Reconstruction of SCM Performance Measurement Model for Halal Industry

Abstract

One pattern of Islamic business that is growing rapidly in both Muslim and non-Muslim majority countries is the halal industry. [1] emphasized that in its development, the halal industry has an important issue that needs to be addressed immediately, namely the need for performance measurement tools. So far, there is no instrument as a tool to measure performance that is able to comprehensively assess all Supply Chain Management (SCM) in the halal industry. SCM of the halal industry is motivated by the industry’s desire to meet the demands of Muslim consumers who want to ensure that what is consumed is guaranteed halal, not only from the status of the ingredients but all aspects involved in the business process [7]. Therefore, the halal industry due to ideological differences requires a performance paradigm shift in the form of a performance measurement tool that is not limited to profit achievement but compliance with Islamic values [2]. The halal industry is said to perform well when SCM is focused on a “holiness” approach through maslahah (welfare) [19].Therefore, through a qualitative approach, this study seeks to develop indicators to measure the performance of Halal Supply Chain Management specifically for the halal industry. The results of the study found that the performance measurement model for HSCM consists of quantitative and qualitative indicators. Aspects of obedience to Islamic principles to achieve halal integrity are not always able to be measured with quantitative techniques, therefore it is necessary to reconstruct qualitative indicators. Further research can be done by implementing the HSCM performance measurement model specifically for the halal industry.
 Keywords: Halal Industri, Halal Supply Chain Management, Indicator Perfomance