AgBioForum, 23(2): 22-36. ©2021 AgBioForum Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic in Surabaya Indrianawati Usman Department of Management, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia Email: indrianawati-u@feb.unair.ac.id Li’izzah Gindia Manzil Department of Management, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia Email: liizah.gindia.manzil-2015@feb.unair.ac.id Norlinda Mohd Rozar Universiti Malaysia Terengganu Email: norlinda.rozar@umt.edu.my In today’s age, consumer concern for halal products and supply chains is increasing, including skin-care products. Therefore, beauty service providers must also pay attention to the quality of the cosmetic and skincare used, but also ensure implementation of halal supply chain. The aim of the study is to analyze the performance of the halal supply chain applied to skincare products used by halal-certified beauty clinics in Surabaya. This study uses a qualitative approach, and is designed as an exploratory case study-based research. The study analyzes the performance of the halal supply chain using the SCOR version 11.0 method which was then measured its suitability with the halal standard element based on MS2200:1 (2008): Islamic Consumer Goods – Part 1: Cosmetics and Personal Care – General Guideline and Indonesian Council of Ulama no.26 (2013) regarding halal standards for cosmetic products. Result of the study found that there are two supply chain activities that are not in accordance with halal standards. First, in the “make” supply chain component of the supplier. Second, at the "delivery" supply chain component carried out by the company. A key limitation of this study is that it focuses only on the case of the halal supply chain implementation performance of skin-care and cosmetic products. Future research can be done by analyzing a halal risk of the halal supply chain network, including detailed references and guidelines of halal standards. Key words: Halal supply chain, Supply Chain Operation Reference (SCOR), Halal cosmetics. 1. INTRODUCTION Along with the increasing human needs in today’s world, there has been development of the Halal concept which covers all aspects of life ranging from products and services (food, fashion, media, tourism, banking, hospitality, finance, insurance and cosmetics). This growth is driven by the increase in Muslim population, which in 2012 was estimated at 23.2% of the world's population and will continue to increase to 73% by 2050 (Pew Research Center 2015). Based on population projection data from the Central Statistics Agency, in 2017, around 87% of the population in Indonesia or around 229.68 million out of 264 million people. This means that Islam is the most widely embraced religion within the the Indonesian population. Over the past few decades, researches have explored halal products from different perspectives (context), for example on market orientation (Ahmed Zebal et al., 2014; Al-Kwifi et al., 2019), marketing (Kadirov, 2014; Woodall, 2012), shopping behavior (Khalek et al., 2015). While according to associate VP Head of Hi-Tech, property, consumer industry mark plus Inc, Gasanova Savitry “the growth of the beauty industry in Indonesia has reached double digits (16%) when compared to other countries. Only Indonesia and Egypt form around the world are experiencing fast growth, where the number can reach two digits. From this theory and phenomenon, this research focuses more on product exploration on preparation, production, display, marketing and consumption. The potential of the halal market continues to grow and expand, driven by the growth of the Muslim population. The use of halal products is not only for Muslim consumers, but also for non-Muslim consumers ( Khan et al., 2019; Talib et al., 2015; Wibowo & Ahmad, 2016). Some consumers believe that Halal products are safer, have a guarantee of cleanliness and good quality (Potluri & Potluri, 2018; Zailani et al, 2017). According to (Khan et al., 2019; Soon et al., 2017; Tieman et al., 2012) Halal products and services involve every aspect of activity or productivity along the supply chain. The supply chain is an important part in the creation of Halal products so that manufacturers need to realize the importance of implementing Halal Supply Chain Management. The Supply Chain Management contains different standards to ensure the Halal-ness of a product, which starts from upstream to downstream to ensure that it is truly Halal. Mohamed et al., (2020); Zulfakar et al.,( 2016). Therefore, to ensure the Halal ness of a product, it is necessary to have an institution or organization under the supervision of the Government, namely Halal Certification Organizations (HCO) which play an important role (Ab Talib et al, 2017; Nawi & Nasir, 2014; Demirci et al., 2016). Talib et al., (2020); Ali et al., (2017) states that the main purpose of HCO is to determine whether a product is Halal or not and to guarantee the quality of the product. This certificate is important for Aesthetic Clinic where skincare products from Aesthetic Clinic have become mailto:indrianawati-u@feb.unair.ac.id mailto:liizah.gindia.manzil-2015@feb.unair.ac.id mailto:norlinda.rozar@umt.edu.my AgBioForum, 23(2), 2021 | 23 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… popular products in recent years. The increasing market opportunities associated with the beauty products and services industry in Indonesia have led many companies to develop business in the beauty sector, both as manufacturers and beauty care service providers. Meanwhile, the Government of Indonesia issued Law (UU) No. 33 of 2014 concerning Halal Product Guarantee, Government Regulation (PP) No. 31 of 2019 concerning Implementing Regulations of Law No. 33 of 2014 (UU JPH) and Government Regulation (PP) No. 39 of 2021 concerning the Implementation of Halal Product Guarantee. Especially regarding detailed explanations in the implementation of halal product guarantees and cooperation between institutions in the implementation of halal product guarantees. In light of the above rules, companies related to the beauty industry need to increase their capacity and performance related to halal regulations, including measuring the performance of the halal supply chain to ensure the halal ness of their products and services. The Aesthetic Clinic is a company in Surabaya Indonesia that makes products and offers halal-certified beauty care services. Halal supply chain activities for beauty care products are carried out in collaboration with several institutions such as suppliers of raw materials, manufacturers and beauty care services. The increasing demand for halal skincare products makes companies strive to maintain consumer confidence in the products and services offered, so companies need to take performance measurements to strengthen product halal assurance and product supply chains. The aim of this study is to analyze the performance measurement of the halal supply chain activity at the Aesthetic Clinic in order to maintain halal product and beauty care service. 2. LITERATURE REVIEW 2.1 Supply Chain Management. Supply Chain Council a boonut the supply chain: "the supply chain includes every effort involved in producing and delivering the final product from the supplier's supplier to the customer's customer" (Chen & Paulraj, 2004, pp. 120-122). Related to SCM theory is the work of Ellram & Cooper (2014), a work that is directly related to the definition and conceptualization of SCM. They point out that SCM has been identified as a process, discipline, philosophy, governance structure, and function. Supply Chain Management (SCM) is an approach that starts with planning and controlling materials, logistics, services, and information flows from suppliers to manufacturers or service providers to end clients. Hazen et al., (2020); Liu et al., (2018); Poniman et al., (2015). A simpler explanation of supply chain management defines supply chain management as the integration of business processes from end users through original suppliers providing products, services and information that add value to customers (Balasubramanian & Shukla, 2017; Herhausen et al., 2015; Lee, 2015). SCM practices are defined as a set of activities undertaken by an organization to promote effective supply chain management (Tachizawa et al., 2015; Wong et al., 2015) as an approach applied in the integration, management and coordination of supply, demand and relationships to satisfy clients in an effective manner and as an approach to involve suppliers in decision making, encourage information, and share and seek new ways to integrate upstream activities. As a result, it involves developing customer contacts with customer feedback to integrate downstream activities and deliver orders directly to customers (Jamkhaneh & Ghadikolaei, 2020; Wang et al., 2015). Three main keys emerge from various definitions: activities, benefits, and constituents/components: firstly activities, containing material and information flows, and network of relationships, focusing on internal (within the organization) and external (outside the organization). Second, the benefits resulting from implementing an effective SCM strategy are that it adds value and increases customer satisfaction. Third, the components or parts that make up SCM; What organizations, functions and processes are involved in the supply chain (Andersson & Pardillo, 2020; Wan et al., 2016). Green et al., (2019); Shamsuddoha et al., 2015; Ulgen & Forslund, 2015) identified 24 SCM practices from previous research and formed six constructs: Supply chain integration, Information sharing, Supply chain characteristics, Customer service management, Geographical proximity; and JIT capability. SCM research can be classified into three categories (Zelbst et al., 2014) : 1. Operations: deals with the day-to-day operations of facilities such as factories or distribution centers to ensure that the most profitable way to fulfill customer orders is executed. Examples include inventory management and production, planning, and scheduling. The focus is on developing mathematical tools that assist in the efficient operation of the overall supply chain as well as the development of software and better manufacturing methods and technologies. 2. Design: is a supply chain focused on the location of the decision place and the purpose of the Four categories of models are found in the literature: (1) deterministic analytical models, (2) stochastic analysis models (Lee, 2015), (3) economic models, and (4) simulation models. Good design should integrate the various elements of the supply chain and seek to optimize the entire chain rather than individual entities. Information sharing and its control play an important role in integration, which requires highly coordinated efforts from both engineers and managers (Lee, 2015). 3. Strategy: strategic decisions are made by business managers, which require understanding supply chain dynamics and developing objectives for the entire chain. This task also includes critical evaluation of alternative supply chain configurations and partnerships, and determines opportunities that can increase power AgBioForum, 23(2), 2021 | 24 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… competitiveness of companies as part of a supply chain or supply chain network. 2.2 Halal Supply Chain Management There is no doubt that the halal supply chain exists, as this is based on several studies (Abdul et al., 2018; Azmi et al., 2020; Tan et al., 2017) and consumer consumption trends now focus not only on Halal products but also Halal logistics and supply chain. There are several factors responsible for the emergence of halal supply chains. Due to the complex nature of supply chain management, cases of questionable Halal status, and Halal integrity issues, there is a more pressing need for Halal supply chain management. Several studies conducted by (Rahim et al., 2017; Talib et al., 2015; Tieman et al., 2012) shows that Muslim consumers demand Halal supply chains to further expand the integrity of Halal products. Referring to MS1500:2009 Halal Food - Production, Preparation, Handling and Storage - General Guidelines (Second Revision), Halal products and services: 1. Contains no non-halal livestock parts or products or products or animals that are not slaughtered in the name of Allah and according to Sharia methods. 2. Does not contain ingredients that are considered unclean (unclean). 3. Safe and harmless. 4. Not prepared, processed or produced using contaminated tools or equipment or shared with non- Halal or unclean. 5. The ingredients or by-products do not contain human parts. 6. During the manufacturing, preparation, packaging, storage or distribution process, products must be physically separated between Halal and Haram products. (Shariff & Ahmad, 2019; Zulfakar et al., 2012) explained how Halal supply chain is similar to conventional supply chain, which consists of planning, implementing, and controlling distribution and storage, but only for Halal certified products, from point of origin to point of consumption. Figure 1 shows the halal supply chain model, formulated. Figure.1 Halal Supply Chain Model Source: Tieman et al., (2012) In the Halal supply chain (Rahim et al., 2017; Tieman & Ghazali, 2014) argue that the factors or stages relevant to Halal logistics and supply chain are transportation, warehousing and terminal operations. On the other hand, they also argue that the success of the Halal supply chain management depends on a clear definition of Halal, Halal process requirements, procedures, tracking and tracing both upstream and downstream, tanning, packaging and labeling, organization (collaboration) and halal certification. Furthermore, to ensure the success of the Halal supply chain and minimize the risk of cross- contamination (between Halal and Haram), transportation, storage and handling operations must comply with Islamic law and meet the requirements of the targeted market ( Rashid & Bojei, 2020). Cosmetic companies must effectively formulate the role of supply chain management strategy (also called value chain analysis), because it will play a key factor in the success of each company (Aziz & Zailani, 2017; Huiying et al., 2016, 2015; Karia, 2019), that value chain analysis for AgBioForum, 23(2), 2021 | 25 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… companies seeks to achieve a competitive position in the market, covering the entire value system (or supply chain) in which each company operates. 2.3 Critical Success Factor (CSF) for Halal Supply Chain Management There are four critical success factors for halal supply chain management. First, government support. The government can encourage new businesses to adopt supply chain management, and this will lead to economic stability, added that government policies and regulations can be a barrier or a supporter in supply chain development. Since the Halal market is a lucrative business, and with billions of customers, the government is pouring in support to help and promote the Halal industry, such as setting up Halal certification authorities, providing incentives for Halal businesses, funding research on Halal-related studies through universities and research institutes as well as organizing halal training for industry practitioners. In the context of Halal supply chain management, describe the significant role of government involving planning, developing, implementing, regulating, promoting and educating halal industry players and halal consumers. In Indonesia, there is an institution called LPPOM MUI. Institute for the Study of Food, Drugs, and Cosmetics (Indonesian Ulama Council) is an institution with a strong task of researching, reviewing, analyzing and deciding whether products are good food and their derivatives, drugs and products cosmetics, is it safe to consume both in terms of health and in terms of religious teachings of Islam, that is, is it halal or is it permissible and good for consumption for people. In addition, the institution provides recommendations, formulating provisions and guidance to community services. The reason for founding this institution is that the teachings of Islam regulate food and drink in such a way. Food and drink can be categorized as: halal, forbidden, or shubhada. Second, dedicated Assets, which are very important in the Halal supply chain and complete separation along the supply chain will enhance Halal integrity. The key in specialty assets is the complete separation of Halal and non-Halal products during distribution, and assets vary from transportation, warehousing or equipment. In the context of Halal supply chain and transportation, some authors suggest a complete separation between Halal and non-Halal products or in other words, specialized cargo or fleet transportation. This step is considered necessary because the mixing of Halal and non-Halal together during transportation activities, non-Halal will be evenly distributed or widespread thus canceling the Halal status. Although transportation is a major cost factor in logistics services, ranging from 25 per cent to 50 per cent of overall logistics costs. Halal logistics players believe that Halal integrity is limited to containers and transport vehicles. Third, Information Technology, similar to conventional logistics, is an integral element in ensuring the total Halal supply chain. Successfully discussed the adoption of information technology among Halal logistics service providers and to ensure the integrity of Halal products. Therefore, information technology has the ability to improve the Halal supply chain, prevent unnecessary transportation, ensure better supply chain regulation and improve Halal performance at the destination. This shows that information technology is a critical success factor for the halal industry, especially the halal supply chain, in order to maintain the integrity of halal products or services and halal status. Fourth is collaborative relationship. Supply chain collaboration, according to is divided into two categories, namely vertical and horizontal collaboration, which is consistent with the definition. Vertical collaboration concerns external collaboration with suppliers and customers, while horizontal collaboration deals with external collaboration with competitors or non- competitors from other organizations. In addition, there suggest that the elements of supply chain collaboration are trust (visibility), mutuality, exchange of information (information technology), and openness and communication. Supply chain collaboration and Halal have something in common, namely the importance of trust. For a halal supply chain to be successful, partners must trust each other by exchanging information, transparently or honestly with clear communication that will be mutually beneficial for all. 2.4 Halal Certification According to ( Talib et al., 2016; Akın & Okumuş, 2020; Nakyinsige et al., 2012), Halal certification is proof that the procedure for a product is made in a halal way, providing assurance to consumers because the product is safe for Muslim consumption. This is consistent with (Vanany et al., 2020) who say that halal certification is a document issued by an Islamic organization certifying that the products listed in it meet Islamic guidelines. Halal certification in the form of the original Halal logo or official certificate. In addition to showing products or services that are produced or prepared according to Islamic law, halal certification symbolizes trust, satisfaction, cleanliness, health and promotes a good lifestyle. Halal certification is very important for the success of the halal supply chain because it serves as an example for other components and activities in the halal supply chain. The stages for achieving halal certification process are, 1. Understand the halal certification requirements and attend SJH training, 2. Implementing the Halal Assurance System (HAS), 3. Prepare halal certification documents, 4. Register for halal certification (upload data) to www.e- lppommui.org. 5. Monitoring pre audit and payment of certification contract, 6. Audit implementation, 7. Carry out post-audit monitoring and 8. Obtaining Halal Certificate, valid for 2 (two) years. 2.5 Performance Measurement Performance measurement is an important aid for making judgments and making decisions in an organization (Beske et al., 2015; Jääskeläinen, 2018; Keely et al., 2014; Smith & Bititci, 2015; Neely et al., 1995) defines performance measurement as the process of measuring the effectiveness and efficiency of actions. Effectiveness is the extent to https://id.wikipedia.org/wiki/Pangan https://id.wikipedia.org/wiki/Obat-obatan https://id.wikipedia.org/wiki/Kosmetika https://id.wikipedia.org/wiki/Islam https://id.wikipedia.org/wiki/Halal https://id.wikipedia.org/wiki/Halal https://id.wikipedia.org/wiki/Haram https://id.wikipedia.org/wiki/Syubhat http://www.e-lppommui.org/ http://www.e-lppommui.org/ AgBioForum, 23(2), 2021 | 26 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… which customer requirements are met and efficiency measures how economically the company's resources are used when providing a predetermined level of customer satisfaction. The performance measurement system is described as an overall metric unit used to measure the efficiency and effectiveness of actions. There eight main objectives of performance measurement: evaluate, control, budget, motivate, promote, celebrate, learn, and improve. Meanwhile, there are several reasons for an organization to measure performance, namely, success identifications to identify whether the organization is meeting customer requirements: except measuring, how to know that the organization is providing the services/products that customers need, helps understand the process: confirming what is known or revealing what is not known identify where there are bottlenecks, waste, etc., and where improvements are needed, as well as helps ensure that decisions are based on facts, not on assumptions, emotions or beliefs or intuition, shows if the planned repairs actually happen. Presents a number of characteristics found in effective performance measurement systems. These characteristics include: inclusivity (measurement of all relevant aspects), universality (allows comparison under various operating conditions), measurability (required data can be measured), and consistency (measures are consistent with organizational goals). There are several things that underlie performance measurement activities, first, performance measures need to be aligned with the organization's strategy. Second, measurement must influence performance and third, size must be reliable. 2.6 Supply Chain Performance Measurement To fully understand how performance measurement is developed, it is necessary to know how the supply chain is affected by factors such as: supply chain model, industry, relationships, integration and differences between SCM members, SC strategy and strategic objectives, structure, complexity and processes, stakeholders, product demand and characteristics, level of regulation, scope of SC, globalization and geographic scope, number of SC participants, technology, culture and attitudes of the people involved. Other factors include infrastructure, operating knowledge, corporate governance, social climate, innovation. It is also important to note that within a supply chain there may be differences in processes between SC partners or between geographic areas. The supply chain model mostly uses two different performance measures: Costs may include inventory costs and operating costs; A combination of cost and customer response, which includes lead time, out-of-stock probability, and fill rate. Proponents of the supply chain operations reference model (SCOR), supply chain performance should be measured at multiple levels and use five metric categories, namely: reliability, responsiveness, flexibility, cost and efficiency indicators. 2.7 Supply Chain Operation Reference (SCOR) Supply Chain Operation Reference (SCOR) was developed in 1997 by the Supply Chain Council (SCC), a non-profit organization founded in 1996 and has been described as a “systematic approach to identifying, evaluating and monitoring supply chain performance”. Figure 2. Supply Chain Operation Reference (SCOR) Model Source: Supply Chain Council. 2012. SCOR Version 11.0 Supply Chain Council (SCC) has developed the latest model SCOR version 11.0 in 2012 identifying six main management processes. 1. Plan, consist of planning activities related to supply chain operations. This includes gathering customer requirements, gathering information on available resources, and balancing needs and resources to determine planned capabilities and resource gaps. 2. Source, consist of ordering, scheduling, and receiving goods and services. 3. Make, consists of activities related to converting materials or creating content for services. 4. Deliver, consists of activities associated with manufacturing, maintaining, and fulfilling customer orders. This includes receipts or receipts, validation, and creation of customer orders in the form of scheduling delivery of orders such as product selection, packaging, and delivery of customer invoices. 5. Return, consists of activities associated with the return of goods back from customers. This process includes identification of the need for return of goods, return of decisions in the return of goods, scheduling of returns, and delivery & receipt of goods to be developed. As for repair, recycling, renewal, and re-production, it is not explained in the "return" AgBioForum, 23(2), 2021 | 27 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… process but is explained in the "make" process. 6. Enable, consist of activities related to supply chain management. This process involves managing business regulations, performance management, data management, resource management, facilities management, contract management, supply chain network management, regulatory compliance management and risk management. 2.8 SCOR Model Hierarchy Process The SCOR model contains three levels of process detail. Level I is the top level that relates to the type of process. Level II is the configuration level and relates to the process category. Level III is the process element level and is the lowest level in the scope of the SCOR model. By providing a comprehensive set of supply chain performance metrics, industry best practices, and support system functionality, the SCOR model enables enterprises to perform highly thorough, fact-based analysis of all aspects of today's supply chains. Figure 3. SCOR's Four Level Source: Supply Chain Council. 2012. SCOR Version 11.0 According to SCC (1999), the SCOR model integrates well-known concepts of business process re-engineering, benchmarking, and process measurement into a cross- functional framework. The main purpose of the SCOR model is to improve the alignment between the market and the strategic response of the supply chain, based on the premise that the better the alignment, the better the bottom- line performance. The strength of the SCOR model is that it provides a standardized format to facilitate communication. It is a useful tool for the top management of a company to design and reconfigure its supply chain to achieve the desired performance. 3. RESEARCH METHOD This study has been designed as a qualitative exploratory case study research. The analysis is carried out based on the data that has been collected through interviews and observation at the field. Observation is conducted in the clinic to find information related to the company’s supply chain activity of Aesthetic Clinic in Surabaya. Semistructured interviews were conducted with key supply chain personnel of supplier, agents, reseller, customer and the manager of the Aesthetic Clinic. SCOR model version 11.0 is used to identify, evaluate and monitor the supply chain performance”. The supply chain performance measurement in this research is focused on the halal dimension of supply chain activities. The analysis uses the halal supply chain model developed through tracking and tracing both upstream and downstream, tanning, packaging and labeling, organization (collaboration) and halal certification. transportation, storage and handling operations that must comply with Islamic law and meet the requirements of the targeted market. The research is focused on supply chain process business, especially the halal supply chain performance. The analytical process techniques used in this study are: 1. Using SCOR model version 11.0 for identifying halal dimensions in the company's supply chain flow, including plan, source, make, deliver, and return that occurs in skincare products by conducting interviews with the company's internal parties. 2. Using the Halal supply chain model (Tieman), to measure halal supply chain performance analysis that has been done by the company and supply chain member network. AgBioForum, 23(2), 2021 | 28 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… 3. Provide suggestions for improvement on the halal supply chain that has been implemented by the company so far. 4. Giving conclusions of halal performance and suggestions of the research. Figure below shows the steps of the research. Figure 3. Stages of the Research 4. ANALYSIS AND RESULT 4.1 Analyzing the SCOR Model and Halal Supply Chain Based on observations of supply chain paths and activities from suppliers to customers, it can be described. The following figure illustrates the demand and distribution channel activities along the supply chain of Aesthetic beauty clinic products and services. Figure 4. The supply chain paths and activities of Aesthetic beauty clinic products and services The SCOR adjustment of the model is determined using Malaysian halal cosmetic MS2200:1 (2008): Islamic Consumer Goods – Part 1: Cosmetics and Personal Care – General Guidelines, and Indonesian council of Ulama no.26 (2013) about halal standards for cosmetic product. Analysis of halal supply chain performance is carried out by identifying the suitability or incompatibility of SCOR components by comparing the halal ness of supply chain activities with Halal Quality Assurance for Skincare products at suppliers, companies and customers. AgBioForum, 23(2), 2021 | 29 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… Figure 5. The path and Supply Chain member of Aesthetic skincare product Figure 5 above shows the supply chain path and the parties involved in the supply chain of skincare products used by the company, to the final consumer. The research focused on the suitability of supply chain activities with halal quality assurance for skincare products used for aesthetic clinic beauty services and fulfilling consumer demand. Furthermore, the implementation of halal supply chain is classified based on SCOR. The following is the identification of the implementation of halal supply chain of suppliers and the companies based on SCOR components (Plan, Source, Make Deliver, Return and Enabler). 5. SUPPLIER Based on halal standards of cosmetic and skincare product, there are several factors that need to be considered such as, it contains no parts of the human body; does not contain or contain any part or substance of animal origin which is prohibited by Muslims according to Sharia law; it contains no genetically modified ingredients or organisms (GMOs). There are also several things that need to be considered in the make-up process, including: Not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to Sharia law; During the preparation, processing or manufacturing of this product ensures that the product does not touch and remains physically separated from any material that does not meet Sharia law; Devices, equipment, machinery and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients designated as najis by Sharia law and will only be used for halal cosmetics; Devices, equipment and machines that have previously been used or come into contact with najis must be washed and cleaned as required by Sharia law. The packaging material must not be made from any raw material that is designated as unclean by Sharia law and packaging materials do not contain any raw materials that can harm human health. Information obtained from interviews and observations regarding the components of SCOR in relation to the supplier's supply chain activities is as follows: Plan, “...supplier selection plays an important role in maintaining product quality and halal ness because raw materials are the main point in Halal skincare products. Aesthetic clinics choose suppliers who have been certified Halal to ensure that the raw materials used for their skincare products comply with Halal standards.”. Source, “…. the process of ordering to suppliers is carried out by the Aesthetic clinic as needed, to maintain product quality so that storage is not too long. Storage for too long can affect the quality, such as changes in color, odor and changes in the material content.”. Make, “…the use of machines, devices and equipment used by suppliers is in accordance with Sharia law considering that all selected suppliers have Halal certificates. However, one of the factories is still collaborating in producing skincare with another company, which is still unknown whether the partner company is halal certified or not. Mixing the use of machines or tools and storage together with non-halal materials can potentially lead to contamination. Deliver, “…delivery facilities are carried out using company-owned expeditions so that they can maintain cleanliness, product safety so that they can maintain product halal ness and are not contaminated.” Return, “…if there is a product return, the warehouse or clinic collects the returned defective product. Then it is sent back to the factory to ask for a product change. The shipping process is also carried out using company-owned expeditions.” Enabler. “…Clinic management pay attention to all activities in the factory to maintain halal ness of the product.” In terms of implementation of delivery process several things need to be considered. During its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements of Sharia law; The process of packing and labeling must be carried out in a clean and hygienic manner; Each holder must be clearly and indelibly marked or a label must be attached to the holder and the information on the product label must be consistent with Supplier (Production+ Packaging+ labelling) Storage (Warehouse) Distribution (Agents/ Resellers/ clinics) Customers Halal Quality Assurance for Skincare Products Halal Policy AgBioForum, 23(2), 2021 | 30 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… the labeling requirements. Delivering, returning or returning defective or inappropriate products from the warehouse or clinic to the factory must also be carried out in accordance with Sharia law. It is important to pay attention to all activities in the factory in order to maintain product halal ness, because all production activities are carried out by external parties. Table 1. Halal Supply Chain Implementation at the Supplier Side Process Halal Standard related to cosmetic and personal care Halal supply chain Practice at Aesthetic Clinic Support halal Yes No SUPPLIER Plan There are three things to consider when determining the material used, namely: a. Does not contain parts of human organs; b. Does not contain any parts or substances of animal origin which are prohibited by Muslims according to Sharia law, as well as any substances from halal animals that are not slaughtered according to Sharia law; c. Does not contain ingredients or genetically modified organisms (GMOs) that are designated as najis according to Sharia law. Furthermore, for the manufacture of products, there are several things that must be considered, namely: a. Not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to Sharia law; b. During preparation, processing or manufacturing this product does not touch and is physically separated from any material that does not meet Sharia law; c. Devices, equipment, machines and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients that are designated as najis by Sharia law and will only be used for halal cosmetics; d. Devices, equipment and machines that have been previously used or come into contact with najis must be washed and cleaned as required by Sharia law; e. The packaging material must not be made from any raw material that is designated as unclean by Sharia law; f. The packaging material does not contain any raw materials that are considered harmful to human health. Choosing suppliers that is confirmed to be Halal certified, to ensure that the raw materials used for their skincare products are halal. ✓ Source Maintain the condition and quality of the product in terms of storage, to ensure product quality and especially its halal ness. ✓ Make Machines, devices and equipment used by suppliers are in accordance with Sharia law. However, there is one collaborative partner in producing skincare whose halal identification is still unknown. ✓ Deliver The importance things that need to be considered in the delivery process are: a. During its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements or other things that have been determined as unclean by Sharia law; b. The process of packing and labeling must be carried out in a clean and hygienic manner; c. Each container must be clearly and indelibly marked or a label must be attached to the container and the information on the product label must be consistent with the labeling requirements. Delivery is carried out using company expeditions, so that cleanliness, product safety and halal ness can be guaranteed. ✓ Return Shipping back to the factory for product returns is under control because it uses company-owned expeditions. ✓ Enable All activities in the factory to maintain halal ness of the product monitor by company ✓ 6. COMPANY The first three SCOR components, namely plan, resource and make, are all under the control of the company, so there is less chance of contamination. Information obtained from interviews and observations regarding the components of SCOR in relation to the company's supply chain activities is as follows: Plan, “… the office plan process plays a very important role in collecting sales data from year to year to find out customer demand and to balance needs with available AgBioForum, 23(2), 2021 | 31 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… resources.” Resource, “…the office also plays a role in the selection of raw materials, production sites to product packaging in accordance with Halal standards. The clinic office also plays an important role in the source process. All activities such as scheduling, ordering to receiving goods are determined by the office. Until the election activities and overall decisions are in the authority of the office. Make, “…the company checks or controls the production process to the factory on a regular basis to maintain product quality and halal ness. This is because the production process is carried out by external parties or cosmetic tolling service companies. In this process the company also needs to think about service content that is attractive to customers.” Deliver,”… are activities related to the manufacture, maintenance, and fulfillment of customer orders. The company's customers are divided into 3 namely agents, resellers and the last is individual or individual customers. Delivery from the warehouse to clinics, agents and resellers is carried out by company-owned expeditions, so as to ensure that the maintenance and storage of products during delivery is safe, clean, and not contaminated. There is information that the company's products are counterfeited and sold at a much cheaper price by some irresponsible people. Return, “…when there are defective products received by customers for agents and resellers can make direct contact with the office, after that the product can be sent to the warehouse and the warehouse will send back goods that are in good condition to agents and resellers. Meanwhile, individual customers can return directly to the clinic or if the customer buys the product through an agent or reseller, they can also return it to them. Enable “…In the sixth process related to company management. Business activities at every clinic to agents and resellers are monitored by the office so that every activity cannot be carried out without the office's approval. “ Agents are customers with large purchases for sale or remarketing. While resellers are almost the same as agents but the quantity of products purchased is less and there are also those who take products from agents. While on the other hand, individual customers are customers who buy products for personal use. For agents and resellers to place orders directly to the office and products will be sent directly from the warehouse. Meanwhile, individual customers can place orders directly to the Clinic or online through the company's official website or can also place orders to the nearest agent or reseller. This is the most difficult part of the process to maintain product halal ness because the company cannot control it until the end consumer. Therefore, companies need to maintain relationships with customers and maintain product quality and halal ness. Currently, the company provides very strict rules for agents and resellers who will market the company's products. The return process is the activity of returning goods from customers. If there are defective goods received by agents and resellers, they can make direct contact with the office, the product can be sent to the warehouse and the warehouse will send back goods that are in good condition to the agent and reseller. Meanwhile, individual customers can return directly to the clinic or if the customer buys the product through an agent or reseller, they can also return it to them. The most common reason for returns is on account of packaging, such as images on packages that are not clear or blurry, product information is not legible, and so on. As for the content or quality of the product, the company rarely finds any customers making returns. This is because the company's management has tried to maintain product quality and conduct strict selection before the product is marketed or reaches the customer. There are two activities identified as not supporting to conforming to the standards of halal supply chain; firstly, in the “make” activity in supplier side, and secondly in the “delivery” process at company side. 1, The “make” activity at the supplier side. Based on information provided by the clinic manager, supplier of products for the Clinic also receive material from other parties, which do have confirmed status as halal or not. Right now, the material taken from other parties is around 25%. Figure-6 shows the fishbone diagram analysis in the process, there may be a potential for contamination with non-halal products during production, both from using the same equipment, and concurrent storage areas. The first factor is from the machine, in this process, skincare production is carried out by external parties who also receive production for other parties, so naturally the machines, tools, etc. owned by the factory are used in conjunction with other products. The second factor is people, or the negligence of the owner or the office that does not care about the production environment. It is unfortunate if these other products do not have a Halal certificate or use ingredients that are not in accordance with Halal standards, which can contaminate the halal skincare products. The third factor is the environment or environment. Storage places such as containers, rooms or locations in the same or simultaneously with other non- halal products can also diminish the halal ness of these products. For this reason, it is necessary to separate halal and non-halal products. And the last factor is material, halal skincare products can fade if they are contaminated with ingredients from other non-halal skincare products. Table 2. Halal Supply Chain Implementation at the Company Side Process Halal Standard related to cosmetic and personal care Halal supply chain Practice at Aesthetic Clinic Support halal AgBioForum, 23(2), 2021 | 32 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… Yes No COMPANY Plan There are three things to consider when determining the material used, namely: a. Does not contain parts of human organs; b. Does not contain any parts or substances of animal origin which are prohibited by Muslims according to Sharia law, as well as any substances from halal animals that are not slaughtered according to Sharia law; c. Does not contain ingredients or genetically modified organisms (GMOs) that are designated as najis according to Sharia law. Furthermore, for the manufacture of products, there are several things that must be considered, namely: a. Not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to Sharia law; b. During preparation, processing or manufacturing, this product does not touch and is physically separated from any material that does not meet Sharia law; c. Devices, equipment, machines and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients that are designated as najis by Sharia law and will only be used for halal cosmetics; d. Devices, equipment and machines that have been previously used or come into contact with najis must be washed and cleaned as required by Sharia law; e. The packaging material must not be made from any raw material that is designated as unclean by Sharia law; the packaging material does not contain any raw materials that are considered harmful to human health. Sales data collected to determine customer demand and to balance needs with available resources. ✓ Source Selecting raw materials, production sites to product packaging in accordance with Halal standards. ✓ Make Company checking or controlling the production process to the factory on a regular basis to maintain product quality and halalness. ✓ Deliver The important factors that need to be considered in the delivery process are: a. During its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements or other things that have been determined as unclean by Sharia law; b. The process of packing and labeling must be carried out in a clean and hygienic manner; c. Each container must be clearly and indelibly marked or a label must be attached to the container and the information on the product label must be consistent with the labeling requirements. Product delivery is carried out using the owner's clinic expedition so that it can regulate and ensure the halal ness of the product during shipping from contamination. However, there are sales from agents and resellers directly to end consumers that have the potential for product counterfeiting. ✓ Return Agents and resellers make direct contact with the office and products can be sent back to the warehouse. ✓ Enable Business activities at each clinic to agents and resellers are monitored by the office. ✓ AgBioForum, 23(2), 2021 | 33 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… Figure 6. “Make” Process Fishbone Diagram 2. The “deliver” activity in the company side. In the delivery process at the company side may be declared inappropriate, based on various sources such as Youtube where there are customer reviews from members of the public who say that skincare products are fake and many are sold freely in the market. Manager of Aesthetic Clinic said, “…We have taken firm action against several people who cheated on the products and have reported them to the authorities." The Aesthetic Clinic’s Youtube account also reviewed on one of the their product in a user review comment: "Hi dear, make sure you buy Aesthetic clinic products at an official agent who has a registered ID card from the center, avoid buying below the official price because it has the potential to be a fake product. Make sure to buy directly at the official store." From the statement, it is known that there has been counterfeiting of skin care products used by Aesthetic Clinics. Figure 7.” Delivery” Process Fishbone Diagram The fishbone diagram in Figure7 shows that the discrepancy in this process is the presence of counterfeit products on the market. This is certainly detrimental to the clinic, which is caused by several factors. The first factor is people, because of the lack of control before and during delivery, the office does not track product shipments in detail and does not follow procedures such as regular product checks. In addition, the office does not pay attention to the authenticity of the product, such as providing a sign or identification mark that can distinguish it from counterfeit products. The second factor is the environmental factor. There are so many parties who make clinical cloning products and sell them freely at a lower price. This can be done easily by simply changing the product content but using the exact same packaging as the clinic's packaging. In addition, clinic skincare products can also be obtained freely on the market. This is negligence on the part of the office due to lack of control over the distributor. The last factor is the material; clinic products are often found by customers with different textures, colors and so on. This can occur due to the wrong product placement or storage which is certainly related to temperature. In addition, it could also be due to the use of inconsistent raw materials. Material factors can also be caused by damage to the seal or packaging received by the customer. Potential acceptance of counterfeit products by customers Environment Many fake product Many parties sell products illegally Lack of company control over distributors Lack of control before and during delivery Not following the SOP Lack of attention to product authenticity People Material The seal on the packaging is broken Courier/shipper error The color of the product is change Storage error Potential contamina tion with non-halal products Machine People Material Environment Use of the same machines, and tools Don't know the product is produced in the same factory Potential contamination with ingredients of the non- halal material Same storage place with non-halal products AgBioForum, 23(2), 2021 | 34 Usman, Manzil and Rozar. — Assessing Halal Supply Chain Performance of Skincare Product Through SCOR Model at Aesthetic Clinic… 7. CONCLUSION Based on the analysis of halal supply chain implementation at the supplier and company side using the SCOR version 11.0 model and referring to MS2200:1 (2008): Islamic Consumer Goods – Part 1: Cosmetics and Personal Care – General Guidelines and Indonesian Council of Ulama no.26 (2013) regarding halal standards for cosmetic products, it is found that there are two supply chain activities that are not in accordance with halal standards. First, in the “make” component, it was found that the entire material production process was carried out by an external party. The results of the fishbone analysis show that, one of the supplier factories is still cooperating with or accepting the manufacture of other company's products whose halal status is still unknown, thus triggering potential contamination with non-halal products. Second, at the "delivery" component carried out by the company, it was found that there are sales from agents and resellers directly to end consumers that have the potential for product counterfeiting. Customers can buy products directly from the clinic or through agents or resellers. The obstacle faced by company is the existence of counterfeit skin care and cosmetic products that are sold freely in the market by irresponsible parties. As a result, consumers may buy counterfeit products, which can affect the image and halalness of the company's products. 8. RESEARCH IMPLICATION, LIMITATION AND FUTURE RESEARCH The current study has a number of research implications. First, a company needs to provide the Halal logo on the clinic's signage as well as all skincare products so that it can be more convincing or attractive for customers. Second, it is important to further review and recheck with the factory to ensure that the clinic skincare products are not contaminated with non halal ingredients. Third, it is necessary to follow up on irresponsible conduct by individuals and companies who sell illegal and counterfeit products in order to guarantee the quality and halal ness of products in the market. Aesthetic Clinic needs to re- support the make process on the supplier side and the delivery process on the company side because during the process the greatest risk of contamination occurs to the halal products and their supply chain. A key limitation of the present study is that it only focuses on the case of the halal supply chain in the supply chain network of skin care and beauty products. Moreover, the analysis is only focused on the suitability of the supply chain's halal performance with halal standards. 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