Halal Supply Chain

A Case Study in Halal Beef Supply Chain

Presented By:
Suryadi Hadi (Lecturer at Marketing Management, Tadulako University, Palu)
Amy Wadu (Lecturer at Civil Engineering, Poltek Negeri Kupang, Kupang)

Presented in Retooling for Lecturers in Logistics and Transportation, 26 August 2019, Poltek Pos Indonesia, Bandung
Agenda
The Concept Halal Beef
Introduction SCM vs Halal Supply Chain
Supply Chain Structure

Halal Beef Halal Beef Reverse Logistics

Supply Chain Supply Chain in Halal Beef
Planning Linkages Supply Chain

Conclusion
Introduction
The Muslim population was 1.7
billion in 2010, which accounted In 2016, Muslims spent $1.25
for 23% of the world’s population, trillion on food, which means they
and it is expected to increase to accounted for 17% of the worlds’
2.2 billion, which would account food consumption
for 26.4% of the world population

The trend of Halal food

consumption increases with a
7.4% rate of increase per year,
which is estimated to be $1.6
trillion by 2020
 Muslim
Demographic
s
The World Muslim
Structure
SCM SCM
vs Integrating, coordinating and controlling, the
Halal SCM processes of movement of goods and
materials from suppliers to customers to the
final customer (CILT, 2019)

HALAL SCM
the overall activities of the entities involved along the supply chain
from upstream to downstream apply the concept according to
Islamic law, starting from the selection of suppliers, production
processes, storage, to distribution (separating the storage and
shipping of halal products to avoid contamination)…(Tieman,
2012)
Halal Beef Supply Chain Structure
Halal Beef Supply Chain Planning
Halal Beef Supply Chain Planning
(Malaysia’s Halal Master Plan)
Halal Beef Supply Chain Planning (Malaysia’s
Halal Industry Development Corporation)
Halal Beef Supply Chain Planning (Malaysia’s
Halal Industry Development Corporation)
Halal Beef Standard
Halal Beef Supply
Chain Linkages
Halal Beef Supply Chain Linkages
(Logistics Systems)
Halal Beef Supply Chain
Linkages (IT Solutions)
Halal Beef
• Evidence supports that goods spend a lot of time in storage and
relatively little time in the movements and transformations

Supply
• In Halal supply chain, it is clean and Halal from farm to fork
• Every goods have their own way of conducting Halal products

Chain • Foods such as meat, pharmaceutical products and cosmetics product

has their own characteristics

Linkages
• Differences in product characteristics, it also needs a different
treatment to maintain their Halal integrity

(Warehouse)
Halal Beef Supply Chain Linkages
Reverse Logistics in Halal Beef Supply Chain

Products
Equipments
Return
 The Plan for Reverse Logistics

Determine What must to

Better Maintain
where ITEMS do with
Coordination Communication
CAN RETURNs products
Conclusion Muslim population
Consumer goods (67% of halal
products)
Domestic Market:
- Niche Clients (food, cosmetics,
leather, tourism)
Halal industry development:
- Halal park operators
- Halal producers
- Warehousing
- technology
Conclusion

Development of
Tariff and non-
Halal Logistics
tariff barriers
Services Business

Willingness to
Market Niche
pay from
Development
customers

Customer
Education
Technology and halal chain
Thank You

ANY QUESTION?