Supply Chain Risk Management in LSP for Chemical Product

    The objectives of this research were to 1) identify risks, 2) assess risk levels, and 3) develop a risk management plan in the chemical logistics service provider business. This research was deployed as qualitative research in a case study methodology. The focus group interview was upon as the data collection tool. The results revealed that 49 risks occurred within the chemical logistics service provider business. It consisted of 3 high-level risks that required a risk management plan to reduce impact and possibility to occur. It led to the development of a risk management plan as follows: 1) the risk of delayed customer orders confirmation. This risk can be managed by setting and communicating a clear deadline for order confirmation. 2) the risk of procurement of nonconforming materials, which can be dealt with by procuring service providers with expertise in supplying quality products, and 3) the risk of delayed delivery, which can be managed by rescheduling the loading time to be earlier. However, a total of 42 risks of chemical logistics service providers were moderate, and 4 risks were low, which should be addressed to reduce the chance and damage that will occur to the organization.