Halal Logistics, an emerging industry requirement!

-
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

Comments

Post a Comment

Popular posts from this blog

The International Halal Logistics Standard: IHIAS 0100:2010

-
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 s...
Read more

The Halal Supply Chain Model

-
Image
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) ...
Read more

Introducing the Concept of Halal Reputation Capital

-
Image
Introduction A robust halal reputation holds both intangible and tangible advantages in Muslim markets, resonating with stakeholders such as Muslim consumers, societies, employees, and shareholders. Building a strong halal reputation is essential for fostering positive sentiments toward the organisation and its brands at various levels, ensuring sustainability and market presence. Beyond the direct impact on sales, a solid halal reputation attracts top-tier talent and garners positive social media coverage. This corporate standing should be considered a vital component of market capitalisation, coining the term “halal reputation capital,” which proves to be invaluable for companies, ranging from millions for local enterprises to billions for multinational corporations. Surprisingly, most businesses operating in Muslim markets lack strategies to measure and fortify their halal reputation capital. Why Halal Reputation Capital Matters In the past decade, numerous local and international b...
Read more