Analysis of the Institutional Risk of The Halal Supply Chain in The Potato Chips Micro Scale using The SCOR Methods

Abstract

Abstract The agropolitan city of Batu is ready to boost the number of Micro, Small, and Medium Enterprises (MSMEs) each year through its flagship product, potato chips. Throughout the supply chain, potato chips can change from halal to non-halal due to contamination by non-halal materials, production processes that do not comply with halal criteria (SJPH), and no separation of halal and non-halal products during storage and distribution. This research aims to illustrate institutional risks in the halal supply chain for the potato chip MSME cluster using the SCOR method. SSOP and GMP are added to strengthen the analysis. Key actors in the halal supply chain institution include suppliers, manufacturers, and retailers. The study identifies several risky activities that threaten the halal integrity of potato chip products. Using the SCOR method for risk mapping in the halal supply chain institution resulted in 69 risk events and 70 risk agents. The potential risks in the halal supply chain for potato chips occur mainly at the manufacturer level (70% of the total risk events). They are most prevalent in the production process variable. The majority of risk agents in micro-scale businesses are related to the implementation of PPH, SJPH, SSOP, and food safety.