Journal of Islamic Marketing

The application of Halal in supply chain management: in-depth interviews

Marco Tieman,
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JIMA
2,2 The application of Halal in supply
chain management: in-depth
interviews
186
Marco Tieman
Business Management Faculty,
Universiti Teknologi MARA, Shah Alam, Malaysia

Abstract
Purpose – The paper aims to describe the basic requirements of Halal food supply chains in order to
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ensure the integrity of Halal food at the point of consumption, which is an obligation for Muslims.
Design/methodology/approach – This exploratory research paper is based on in-depth interviews
to better understand what is Halal, the Islamic sources that are essential for Halal supply chains, and
identify the guidelines and principles which are essential for the integrity of Halal supply chains.
Findings – Halal supply chain management is based on avoiding direct contact with Haram,
addressing the risk of contamination and ensuring that it is in line with the perception of the Muslim
consumer. In particular, the product and market characteristics are important variables in the supply
chain management of Halal supply chains. Further empirical research is needed to measure the
perception of the Muslim consumer. A better understanding is also required into the principles in
organising the Halal supply chain for different markets (Muslim and non-Muslim countries). There is a
need for a Halal supply chain model that is able to describe and optimise Halal supply chains.
Research limitations/implications – Since this paper is an exploratory study, it provides some
insights into the considerations in organising Halal supply chains. However, further qualitative and
quantitative research is needed in order to provide the industry with concrete tools to design effective
Halal supply chains.
Practical implications – In response to the logistics industry that started with Halal logistics
solutions, the Halal certified food industries needs to know whether and how to start with a Halal
supply chain approach. This paper presented key considerations to address in organising effective
Halal supply chains.
Social implications – Halal in non-Muslim countries is not very well understood, where in logistics
only the aspect of avoiding of contact with Haram is addressed mainly through packaging. This
article presents a better understanding of Halal and the application of Halal in supply chain
management.
Originality/value – There is a lack of academic research in Halal logistics and supply chain
management. This exploratory research provides some basic fundamentals on the supply chain
management of Halal products.
Keywords Halal supply chain, Supply chain management, Halal logistics, Islamic culture, Halal, Islam
Paper type Research paper

Journal of Islamic Marketing
Vol. 2 No. 2, 2011
pp. 186-195
q Emerald Group Publishing Limited
1759-0833
DOI 10.1108/17590831111139893
The author would like to thank the following people for their participation in the in-depth interviews:
Mr Darhim Hashim (IHI Alliance Ltd, Malaysia), Mr Ahmad Azudin Abd Khalid (IHI Alliance Ltd,
Malaysia), Professor Dr Abd-Elaziem Farouk (Brunei Darussalem University, Brunei),
Professor Dr Yaakob Che Man (Universiti Putra Malaysia, Malaysia), Dr Suhaimi Ab. Rahman
(Universiti Putra Malaysia, Malaysia), Associate Professor Dr Mohamad Akram Laldin
(International Shari’ah Research Academy for Islamic Finance, Malaysia), Associate Professor
Ghaffarullah (Universiti Teknologi Mara, Malaysia), Dr Nor Azman (Halal Industry Development
Corporation, Malaysia), Mr Irfan Sungkar (University of Malaya, Malaysia).
 1. Introduction Halal in
Halal is a Quranic term that means permitted, allowed, lawful or legal. Its opposite is supply chain
Haram (forbidden, unlawful or illegal). In Islam and according to Shariah (Islamic Law),
all issues concerning Halal or Haram and even all disputes should be referred to Quran management
and Sunnah (prophetic tradition) (Doi, 2007). Halal and Haram are universal terms that
apply to each activity carried out by man, whether it is related to his ibadat or muamalat
or mua’sharah. However, Halal in relation to food is specified by the Quran and the 187
Sunnah (Hussaini, 1993; Mohamad, 2005). As also argued by Laldin (2006) is that new
developments, such as Halal supply chain management, require a concerted effort to
understand and expand the deductions from the main sources of Islam: the Quran and
Sunnah.
Muslims want assurance that the products they consume are a true manifestation of
Islamic principles, plus they should be toyyib, meaning wholesome and good (World
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Halal Forum, 2009). As the Halal integrity of the product is a result of the various
activities in the supply chain, a supply chain approach is important to guarantee the
Halal integrity at the point of consumption. According to Bonne and Verbeke (2008)
Muslim consumers lack information on the supply chain and cannot be reassured that
no cross-contamination has taken place. This is one of the main reasons that Muslims
in Europe have been buying their Halal products from Muslim butchers in non-Islamic
countries, as the Muslim butcher then carries the responsibility to God to ensure the
meat is Halal (not anymore the consumer). Although current Halal standards regulate
food production, preparation, handling and storage to some degree, it does not ensure
that the product is Halal at the point of consumption (Tieman, 2006). In particular,
Halal logistics capabilities are critical in ensuring the Halal integrity of the supply
chain from farm to fork (Tieman, 2007).
What does a Halal product and a Halal brand really means? In the pure technical
sense, a Halal product is a product fit to consume for Muslims. This can be food,
cosmetics (like tooth paste) or even relate to pharmaceuticals (like cough syrup). A trust
mark (Halal logo) can be placed on the Halal products for Muslims to know that the
product is Halal (Cheng, 2008). Recently, Halal status products also have extended to
lifestyle (like clothing) and services (like Islamic banking, hospitality, logistics, etc.)
(Alserhan, 2010b). Halal as a concept cannot be fully encapsulated within the construct
of product, Halal reaches much further into the disciplines of management of the
company, organisational behavior, culture anthropology and sociology (Wilson and Liu,
2010; Zakaria and Abdul-Talib, 2010). As argued by Lada et al. (2009), Alserhan (2010a),
Ibrahim and Mokhtarudin (2010) and Wilson and Liu (2010), Halal needs a supply chain
approach. Halal should also take into consideration the spiritual needs of the Muslim
consumers (Alserhan, 2010b) and Islamic values (Zakaria and Abdul-Talib, 2010).
Zakaria and Abdul-Talib (2010) argue for a cultural perspective of market orientation
and created an Islamic market-oriented cultural model. Hofstede’s (1991) onion diagram
provides a useful framework to identify the different aspects of Islamic culture. Hofstede
and McCrae (2004) describe culture as the collective programming of the mind.
He stresses that culture is a collective attribute, not distinctly visible, but manifested in
behaviors and common to some but not all people. The onion diagram from Hofstede
(1991) describes culture as an onion with different layers consisting (from core to outer
layer) of: values, rituals, heroes and symbols.
 JIMA The word Halal and its Arabic character is an important mark (symbol), which
2,2 symbolises Halal. Prophet Muhammad exhibited the best conduct, and his life is the best
example to emulate and follow (hero) (Hussaini, 1993, p. 7). The records of the actions
and sayings of the Prophet have been written in the Sunnah (Laldin, 2006, p. 2).
Amongst others, important procedures (rituals) in Islam are the Islamic way of
slaughtering and for certain Islamic schools of thought (like the Shafi’i) also prescribe
188 ritual cleansing, better known as Samak. The core (values) of the Islamic culture is based
on the Holy Quran, which is the vouchsafed Word of Allah (Laldin, 2006, p. 2).
By adopting this model for Islamic culture, the following model can be drafted as shown
in Figure 1.
Although it can be argued to classify Halal products and brands according to
country of origin and focus market (Alserhan, 2010b), it could also be argued that Halal
goes through an evolution as shown in Table I.
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In the first phase (Muslim company) the Halal supply chain is purely based on trust.
A Muslim is buying from another Muslim, and therefore the seller will be responsible to
God for ensuring that the food he/she is selling is Halal. In this way, the buyer has
sufficient confidence that the Halal he/she is consuming is Halal. In the second phase
(Halal product) an important basis for trust is the Halal certification (mark) behind this
product as shown on the consumer product or outlet (in case of a meat shop or
restaurant). This Halal trust mark provides assurance that the product, its source and
facility have been verified by an independent Islamic Certification Authority to be
compliant with Shariah. In the third phase (Halal supply chain), the Halal trust mark
provides assurance that the entire supply chain is compliant with Shariah, which is
audited and certified by an Islamic Certification Authority. The third phase recognises
the sensitivity of supply chains and ensures robust Halal supply chains that better
protect the Halal integrity for the end-consumer. In the fourth phase (Halal value chain),

Halal logo

Prophet Muhammad

Islamic slaughtering

Quran

Samak

Sunnah

Halal brand
Figure 1.
Islamic culture
Source: Adopted from Hofstede (1991)
 Halal in
Phase 1 2 3 4
Muslim Halal supply supply chain
Name company Halal product chain Halal value chain management
Characteristics Based on trust Based on local Halal Based on Islamic
of Halal standard complex set of multinational food
supply chains Source is Halal certified local, regional companies that 189
and control entire
international supply chains from
Halal standards seed to fork
International Islamic science
Halal based Halal supply
manufacturing chains
and distribution One international
zones Islamic currency
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Issues in Halal Lack of Halal Efficiency of Halal Halal standards Lack of Islamic and
supply chains certification certification are not Halal researchers
authority Transparency of Halal harmonised Lack of food
Halal integrity standard Lack of certified scientists
concerns on Lack of Halal certified logistics service Ownership of
imports ingredients providers natural resources
Example Many countries GCC countries, Indonesia, Malaysia and None
countries in the Middle Singapore, Thailand, Brunei are in the
East, Africa, the USA, Canada, France, early stage of
Asia and The Netherlands, phase 3
Eastern Europe Australia, New Zealand,
Bosnia, the UK
Table I.
Source: Original Evolution of Halal

Halal covers the entire value chain. In this phase, Islamic food multinationals control
entire supply chains from “seed to fork”. (Islamic) science is important to ensure
high-performance supply chains. As alternative to the highly fluctuating US dollar and
Euro, an international Islamic currency will be used for international Halal trade. Instead
of current green movements that have the ambition of being environmental neutral, the
future Halal value chain will create value, value for the community as well as the Earth.

2. Methodology
The in-depth interview envisions obtaining a better understanding from the Shariah
perspective, what the application is of Halal for supply chain management. According
to Hannabuss (1996), Wright (1996), Maxwell (2005) and Sekaran (2007) the in-depth
interview is an effective tool in order to obtain a rich understanding of a new
phenomenon, such as Halal supply chain management is.
The in-depth interviews intend to understand the application of Halal in supply
chain management. More specifically, what needs to be understood is:
.
What is Halal from a logistics, supply chain management point of view?
.
Which Islamic sources are essential for Halal supply chain management?
. Which guidelines and principles are essential for the Halal integrity of Halal
supply chains?
 JIMA Purposive sampling was carried out to meet with international leading Shariah and
2,2 Halal experts, which are based in Malaysia and Brunei. The persons interviewed were
identified as having a solid expertise in Shariah and Halal as well as being currently
active in Halal research and/or innovation at international level playing field. These
experts were chosen from the following organisations: International Halal Integrity
Alliance (Malaysia), Brunei Darussalem University (Brunei), University Putra
190 Malaysia (Malaysia), International Shariah Research Academy for Islamic Finance
(Malaysia), Universiti Teknologi MARA (Malaysia), Halal Industry Development
Corporation (Malaysia), and the University of Malaya (Malaysia). Random sampling
was not possible given the small number of experts in this field. However, the sample
was cross-checked through desk research in Malaysian academic and professional
publications on Halal. A first interview was tested with a friendly party, IHI Alliance
Ltd, to modify the questions further were needed. As the topic of the research thesis
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was of high interest to the persons contacted, it was easy to arrange for an in-depth
interview without any rejects. Although the sample size was small with seven
interviews, it was possible to conduct in-depth personal interviews of an average of one
hour and 14 minutes duration. The interviews were conducted in English, which was
not a problem for these experts, since these experts were highly educated. The
interviews were all voice recorded to allow the researcher to transcribe and better
analyse the results of the in-depth interview (Kvale, 1996; Hannabuss, 1996; Maxwell,
2005). The use of telephone or faxed questionnaires and large postal surveys used in
quantitative research could not have adequately substituted for the inputs which the
personal interviews generated using a structured interview with open questions.
The validity, correctness or credibility of an in-depth interview research, consists of
strategies to identify and rule out the threats that you might be wrong (Maxwell, 2005).
A sample of seven organisations is that enough? Are the right experts being
interviewed? A wide variety of experts were chosen from different disciplines within
Halal, covering food, Islamic banking, economy and standards. Second, the people
chosen were leaders in their field, which was supported by academic and professional
publications. Third, the people chosen were willing to share, based on their reputation in
the Halal industry and Halal research. Researcher bias is an important threat (Maxwell,
2005; Sekaran, 2007), which is caused by lack of trust and rapport, or when the responses
are misinterpreted or distorted, or when the interviewer unintentionally encourages or
discourages certain responses. To address lack of trust and rapport, six out of nine
persons interviewed were people with whom the researcher has an existing relationship
with, meaning that the researcher has met several times before at different occasions.
Of the other three persons interviewed, one person was from the same university where
the researcher is conducting his PhD research. Therefore, it can be assumed that there is
a natural level of trust and rapport. Before the interview was conducted, a background
search, consisting of existing publications of the person, were gathered and studied to
ensure an effective communication during the interview. A structured interview was
chosen to ensure that the interviewer was asking the right-open questions and minimise
possible suggested responses by the interviewer. Another threat is that not all data
provided during the interview is captured and therefore not incorporated in the analysis.
To avoid this threat, the researcher voice recorded all in-depth interviews and
transcribed the words said, allowing the researcher to review and analyse the entire
interview at a later stage of the research.
 3. Results Halal in
3.1 What is Halal from a logistics, supply chain management point of view? supply chain
Wholesomeness (toyyib) is an important factor and prerequisite of Halal. From the
interviews conducted it clearly follows, that Halal for this research in Halal food supply management
chains is clearly defined by the Quran and Sunnah. However, also recognised by
Mr Darhim Hashim (IHI Alliance Ltd), the Sunnah has different interpretation in the
different schools of thought. Another aspect is that the Quran and Sunnah only 191
provide broad principles according Dr Mohamad Akram Laldin (International Shariah
Research Academy for Islamic Finance), which need to be operationalised. According
to Dr Mohamad Akram Laldin, the Quranic verses, clearly state that pork and liquor
are forbidden from the Islamic point of view, whereas the other area the Quran is silent
about, which is left to the interpretation of the different scholars. However, if there is
contamination between Halal and Haram, the Halal is contaminated and become
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non-Halal. Therefore, a Halal supply chain should first of all guarantee that there is no
contamination between Halal and Haram. As also argued by all persons interviewed,
Halal matters at the point of consumption and therefore the whole supply chain needs
to be addressed in order to protect the integrity of a Halal product.

3.2 Which Islamic sources are essential for Halal supply chain management?
As argued by Dr Ghaffarullah (Universiti Teknologi MARA) Legal Maxims, the general
rules of Fiqh, can provide important principles for Halal logistics and a Halal supply
chain management system. According to Laldin (2006), there are five major maxims:
(1) matters are determined according to intention;
(2) hardship begets facility;
(3) harm should not be inflicted nor reciprocated;
(4) what is certain cannot be removed by doubt; and
(5) custom is arbitrary.

The intention of a Halal supply chain, to protect the Halal integrity, is already an
important justification for a Halal supply chain management system. Important in the
design is also not to create unnecessary burden for the consumer and the industry.
Second, it is important to address existing customs (like Samak) in the different
countries that might need to be incorporated in Halal supply chains. Third, there is a
saying of the Prophet (Al-Qaradawi, 2007, p. 33):
The Halal is clear and the Haram is clear. Between the two there are doubtful matters
concerning which people do not know whether they are Halal or Haram. One who avoids
them in order to safeguard his religion and his honor is safe, [. . .]
According to most of the people interviewed, this principle is one of the most important
principles for Halal logistics and Halal supply chains, to avoid a Halal product to move
into a doubtful state. Fourth, Dr Nor Azman (Halal Industry Development Corporation)
referred to an example where the Prophet cursed not only the one who drinks
intoxicating drinks but also the one who produces them, the one who serves them, the one
to whom they are served, the one to whom the price of them is paid, etc. (Al-Qaradawi,
2007, pp. 28, 29). Also Dr Suhaimi Ab. Rahman shared that what leads to a Haram deed
is also Haram. From this it could be argued by people that sharing in transport
 JIMA and storage with Haram is something, which should be avoided. Fifth, according to
2,2 Dr Mohamad Akram Laldin and Mr Darhim Hashim, mixing Halal and Haram, the
Haram will prevail. This means, that the Halal supply chain should guarantee that there
is no contact with Haram. Sixth, Dr Suhaimi Ab. Rahman (Universiti Putra Malaysia)
furthermore state the analogy of the touching of the dog (where you need to wash your
hands seven times if you hand or the dog hair is wet), could be used, to differentiate
192 between dry and wet products in Halal supply chains.

3.3 Which guidelines and principles are essential for the Halal integrity of Halal supply
chains?
According to Mr Darhim Hashim, it is fundamental to maintain the integrity of the
product along the supply chain and keep Haram out. Recurring themes with all
in-depth interviews, is the cross-contamination of Halal in direct contact with Haram,
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the risk of Halal becoming non-Halal and the importance of the perception of the
Muslim consumer. This is shown in Figure 2.
Products that are by definition Haram are (Regenstein et al., 2003; Kamali, 2010): flesh
of swine, blood, carrion and intoxicants. Direct contact (cross-contamination) of Halal
with these products will make the Halal product non-Halal, and therefore not fit for
consumption by Muslims. Risk is addressing the possibility that something Halal moves
in a state of doubt. One of the main functions of a Halal supply chain management is to
avoid that the Halal product moves into that state. An important determinant for risk is
the product characteristics:
.
wet products have a higher risk as compared to dry products; and
. bulk products have a higher risk than unitised products.

As argued by all people interviewed, the perception of the Muslim is different,

depending on the Islamic school of thought, local Fatwas (religious rulings) and local
customs. As mentioned during one of the interviews, Brunei requires even full
segregation between stunned and non-stunned Halal slaughtered meat.

Perception Best practice

Risk Precaution

Direct contact with Haram Cross-contamination

Figure 2.
Foundation of Halal
supply chain management
Source: Original
 It was evident that the factor perception is very important to be taken into Halal in
consideration for the design of a Halal supply chain and organising the transportation, supply chain
storage and handling in order to meet these requirements of consumer markets. During
the in-depth interviews, the various guidelines and principles were suggested to protect management
the Halal product along the supply chain. Table II summarises the results of the
in-depth interviews.
193
Dependent
variable Islamic sources Independent variable Guidelines and principles

1. Direct contact 1. “When the Halal and Haram Haram product Primary packaging
with Haram are mixed up, the Haram (of Halal materials and not
prevails” (legal maxim of harmful) and tertiary
Fiqh) (Kamali, 2008) packaging
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2. “Of that which intoxicates in

a large amount, as small
amount is also haram”
(Hussaini, 1993, p. 70)
2. Risk The Halal is clear and the Product Different load carriers for
Haram is clear. Between the characteristics: dry vs Halal;
two there are doubtful wet products, bulk vs Physical segregation of
matters which should be unitized product Halal and najs in storage,
avoided transport and handling;
(Al-Qaradawi, 2007, p. 33) Coding and labelling;
Supplier selection;
traceability; information
sharing; security
3. Perception 1. Custom is arbitrary: practices Market characteristics: Samak (ritual cleansing);
have authority and can different schools of Segregation between
specify a general matter or thought and local different types of Halal;
restrict an unrestricted Fatwa’s Dedicated Halal facilities
matter (Laldin, 2006, p. 148)
2. Whatever is conductive to the
Haram is in itself Haram
(Al-Qaradawi, 2007, pp. 28-29;
Wilson and Liu, 2010, p. 110)
3. Doubtful things are to be
avoided (Al-Qaradawi, 2007,
p. 32)
4. Hardship begets facility:
hardship that surpass the
normal limit and ability to
perform (Laldin, 2006, p. 139)
5. Necessity removes
restrictions (Al-Qaradawi,
2007, p. 37)
6. “If a dog licks a plate (or pot),
clean it seven times, of which
one time should be with sand
(or earth)” (Al-Qaradawi, Table II.
2007, p. 121) The application of Halal
in supply chain
Source: Original management
 JIMA 4. Conclusion
2,2 Although the core fundament of Halal supply chains is to avoid contact between Halal
and Haram, the Muslim consumer requires a higher assurance of his Halal food, which
is based on reducing the risk of contamination and the factor of perception of the
Muslim consumer. Therefore, Halal supply chains can be characterised as robust
supply chains that strive for a lower vulnerability for Halal contamination.
194 From the in-depth interviews it followed that the product characteristics (bulk or
unitised shipments; ambient or chilled/frozen) have major implication on the design of
Halal food supply chains. From the in-depth interviews it also followed that the
perception of the Muslim consumer is an important parameter for Halal supply chains.
This is a complex matter due to the variety of Islamic cultures, Islamic schools of
thought, local Fatwas and local customs.
For Halal certified companies it is important to look beyond their production and
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ingredients, and extend Halal to the entire supply chain in ensuring that their
transportation, storage and handling are in compliance with Shariah and meet the
requirements of their target Muslim market.
Further empirical research is needed to better understand and measure the
perception of the Muslim consumer, as perception is a key success factor in an effective
supply chain management of Halal products. More academic research is also needed in
order to better understand the principles in organising Halal supply chains for different
markets. Are there differences between the supply chain management requirement, for
example, between Muslim and non-Muslim countries? Finally, there is a need for a
Halal supply chain model that is able to describe and optimise Halal supply chains.
This would help the Halal certified food industry to move towards a supply chain
approach to Halal.

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