Halal Criteria in Supply Chain Operations Reference (SCOR) for Performance Measurement: A case Study

• Published in: IOP conference series. Materials Science and Engineering Vol. 505; no. 1; pp. 12020 - 12030
• Main Authors: Harwati, Yunita Pettalolo, A.N.
• Format: Journal Article
• Language: English
• Published: Bristol IOP Publishing 01.05.2019
• Subjects: Analytic hierarchy process; Certification; Food processing; Indicators; Materials handling; Performance evaluation; Performance measurement; Raw materials; Supply chains
• ISSN: 1757-8981; 1757-899X
• DOI: 10.1088/1757-899X/505/1/012020

Halal SCM is developed to meet the demands of Muslim consumers who want to make sure that what is consumed has a halal guarantee. Halal is not only from material but the whole process involved in production. One part of the halal SCM model is performance measurement. SCM performance measurements with important Islamic value indicators are considered to achieve a balance in halal SCM. This study is the implementation of company performance measurement with the involvement of halal indicator. The object of this research is at a food processing company. This research was conducted to answer the question how is the performance of the company measured using SCOR method approach with the halal indicators? SCOR is used because it is a good model as reference because SCOR can map every process in the supply chain. A total of 18 KPIs were identified which 14 of them were modified containing Islamic values. Some of these halal indicators are: halal certification, provision of halal raw materials, the accuracy of payment, satisfaction of consumer orders, and handling complain. Weighting is done at every level of SCOR metric using Analytical Hierarchy Process (AHP). Structured questionnaires and scheduled interviews are used to collect the important data. The measurement results show that the company's performance is at "good" level with Score 77%. Even so, there are 4 KPIs where the achievement is still low, that is halal certification, sale price determination, inclusion period and customer complain rate. This is recorded by the company as an input to improve their performance in order to compete in halal food business.