CHAPTER 3
INDUSTRIAL HALAL LOGISTIC
SCENARIO
HALAL LOGISTICS SCENARIO
Halal logistics is a relatively new area in supply chain
management
It is the process of managing the logistics operations
according to the principles of Syariah law to ensure the
integrity of the halal product
GLOBAL INDUSTRIAL HALAL
LOGISTIC
Global logistics market size was valued at USD 286.96 billion in
2019
The purchasing power of Muslim consumers has increased
significantly over the past few years due to better and job
opportunity
Much younger population as compared to any religion worldwide
HALAL LOGISTIC INDUSTRY IN
MALAYSIA
AIIVA is designed to offer integrated end to end
logistics services that are needed to the halal
requirements
THE PROBLEM THAT OCCURED
DURING THE PROCESS
• Raw materials for halal products are sourced globally with lack of
traceability
• Legal status and protection of halal often missing
• Expected of halal standards and procedures are not applied throughout the
supply chain
• Inaccurate labelling for halal products
TOWARDS THE HALAL SUPPLY
CHAIN
To ensure the quality of the halal products in Malaysia,
there are 2 aspect that should be considered :
How organizations deal with halal issues in the industry
The practices of halal supply chain among halal
certified organization in Malaysia
POLICIES THAT RELATED TO
HALAL PRODUCT IN MALAYSIA
MODEL OF HALAL SUPPLY CHAIN
MANAGEMENT
HALAL PROCUREMENT
It is halal purchasing that consist of involvement in
activities that focus on halal integrity along the supply
chain
Sourcing activities within the halal supply chain,
identification of all inputs, by products and resources are
crucial in order to ensure halal integrity
HALAL MANUFACTURING
• Transformation process of halal ingredients or inputs by
using halal procedures on halal outputs
• It consists senior management commitment, halal
certification management system and Syariah compliant
significant
HALAL DISTRIBUTION
Consists of halal packaging and halal containers
Packaging involves halal certification or halal logo, a
list of ingredients and the product origin
HALAL LOGISTICS
Logistics include organizing, protecting and identifying
products and materials before they reach the customers
Halal logistics is to contain and protect the goods during
delivery distribution
The key element of halal logistics is the segregation process
between halal and non-halal products
HALAL SUPPLY CHAIN
MANAGEMENT
EXTERNAL SOURCES IN
MALAYSIA
EXTERNAL FACTORS IN MALAYSIA
AS INTERNATIONAL HALAL FOOD
HUB
The beliefts that Malaysia as a truly Islamic country
Malaysia has the raw materials and a sopporting insfrastructure to produce
and process halal products
The beliefts that halal certification issued by JAKIM is recognized world-
wide due to it strict criteria employed and sought after by other countries
Strong commitment from the government