ANALYSIS OF BARRIERS TO IMPLEMENTING HALAL SUPPLY CHAIN MANAGEMENT IN MSMES IN BANDA ACEH USING THE ANALYTICAL HIERARCHY PROCESS APPROACH WITH A SUPPLY CHAIN OPERATIONS REFERENCE PERSPECTIVE

Abstract

Aceh, with its strong Islamic traditions, places a significant emphasis on halal practices, particularly in food-related businesses. The increasing consumer awareness and government regulations have further amplified the necessity for Micro, Small, and Medium Enterprises (MSMEs) to adopt Halal Supply Chain Management (HSCM). However, the implementation of HSCM in Banda Aceh faces numerous challenges, stemming from both internal and external factors within the supply chain. This study aims to comprehensively analyze these barriers using the Analytical Hierarchy Process (AHP) and the Supply Chain Operations Reference (SCOR) model to provide a structured evaluation of critical obstacles. The research employs quantitative and qualitative approaches, with data processing conducted through Expert Choice and SPSS software for accurate assessment. The findings identify 26 barriers distributed across four fundamental business processes: Plan, Source, Make, and Enable. Among these, three primary challenges stand out: the inadequate skills and knowledge of human resources in managing halal compliance, the difficulties in ensuring that all suppliers consistently adhere to halal standards, and the high costs associated with obtaining and maintaining halal certification. These barriers significantly hinder the effectiveness and sustainability of HSCM in MSMEs. The results of this study provide valuable insights for policymakers, industry stakeholders, and business owners by highlighting key intervention points to strengthen halal compliance. Addressing these barriers through targeted training programs, regulatory support, and financial incentives can enhance the efficiency and integrity of halal supply chains in MSMEs. Future research should explore the impact of digitalization and technology-driven solutions in facilitating seamless halal supply chain management.