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