Enhancing Supply Chain Resilience and Sustainability Performance through Risk Mitigation: A House of Risk Analysis in Makassar’s Florist Industry

Abstract

This study aims to develop effective risk mitigation strategies to enhance supply chain resilience and sustainability performance in the florist industry in Makassar. The research addresses critical challenges such as high product perishability, supply uncertainty, and environmental impact, where flower waste reaches 20–30% and more than 60% of identified risks fall into high-severity categories. A structured quantitative approach supported by qualitative insights was applied using the House of Risk framework to identify, evaluate, and prioritize risk events and their causes across procurement, storage, distribution, and waste management processes. Data were collected through questionnaires, interviews, and observations involving key stakeholders. The results show that the most critical risk sources include dependency on a single supplier (aggregate risk value = 1458), inadequate storage facilities (1377), and lack of digital inventory systems (1296), with the top 10 risk agents contributing 61.55% of total risk. The implementation of prioritized mitigation strategies, such as supplier diversification, cold storage systems, and digital inventory management, led to significant performance improvements. Supply chain responsiveness increased from 60 to 78 (30.00%), recovery capability from 62 to 79 (27.42%), and flexibility from 58 to 73 (25.86%). In addition, sustainability performance improved, with waste reduction rising from 50 to 70 (40.00%), energy efficiency from 60 to 75 (25.00%), and profitability from 55 to 68 (23.64%). These findings indicate that integrated risk mitigation effectively strengthens both operational resilience and environmental performance.