Halal Supply Chain Management

25-26 November 2013 was the Global Islamic Economy Summit held in Dubai. I was part of a panel discussion on controlling supply chain and logistics integrity. As I have attended various Islamic and Halal conferences all over the world, this Summit was of a different order. This summit brought together global halal industry and Islamic finance experts, well orchestrated by the organisers, and about 3,000 people attending. From this summit it is clear that the Middle East, led by Dubai, want to take a more active role in developing and shaping the Global Islamic Economy. Dubai has drafted a strategic roadmap to become the global hub of the Islamic economy, wanting to capture 10% of the global halal trade. It was also clear from the various speakers at this summit, that halal requires an integral supply chain approach, something which is slowly recognised by the brand owners and manufacturers of halal food, cosmetics and pharmaceutical products. According to the State of the Global Isla

In establishing an integrated halal supply chain (from 'farm to fork' or more precise from 'source to the point of consumer purchase') and optimise the performance of your halal supply chain, it is important to realise what are the components or so called 'logistics building blocks' of a halal supply chain. The figure below presents and overview of the logistics building blocks in organising your halal supply chain. I will discuss each component accordingly. By developing an integrated halal supply chain, the start is the right intention. Halal needs commitment from the top management through a halal policy , which acts as basis for the organisation of the supply chain. There should be a strategic fit between the corporate strategy and the halal policy. Amongst others, the halal policy addresses (1) the responsibility of an organisation in protecting the halal integrity along the supply chain; (2) the scope of halal certification of the organisation; (3)

As Halal is extending towards supply chain management (similar to food safety, where halal integrity is secured from source to the point of consumer purchase : the supermarket or restaurant) it is important to look at halal logistics. Logistics assists supply chains in connecting the individual suppliers, supplier of suppliers, customers, customers of customers to the final consumer: creating a supply network bringing the final halal product to the consumer. Today, even with a simple product as bread, the flour might be imported from China, butter from New Zealand, bread improvers from the Netherlands, seeds from Iran, etc. Supply chains are therefore  complex and international . Complex supply chains , due to the many different supply chain partners bring vulnerabilities along, requiring a ROBUST design in order to protect the halal integrity as good as possible. HalalSecure.com  for example is assisting brand owners for example to better organise and protect their halal supply cha

The Islamic economy is emerging as a new paradigm that will be driving growth over the coming decade. The Global Islamic Economy Summit 2013 is the first event to bring together world-class experts in critical industry sectors that span geographic regions and cultural boundaries to directly address the greatest challenges and opportunities in this new economy.  One of the featured topics is:  Controlling Supply Chain and Logistics Integrity: Turning Risk into  Investment Opportunities   The importance of maintaining the integrity of the Halal supply chain, from the farm to the fork, has  become an increasingly relevant issue. The development of Halal logistics, with the creation of Halal  distribution hubs and port-to-port protocols by several port authorities, has created a new option within  the logistics, storage and transportation sectors. To what extent does this add genuine value for the end  consumer and investors, and what are the long-term implications of this n

Following the success of the June International summit held in Malaysia which gathered representation of 80+ Governments – Retailers, Manufacturers across Pharmaceuticals, F&B, Cosmetics – Standards & Academia – Supply Chain & Logistics Suppliers The ‘3rd Global Halal Trade & Logistics Summit’ is a unique global platform for the exchange of ideas and information, networking and business development for professionals in the halal compliance, manufacturing, logistics and supply chain industries internationally to share best practice and develop new business networks. The programme runs concurrently with ‘The Global Trade Development Week’, 21-24 October, Dubai and includes a site tour programme to visit leading industrial locations & facilities. Dr. Marco Tieman will conduct a Post Summit Workshop on Wednesday 23 October on halal production requirements, practices and standards and halal logistics. http://www.kwhalal.com/ http://kwg.com.sg/wp-content/uploads/2013

Halal leads to stronger partnerships with suppliers (strategic and leverage products) and adopting various strategies to secure continuity of supply (bottleneck products). Therefore conventional commodity categories in certain industries can be allocated different for halal certified products and services, resulting in possible different product and supplier strategies. Halal requirements also have impact on the purchasing process; its tactical and operational purchasing activities.For halal certified companies it is important to extend halal towards purchasing. Effective alignment is required between the halal policy, procurement strategy and purchasing process. A procurement organisation can progress in three stages, from viewing halal compliance as opportunity, making its supply chains halal, to making its value chain halal. 10.1108/JIMA-01-2012-0004

There is a preferred higher level of segregation in a Muslim country than a non-Muslim country. A Muslim country has a higher willingness to pay for a halal logistics system as compared to a non-Muslim country. Furthermore, there lies a heavy responsibility with the manufacturer to extend halal assurance towards supply chain management. http://www.emeraldinsight.com/journals.htm?articleid=17090002&show=abstract

This research paper aims to establish the principles of halal logistics. This exploratory research paper is based on a large discussion group held in Malaysia to define the scope of halal logistics, its principles and foundation for Muslim and non-Muslim countries. Halal logistics covers warehousing, transportation and terminal operations. The establishment of these principles serves as a guide for the creation of a global halal logistics system; minimising hardship for the halal industry; define cross-contamination between halal and haram and how to avoid it; create an evolution of a complete halal value chain and supply chain; and benchmark with existing standards and best practices. For Muslim countries, halal logistics is based on avoiding direct contact with haram, addressing the risk of contamination, and perception of the Muslim consumer. For non-Muslim countries, halal logistics is only based on avoiding direct contact with haram and addressing the risk of contamination. Since