Design Performance Measurement Model for Retail Services Using Halal Supply Chain Operation Reference (SCOR): A Case Study in a Retail in Indonesia Elisa Kusrini, Qurtubi Qurtubi, and Nafiatul Husna Fathoni Department of Industrial Engineering, Universitas Islam Indonesia, Yogyakarta, Indonesia Email: elisa_kusrini@yahoo.com, qurtubi@uii.ac.id, nafihusnaa@gmail.com Abstract—The purpose of this study is to design process- based performance measurements on retail businesses that integrate the value of halal in its business processes. Halal means everything that is allowed according to Islamic rules. The model developed is a Supply Chain Operation Reference (SCOR) model because it has advantages to measure process-based performance in detail. The design of the measurement model begins with designing criteria derived from performance measurement literature, halal performance literature and expert opinions. In order to obtain the importance weight of each criterion toward performance score, a questionnaire to weighted the criteria are distributed to expert and analyzed the answers using the Analytical Hierarchy Process (AHP) method. The final performance value is obtained from the multiplication of the weights with the performance values that have been standardized using the normalization (SNORM) standard. This research is done in one of the retail in Indonesia. The results of this study obtained 22 criteria with 4 halal criteria found in the process plan, source and deliver and return. The results of this study are useful for performance improvement, especially in halal retail business. Index Terms— performance measurement, halal supply chain, Supply Chain Operation Reference (SCOR), retail business I. INTRODUCTION Performance is one of the important factors in maintaining the existence of companies. Performance is a success rate in order to realize the goals of the company. Therefore, performance measurement is essential for the purpose of achieving a successful business process [1]. Business competition does not only happen to the organization but has also grown up to the supply chain process. Recently, the measurement of supply chain performance has received much attention from researchers and practitioners [2], as focusing on supply chain management can reduce costs, increase market share and sales, and build relationships either with the members involved in it [3]. Manuscript received July 20, 2018; revised October 30, 2018. Performance measurement design can be done by using performance measurement method of Supply Chain Operation Reference (SCOR) [4]. The SCOR model provides a unique framework, SCOR supports communication between supply chain partners and improves supply chain management effectiveness and provides improvements. The SCOR model is a management tool that can handle, improve, and communicate supply chain management decisions within a company to meet customer demand by measuring reliability, responsiveness, flexibility, cost and asset company [5]. The advantage of performance measurement by using SCOR, the company can measure supply chain performance objectively and detailed based on existing data and can identify improvements that need to be done. In the process of improvement is needed a tool for decision making to determine which factors should be prioritized, the tool that can be used is AHP (Analytical Hierarchy Process). AHP is the most effective method or decision-making tool for complex problems by simplifying the search for solutions to the problems being experienced [6]. Previous research conducted by [7] the use of SCOR models has a positive impact on customer and company relationships because reliability, fast response and corporate flexibility will affect company performance. In addition, research conducted by [8] performance measurement is done by combining it with AHP method which aims to know which performance becomes a priority so as to facilitate decision making. Currently, the design of performance measurement models in service companies is still rarely done. The research focus on cases study in a retail company specializing in business shari’a retail. It sells all kinds of daily necessities products in accordance with Islamic Shari'a in every aspect as well as the products sold at each outlet is a product that is 100% halal and thoyib. Halal and thoyib products are very influential in everyday life considering Indonesia is one of the countries whose majority population embraced Islam. Currently, the population of Indonesia is more aware of the importance of halal products in accordance with Islamic Shari'a. Halal itself means everything that is allowed in accordance with Islamic Shari'a. So that the presence of 218 ©2018 Journal of Advanced Management Science Journal of Advanced Management Science Vol. 6, No. 4, December 2018 doi: 10.18178/joams.6.4.218-221