12th Annual International Conference on Industrial Engineering and Operations Management

Impact of Halal Certification on Peanut Pie Supply Chain Performance

Dini Wahyuni, Nazaruddin Matondang, Irwan Budiman & Rahel Ulina Pangaribuan
Publisher: IEOM Society International
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Track: Supply Chain Management
Abstract

Halal food is known from the halal label listed on the packaging, and may be included if the product already has a halal certificate.  This research was conducted at the Peanut pie business which has received a Halal certificate. This study aims to look at various aspects of the impact experienced by the business after obtaining a halal certificate on peanut pie products. The supply chain performance measurement is carried out under 2 conditions, namely before and after obtaining a halal certificate. Performance measurement uses the Supply Chain Operations Reference (SCOR) method based on 17 Key Performance Indicators that have been compiled based on research related to supply chain performance measurement and based on the provisions contained in the Halal Product Guarantee Act. Furthermore, the performance indicators are weighted using the Analytical Hierarchy Process (AHP) method. The results of supply chain performance calculations using the SCOR and AHP methods get the supply chain performance value before being certified halal is 68.32 which is in the Average category. Meanwhile, the supply chain performance value after halal certified is 80.47 in the Good category. There are 3 indicators that have increased after obtaining a halal certificate on the product, namely the halal certificate indicator on the material, the MUI halal label indicator, and the product manufacturing cycle time indicator. However, there are also indicators that have decreased in value after obtaining a halal certificate, namely indicators of increasing the role of the halal management team, indicators of the number of defective/failed products to meet halal criteria and indicators of complaint rates.

Published in: 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey

Publisher: IEOM Society International
Date of Conference: March 7-10, 2022

ISBN: 978-1-7923-6131-9
ISSN/E-ISSN: 2169-8767