Risk Mitigation and Structure Analysis of Logistics Cost for Marketing Pindang Fish Supply Chain in Bawean Island, Gresik, East Java

Abstract

An integrated operational system is needed including fishermen, collectors, processors, traders and consumers to distribute pindang fish. The purpose of this study was to identify supply chain models and the risks that exist in the supply chain in Bawean Island, Indonesia, determine risk mitigation and risk treatment, analyze marketing pindang fish logistics cost based on logistics activities, and provide recommendations to each tier of pindang fish supply chain. The research was collected by convenience sampling through in-depth interview using interview guidance. Identification, analysis, evaluation, and risk management were analyzed by using Rapid Agricultural Supply Chain Risk Assessment (RapAgRisk). The logistic cost was calculated by using the Activity-Based Costing (ABC) Method. The results indicated the existence of risks in each tier. Logistics cost structure analysis showed the highest proportion of activity cost in the supply chain which were procurement activities. The research concluded that there was a linkage between the logistic cost structure and the risk mitigation actions in marketing pindang fish supply chain.