Seaweed Supply Chain Risk Identification in Sabah Using Fuzzy Failure Mode and Effect Analysis

Abstract

Kappaphycus sp. and Eucheuma sp. were cultivated in Sabah, Malaysia, mainly to extract a compound called carrageenan which used in various industries including human food, pet food, fertiliser, and pharmaceutical. As any agricultural activities, seaweed industry also full with risks and uncertainties. This study hence was conducted to identify risk sources along the supply chain (SC) of seaweed cultivated in Sabah, Malaysia. Data were collected using face-to-face, in-depth interview with Key Informants (KIs) (n = 33). Interviews were transcribed and analysed using thematic analysis using ATLAS.ti. The analysed data then were further analysed using FMEA (Failure Mode and Effect Analysis) in integration with Fuzzy set theory for risk prioritisation. The result has shown that farmers faced 19 unique risks, while intermediaries 13 risks, and 16 risks on the customers part. The analysis also showed that the three most critical risks for with the highest fuzzy RPN number is exchange rate fluctuations, highly volatile global seaweed price and followed by changes in government policy. This research has successfully identified, categorised and assessed 18 most important risk sources that have the probability of disrupting the seaweed supply chain in Sabah. Should stakeholders or policymakers like to ensure the sustainability of the industry, those are the risks that should be paid more attention to increase the resilience of the SC.