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Halal Supply Chain Management: Analysis of Decision-Making Factors for Aqiqah Business Suppliers in Indonesia

  • Received : 2021.03.10
  • Accepted : 2021.05.15
  • Published : 2021.06.30

Abstract

The aim of this research is to complement and develop previous research on the reason for the company's existence in the aqiqah sector, in the city of Semarang. The other aim of the paper is to find out the prospect of aqiqah business in the future in terms of the Halal supply chain. This research method uses a company as a sample that organizes aqiqah in the city of Semarang. For the purpose of the study, quantitative research method is used with primary and secondary data sources, using purposive sampling technique. Variables like Quality, Price and Service are analyzed using AHP, it is specifically designed to measure the tiered hierarchy level which allows it to provide a value from the criteria weight of an alternative so that it makes it easier to make decisions. The meaning of 'alternative' in this study is the supplier. The result of this research shows that the main reason for carrying out aqiqah business is because of the fact there are excellent prospects for this business in Semarang. There are some good reasons to open the business as 20% say that business prospects are still wide open while 15% said that it can be combined with the catering business. With the 10%, profit percentage, the result of AHP Supplier C is the best in Aqiqah Nurul Hayat Semarang, Supplier D is the best supplier in Aqiqah AMR Semarang. With the profit shown by these suppliers, this business has very good future prospects in Semarang.

Keywords

1. Introduction

According to Adinugraha et al. (2021), the performance of a company can be very much affected with the quality of suppliers it has. So that companies need to evaluate suppliers or suppliers carefully and precisely. Especially if the supplier is to be used as a partner, then the supply of the raw materials becomes a very important factor. Supply of the raw materials directly affect the production process. If the supplier is not responsive to company’s demand then it will have an impact on the production process. On the other hand if there is a supplier that is less responsive in terms of meeting its supply according to demand it will have an impact on shortages and excess supplies. It will lead to long lead times from the suppliers which will disrupt the production process resulting in delays in the production process and also in the delivery of the goods to the end users.

According to Ali et al. (2017), supply Chain Management (SCM) can be said to be a key strategic factor which is used to increase company effectiveness and establish relationships in order to achieve and realize better company goals. Therefore the company must wisely choose supply chain and logistics in its operations. Most companies are trying to improve the efficiency and effectiveness of the supply chain. This is in line with the idea of Barlow et al. (2007) who argued that a supply chain is a series of relationships between companies or activities that carry out the distribution of supply of goods or services from the place of origin to the place of the buyer or customer. Supply chain management is the process by which products are created and delivered to consumers from a structural point of view, a supply chain refers to the intricate network of relationships that an organization maintains with its business partners to get production resources in order to produce for their end consumers.

Another definition according to Drucker (1963), Drummond et al. (1985) and Dwiyana et al. (2017), supply chain management is a system that involves the process of production, delivery, storage, distribution and sale of products in order to meet the demand for these products. The supply chain includes all the processes and activities involved in delivering the product to the end consumer. According to Drucker (1963), Drummond et al. (1985) and Dwiyana et al. (2017), a supplier is one of the business partners who plays a very important role in ensuring the availability of supply goods needed by the company. So when assessing suppliers, an organization must consider various criteria that can comprehensively describe how suppliers can work in ways that adds value to the present (current value) and future value of an organization. Quality raw materials can significantly improve the quality of the products produced by a company. So as to build good and harmonious relationships in a long time between buyers and suppliers, and to maintain and improve the quality of raw materials and products, organizations must have good supply chain logistics (Dwiyana et al., 2017).

Selection of suppliers is part of the realm of decision making that has a variety of criteria so that the decision-making process requires qualitative and quantitative analysis and methods. This process is carried out by evaluating each supplier so that the right supplier can be selected. Supplier selection is a complicated job because it involves more than one criterion, which must meet consumer needs. Therefore, supplier selection can be completed by analyzing the multi-criteria contained in the company, Drucker (1963), Drummond et al. (1985), Dwiyana et al. (2017). Selection of suppliers can require a lot of time and resources, especially for key suppliers. Preliminary evaluations, presentations, surveys and so on are needed. This is intended to avoid losses due to various errors. Selected suppliers must also be monitored and assessed for their performance on a regular basis, so that their performance is maintained and can even improve. Supplier criteria will be different for each company, depending on the objectives of the company. According to Adinugraha et al. (2021), Ali et al. (2017), Barlow et al. (2007), Wanasida et al. (2021), Drummond et al. (1985), and Dwiyana et al. (2017), one of the important activities in purchasing activities for the company is the selection of suppliers.

Considering the importance of the suppliers, the companies must exercise utmost care to choose their suppliers. The bad selection of suppers will cause disruption in the production process and operations of the aqiqah company. The indicators used in supplier selection are problems consisting of various criteria including quantitative and qualitative factors. Some of the criteria that influence the selection of the suppliers are quantitative and qualitative factors. Therefore we need a method that can include both in the measurement. One method that can be used for supplier selection is the AHP (Analytical Hierarchy Process) method. This method includes qualitative and quantitative measures. AHP is a decision-making method developed to give priority to several alternatives when several criteria must be considered, and to allow decision makers to organize complex problems into a hierarchical form or a series of integrated levels. The AHP method is relatively easy to understand and is often used.

In previous research conducted by Ab, Talib MS, it was found that supplier selection among producers includes religious factors, supplier competence, traceability, trust and cultural influence. Based on the results of preliminary interviews conducted with several aqiqah service entrepreneurs, determining the supplier is influenced by factors like price, ease of collaboration and many other factors, etc. Haque et al. (2017), Haque et al. (2015), and Hofer et al. (2009) conducted research on the most important criteria in supplier selection with the results of the research that the priority factor of supplier selection criteria is quality with weight worth 0, 533; Delivery with a weight of 0.273; Price with a weight of 0.128; Warranty and Claim Policies with a weight of 0.067.

The analysis of the selection of green suppliers was carried out using the Analytical Network Process (ANP) method because ANP is a method that is able to represent the level of interest of various parties by considering the interrelationship between existing criteria and sub criteria, Eltayeb et al. (2011). In the selection of green suppliers, the quality criteria have a weight of 0.369, environmental criteria have a weight of 0.246, the price criteria have a weight of 0.159, delivery criteria are 0.11, service criteria are 0.072, and supplier relationship criteria are 0.044. The supplier recommendation given is PT Sejong because it has the largest weight of 0.271.

Furthermore, Nurmalasari (2018), Haque et al. (2017), Haque et al. (2015), Hofer et al. (2009) conducted research on the support system for supplier selection decisions with the results showing that quality criteria are the most important criteria in selecting suppliers, with a percentage of 39.50%, then delivery criteria with a percentage value of 20.56%, then price criteria with a value percentage of 18.18%, the next is the responsibility criteria with a value percentage of 14.66% and the last is the service criteria with a value percentage of 7.09%.

Based on this phenomenon, where these aqiqah services carry out obligations not only as an institution that seeks profit but as an institution that participates in bridging the law of the implementation of worship and based on previous research and interviews. This research is intended to complement and develop previous research. Namely the reason for the company’s management in the aqiqah field, the Analytic Hierarchy Process (AHP) method with the Aqiqah business research object in the city of Semarang and the prospects for aqiqah business in the future in terms of the Halal supply chain.

The difference with previous research is in the selection of research objects. In previous studies, the object of research was not companies that focused on halal as a value.

2. Literature Review

2.1. Decision Making

Decision Making is defined by Hofer et al. (2009) as saying that “decision making is which in choses between two or more alternatives”. Her definition of containing the meaning that decision making is an action that is carried out by choosing two or more alternatives to perform a particular action either individually or in groups. Spendapt with the above definition put forward by Eltayeb et al. (2011), Haque et al. (2017) states that what is meant by decision making is an attempt to create events and shape the future (events at the time of election and afterwards). Even the opinion of other experts also agrees as stated by Mondy and Premeaux (1995) that decision making is “decision making is the process of greeting and evaluating alternatives and making choices among them”. His opinion emphasizes that decision making is a process with a number of steps that must be done by evaluating alternatives to make decisions from all existing alternatives.

Decision making can be considered as a problem-solving activity that results in a solution that is considered optimal, or at least satisfactory. Therefore, it is a more or less rational or irrational process and can be based on explicit or tacit knowledge and beliefs, Hofer et al. (2009). Tacit knowledge is often used to fill gaps in complex decision-making processes. Usually these two types of knowledge, tacit and explicit, are shared in the decision-making process. Basically, decision-making theory is a theory about how rational individuals should behave under risk and uncertainty. It uses a series of axioms about how rational individuals behave which have been widely challenged on both empirical and theoretical grounds. So it can be said that decision making is the formulation of general policies for the management of an organization which can be either a business organization or an administrative organization. It should be noted that the nature and implementation of decision making may differ in the two places but in each case the importance of decision making remains intact. In short, decision making means the adoption and application of rational choices for the efficient management of a private, business or government organization.

2.2. Purchasing Decisions from an Islamic Economic Perspective

In Islam, the consumption of a product is not obligatory for a consumer. For example, if a person makes a certain amount of income and if he finds after careful calculation that it can be only used to meet his personal and family expenses then he is under no obligation to spend his income on products or arrangements for society. These type of consumers are categorized as low-income class or consumers who have just enough to eat. However, if a person earns more than what is required for himself and his family then he is free to spend this money on other products and services. It can be understood that every activity of a consumer, whether in the form of daily expenses, is nothing but a manifestation of his remembrance of Allah SWT. Thus, he chose a path shown by Allah by not choosing haram, and not by behaving in a stingy manner, and not behaving like a greedy person so that his life would be safe in both the world and hereafter, Haque et al. (2015), Hofer et al. (2009). The process of decision making in Islam is stated in several verses of the Qur’an. Generally, it means that decision making can be crucial in several activities. The concept of taking decisions fairly and being careful in responding to and receiving QS information has been mentioned in Al-Hujurat verse 6, It means: “O you who believe, if a wicked person comes to you with news, then check carefully so that you do not impose a disaster on a people without knowing the circumstances that cause you to regret your deeds”.

2.3. Supply Chain Management

Supply chain management can be described as activities which are carried out in order to obtain raw materials, then process the raw material to transform it as finished goods, and then sending these products to consumers through the distribution system. So that these activities include the purchasing function and other activities that are important for the relationship between the two parties between suppliers and distributors. Jannah & Rakhmawati (2011), Yancadianti (2016), Khanand and Haleem (2016). The SCM determination includes:

2.4. Purchasing

The supply chain is most important for a company or a business and purchasing is a crucial activity which requires immediate funds. Purchase costs as a percentage of sales, for both goods and services, are often substantial (Astuti & Asih, 2021) Purchasing activities consists of various things like purchasing components, raw materials, and inventories which is approximately 40 to 60 percent of the sales value of the finished products. Therefore it is very substantial and requires a lot of consideration. Purchasing provides a great opportunity in reducing costs and it is essential to increase profits. In addition, the quality of goods and services sold is directly related to the quality of goods and services purchased.

The objectives of the purchasing activities carried out by the company include:

1. Help identify products and services that can be obtained externally.

2. Develop, evaluate, and determine the best supplier, price and delivery for these goods and services.

2.5. Supplier Selection

According to Khan and Haleem (2016), the selection of suppliers is the central aspect of the purchasing function, which begins with selecting suppliers, procuring needed goods, services and equipment for all types of business companies. Therefore, the purchasing function is categorized as the main part of the business management. Even in a highly competitive operating environment, it becomes very difficult to find low cost of quality products as it is difficult to procure low cost raw materials.

2.6. Halal Industry

The halal industry is categorized into two different areas: halal products and halal services. Likewise, Purwanto et al. (2020), Rudyanto et al. (2020), Vizano et al. (2021) (Jamal & Sharifuddin, 2015) distinguishes three components of the halal industry, namely food and beverage, non-food, and services. For example, non-food products include pharmaceuticals, health products, medical devices, cosmetics, and toiletries. Meanwhile, logistics, education, training and consulting, banking and finance, as well as travel and tourism are examples of services in the halal industry. The halal industry is a large and rapidly growing market. The 2014 and 2015 Global Islamic Economic Condition Report reveals that the size of the global halal food industry is projected to be worth USD 2.537 billion by 2019. It is clear that the development of the Halal industry provides a competitive environment, where the regions involved are not only countries in ASEAN such as Malaysia, Brunei, Thailand, and the Philippines but also in various other countries such as the United Arab Emirates Middle East, the Western countries of the United States of America, and France in Europe. All of these countries have been involved and are paying attention to the halal industry. Indonesia currently has the largest Muslim population in the world. India’s 1.35 billion population will have that difference by 2050 in the remaining Hindu- majority country with more than 300 million Muslims. The Muslim population in Europe is also growing as it is projected that 10% of all Europeans will be Muslim by 2050.

This development was triggered by a revolutionary change in the mindset of Muslim consumers as well as ethical consumer trends around the world. There are three basic reasons which include first, the halal industry is now expanding beyond the scope of the traditionally recognized food sector. Currently, halal products include cosmetics, pharmaceuticals, toiletries, and penetrate service industries, such as sharia financing, logistics, tourism, marketing, travel agencies, and the mass media. Second, the share of the Muslim market is very large, with a total population of around 2.2 billion people. However, the halal market is not exclusive to Muslims. Halal products require a set of rules that must be met because they must uphold ethical values, social responsibility, economic and social justice, animal welfare, and so on. It requires the promotion of ethical consumerism; demand for halal certified products from non-Muslim consumers continues to increase. Third, the competitiveness of access to products and services in the international market for the halal industry. There are still many questions about the development of the halal industry in Indonesia. It is interesting to explain further how Indonesia takes advantage of the momentum and makes this market a dark horse to support national economic resilience.

2.7. Halal Supply Chain Management

Empowerment of customers through the intense use of information technology in all domains of life has led to the emergence of a knowledge economy which appears to have generated a demand for goods and services of superior quality. Othman et al. (2009), Purwanto et al. (2020), Rudyanto et al. (2020), Vizano et al. (2021). Because ‘halal products/services’ seem to be the answer to this requirement, the essence of which lies in safe and healthy consumption. Halal is now in the modern domain of business & exchange and is emerging as a new paradigm to guarantee quality and influence the way of life by changing people’s attitudes, tastes and values. There has also been a shift in the CPG industrial marketing policy adopting a value-based approach along with a customer-centered approach, this has resulted in the projection of Halal to become a modern business style. Furthermore, the Halal mandate requires that every company producing/trading halal goods needs to ensure the integrity of halal to the end consumer. Based on previous claims, Halal integrity assurance is a holistic concept which relates to a lot of aspects such as procurement, production, packaging, labeling, logistics, retail & consumption of goods and services thus, maintaining halal integrity is essential for the success of the growing Halal market.

The assurance of halal integrity for the end customer is a serious problem and is of increasing concern. Rudyanto et al. (2020), Vizano et al. (2021). Counterfeiting, reimbursement, and fraud usually poses a threat to the Halal integrity products, which are commonly done to increase producer profits). Immediately Khan et al. ( 2018), Lada et al. (2009), Limansantoso, M. F. (2013), Merry et al. (2014), Mondy et al. (1995), Nurmalasari et al. (2018), Othman et al. (2009) define halal integrity as: ‘The guarantee of safe (pure), (good) quality and free from mal-practice (halal) farm-to-fork food’. From this definition, it is evident that the management and assurance of halal integrity covers the entire Supply Chain and is a comprehensive and multidisciplinary approach.

Many researchers agree on various operations management theories to suggest the management of the Halal problem of Supply. The chain perspective adopted Supply Chain Management theory to address the complexities of halal integrity assurance issues in the food supply chain related to safety, security, quality and sustainability. Within the framework presented, they emphasize upon the logistics management and state that logistics management is at the heart of Halal Supply Chain Management (HSCM).

Merry et al. (2014), Mondy et al. (1995), Nurmalasari et al. (2018), Othman et al. (2009), Purwanto et al. (2020), Rudyanto et al. (2020), Vizano et al (2021) propose a framework for food integrity in the Halal Supply Chain environment. Their framework addresses the four dimensions of integrity namely: ‘raw materials’; ‘production’; ‘Service’, and ‘Information integrity’. Zailani et al. (2017) argue that logistics plays an important role in ensuring the integrity of Halal food through proper transportation, handling & storage management along the Supply Chain until it reaches its final destination. Immediately, Khan et al. ( 2018), Lada et al. (2009), Limansantoso, M. F. (2013), Merry et al. (2014), Mondy et al. (1995), argue that halal integrity does not only deal with permitted and prohibited goods but also with regard to the Halal status of the product (e.g. from raw materials to consumers). Violation of Halal integrity (i.e. no cross-contamination with non-Halal products/methods and no intention) is detrimental to HSCM (Khan et al. 2018).

2.8. Supply Chain Performance

Khan et al.( 2018), Lada et al. (2009), Limansantoso, M. F. (2013), Merry et al. (2014) have stated that the supply chain and organizational performance play important roles in supply chain management and organizations must have a responsibility in maintaining supply chain performance which includes reducing pollution, waste and also taking full responsibility from obtaining raw materials to final disposal of products. Othman et al. (2009), Purwanto et al. (2020), Rudyanto et al. (2020), Vizano et al (2021) stated that there are keys in measuring the supply chain and company performance. Whereas Othman et al. (2009), Purwanto et al. (2020), Rudyanto et al. (2020), Vizano et al. (2021) support the supply chain performance management depends on developing its program in evaluation and monitoring and by adding sustainable elements such as environment and social responsibility, the series of performance becomes more complex.

3. Research Methods

This research method takes a company that organizes aqiqah in the city of Semarang. It uses quantitative research with primary and secondary data sources, using purposive sampling technique. The variable used are Quality (quality), Price (price) and Service (service). The analysis is done using AHP specifically designed to measure the level of a tiered hierarchy that allows it to provide a value from the criteria weight of an alternative to make it easier to make decisions, what is meant by the alternative in this study is a supplier.

4. Results and Discussion

Based on the results of interviews with aqiqah business managers in the city of Semarang, it can be grouped into 11 (eleven) regions which are the basis for deciding to conduct aqiqah business, as explained in the business grouping table, the operation of aqiqah business in the city of Semarang is divided into two classes, namely companies that only serve aqiqah and some serve aqioqah along with open catering, as described in Table 1.

Table 1: The Reasons of Company Opening Aqiqah Business

From table above, it can be explained that, the main reason for carrying out aqiqah business is because the business opportunity or prospect is still open, this is evidenced by 4 companies or 20% of respondents, who put forward these reasons. Furthermore, those who consider it can be combined with a catering business are 3 companies (15 %), who argue that the profits from this service. 2 companies or 10% of the companies say that this business can be developed online and therefore it is very easy to obtain suppliers thus they think that this business has very good prospects. Those who decided to carry out the aqiqah business for reasons of sunnah according to Islam were 1 company or 5%, as well as those who argued that because the marketing channels were easy and part of worship, and the business could be carried out along with daily activities consisted of only 1 company of 5% of the respondents.

4.1. Hierarchy Analysis of Alternative Supplier Selection Process (AHP)

Data processing using the AHP method only focuses on 3 aqiqah businesses, namely Aqiqah Nurul Hayat Semarang, Aqiqah AMR Semarang and Aqiqah Bina Sakinah. The results of average output and ranking of the best alternative suppliers from data processing using the AHP method based on 3 criteria (quality, price and service) of decision makers in aqiqah business in the city of Semarang are as follows:

1. Criteria Priority Weight Analysis

To get a total ranking as a whole, it is necessary to do calculations to determine the weight of each criterion. Following are the results of calculating the criteria weights using the AHP method.

Based on the calculation of the pairwise comparison matrix (Table 2) for the overall criteria using Ms. Excel 2013, a priority order of criteria is generated to get the best supplier, then the criteria that get the first priority position are based on the average calculation of the three respondents who are authorized to make decisions on purchasing raw materials in the form of animals. The next criteria is price then quality, and lastly ease of service level.

Table 2: All Criteria Pairwise Comparison Matrix

The price of raw materials in the form of aqiqah animal which is getting higher makes it difficult for aqiqah companies to get profit margins, so the relatively light raw material prices give a positive image for suppliers. This can be seen from the weighted value of the price criteria, which is 1.965305. For the quality criteria, it shows that good and consistent quality of aqiqah animals is important to maintain the company, this can be seen from the weight of its value, which is 0.953949. Accordingly, the decision makers for the purchase of raw materials at Aqiqah Nurul Hayat Semarang, Aqiqah AMR Semarang and Bina Sakinah take purchase decisions. Then the criteria which is considered essential to maintain the supplier are services with a value weight of 0.271723.

2. Analysis of Alternative Supplier Priorities

This stage is to find out the value of the best performance from the suppliers. Data processing was performed using the ANP method using Ms. Excel 2013.

The results of calculations through data processing were carried out by the ANP method using Ms. Excel 2013. In aqiqah Nurul Hayat can be displayed in Table 3:

Table 3: Alternative Priority Results for Nurul Hayat Supplier

Based on the results of the calculation of alternative priorities in choosing the best supplier in Table 4, it shows the best supplier in the company Aqiqah Nurul Hayat, the best supplier in the company is Supplier C, with the highest final weight value of 0.647, with details of the quality results value of 0.643, price weight of 0.623 and service result of 0.824. It is based on the perceptions of the decision makers in terms of quality, price, and service. The best on these criteria is found to be the supplier C, who has an advantage on all the criteria compared to other suppliers. And the advantages of Supplier C include the ability to provide good service, namely quickly responding to requests, easy to contact and provide clear information. If evaluated from the criteria of Quality and Price, it is still found to be superior compared to other suppliers.

Table 4: Alternative Priority Results for AMR Supplier

Data processing is carried out using the ANP-based method with the help of Ms. Excel 2013. The object aqiqah AMR is displayed in Table 4.

The results of the calculation of alternative priorities in choosing the best supplier has been displayed in Table 5 which shows the best supplier in Aqiqah AMR Semarang is Supplier D, with the highest final weight value of 0.541, it has quality value of 0.549, the price of 0.600 and the service value of 0.113. It means that based on the perceptions of the decision makers in terms of quality, price, and service, the supplier is selected. The best is supplier D, who has an advantage on all criteria compared to other suppliers. In particular, it has an assessment in the area of lower prices and becomes a priority compared to service and quality, even though the service is quite low, namely 0.113. It means that the supplier D will have to improve services to maintain itself as the best supplier. And the advantages of Supplier D include the ability to provide good prices, namely the ease of payment and discounted prices. The quality criteria are also an added value for Supplier D, because they are able to provide good aqiqah animals, namely healthy aqiqah animals, they are not defective and have superior flesh.

Table 5: Alternative Priority Results for Bina Sakinah Supplier

The results of data processing were carried out using the ANP method using Ms. Excel 2013. At Bina Sakinah can be displayed in Table 5.

Based on the perceptions of the decision makers in the aqiqah Bina Sakinah business, which is reflected in Table 5, it can be seen that the best supplier is Supplier D, with the highest final weight value of 0.384, with details of the quality result value 0.298, the price value of 0.473 and the service value of 0.078. It means that based on the perceptions of the decision makers in terms of quality, price, and service, the best is supplier D, which has advantages on all criteria compared to other suppliers. Quality, Price and Service criteria determine supplier priorities. Price criteria are the main assessment of Supplier D, with a result of 0.473, while quality criteria has a value of 0.298 and service has a value of 0.078 which is still low compared to Supplier E, namely 0.331 and 0.219, respectively. According to the perception of decision makers at Bina Sakinah Semarang, the advantages of Supplier D include the ability to provide good prices as well as ease of payment.

4.2. Discussion

This aqiqah business opportunity, of course, has a very bright future prospect. Aqiqah itself is one of the sunnahs in Islam which is widely practiced by Muslim communities in Indonesia. Most of the ancient people slaughtered and processed the meat themselves, but now it is okay for most urban people. Now many people tend to be practical, just order everything they need to the catering aqiqah.

The majority of Indonesia’s population is Muslim, which means a very large market share for aqiqah business opportunity. Aqiqah business actors should have marketing strategy such as through advertisements in the media, through office networks, collaborating with maternity hospitals and collaborating with Zakat Institutions or Social Institutions. The agency system is also feasible, which will act as a third party or as a source of sales information.

This business prospect cannot be separated from the condition of internal and external factors. Internal factors are factors that are owned by the entrepreneur himself, including human resources, materials, tools, facilities and capital. And this environment can be managed by organizational management. Meanwhile, the external environment is an environment that includes social, economic, political, legal and/or government regulations. This environment is not what affects the development of the business. So that with the Law of the Republic of Indonesia Number 33 of 2014 concerning the guarantee of halal products, every producer is required to carry out halal certification for their products.

With this environment, it has prospects, among others, the first has good prospects as the results of the previous discussion that the awareness of the Muslim community in the city of Semarang, especially in the field of practicing worship is getting higher and the rate of child birth always increases every year, the continuity of aqiqah business is looked after. In addition, if there is a halal certification, it can be a consideration for using aqiqah services. Because it is believed that the product is guaranteed to be halal and if it is halal it is certain that the food is healthy and good.

5. Conclusion

Based on the results of interviews with aqiqah business managers in the city of Semarang, it can be found grouped into 11 (eleven) reasons which become the basis for deciding to do aqiqah business. It was concluded that the main reason for running a ‘aqiqah business is because the business opportunity or prospect is still open, this is evidenced by 4 companies or 20% of respondents, who put forward these reasons. Furthermore, those who consider that it can be combined with a catering business are as many as 3 companies or 15%, as many as 2 companies or 10% think that the profits to be obtained from this service are high/large, while some think that this business can be developed online and suppliers can be easily found.

Pairwise comparison matrix calculation for all criteria using Ms. Excel 2013, resulting in a priority order of criteria to get the best supplier, then the criteria that get the first priority position are based on the average calculation of the three respondents who are authorized to make decisions on purchasing raw materials in the form of aqiqah animals in 3 aqiqah businesses in Semarang, the next price criteria are quality and convenience level of service.

Supplier C is the best supplier in Aqiqah Nurul Hayat Semarang. Based on the perceptions of the decision makers seen from the quality, price, and service. This is because Supplier C has advantages on all criteria compared to other suppliers.

Supplier D is the best supplier in Aqiqah AMR Semarang. Based on the perceptions of the decision makers at Aqiqah AMR Semarang, seen from the criteria for Quality, Price and Service, the price criterion is the main assessment. Supplier D has a fairly low service rating, namely 0.113, for the future it is necessary to improve services.

Bina Sakinah has 5 alternative priorities in choosing suppliers, the first priority is for Supplier D and for Supplier A being the last priority. The price criterion is the main assessment of Supplier D, namely with a weight of 0.473, while the criteria for quality weighs 0.298 and service has a weight of 0.078 which is still low compared to Supplier E, namely 0.331 and 0.219, respectively.

With the existence of Law of the Republic of Indonesia Number 33 of 2014 concerning the guarantee of halal products, every producer is required to carry out halal certification for their products. It has prospects, among others, the first has good prospects as the results of the previous interviews discussed that the awareness of the Muslim community in the city of Semarang, especially in the field of practicing worship is getting higher and the rate of child birth always increases every year, then the continuity of aqiqah business is maintained. In addition, if there is a halal certification, it can be a consideration for using aqiqah services. Because it is believed that the product is guaranteed to be halal and if it is halal it is certain that the food is healthy and good.

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