Risk Assessment On Muslim Halal Supply Chains Using The AHP And Topsis Methods

Feb 27, 2025 by ADMIN 79 views

**Risk Assessment on Muslim Halal Supply Chains Using AHP and Topsis Methods**

Introduction to Halal Clothing and Its Importance

Halal clothing is a type of clothing that adheres to Islamic standards, ensuring safety, politeness, cleanliness, and comfort when worn. The concept of halal is not limited to food, but also applies to various other commodities consumed by Muslims, including clothing. The Quran emphasizes the importance of maintaining politeness and cleanliness, as stated in QS. Al-A'raf/7: 26. With nearly a quarter of the world's population being Muslims, the Indonesian Ministry of Trade aims to make Indonesia the Qibla of Muslim Fashion and Halal Production Center. Therefore, the Muslim clothing industry is a significant global business segment that requires attention from producers, particularly in terms of product halal.

The Need for Risk Management in Halal Supply Chains

Despite the growing Muslim clothing market, there is a lack of research on risk management in halal supply chains for Muslim clothing products. A halal supply chain is a process that encompasses each stage, from raw material sources to manufacturing processes, packaging, warehousing, transportation, and finally, the product reaches the consumers. In the implementation of halal supply chains for Muslim clothing, producers must pay attention to various risk factors that can cause products to be unlawful. This risk assessment must cover all stages, from procurement of raw materials to production processes, packaging, handling, storage, sales, and shipping.

The Importance of Risk Assessment in Halal Supply Chains

Risk assessment is crucial in halal supply chains to identify the main risks and most critical sub-risks. This allows companies to focus on aspects that require more stringent supervision. The study aims to identify the main risks and most critical sub-risks in the halal supply chain of Muslim clothing, enabling companies to prioritize their attention on critical areas. The methods used in this study include the Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (Topsis). The process of determining respondents refers to the Delphi principle, which allows data collection from literature and opinions of experts.

The Five Main Risks in Halal Supply Chains

The consensus from experts revealed that there are five main risks in halal supply chains, including:

Risk of Resources: This risk encompasses the availability and quality of raw materials, as well as the ability to manage resources effectively.
Production Risk: This risk involves the quality of production processes, including manufacturing, packaging, and handling.
Distribution Risk: This risk includes the logistics and transportation of products, ensuring they reach consumers safely and efficiently.
Retail Risk: This risk involves the sales and marketing of products, including pricing, promotion, and customer service.
Regulatory Risk: This risk encompasses compliance with laws and regulations, including halal certification and labeling.

The AHP and Topsis Methods

The AHP method helps in preparing a risk element hierarchy and sub-risk, as well as determining the weight of each risk. Meanwhile, the Topsis method ranks the risks and risks that have been identified. The final result of the study shows that the two methods produce similar conclusions, where the most critical risk is the risk of resources, followed by the risk of production, distribution, retail, and finally, the risk of regulation as the most insignificant risk.

Conclusion and Recommendations

Companies in the Muslim clothing industry need to pay more attention to the risk of resources to guarantee and maintain the application of halal principles to their products. Through an in-depth understanding of the risk in the halal supply chain, producers can take proactive steps to improve product quality and halal, as well as contribute to the development of the Muslim fashion industry that is more sustainable and responsible. With the increase in awareness of halalness in clothing, it is hoped that this research can be an important reference for industry players in managing existing risks, and helping to advance Indonesia as a halal fashion center at the global level.

Future Research Directions

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

Case Studies: Conducting case studies on companies that have successfully implemented risk management in halal supply chains can provide valuable insights and best practices.
Industry-Wide Implementation: Investigating the implementation of risk management in halal supply chains across the industry can help identify common challenges and opportunities for improvement.
Regulatory Frameworks: Examining the regulatory frameworks and standards for halal certification and labeling can provide a deeper understanding of the risks and challenges associated with halal supply chains.

By addressing these research gaps, future studies can contribute to the development of more effective risk management strategies in halal supply chains, ultimately benefiting the Muslim clothing industry and consumers worldwide.

Q1: What is the significance of risk assessment in Muslim halal supply chains?

A1: Risk assessment is crucial in Muslim halal supply chains to identify the main risks and most critical sub-risks. This allows companies to focus on aspects that require more stringent supervision, ensuring the application of halal principles to their products.

Q2: What are the five main risks in halal supply chains?

A2: The five main risks in halal supply chains include:

Risk of Resources: This risk encompasses the availability and quality of raw materials, as well as the ability to manage resources effectively.
Production Risk: This risk involves the quality of production processes, including manufacturing, packaging, and handling.
Distribution Risk: This risk includes the logistics and transportation of products, ensuring they reach consumers safely and efficiently.
Retail Risk: This risk involves the sales and marketing of products, including pricing, promotion, and customer service.
Regulatory Risk: This risk encompasses compliance with laws and regulations, including halal certification and labeling.

Q3: What are the AHP and Topsis methods used for in risk assessment?

A3: The AHP method helps in preparing a risk element hierarchy and sub-risk, as well as determining the weight of each risk. Meanwhile, the Topsis method ranks the risks and risks that have been identified.

Q4: What is the most critical risk in halal supply chains?

A4: The final result of the study shows that the most critical risk is the risk of resources, followed by the risk of production, distribution, retail, and finally, the risk of regulation as the most insignificant risk.

Q5: What are the recommendations for companies in the Muslim clothing industry?

A5: Companies in the Muslim clothing industry need to pay more attention to the risk of resources to guarantee and maintain the application of halal principles to their products. Through an in-depth understanding of the risk in the halal supply chain, producers can take proactive steps to improve product quality and halal, as well as contribute to the development of the Muslim fashion industry that is more sustainable and responsible.

Q6: What is the potential impact of this research on the Muslim clothing industry?

A6: With the increase in awareness of halalness in clothing, it is hoped that this research can be an important reference for industry players in managing existing risks, and helping to advance Indonesia as a halal fashion center at the global level.

Q7: What are the future research directions for risk assessment in Muslim halal supply chains?

A7: Future research can build upon this study by exploring the following areas:

Case Studies: Conducting case studies on companies that have successfully implemented risk management in halal supply chains can provide valuable insights and best practices.
Industry-Wide Implementation: Investigating the implementation of risk management in halal supply chains across the industry can help identify common challenges and opportunities for improvement.
Regulatory Frameworks: Examining the regulatory frameworks and standards for halal certification and labeling can provide a deeper understanding of the risks and challenges associated with halal supply chains.