The growth of the Muslim population

According to statistics issued by Pew Research Centre (an organization that emphasizes sharing information on issues and trends that shape the world), Islam is the fastest-growing religion in the world. Based on the centre’s estimated percentage of population growth between 2015 and 2060, the Muslim population will grow at a rate surpassing that of the overall population: 70% and 32%, respectively. Meanwhile, in terms of people count, the total population size of Muslims will drastically increase between 2015 and 2060, with 1.8 billion people increasing to almost 3 billion people.

Halal and cold chain logistics

Halal supply chain management is different from conventional supply chain management. That is, the Halal supply chain requires a Halal policy and specific design parameters for distinctive supply chain objectives. Findings have shown that product characteristics and market requirements (for Muslims and non-Muslims) determine the supply chain logistics for Halal products and services. When consumers’ demands for Halal products increase, the supply chain logistics increase simultaneously. Similarly, the level of logistics services provided by suppliers predetermines consumer satisfaction. In the logistics industry, consumers’ satisfaction is significant to the processing nature of the logistics service.

The Needs for Halal Logistics

Logistics and supply chain is a platform for industries such as import and export. Without the availability of highly reliable and trusted logistics infrastructure and processes, the growth and operations of other industries can be affected. This is, of course, no exception for the Halal industry. In fact, the most important driving factors of the Halal industry are logistics and supply chain. In the past, several authors have come up with various contexts of Halal logistics descriptions. Halal logistics is also described as a process of managing the end-to-end distribution of Halal goods, from grass to glass and from farm to fork, which consists of related logistics processes, such as purchasing, procurement marketing, distribution and storage. The main objective of Halal logistics is, among others, to ensure that customers are getting the solid and strong foundation of Halal goods and services facilities from the provider or manufacturer to conserve its optimized quality and, therefore, the product integrity. In the Halal industry, the majority of customers are Muslims who are looking for products and services complying with “Syariah” laws. As defined in the GMTI 2018 report, Muslim travelers can be categorized into three types: strictly practicing Muslims, practicing Muslims and less-practicing Muslims. Thus, countries that focus on empowering the growth of the Halal industry will focus on the requirements of Muslims, such as Muslim travelers. As an example, in measuring the preferences and statistics of Muslim travelers, a study on GMTI 2018 has defined four sets of relevant key elements:

  • accessibility, 
  • communication ability,
  •  environmental friendliness and services offered

Halal logistics is essential, originating from the requirements needed to earn Halal status for products or services.

Supporting the Halal Logistics

Halal logistics is implementable, several factors need to be considered by players in the logistic industry: knowledge, intention, Muslim employees and staffs, support from management, vision to change, a Halal Assurance System (HAS), harmony environments, and acceptance from employees.

Halal assurance

The requirements for integrity assurance in the end-to-end process in the Halal industry have generated continuous efforts at all levels, from preparing, producing, transporting and packaging to delivering the Halal products, such as goods and services, from the manufacturer to end customer.

Compliance and regulation

Certification bodies must be established in the producing countries to observe and monitor the Halal process, ensuring its integrity and sanctity; certification bodies will have different types and images of the Halal logo to be used and tagged on the products or outlets that require Halal certification.

Source: Hala Logistics and Supply chain management in Southeast ASIA.