Halal Supply Chain Management

In my discussions on halal reputation management with brand owners, I often find a higher concern on halal reputation management with manufacturers of consumer products as compared to manufacturers of ingredients (to consumer product manufacturers). The argument I often hear from ingredient manufacturers is that in case of a halal issue of a consumer product, the consumer brand owner is exposed, not the ingredient producer.  Is that a correct assumption that halal reputation management is not important for ingredient manufacturers? Why halal reputation management? Halal is not static but in fact dynamic, moving away from a  product approach , towards a  halal supply chain  and  halal value chain . This evolution of halal comes together with more stringent halal regulations by leading Muslim (majority) countries for manufacturers but also with new halal standards like Malaysia’s halal supply chain management system standard (MS 2400:2019). Also, under the OIC/SMI...

According to the latest State of the Global Islamic Economy Report 2022, the halal market is expected to be valued an estimated US$2.8 trillion by 2025 at a 4-year Cumulative Annual Growth Rate (CAGR) of 7.5%.Next to the more mature halal food market, the halal market today has expanded far beyond food into modest fashion, media & recreation, travel, pharmaceuticals & healthcare, cosmetics, logistics, and more. The right halal certificate gives companies optimal market access to these fast-growing halal markets. As a result, many companies in Muslim (majority) and non-Muslim countries have embraced halal certification of their products and services. What few companies realise, however, is that once companies are halal certified, losing your halal certificate is a problem and in fact a major corporate reputation risk for companies operating in Muslim markets. There are numerous examples of big companies that (temporarily) lost their halal certificate, and experienced major losse...

Negative publicity about a halal incident becomes a threat to both sales and corporate reputation of companies. In a highly connected world, a halal issue can easily snowball into a halal crisis. Companies should expect a halal crisis every 10 years. A halal crisis could result in lost sales in the range of USD 10-50 million for multinational companies, USD 5-10 million for large companies, and up to USD 5 million for SMEs. The value of corporate reputation is an approximately 20% of the market cap of a company. In terms of corporate reputation damages, the lost value could be in magnitude of easily triple the lost sales. How best to protect and optimise your halal reputation asset? A halal crisis   With a halal issue in Muslim markets, a whirlpool easily becomes a maelstrom, with a vortex dragging companies deep under. The lifebuoy thrown by corporate communication often has no lifeline attached due to many gaps in the halal crisis manual and halal risk management. The trigger of ...

Halal risk management practices of most companies are passive and show serious gaps, resulting in a defective halal assurance system and risk management. Halal risk prevention, mitigation, and recovery processes are critical for effective halal risk management control that ensure both robust and resilient halal operations and supply chains. On October 1st, 2022, IPMI International Business School starts the Halal Business Management MasterClass series. Every Saturday morning a 2 hours online MasterClass and networking at 9 am Jakarta time (GMT+7). I would like to invite you to join our halal business management management MasterClass. The complete programme will include 8 modules: Saturday, 1 October 2022: What Is Halal Excellence?  Saturday, 15 October 2022: Halal Supply Chain Management Saturday, 22 October 2022: Halal Logistics & Retail Saturday, 29 October 2022: Halal Purchasing Saturday, 5 November 2022: Halal Branding Saturday, 12 November 2022: Halal Marketing ...