand, damage
to cold chain management, and damage to refrigerator truck fleets (HOR 1 result).

To prevent the risks that have been identified, the following strategies for handling if the risks occur:
a. Fluctuating market demand
b. Cold chain management breakdown
c. Foot and Mouth Disease (FMD)
d. Inventory warehouse fire
e. Inaccuracies in contractual agreements with suppliers
f. Negligence of workers during production

Here's how the risk occurs: CONCLUSIONS

a. Inventory monitoring and planning
b. Conduct regular audits of suppliers and distributors
c. Implementing biosecurity and medical zones
d. Repair of fire-resistant building materials
e. Seek and add alternative suppliers
f. Implementing and practicing stricter SOPs
RECOMMENDATIONS :
Companies can use HOR analysis to prevent identified risks by applying the results of the
description of causes and strategic priorities obtained from the results of HOR 2 analysis
Once the company's distribution risk is identified, the company must choose to accept the risk,
avoid the risk or transfer the risk. Therefore, when a company chooses to "accept the risk",
the company needs to make a mitigation plan, then if it chooses to "avoid the risk", the
company must know the strategy for future plans. And if the company chooses to "transfer
risk" the company needs to prepare a lot of insurance to transfer the risk.
 Supply Chain Management

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