The Importance of Halal Certification

Oct 13, 2025 by thesweetdesigns.com 135 views

The Impact of Halal Certification on Pia Kacang Supply Chain Performance: A Case Study of UKM Cakes

Introduction

In today's global market, meeting the needs of halal food is not only a basic right of every Muslim but also a crucial aspect of health, economy, and security. The halal certificate is a guarantee and effective communication tool for consumers in choosing halal food products. This study aims to analyze the impact of halal certification on the performance of the Pia Kacang supply chain in the UKM, a renowned cake manufacturer that has received a halal certificate with MUI-MDN number 090108940919 in 2019.

The Importance of Halal Certification

Halal certification is a critical aspect of the food industry, particularly in Muslim-majority countries. It ensures that food products meet the required standards of halal production, processing, and distribution. The halal certificate is a guarantee that the product is free from non-halal ingredients, by-products, and contaminants. This certification not only satisfies the religious requirements of Muslim consumers but also provides a competitive edge in the market.

Measuring Supply Chain Performance

To measure supply chain performance, researchers use the Supply Chain Operations Reference (SCOR) method with 17 Key Performance Indicators (KPI). The KPI-KPI is compiled based on research related to the measurement of the performance of the supply chain and regulations contained in the Halal Product Guarantee Law. Furthermore, KPI weighting is carried out using the Analytical Hierarchy Process (AHP) method. This study uses the SCOR method to measure the performance of the Pia Kacang supply chain before and after receiving the halal certificate.

Results of Supply Chain Performance Analysis

The analysis showed that the performance of the Atik Peanut Cake Supply Chain before getting halal certification was in the average category with a value of 68.32%. After getting a halal certificate, supply chain performance increased to good with a value of 80.47%. The results indicate that halal certification has a significant positive impact on the performance of the supply chain.

Indicators of Improvement

There are three indicators that have increased after halal certification, namely:

Halal Certificate Indicators in Materials: The application of the halal guarantee system on raw materials has increased consumer confidence and minimized non-halal product risks. MUI Halal Label Indicator: The halal MUI label as proof of halal certification provides guarantees to consumers about product halal. Product Making Cycle Time Indicators: A more structured and efficient production process has increased the efficiency and speed of production.

Indicators of Decline

However, there are several indicators that have decreased after halal certification, such as:

Indicators of Increasing the Role of Halal Management Team: The halal management team needs to be more consistent in carrying out their duties and increasing knowledge about the Halal Product Guarantee System. Indicator Number of Disabilities/Failure Products Meet Halal Criteria: Improving product quality and production process control is expected to minimize defective products. Complaint Rate Indicator: Improving customer service and responsiveness to complaints can minimize the level of consumer complaints.

Recommendations for Improving Supply Chain Performance

Based on the analysis, the following recommendations can be applied by UKM Atik bean cakes to improve the performance of the supply chain:

Increasing the role of the Halal Management Team: The halal management team must be more active in carrying out their duties, attending training to increase knowledge about the Halal Product Guarantee System, and be responsible for all aspects related to product halal. Improving product quality: UKM needs to continue to improve the quality of the product by implementing a strict quality assurance system and controlling the production process regularly to minimize defective products. Building good communication with customers: SMEs need to build good communication with customers by holding regular meetings to hear suggestions and complaints, and improve customer service to minimize the level of complaints.

Conclusion

Halal certification has a significant positive impact on the performance of the Supply Chain of UKM Cakes. Improvement of the performance of the supply chain is realized through improving product quality, information transparency, and consumer trust. However, to achieve optimal supply chain performance, SMEs need to continue to improve product quality, optimize the role of the halal management team, and build good relationships with customers.

Limitations of the Study

This study has several limitations. Firstly, the study only focuses on the impact of halal certification on the performance of the Pia Kacang supply chain in the UKM. Secondly, the study only uses the SCOR method to measure supply chain performance. Finally, the study only analyzes the data before and after receiving the halal certificate.

Future Research Directions

Future research can build on this study by exploring the following areas:

The impact of halal certification on other supply chains: This study only focuses on the Pia Kacang supply chain. Future research can explore the impact of halal certification on other supply chains in the food industry. The use of other methods to measure supply chain performance: This study uses the SCOR method to measure supply chain performance. Future research can explore the use of other methods, such as the Balanced Scorecard or the Supply Chain Performance Index. The impact of halal certification on consumer behavior: This study only focuses on the impact of halal certification on supply chain performance. Future research can explore the impact of halal certification on consumer behavior and purchasing decisions.
Frequently Asked Questions (FAQs) about the Impact of Halal Certification on Pia Kacang Supply Chain Performance

Q: What is halal certification, and why is it important?

A: Halal certification is a guarantee that a product or service meets the required standards of halal production, processing, and distribution. It is essential for Muslim consumers who require halal products to satisfy their religious requirements. Halal certification also provides a competitive edge in the market, as it ensures that the product is free from non-halal ingredients, by-products, and contaminants.

Q: How does halal certification impact supply chain performance?

A: Halal certification has a significant positive impact on supply chain performance. It improves product quality, information transparency, and consumer trust. The study found that the performance of the Atik Peanut Cake Supply Chain increased from 68.32% to 80.47% after receiving the halal certificate.

Q: What are the key indicators of improvement after halal certification?

A: The key indicators of improvement after halal certification are:

Halal Certificate Indicators in Materials: The application of the halal guarantee system on raw materials has increased consumer confidence and minimized non-halal product risks.
MUI Halal Label Indicator: The halal MUI label as proof of halal certification provides guarantees to consumers about product halal.
Product Making Cycle Time Indicators: A more structured and efficient production process has increased the efficiency and speed of production.

Q: What are the key indicators of decline after halal certification?

A: The key indicators of decline after halal certification are:

Indicators of Increasing the Role of Halal Management Team: The halal management team needs to be more consistent in carrying out their duties and increasing knowledge about the Halal Product Guarantee System.
Indicator Number of Disabilities/Failure Products Meet Halal Criteria: Improving product quality and production process control is expected to minimize defective products.
Complaint Rate Indicator: Improving customer service and responsiveness to complaints can minimize the level of consumer complaints.

Q: What recommendations can be applied by UKM Atik bean cakes to improve supply chain performance?

A: The following recommendations can be applied by UKM Atik bean cakes to improve supply chain performance:

Increasing the role of the Halal Management Team: The halal management team must be more active in carrying out their duties, attending training to increase knowledge about the Halal Product Guarantee System, and be responsible for all aspects related to product halal.
Improving product quality: UKM needs to continue to improve the quality of the product by implementing a strict quality assurance system and controlling the production process regularly to minimize defective products.
Building good communication with customers: SMEs need to build good communication with customers by holding regular meetings to hear suggestions and complaints, and improve customer service to minimize the level of complaints.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study only focuses on the impact of halal certification on the performance of the Pia Kacang supply chain in the UKM. Secondly, the study only uses the SCOR method to measure supply chain performance. Finally, the study only analyzes the data before and after receiving the halal certificate.

Q: What are the future research directions?

A: Future research can build on this study by exploring the following areas:

The impact of halal certification on other supply chains: This study only focuses on the Pia Kacang supply chain. Future research can explore the impact of halal certification on other supply chains in the food industry.
The use of other methods to measure supply chain performance: This study uses the SCOR method to measure supply chain performance. Future research can explore the use of other methods, such as the Balanced Scorecard or the Supply Chain Performance Index.
The impact of halal certification on consumer behavior: This study only focuses on the impact of halal certification on supply chain performance. Future research can explore the impact of halal certification on consumer behavior and purchasing decisions.