A new framework for risks mitigation halal food supply chain: a case study in Indonesia

Risk management has become a vital component of the supply chain, including the halal food supply chain, due to market volatility in the global economy. Similarly to conventional food supply chains, halal food supply chains are vulnerable to some risk factors. A crucial early stage in addressing risk is determining risk elements and assessing their weight. Ineffective risk mitigation will be avoided through risk elements. This study introduces a new framework for mitigating the halal food supply chain by combining the Delphi method, the Modified Risk Priority Number, and the House of Risk. The proposed framework identifies relevant risks in the halal food supply chain context using the Delphi method. To assess the risks of the halal food supply chain, the modified Risk Priority Number method is adopted to combine the Risk Priority Number procedure with the analytical hierarchy process. In addition, it is proposed that the House of Risk mitigate halal food supply chain priorities. A case study of the Indonesian food industry is presented to apply this framework in mitigating the halal food supply chain. The results demonstrate that this framework can be applied effectively to real-world situations. The Delphi procedure successfully identified 25 relevant halal food supply chain risks from the 36 risk elements identified. The activity of drying raw materials in the open air has the highest score according to the Modified Risk Priority Number procedure, indicating that it has the most significant potential to contaminate raw materials with non-halal components. The House of Risk procedure proposes a mitigation strategy consisting of a sterile, non-halal-free drying area. Based on this research, this framework makes a novel theoretical contribution in introducing a novel approach to effectively manage halal supply chain risk management.