Halal Supply Chain Management

T he Muslim consumer is increasingly expecting companies certified as halal in Muslim-majority countries to uphold a genuine commitment to halal principles. It's essential for companies to understand that obtaining halal certification is merely the beginning, not the ultimate objective. Rather, it serves as an entry point to the halal industry. Establishing and maintaining a strong halal reputation is crucial, as it safeguards a company's most valuable asset: its corporate halal reputati on. The initial step involves assessing your halal risk and reputation performance. LBB International has been assisting multinational companies in evaluating their halal risk and reputation performance in Muslim-majority countries. For more information on the Halal Risk Report 2024, please contact us . For more information on the Halal Risk Management and Halal Reputation Management MasterClass, please visit Halal Business Management . Dr. Marco Tieman CEO, LBB International

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

The halal industry is a fast-growing industry, today covering not only food but also non-food (such as cosmetics, pharmaceuticals, and modest fashion) as well as services (hotel, restaurant, café, logistics, and tourism). The halal industry is further evolving in leading halal markets in Asia, the Middle East and Africa. Being at the forefront of these halal megatrends will be important for brand owners to maximise sales and protect your licence to operate in Muslim markets. Brand owners need to understand these megatrends in the halal industry and be proactive on emerging halal requirements in order to build the world’s trusted halal brands. 1. Halal requires a supply chain approach Halal requirements are moving away from a product approach, towards a halal supply chain approach. In a halal supply chain approach, halal requirements need to extend from source all the way to the point of consumer purchase (retail, restaurant, e-commerce). Although end-to-end halal assurance has been ass