Principles in Halal Supply Chain Management

Journal of Islamic Marketing
Principles in halal supply chain management

Marco Tieman Jack G.A.J. van der Vorst Maznah Che Ghazali
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Principles in halal supply chain

management
Halal
supply chain
management
Marco Tieman
Faculty of Business Management, Universiti Tecknology MARA,
Shah Alam, Malaysia
Jack G.A.J. van der Vorst
Logistics, Decision and Information Sciences, Wageningen University,

Wageningen, The Netherlands, and
217
Received 21 October 2011
Revised 2 June 2012
Accepted 3 June 2012
Maznah Che Ghazali

Faculty of Business Management, Universiti Tecknology MARA,
Shah Alam, Malaysia
Abstract
Purpose The purpose of this paper is to introduce a new framework to optimise the design of halal
food supply chains, called the Halal Supply Chain Model. In this research the main logistics business
processes are defined, which are the determinants for the halal supply chain performance.
Design/methodology/approach Next to an extensive literature review, a large discussion group
and various focus group sessions conducted in Malaysia, The Netherlands and China have been used
to identify halal control activities and assurance activities in logistics business processes, with a focus
on transportation, warehousing and terminal operations.
Findings The findings show that product characteristics (bulk versus unitised, ambient versus cool
chain) and market requirements (Muslim or non-Muslim country) determine the supply chain
vulnerability to halal contamination, for which halal control activities and assurance activities are put
in place to reduce supply chain vulnerability. More empirical research is needed to further refine the
Halal Supply Chain Model for different product market combinations. Second, qualitative research is
recommended for halal cosmetics and pharmaceutical supply chains.
Practical implications This study shows that halal supply chain management is different from
conventional supply chain management, which requires a halal policy and specific design parameters
for supply chain objectives, logistics control, supply chain network structure, supply chain business
processes, supply chain resources and supply chain performance metrics.
Originality/value The Halal Supply Chain Model can be an important instrument to design and
manage halal food supply chains in extending halal integrity from source to point of consumer
purchase. As there is an evident lack of academic research in the field of halal supply chain
management, it provides an important reference for halal logistics and supply chain management. The
large discussion group and focus group sessions resulted in the publication of the International Halal
Logistics Standard (IHIAS 0100:2010) by IHI Alliance in 2010.
Keywords Halal supply chain model, Halal supply chain management, Halal logistics,
Supply chain management, Halal management system, Halal performance, Halal,
Distribution management, Malaysia, The Netherlands, China
Paper type Research paper
The authors would like to acknowledge the contribution of IHI Alliance in facilitating the large
discussion group and focus group sessions. IHI Alliance and the participants have contributed
significantly to this paper.
Journal of Islamic Marketing

Vol. 3 No. 3, 2012
pp. 217-243
q Emerald Group Publishing Limited
1759-0833
DOI 10.1108/17590831211259727
JIMA
3,3
218
1. Introduction
A significant paradigm shift of modern marketing is that companies move away from a
consumer-centric to a value-driven approach, which lifts the concept of marketing into the
arena of human aspiration, values, and spirits (Kotler et al., 2010). Halal (permissible,
lawful) is clearly based on values, namely Islamic values (Zakaria and Abdul-Talib, 2010).
As argued by Lada et al. (2009), Alserhan (2010b), Ibrahim and Mokhtarudin (2010), Wilson
and Liu (2010) and Tieman (2011), halal needs a supply chain approach, where the value
chain and its supply chain should be fully aligned (Christopher, 1998; van Amstel and van
Goor, 2001; van Assen et al., 2010) to fulfil the promise of halal to the end-consumer: that the
food they consume is a true manifestation of Islamic principles (World Halal Forum, 2009).
The integrity of halal food supply chains is becoming an increasing concern (Zailani et al.,
2010; Lam and Alhashmi, 2008). There are a number of reasons why the halal industry is
increasingly occupied with the integrity of halal food chains. First, halal integrity issues are
more likely to occur than before, because of increasing complexity of supply chains (Lam
and Alhashmi, 2008) and focus on cost reduction in the logistics industry (Wilson and Liu,
2010). Second, the complexity of todays supply chain is making integrity issues harder to
detect (Zakaria, 2008; Shafie and Othman, 2004; Talib et al., 2008; Abdul et al., 2009). Third,
the consequences of halal integrity issues in the supply chain have arguably become more
costly than before for brand owners and retail chains to repair (Waarden and van Dalen,
2010; Zakaria and Abdul-Talib, 2010; New Straits Times, 2005).
Halal food supply chains are vulnerable due to their credence quality attributes (Bonne
and Verbeke, 2008), importance of maintaining halal integrity throughout the supply chain
(Tieman, 2011; Bahrudin et al., 2011), essence of avoiding doubt in halal food (Kamali, 2010),
lack of control of halal food norms (Waarden and van Dalen, 2010; Berger, 2011;
Pointing et al., 2008; Norman et al., 2009; Zakaria, 2008), and sensitivity of the Muslim
consumer towards halal (Havinga, 2011, Wilson and Liu, 2010). These vulnerabilities make
halal supply chains complex to design and manage. These vulnerabilities cannot be
reduced through conventional supply chain models. Conventional models recognise the
importance of efficiency, but are inadequate for considering other aspects such as ethics,
sustainability and human values (Milestad et al., 2010) that are critical for halal supply
chains.
The vulnerability of halal food supply chains, the large size and growth of the halal
market (Alam and Sayuti, 2011; Solsis, 2010) and more stringent requirements in halal
standards, forces brand owners to extend halal towards supply chain management (SCM).
Important questions halal certified food manufacturers have today are whether and how
to start with halal SCM in protecting the integrity for the Muslim consumer and protecting
their brand. Food manufacturers need a reference on how to design and manage halal food
supply chains in order to provide credibility and trust to the Muslim consumer.
This paper defines the principles in the design and management of halal food supply
chains. It introduces the halal supply chain model as a framework to design and manage
halal food supply chains. This framework is based on a large discussion group and
focus groups and serves to provide the halal industry with practical guidance on the
functional requirements and design parameters (Schnetzler et al., 2007) for halal food
supply chains. Next section will discuss the literature review and research framework.
Section 3 will share the research methodology in greater detail. Section 4 presents the
results of the large discussion group and focus groups. Section 5 covers the concluding
section, which is followed by a section on the suggestions for further research.
2. Literature review and research framework

Allah has revealed the code of law for the Islamic way of life and commanded people to
follow, also knows as Shariah (Islamic law) (Hussaini, 1993; Doi, 1984). The
consumption of halal (lawful) and toyyib (wholesome); and abstaining from haram
(unlawful) are essential according to Shariah in protecting Islamic faith, life, dignity or
lineage, intellect and property (IHI Alliance, 2009; Laldin, 2006). The grounds of haram
in food according to Kamali (2010) are:
.
manifest of harm;
.
intoxication (alcohol and narcotics);
.
filth, impurity and natural revulsion (such as carrion, spilt blood, pig meat); and
.
unlawful acquisition.
However, according to the author there are grey areas (matters that fall between halal
and haram), which is due to the sources evidence of the Shariah is not free from doubt
or its application to a particular subject or case uncertain. In these cases the Islamic
school of thought, local fatwas (religious rulings) and local customs play a key role in
judging if it is to be avoided or recommended. Therefore, an important function of
halal SCM is to ensure that a halal product does not move into the grey area or haram
state.
Riaz and Chaundry (2004), Bonne and Verbeke (2008), Abdul et al. (2009),
Muhammad et al. (2009) and Department of Standards Malaysia (2010a, b, c), apply a
hazard analysis and critical control points (HACCP) approach to halal food supply chains.
HACCP is a systematic way of analysis the potential hazards in a food supply chain,
identifying the critical control points in the supply chain where the hazards may occur and
deciding which are critical to food safety (Mitchell, 1992). According to Pun and
Bhairo-Beekhoo (2008) key factors affecting HACCP practices are: food regulations; role of
the industry; government policies and interventions; training on food safety and hygiene;
and food contamination and/or poisoning. Fotopoulos et al. (2011) shows that knowledge,
skills and staff commitment are critical for an effective implementation of HACCP. Similar
to a food safety management system with its food safety control activities and assurance
activities (Lunging et al., 2008), a halal management system is needed with its halal
control activities and assurance activities in logistics business processes.
Halal SCM can be defined as the management of a halal network with the objective
to extend the halal integrity from source to the point of consumer purchase. In order to
ensure that the product is truly halal at the point of consumer purchase it is critical to
define what are principles in the management of halal supply chains. Tieman (2011)
argues that the foundation of halal SCM is determined by three factors, namely: direct
contact with haram (prohibited), risk of contamination and perception of the Muslim
consumer. In his model, risk is based on the product characteristics, such as dry versus
wet products and bulk versus unitised products. Perception is based on the market
requirements, such as Islamic school of thought, local fatwas and local customs.
The halal supply chain model should be adapted from existing (food) supply chain
models that most closely facilitate the Islamic values of halal supply chains. Existing
SCM models like the management paradigm (de Leeuw, 1988), Integral customer service
concept (van Goor, 1991), SCM framework (Cooper et al., 1997), supply chain operations
reference-model (Supply Chain Council, 2011), integral demand and supply chain model
Halal
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219
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220
(van Amstel and van Goor, 2001) and the framework for chain/network development for
food supply chains (van der Vorst and Beulens, 2002) provide many common
components as shown in Table I.
Although the above models do not contradict Shariah (Islamic law),
important aspects of halal in the design and performance measurement of halal
supply chains are not addressed in these models. The core of the supply chain model is
amended from the framework for chain/network development for food supply chain
networks, which was developed by van der Vorst and Beulens (2002), based on Coopers
SCM framework (Cooper et al., 1997). This model provides a sound basis, which has been
further amended for the halal supply chain model. The proposed halal supply chain
model is shown in Figure 1.
Halal policy and supply chain objectives
By developing a halal supply chain model, this model should first of all ensure the right
intention (Alserhan, 2010a). Therefore, halal needs commitment at top management
level through a halal policy (Department of Standards Malaysia, 2010a, b), which acts
as basis for the organisation of the supply chain. Amongst others, a halal policy
addresses: the responsibility of an organisation in protecting the halal integrity along
the supply chain; scope of halal certification of the organisation; the assurance to the
consumer or customer (the promise); and method of assurance (control mechanism;
covering aspects like halal committee, halal compliance officer and inspections). In line
with the integral demand and supply chain model (van Amstel and van Goor, 2001)
and the framework for chain/network development for food supply chains (van der
Vorst and Beulens, 2002), supply chain objectives (logistics and customer service
objectives) are being formulated that direct the design parameters (Schnetzler et al.,
2007) of halal food supply chains.
Logistics control
Logistics control is the heartbeat of the halal supply chain model, which provides the
foundation for effective decision-making and management of a supply chain
(van Damme, 2000). van Amstel (2002) defines logistics control as the organisation, the
planning and control of goods flows, from the development, the purchasing, via
manufacturing and distribution to the end-customer with the aim to satisfy the needs
of customers at low cost and with controlled use of capital. Amongst others, important
elements in logistics control are (van der Vorst, 2000): hierarchy in decision levels
(Hofmann, 2010), type of decision-making (Manuj and Sahin, 2011), positions of the
customer order decoupling point (CODP) (Olhager, 2010; Sun et al., 2008) and level of
coordination (Naspetti et al., 2011). According to Seuring (2009) and Peterson (2002) an
integrated supply chain can only be optimised when the chain participants function
together to improve the overall supply chain. This requires coordination. Aken (1994)
distinguishes four coordination forms, based on leverage (power, influence) and impact
(direct, indirect). Resulting in four quadrants:
(1) regulating coordination (indirect impact and power);
(2) conditional coordination (indirect impact and influence);
(3) conducting coordination (direct impact and power); and
(4) inducing coordination (direct impact and influence).
SCM model
Components
Management paradigm Environment,

(de Leeuw, 1988)
managing system,
managed system,
information system
Integral customer
Competitive
service concept
strategy, logistics
(van Goor, 1991)
objectives, logistics
structure, control, ICT,
organisation, logistics
performance indicators
SCM framework
Supply chain network
(Cooper et al., 1997)
structure, supply chain
business processes,
SCM components
Supply chain operations Plan, source, make,
reference-model (Supply deliver, return
Chain Council, 2011)
Integral demand and

supply chain model
(van Amstel and van
Goor, 2001)
Framework for chain/

network development
(van der Vorst and
Beulens, 2002)
Demand and supply

chain strategy,
competitive strategy,
logistics objectives,
demand and supply
chain structure, supply
chain control, chain
ICT, chain organisation,
demand and supply
chain performance
indicators
Chain objectives, chain
management, network
structure, chain
resources, chain
business processes,
chain performance
External factors
Key performance
indicators
Customer
Not identified
Product-market
combination
Product availability,
lead-time,
reliability, information,
flexibility, posttransactional support
Customer
Not identified
Industry
(1) Customer-facing:
reliability,
responsiveness,
flexibility;
(2) internal-facing:
costs, assets
Quality orders,
availability, on-time
delivery, in full delivery,
shelf availability,
correct invoiced
Marketing, IT,
purchasing, and
logistics
Competitive strategy,
market characteristics,
product characteristics,
and production
characteristics
(1) Supply chain

network level: product
availability on shelf,
product quality,
responsiveness,
delivery reliability, total
supply chain costs;
(2) organisation level:
inventory level,
throughput time,
responsiveness,
delivery reliability,
total organisations
costs;
(3) process level:
responsiveness,
throughput time,
process yield and
process costs
Halal
supply chain
management
221
Table I.
Existing SCM models
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Halal Policy
Supply Chain Objectives
222
Logistics
Control
Figure 1.
Halal supply chain model
P
R
O
D
U
C
T
SC
Resources
SC Business
Processes
SC Network
Structure
M
A
R
K
E
T
Halal SC
Performance
Coordination according to Akens (1994) classification of coordination, halal supply

chains could best be classified as regulatory coordination (indirect impact and power)
as halal and halal logistics comes with standards. However, with cross border supply
chains, there are various halal standards involved. This power is indirect through
standardising tasks and procedures to ensure coordination and standardisation of
output (van Amstel, 2002). For halal supply chains it is important that supply chains
are aligned to the requirements of the destination market. This minimum requirement,
as logistics design parameter, should be shared throughout the supply chain.
On the management of supply chain partners, Kraljics (1983) approach to supply
management provides a useful insight (Gelderman and van Weele, 2003). In his
approach the purchasing turnover and the supplier base are analysed based on two
variables (van Weele, 2002): suppliers impact on the financial result (measured in costs
of purchase of a certain product category or impact on product quality) and supply risk
(measured against criteria such as number of potential suppliers, availability of supply,
competitive structure in supply markets). The implication of halal for the purchasing
portfolio matrix and the supply management strategy has two possible effects. First
halal has impact on the financial result for producers of halal sensitive products, namely:
Is the product animal based? [yes/no]. Examples of animal based products are raw
meat, processed meat and ingredients/additives derived from animals (like gelatine).
If the product is animal based it would move a traditional routine supplier to leverage or
a bottleneck supplier to strategic. Second, halal has impact on the supply risk: Is the
supply chain partner based in a non-Muslim country? [yes/no]. Partners in non-Muslim
countries that offer halal compliant products and services have invested in halal
certification/compliance, are specialised and are often not well controlled and supported
by its government in terms of its halal compliance. This requires a more intensive
relationship with these supply chain partners, which moves a traditional routine supply
chain partner to bottleneck or a leverage supply chain partner to strategic for
non-Muslim countries. The implication of halal on the purchasing portfolio matrix is
shown in Figure 2.
High
Leverage partner
Strategic partner
Non-Muslim
country
Supply chain
partners
impact on
financial
results
Halal
supply chain
management
223
Halal
sensitive
product
Halal
sensitive
product
Routine partner
Bottleneck
partner
Non-Muslim
country
Low
Low
High
Supply Risk
Source: Adapted from Kraljic (1983) and Weele (2002)
As can be deducted from the strategies for each quadrant as described by Kraljic (1983),
halal leads to stronger partnerships for strategic and leverage supply chain partners;
and adopting various strategies to secure continuity of supply, if necessary against at
additional costs, for bottleneck supply chain partners.
Supply chain resources
Supply chain resources describe the organisation and information management. For a
halal certified organisation a halal committee is required (Department of Standards
Malaysia, 2005, 2010a, b, c; Port of Rotterdam, 2007). The halal committee is responsible
for the compliance of the management and practices according to a halal standard. The
halal committee drafts a halal policy, which is endorsed by the managing director/CEO
of the company. This halal committee preferably has a halal compliance officer that acts
as an internal auditor, however this could also be outsourced to an independent party
(not the halal certification company).
Supply chain network structure
The supply chain network structure is a network of connected and interdependent
organisations mutually and co-operatively working together to manage, control and
improve the flow of materials and information (Aitken, 1998). Halal food supply chains
are vulnerable (Bonne and Verbeke, 2008; Zailani et al., 2010) and supply chain
configurations can be the source of risks (Olson and Wu, 2010): partner related risks as
well as internal organisational processes in risk assessment and response. For the
integrity of halal supply chains it is therefore crucial that the parties in a halal supply
chain are halal certified (preferred) or understand and comply with the requirements of
halal supply chains. As the supply chain integrity is a function of the integrity of the
supply chain partners, the choice of supply chain partners should therefore receive top
Figure 2.
Impact of halal on
purchasing portfolio
matrix
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priority in the design of supply chain network structures. Similar to organic supply
chains (Claro and de Oliveira Claro, 2004), there is a preference for simple supply chain
structures and need for coordination in halal supply chains.
Supply chain business processes
The Global Supply Chain Forum has identified eight key supply chain business
processes (Lambert et al., 1998): customer relationship management, customer
service management, demand management, order fulfilment, manufacturing flow
management, procurement, product development and commercialisation, and returns.
For halal food supply chains, the supply chain business processes customer order
fulfilment, manufacturing flow management and procurement are of particular
importance. The customer order fulfilment process carries the segregation requirements
of the customer (destination market) throughout the supply chain. The manufacturing
flow management is the physical handling of the halal product throughout the supply
chain, for which halal control activities and assurance activities need to be formulated to
extend the halal integrity from source to point of consumer purchase. This process
also covers logistics. Finally procurement is critical in a halal food supply chain, for its
role in defining and managing the upstream supply chain network structure through
commodity strategies (purchasing strategy); determine specification, supplier selection
and integration (tactical purchasing); and ordering, expediting and evaluation of
suppliers (order function) (van Weele, 2002; Kraljic, 1983; Wagner and Johnson, 2004).
As argued by Cousins et al. (2008) the role of socialisation mechanisms, the means by
which the buyer-supplier engagement appreciates the halal values, is critical as it fully
mediate the effects of supplier performance measures on supply chain performance.
Halal supply chain performance
Current supply chain performance measurement systems are mainly cost related and are
not inclusive (Estampe et al., 2010; Aramyan et al., 2007, Bhagwat and Sharma, 2007;
Chia et al., 2009). However, there are some examples of more balanced frameworks, like the
conceptual framework of agri-food supply-chain performance indicators (Aramyan et al.,
2006) and various balanced scorecard perspectives. But even these balanced metrics lack
the measurement of the credence aspect of halal products, the Islamic value factor as well
as the robustness requirements. Therefore, these metrics would not be effective to
optimise halal supply chains. For halal food industries to optimise their supply chain, it
should include new indicators in their performance measurement systems in order to
ensure that their supply chains are not only efficient, but also effective in protecting the
halal integrity and robust in its supply chain execution.
To measure the performance of halal supply chains, it is foremost important to
measure the effectiveness perspective of a supply chain. This would address two key
aspects, namely process quality (Andersen, 1994; Bonne and Verbeke, 2008) and waste
(Abdul-Matin, 2010). Process quality addresses the strength/trust of a brand, the
credibility of a halal certificate and the consumer complaints received regarding the
halal status of a product. Waste addresses the physical waste in a supply chain, carbon
footprint and resources used. Waste occurs in the supply chain as well as by the
end-consumer. Waste in the supply chain can be avoided or minimised by using the right
(re-usable) transport packaging and environment control (temperature and moisture
level). Waste by the end-consumer is more difficult to manage from a supply chain,
but could address for example less environmental burdening consumer packaging or
buying products that have lower food miles (Lammers et al., 2010). Although food miles
are easy to calculate and a relevant indicator for sustainability, it has its limitations due
to the high impact of transportation mode, transportation efficiency and differences
in food production system on the sustainability of a food supply chain (Smith et al., 2005;
Weber and Matthews, 2008; Coley et al., 2011). Today, the carbon footprint has become a
key measurement of environmental impact in SCM (Lee and Cheong, 2011; Wiedmann
and Minx, 2008; Svensson and Wagner, 2011). As energy consumption today is mainly
based on non-renewable energy, energy consumption is an important indicator to
measure for waste in a halal supply chain (Abdul-Matin, 2010).
Second, halal supply chains should also be efficient in order to avoid an escalation
of halal food prices. This would affect in particular Muslims consumers living in
non-Muslim countries, which would create hardship (Laldin, 2006) for them. Efficiency
can first of all be measured by the SCM costs. Furthermore, as halal will require possible
dedicated logistics infrastructure, a suitable indicator could be the utilisation of halal
storage facilities and halal transport/containers.
Third, halal supply chains should be robust by design in order to better protect
the halal products along the supply chain under different circumstances (Tieman,
2011). Important strategies are the development of a strong alliance network, lead-time
reductions and efficient coordination (Lammers et al., 2009; Tang, 2006). The robustness
of a halal supply chain should first of all result in little halal rejects. Second, a halal
supply chain should have sufficient access to dedicated halal warehouses and halal
transport/containers when required. Table II presents an overview of the key
perspectives and the proposed performance measurements.
To operationalise the research framework (Figure 1), a large discussion group and
focus groups have been used. Next section will discuss the research methodology followed.
3. Methodology
According to de Ruyter (1996), Hines (2000), Stokes and Bergin (2006), Sekaran (2007),
and Walden (2006) focus groups are an effective instrument in order to obtain a rich
understanding of a new phenomenon, such as halal SCM. Focus groups envision
obtaining a better understanding of the logistics business processes involved in halal
food supply chains for Muslim and non-Muslim countries. We have followed the
following four step approach (McClelland, 1994; Walden, 2006):
(i) Organisation of the sessions
Under the aegis of IHI Alliance, a series of focus groups have been conducted with the
incentive to assess and design the halal supply chain model (Wall, 2001; Carlock and
Perry, 2008; Chambers and Munoz, 2009). The first session can be characterised as
a large discussion group according to the categorisation of Larson et al. (2004).
The objective of this first session was to build consensus (Larson et al., 2004) on the:
.
scope of halal logistics;
.
principles in halal logistics; and
.
foundation of halal logistics for Muslim and non-Muslim countries.
After this first session the group was split into smaller homogeneous focus groups
(McClelland, 1994; Kitzinger, 1995; Grudens-Schuck et al., 2004; Walden, 2006;
Halal
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Measurement
1
Effectiveness
1.1 Process quality:
1.1.1 Brand
226
1.1.2 Credibility of
halal certificate
1.1.3 Halal customer

service
complaints
Definition
The strength/trust of a brand
Christopher (1998), Grunert et al.

(2004), DSouza et al. (2009),
Wilson and Liu (2010), Alserhan
(2010a)
The level of trust in the halal
Claro and de Oliveira Claro (2004),
certification authority and the
Brunso et al. (2002), Grunert et al.
standard
(2004), Jahn et al. (2005), Giannakas
(2002)
The number of complaints received Beamon (1999b), Shepherd and
in a month regarding the halal status Gunter (2006), Department of
of a product
Standards Malaysia (2010a, b, c),
Bigliardi and Bottani (2010)
1.2 Waste:
1.2.1 Waste in the
The reject rate as a percentage of the
supply chain
total units produced
1.2.2 Carbon footprint The amount of greenhouse gas (CO2
and other gasses converted to CO2)
emissions of supply chains
1.2.3 Resources used Total energy consumed
2
2.1
Efficiency
SCM costs
2.2 Utilisation:
2.2.1 Utilisation of
halal storage
facilities
2.2.2 Utilisation of
halal transport/
containers
3
Robustness
3.1 Halal rejects
3.2 Availability:
3.2.1 Halal storage
availability
Table II.
Halal performance
indicators
3.2.2 Halal transport/

container
availability
References
Logistics and SCM costs as

percentage of the product value
Al-Hakim (2005), Brewer and Speh

(2000)
Coley et al. (2011), Svensson and
Wagner (2011), Wiedmann and
Minx (2008), Lee and Cheong (2011)
Beamon (1999a), Aramyan et al.
(2007), Paquette (2005), van Assen et al.
(2010), Abdul-Matin (2010)
Beamon (1999b), van der Vorst
(2000), Shepherd and Gunter (2006),
Aramyan et al. (2007), Supply Chain
Council (2011)
Gunasekaran et al. (2001),

van Berg (2007), Bhagwat and
Sharma (2007)
Capacity spent on halal transport or Gunasekaran et al. (2001),
containers as percentage of the total van Berg (2007), Bhagwat and
capacity
Sharma (2007)
Capacity spent on halal storage as
percentage of the total capacity
The number of rejects by a company van Goor et al. (1999), van Amstel
in the supply chain through damage, and van Goor (2001), Bhagwat and
contamination, spoilage, leakage and Sharma (2007)
theft or tempering
Number of on time halal
storage services as percentage of the
total required halal storage services
Number of on time halal transport or
container services as percentage of
the total required halal transport or
container services
van Berg (2007), Lammers et al.

(2009)
van Berg (2007), Lammers et al.
(2009)
Sekaran, 2007) on warehousing, transportation and terminals. These focus groups

required 8 to 12 participants (Larson et al., 2004; Grudens-Schuck et al., 2004; Sekaran,
2007). As argued by Kitzinger (1995) and Grudens-Schuck et al. (2004), it is important to
have multiple sessions in order to get a cross section of views from a diverse population.
For this purpose IHI Alliance had chosen the Netherlands and China to conduct review
sessions. The objective of the focus groups is to identify the halal control activities and
assurance activities in warehousing, transportation and terminal operations for Muslim
and non-Muslim countries, based on personal perceptions (Larson et al., 2004).
(ii) Recruiting the participants
For the first large discussion group, IHI Alliance invited a variety of participants,
consisting of leading Shariah and halal experts from Malaysian universities, halal
standard experts form the Malaysian Government, halal exports from the industry
(manufacturers, retailers and logistics service providers), and logistics service providers.
For the consecutive focus group sessions, IHI Alliance also facilitated the invitations,
which resulted in the required number of participants for the focus group sessions. The
warehouse session (Malaysia) had representatives from logistics service providers, halal
expert from the Malaysian Government, trade representative from the Malaysian
Government, retail chains, an IT expert and a Malaysian university. The transportation
session (Malaysia) had representatives from logistics service providers, a manufacturer,
a halal expert from the Malaysian Government, and a Malaysian university. The terminals
session (Malaysia) had representatives from Malaysias largest seaports, the national
airline (air cargo terminal handler), logistics service providers, a halal expert from the
Malaysian Government and a Malaysian university. The focus group in the Netherlands
had representatives from halal authorities, halal certified food manufacturers, traders, the
Port of Rotterdam, logistics service providers and trade representative from the Malaysian
Government. The focus group in China had representatives from various halal authorities
from the Asia Pacific, a logistics service provider, an international standard expert and a
trade representative from the Malaysian Government.
(iii) Conducting the discussion sessions
The large discussion group session held in Kuala Lumpur (Malaysia) had 33 participants
and took one full day. The large discussion group started with a presentation on halal
logistics and SCM and its importance to familiarise the participants with this new topic of
halal logistics. Based on this large discussion group it has been agreed to conduct dedicated
focus group sessions on the warehouse, transport and terminal operations. Half-day focus
group sessions have been held in Malaysia on warehousing (12 participants),
transportation (eight participants), and terminals (eight participants). For each focus
group sessions the principles have been first shared with the participants (results of the
first large discussion group). Then halal control activities and assurance activities have
been identified during each focus group session. These halal control activities and
assurance activities have been reviewed during half-day focus group sessions in Rotterdam
(the Netherlands), with 12 participants, and in Hong Kong (China), with ten participants.
(iv) Analysing and reporting
The large discussion group and consecutive focus group sessions have been voice
recorded and transcribed (Kitzinger, 1995; Grudens-Schuck et al., 2004). In line with
Halal
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de Ruyter (1996), Walden (2006), and Chambers and Munoz (2009), ideas have been
classified in categories. This in order to discover patterns (Grudens-Schuck et al., 2004).
The validity, correctness or credibility of the large discussion group and focus group
sessions, consists of strategies to identify and rule out the threats that you might be
wrong (Maxwell, 2005). Prince and Davies (2001) have identified moderator bias
as a serious concern in conducting focus groups that can involve the content, the process
or participation and the interpretation of the research results. According to
Grudens-Schuck et al. (2004), the questions have been arranged from general to
specific to invite openness and avoid bias. Second as argued by Prince and Davies (2001),
the moderator (the researcher) should be well versed in the topic of halal logistics, which
has been the case through his experience in Malaysia in halal projects as well as his
contribution as writer for The Halal Journal. As the moderator has spent more than
seven years in Malaysia, he is also aware of the Malaysian culture. Wall (2001) argues
that the representativeness of the participants is an issue in focus groups. This issue has
been anticipated by the researchers in having IHI Alliance, with a global network of
halal experts, sending out and follow-up the invitation for the large discussion group and
consecutive focus group sessions. To avoid the threat that the halal control activities and
assurance activities are only valid in Malaysia, triangulation (Maxwell, 2005) has been
achieved by organising consecutive focus group sessions outside Malaysia: in the
Netherlands and China.
4. Results
4.1 Large discussion group
A large discussion group was conducted to build consensus (Larson et al., 2004) on the:
.
scope of halal logistics;
.
principles in halal logistics; and
.
foundation of halal logistics for Muslim and non-Muslim countries.
For a proper scoping, both the width and depth of halal logistics has been agreed upon.
In terms of width it has been agreed to cover warehousing, transportation and terminal
operations. In terms of depth, the following topics should be addressed in halal
logistics, namely: definitions, process requirements, procedures, tracking and tracing,
clean(s)ing (as corrective measure), packaging and labelling, organisation, and
certification. For warehousing, transportation, and terminal operations, dedicated
focus group sessions have been held to address these topics in greater detail. Halal
logistics has been defined as the process of managing the procurement, movement,
storage and handling of materials, parts, livestock, semi-finished or finished inventory
both food and non-food, and related information and documentation flows through
the organisation and the supply chain in compliance with the general principles of
Shariah.
During the large discussion group five principles of halal logistics have been
formulated and agreed upon:
(1) intention to create a global halal logistics system;
(2) minimise hardship for the halal industry;
(3) define cross contamination between halal and haram and how to avoid it;
(4) create an evolution of a complete halal value chain and supply chain; and
(5) benchmark with existing halal standards, best practices, and international
standards.
The intention is to create a global halal logistics system, regardless of the Islamic school of
thought, that is Shariah compliant and sets the best practice for ensuring halal integrity
throughout the supply chain to protect the halal integrity for the end-consumers. This is
by itself already an important measurement for the validity of this action (Laldin, 2006).
To minimise hardship for the halal industry is in line with Al-Qaradawi (2007) and Laldin
(2006). During the large discussion group it was mentioned and stressed by multiple
participants, that a halal logistics system should be fair and practical. Also a halal
logistics system should not significantly increase the cost of halal products, as this would
be an important determination for the global acceptance of a halal logistics system. One of
the participants also mentioned that safety should come first, which for example applies to
the loading of vessels and aircrafts. Another important principle is to define
contamination between halal and haram and how to avoid it. A little bit haram makes
a product non-halal (in case of cross contamination) and in case of doubt, the product
should be avoided (Al-Qaradawi, 2007). It is extremely important that halal products are
segregated from non-halal products, to avoid cross contamination, mistakes and to ensure
that the operations are consistent with Shariah and the expectations of the stakeholders.
As halal logistics and SCM is a new discipline in halal, an evolution is needed of a complete
halal value chain and supply chain. The integrity of a halal product for the consumer
(and therefore the halal supply chain) is a function of the integrity of the various links in a
supply chain (van der Vorst, 2006). As conventional halal standards are traditionally
focused on the slaughtering and production, the integrity of the entire halal supply chain
has not been controlled. Also recognising the challenge of introducing halal logistics in
non-Muslim countries, where the halal (certified) volumes are much smaller than in
Muslim countries, halal logistics will need to go through an evolution. It was therefore
suggested to establish a minimum standard (applicable to non-Muslim countries) and a
preferred standard (applicable to Muslim countries and to non-Muslim countries over
time). Finally, a benchmark with existing halal standards, best practices and international
standards is important as foundation of a halal logistics system.
During the large discussion group, three levels have been identified in relation to the
foundation of halal logistics in Muslim and non-Muslim countries, which is based on
direct contact with haram, risk of contamination and perception of the Muslim
consumer. Recognising that a supply chain perspective to halal is new, it was decided
to create a minimum level of compliance, which is addressing direct contact with
haram as well as the risk, and a preferred level, which is addressing also perception.
The minimum level should be irrespective of the different Islamic schools of thought
and not contradicting Shariah, whereas the preferred level should amongst others
address the sensitivity of Muslims: the particular Islamic school of though, local fatwas
and local customs. If possible for Muslim countries, it should be envisioned to meet the
preferred level of a halal logistics system, whereas for non-Muslim countries a
minimum level could be more practical or feasible. However, in time also a preferred
level could be achieved by certain non-Muslim countries. For exports the
standard applied should match at least the requirements by the importing country.
Figure 3 shows an overview.
Halal
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Minimum level
230
Figure 3.
The foundation of
halal logistics
Risk
Preferred level
Perception
Direct contact with Haram
Source: Adopted from Tieman (2011)
The large discussion group allowed achieving consensus on various more key principles
in halal logistics. It was first of all confirmed that halal requires a supply chain approach
and logistics is critical in ensuring the halal integrity for the Muslim consumer. Halal
logistics requires also a process approach, where processes and procedures have to be
clearly documented as proof of a halal logistics system. Although a halal logistics
system should prevent contamination to occur, also corrective measures will need to be
defined to limit the risk of contamination of other halal cargo as well as to repair the
perception/sensitivity of the Muslim consumer. It has also been agreed by all that there
are different levels of najs (filth), which might be more practical to consider for the level
of segregation. For this the MS 1500:2004 (Department of Standards Malaysia, 2004)
would be used as a benchmark. Consensus was formed that the halal integrity is
confined to a container or transport vehicle. Therefore, it does not matter what is on top,
below, or next to a halal container/transport vehicle. In terms of tracking and tracing, it
has been agreed by all to cover only tier one customers and suppliers (Lambert et al.,
1998; Lammers et al., 2009) as the width of traceability; and second, to limit the
traceability depth to the chain of custody. This is in line with the EU regulations for food
supply chains. The technology for tracking and tracing has not been specified, as it
should be open, and not create any thresholds for small players without advanced
information and communication technology to comply with.
According to the large discussion group an important determinant for the
vulnerability of halal food supply chains is the product characteristics. Refrigerated
products, like fresh meat, are found to be more sensitive for contamination as compared
to dry products, such a canned fish, packed chocolate cookies and a bottle of cola
(ambient environment). Second, bulk products have a higher perceived risk than
unitised products, as bulk products directly touch the container or transport vehicle. The
level of segregation is therefore determined by both product characteristics as well as
market requirements.
4.2 Focus groups

There are significant differences between Muslim and non-Muslim countries from the
focus group sessions held in Malaysia, the Netherlands and China. In Muslim countries,
toyyib (wholesome) can be seen as a component of halal, whereas in non-Muslim
countries halal can be seen as a component of toyyib. Although in non-Muslim countries
non-Muslims understand that direct contact with haram should be avoided, the risk and
perception factor is not well understood. From the focus group discussions it followed
that perception is very important for Muslim countries. For logistics, perception in a
Muslim country can be regarded as a homogeneous factor. However, in non-Muslim
countries, with Muslims from diverse Islamic schools of thoughts, this is not the case.
This results in a more heterogeneous and therefore more complex perspective on
perception. The focus group sessions in Rotterdam and Hong-Kong showed that in
non-Muslim countries the halal goods flows are small, which do not allow for dedicated
halal infrastructure as it would increase the cost of halal products dramatically and
would result in certain countries or parts of a country halal products are not available. As
this would incur hardship for Muslims living in non-Muslim countries, it was clear that
two levels of segregation were needed, a minimum and a preferred level. For non-Muslim
countries this is based on the minimum level: direct contact with haram and risk of
contamination. For Muslim countries this is based on the preferred level: direct contact
with haram, risk and the perception of the Muslim consumer. During the focus group
session on the warehouse it was stressed that it is critical to maintain consistency in the
minimum integrity level throughout the supply chain: transportation, warehouse and
terminal. In transportation, loading and stuffing is the most critical activity. As a
dedicated halal terminal is difficult, segregation is critical through coding, marking and
identification. The discussions in Malaysia emphasised on the importance of the
competency in halal for the people involved in the halal logistics operations. As Europe
is exporting to many Muslim countries in the Middle East and Asia it has a preference to
comply with the most stringent level for its export to Muslim countries, which is
accepted by all Muslim countries worldwide, instead of the need to modify processes and
procedures depending on the specific Muslim country. The Netherlands halal
certification body suggested differentiating between haram (clearly prohibited) and
non-halal (not certified halal). It was argued by the various parties present that halal
and haram should not be put together in cold chain environment, whereas halal and
non-halal slaughtered meat (from a halal livestock) could for example be very well stored
in the same cold room or transported in the same container/transportation vehicle, which
would benefit the utilisation of cold rooms and transport of halal products.
Halal assurance activities have been assessed for warehousing, transportation,
terminal operations and clean(s)ing (as corrective measure). A warehouse has the
following logistics processes (Frazelle, 2002; van Berg, 2007; The Singapore Logistics
Association, 2008; Engelbregt and Kruijer, 2009): receiving, put-a-way, storage,
cross-docking, value added logistics (VAL), replenishing, order picking and shipping.
The halal control activities and the corresponding assurance activities for the
warehouse as identified, reviewed and agreed upon are shown in Table III.
Tables IV-VI show the halal control activities and assurance activities for transport,
terminals and clean(s)ing as identified, reviewed and agreed upon.
From the focus groups it follows that the major obstacles of halal food supply
chains are:
Halal
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232
Table III.
Halal control activities
and assurance activities
in the warehouse
Halal control
activity
Minimum (non-Muslim country)
Preferred (Muslim country)
Verification of halal status through

freight documents, labels and marks
present on freight, and physical
inspection of freight and packaging;
labelling of halal goods as HALAL
SUPPLY CHAIN if not already present;
non-halal goods are not accepted to enter
the warehouse facility
2. Putaway of Labelling of rejected halal goods (based Labelling of rejected halal goods (based
halal goods on possible damages, spoilage, breakage, on possible damages, spoilage, breakage,
contamination, theft, tempering, etc.) as contamination, theft, tempering, etc.) as
REJECTED; move rejected halal goods REJECTED; move rejected halal goods
to quarantine area for further inspection; to quarantine area for further inspection
no mixing of halal and non-halal products
on one pallet/load carrier
3. Storage of
Halal products have a dedicated storage Not applicable
halal goods zone or racks (no mixing of halal and nonhalal vertically); no mixing of halal and
haram products in the same cold room
Not applicable
Halal products have a dedicated
4. Crossintermediate buffer area (if present); no
docking of
halal goods mixing of halal and non-halal products on
one pallet/load carrier
Not applicable
5. VAL of halal Halal products have a dedicated VAL
goods
area; no mixing of halal and non-halal
stock keeping units (SKUs) into a new
SKU; no mixing of halal and non-halal
products on one pallet/load carrier
No mixing of halal and non-halal
Not applicable
6. Order
products on one pallet/load carrier
picking of
halal goods
Labelling of halal goods as HALAL
7. Shipping of Labelling of halal goods as HALAL
halal goods SUPPLY CHAIN if not already present; SUPPLY CHAIN if not already present;
ensure HALAL SUPPLY CHAIN is
ensure HALAL SUPPLY CHAIN is
marked/coded on freight documents
marked/coded on freight documents
1. Receiving of Verification of halal status through
halal goods freight documents, labels and marks
labelling of halal goods as HALAL
SUPPLY CHAIN if not already present
.
.
.
.
.
.
the level of segregation required at the last mile to retail in non-Muslim countries;
the level of segregation required at cold rooms in air terminals in non-Muslim
countries;
consolidation on air cargo pallets at airports;
stuffing of less-than-container load containers;
understanding of halal in non-Muslim countries; and
the lack of protection of halal in non-Muslim countries.
The major success factors of halal food supply chains found are:
.
communication of halal supply chain code through freight documents and ICT
systems;
Halal control activity
1. Cleaning of bulk tanker/

container/transport
vehicle before use
Ritual cleansing (if applicable

to the Islamic school of thought,
otherwise cleaning conform
existing standards) in case of
an earlier non-halal or unknown
previous shipment
Cleaning according to prevailing Ritual cleansing (if applicable
to the Islamic school of thought,
hygiene standards in case of an
earlier non-halal or unknown
existing standards) in case of an
previous shipment
previous shipment
No mixing of halal and non-halal No mixing of halal and non-halal
bulk products; no mixing of halal bulk products; no mixing of halal
and non-halal products in a
and non-halal products on one
container/transport
pallet/load carrier; no mixing of
halal and haram products in a
refrigerated container/transport
No mixing of halal and non-halal No mixing of halal and non-halal
livestock
livestock
HALAL SUPPLY CHAIN label HALAL SUPPLY CHAIN label
on pallet/load carrier; ensure
on pallet/load carrier; ensure
HALAL SUPPLY CHAIN is
HALAL SUPPLY CHAIN is
marked/coded on freight
marked/coded on freight
documents; REJECTED label on documents; REJECTED label on
pallet/load carrier in case of
pallet/load carrier in case of
damage, contamination, spoilage, damage, contamination, spoilage,
leakage, theft or tempering
2. Cleaning of refrigerated
container/transport
vehicle before use
3. Loading/stuffing of
tanker/container/
transport vehicle
4. Transport of halal
livestock
5. Documentation
.
.
.
Cleaning according to prevailing

hygiene standards in case of an
previous shipment
capitalising on the halal product flows in non-Muslim countries that are not sold
as halal certified products;
the application of innovations to simplify segregation in a non-Muslim environment;
first-mover advantage; and
taking a manufacturer/brand owner perspective in halal logistics.
5. Conclusion
Through extensive literature review, a large discussion group and focus groups,
a framework has been introduced to optimise the design of halal food supply chains. The
halal supply chain model consists of the following elements: halal policy, supply chain
objectives, logistics control, supply chain resources, supply chain business processes,
supply chain network structure, and halal supply chain performance. This model is
developed through a combination of existing supply chain models, namely the integral
customer service concept (van Goor, 1991; van Amstel and van Goor, 2001), the SCM
framework (Lambert et al., 1998) and the framework for chain/network development
(van der Vorst and Beulens, 2002). Although existing (food) supply chain models do not
contradict Shariah, these models have not addressed important aspects in the design
and optimisation of halal food supply chains. First, a halal policy is the basis of a halal
Halal
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233
Table IV.
in transport
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1. Inspection of halal
goods
234
Table V.
in terminals

move halal goods to a designated
inspection area for inspection
2. Temporary storage of Halal products have a designated
(floor) storage zone or racks (no
halal goods in cold
mixing of halal and non-halal
room
vertically); no mixing of halal and
haram products in the same cold
room
3. Consolidation of goods No mixing of halal and non-halal
products on one pallet/load carrier;
no mixing of halal and haram
products in a refrigerated container/
transport
4. Halal livestock holding No mixing of halal and non-halal
livestock in holding yards
5. Documentation
HALAL SUPPLY CHAIN label on
pallet/load carrier is a code for halal
certified products; ensure HALAL
SUPPLY CHAIN is marked/coded
on freight documents; REJECTED
label on pallet/load carrier in case of
damage, contamination, spoilage,
Table VI.
in clean(s)ing

move halal goods to a designated
inspection area for inspection
products in the same cold room

products in a container/transport

livestock in holding yards
HALAL SUPPLY CHAIN label on
pallet/load carrier is a code for halal
certified products; ensure HALAL
SUPPLY CHAIN is marked/coded
on freight documents; REJECTED
label on pallet/load carrier in case of
damage, contamination, spoilage,
Minimum (non-Muslim country) Preferred (Muslim country)
Cleaning of severe najs (pig, and Cleaning of severe najs

according to existing cleaning
dog and its liquid, objects
standard
discharged from their orifices,
descendants and derivatives
(IHI Alliance, 2010))
Cleaning of severe najs

according to ritual cleansing
standard (if applicable to the
Islamic school of thought,
existing cleaning standards)
supply chain model to ensure the right intention and guide the organisation in
addressing Islamic values in its halal food supply chains. Second, a halal supply chain
model provides practical guidance on the specific design parameters, which allows
operationalisation of the halal supply chain model.
From the large discussion group and focus group sessions it can be deducted that
the product characteristics (bulk versus unitised and ambient versus cool chain) and
market requirements (Muslim versus non-Muslim country) influence the vulnerability
of halal supply chains. Vulnerability of supply chains is reduced through simplifying
the supply chain structure and establishing halal control activities and assurance
activities in logistics business processes. Vulnerability can be avoided in (parts of)
the supply chain by having dedicated logistics infrastructure, like a dedicated halal
warehouse and transport, or through containerisation at a lower level. The remaining
vulnerability determines the robustness of a supply chain. As the market requirements
(Muslim or non-Muslim country) determine the level of segregation, a dedicated Halal
Regional Distribution Centre (HRDC) can become an important CODP (Olhager, 2010)
for the last mile. A strategic fit (Hofmann, 2010; Schnetzler et al., 2007) has
been realised by the formulation of a halal policy and supply chain objectives
(functional requirements) that determine the design parameters. Second, an alignment
(Fisher, 1997) has been achieved by defining the relationship between product-market
combination and the design parameters.
Coordination is critical in halal supply chains to consolidate halal cargo flows. This is
especially important for non-Muslim countries in achieving efficiencies in halal supply
chains. Second, depending on the destination market a halal supply chain requires a
certain specified level of segregation throughout the supply chain. This will impact
decisions in supply chain planning and execution, which need to be well communicated
to the supply chain partners. This research confirms that in non-Muslim countries the
supply chain partners that are halal certified or compliant are much more scarce and
require an important focus in the management of halal supply chains. The use of a CODP
at a dedicated HRDC allows customising the halal segregation level from the HRDC
onwards.
This research also addressed supply chain resources. As halal logistics has implications
for the warehousing, transportation and terminal operations, extensive training is required
for the operations staff to assure the halal integrity of the logistics operations. In
non-Muslim countries there would be benefits by developing innovative logistics cargo
solutions, like containerisation at lower level, to simplify segregation for export markets.
Sharing the halal status of cargo through the halal supply chain code has been argued to
be one of the most important critical success factors for effective halal supply chains.
Tracking and tracing is limited to only tier 1 customers and suppliers as the width of
traceability; and second, to limit the traceability depth to the chain of custody only.
This research also addressed supply chain structure. First of all simple supply chain
structures are more effective in realising robust halal food supply chains as compared to
long and complex supply chains. The choice of a gateway is also important, as at terminals
there are a lot of supply chain vulnerabilities. International gateways that are halal certified
or understand halal would have a clear preference for the distribution of halal goods.
The focus groups allocated significant time to discuss the supply chain business
processes. The halal control activities and assurance activities identified in
transportation, warehousing, terminal operations and clean(s)ing provide practical
guidance for the industry in designing and managing logistics business processes for
certain product-market combinations. The halal control activities and assurance
activities have been reviewed by the Shariah panel of IHI Alliance and have been
amended accordingly and published by IHI Alliance as the International Halal Logistics
Standard IHIAS 0100:2010 (IHI Alliance, 2010), which can be certified globally. This
standard is also used as the reference for the halal supply chain initiative, a global
initiative to promote the integrity of halal supply chains. Figure 4 shows the results of
the large discussion group and focus groups in the halal supply chain model in realising
robust halal food supply chains.
Halal
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Halal Policy
Ensure robustness
through reduction and
removing of
vulnerabilities
Supply Chain Objectives
236
Halal Supply Chain code;

Tracking & tracing;
Competency of staff
P
R
O
D
U
C
T
Figure 4.
Robust halal supply
chain model
SC
Resources
Logistics
Control
SC Business
Processes

Bulk or unitised;
Wet (chilled, frozen)
or dry (ambient)
Consolidation of halal
flows;
CODP at HRDC
SC Network
Structure
Simple supply chain

structure; Halal gateway
partners
Halal SC
Performance
M
A
R
K
E
T
Muslim or Non-Muslim
country
6. Suggestions for further research

As argued by Eisenhardt (1989), Voss et al. (2002), Riege (2003), Woodside and Wilson
(2003), and Yin (1984), a case study can be an important tool in building theories in new
disciplines like halal SCM. Although it is expected that the components and detailing of
the halal supply chain model are relatively complete, these case studies could allow for
a further refinement of the halal supply chain model for specific product-market
combinations of halal food supply chains.
This paper introduces the halal supply chain model for halal food supply chains.
Next to halal food, there are also other categories of goods where halal matters, such as
cosmetics and pharmaceuticals. Although the halal supply chain model can be an
effective instrument to design efficient, effective and robust halal food supply chains, it
might not result in a most efficient, effective and robust design for halal cosmetics and
pharmaceuticals. Even though halal cosmetics and pharmaceuticals could benefit by
applying the same principles, it might require for example less stringent regulations as
compared to halal food and therefore could create unnecessary hardship. It is therefore
recommended to conduct a separate qualitative research on the application of halal in
the management of cosmetics and pharmaceutical supply chains.
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About the authors
Ir Marco Tieman has been a PhD candidate with Universiti Teknology MARA (Malaysia) since
2006. His research focuses on the application of halal in supply chain management. He obtained his
Masters degree in Industrial Engineering with the University of Twente (The Netherlands) in
1997. He is currently the CEO of LBB International, an international logistics consultancy and
research firm specialised in agri-food supply chains. He chaired the development of the
international halal logistics standard under the Islamic Chamber of Commerce and Industry and
IHI Alliance. Marco Tieman is the corresponding author and can be contacted at:
marco@lbbinternational.com
Dr Ir Jack G.A.J. van der Vorst (1970) is Full Professor of Logistics and Operations Research
at Wageningen University in The Netherlands. He obtained his PhD degree in 2000 with a thesis
entitled Effective food supply chains; generating, modelling and evaluating supply chain
scenarios. His current research focuses on the development of innovative logistics concepts in
agri/food supply chain networks and the quantitative modelling and evaluation of such concepts.
He is (co-)author of many articles in peer reviewed journals, such as International Journal for
Production Economics, International Journal for Production Research, International Journal of
Physical Distribution & Logistics Management and Decision Sciences.
Dr Maznah Che Ghazali is Associate Professor at the Faculty of Business Management,
Department of Marketing with Universiti Teknology MARA (Malaysia). She has published
articles in Total Quality Assurance and Business Management and has a case study published in
INSEAD-MPC.
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9. Marco Tieman, Martijn van Nistelrooy. 2014. Perception of Malaysian Food Manufacturers Toward Halal
Logistics. Journal of International Food & Agribusiness Marketing 26, 218-233. [CrossRef]
10. Abdul Hafaz Ngah, Yuserri Zainuddin, Ramayah Thurasamy. 2014. Adoption of Halal Supply Chain
among Malaysian Halal Manufacturers: An Exploratory Study. Procedia - Social and Behavioral Sciences
129, 388-395. [CrossRef]
11. Marco Tieman Graduate School of Business, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia
Maznah Che Ghazali Faculty of Business Management, Universiti Teknologi MARA, Shah Alam,
Malaysia . 2013. Principles in halal purchasing. Journal of Islamic Marketing 4:3, 281-293. [Abstract]
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Principles in halal supply chain management

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About Emerald www.emeraldinsight.com

Principles in halal supply chain

Jack G.A.J. van der Vorst

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Logistics, Decision and Information Sciences, Wageningen University,

Maznah Che Ghazali

Journal of Islamic Marketing

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2. Literature review and research framework

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Management paradigm Environment,

Integral demand and

Framework for chain/

Demand and supply

(1) Supply chain

Supply Chain Objectives

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Coordination according to Akens (1994) classification of coordination, halal supply

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Source: Adapted from Kraljic (1983) and Weele (2002)

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1.1.3 Halal customer

The strength/trust of a brand

Christopher (1998), Grunert et al.

3.2.2 Halal transport/

Logistics and SCM costs as

Al-Hakim (2005), Brewer and Speh

Gunasekaran et al. (2001),

van Berg (2007), Lammers et al.

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Sekaran, 2007) on warehousing, transportation and terminals. These focus groups

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Direct contact with Haram

Source: Adopted from Tieman (2011)

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4.2 Focus groups

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Minimum (non-Muslim country)

Preferred (Muslim country)

Verification of halal status through

Halal control activity

Minimum (non-Muslim country)

1. Cleaning of bulk tanker/

Ritual cleansing (if applicable

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Preferred (Muslim country)

Cleaning according to prevailing

Halal control activity

Minimum (non-Muslim country)

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Verification of halal status through

Halal control activity

Preferred (Muslim country)