Halal Logistics, an emerging industry requirement!

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This week the World Halal Summit is held in Kuala Lumpur, a halal week covering six halal forums and the 12th international halal showcase MIHAS. This platform is an annual gathering of world business and academic leaders in addressing current issues and shaping the future of halal. Malaysia has been the front-runner in halal standards, halal park development and new applications of halal (such as halal logistics, retailing and tourism). As a result of joint efforts between the Malaysian Government through HDC and JAKIM and the private sector Malaysia has become the global halal hub and important reference how to organise halal systems. Furthermore Malaysia is heading scientific research in halal logistics and supply chain management by the universities UiTM, UM, UMP and Unirazak. Their research is shaping our halal supply chains of tomorrow.

Halal industry requirements are not static and new halal standards in Malaysia are covering new products (cosmetics, pharmaceuticals, leather products) and new applications, allowing key supply chain partners such as suppliers, producers, logistics service providers, distributors and retailers to get halal certified. Halal is therefore moving from a product approach (where halal is mainly addressed in slaughtering and production) towards a supply chain approach (where halal is addressed all the way, from source up to the point of consumer purchase: the supermarket or restaurant).

With a higher halal awareness by the Muslim consumer, halal logistics is becoming more important in key Muslim markets like Malaysia, Indonesia, Brunei and the Middle East in providing a higher level of halal assurance for the Muslim consumer and a better way of organising halal supply chains for brand owners. Also in non-Muslim countries there are halal logistics initiatives, like in France by Global Halal Logistics (GHL) connecting Europe with Asia, the Middle East and Africa. Over the past five years we have seen the first wave of local logistics service providers in Malaysia (pioneers like Century Logistics, Cold Chain Network, Kontena Nasional and MISC Logistics) offering halal storage and transport services. Over the next five years we can expect the second wave, where international logistics service providers obtain halal certification and provide regional and global integrated halal logistics solutions.

The logistics service provider plays a critical role in halal supply chains, in delivering synergy advantages in terms of protecting the halal integrity of cargo, standardisation of halal assets, sharing of halal information (‘halal supply chain’ code and halal specifications), pooling of resources, bundling of halal volumes, and optimising halal supply chains. Halal producers and retailers can make use of their expertise, global network and ability to consolidate halal cargo flows.

Halal logistics is a system of physical segregation in transportation, storage and sea/air terminal operations from non-halal products and a proper identification & communication of the halal status to avoid any mixing of halal and non-halal cargo at any stage in the supply chain. The first halal logistics service providers were certified under the MS 1500:2009 (the Malaysian standard on halal food, which was used for the certification of a halal warehouse, certified by JAKIM) or the MS 1900:2005/2014 (Shariah-based quality management system; certified by SIRIM). Today there is a new halal logistics standard: MS 2400:2010 (transportation, warehousing and retail; certified by JAKIM), replacing the MS 1500:2009 for the logistics sector. As halal supply chains are often global supply chains, crossing international borders, it is also important to comply with international halal logistics standards, such as the IHIAS 0100:2010.

Halal logistics & supply chain management is an emerging requirement for halal food, cosmetics and pharmaceutical industries. Halal needs to be addressed all the way!

Source: New Straits Times, 1 April 2015

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