Halal SuperHighway

A command & control blueprint for Halal supply chains


Technical Report, 2011
38 Pages

Excerpt

TABLE OF CONTENTS

ABSTRACT

1. INTRODUCTION

2. SUPPLY CHAIN STRATEGY
2.1 Competitive Strategy
2.2 Logistics Objectives
2.3 Customer Service Objectives

3. SUPPLY CHAIN NETWORK STRUCTURE
3.1 Introduction
3.2 Conductor
3.3 Halal Certification Body
3.4 Logistics Asset Management
3.5 Gateway / Halal Parks
3.6 Logistics Service Provider
3.7 Supplier / Recipient
3.8 Trader / Auction

4. SUPPLY CHAIN BUSINESS PROCESSES
4.1 Introduction
4.2 Customer Relationship Management
4.3 Customer Service Management
4.4 Order Fulfilment
4.5 Procurement
4.6 Product Development & Commercialisation
4.7 Returns

5. SUPPLY CHAIN CONTROL
5.1 Control Requirements
5.2 Control Logic

REFERENCES

ABSTRACT

The purpose of the Halal SuperHighway design is to provide a blueprint for the command & control of global Halal supply chains. The Halal SuperHighway is the result of a 5-year research program conducted under the Halal Research Centre of LBB International in Malaysia. In this research report the supply chain strategy, supply chain network structure, supply chain business processes and supply chain control are defined. The Halal SuperHighway can be an important instrument in the authentication of Halal in a supply chain, providing market access and a cost advantage for the Halal industry.

All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of the author.

1. INTRODUCTION

Halal is extending along the supply chain, upstream towards animal feed and downstream towards logistics & supply chain management. Evidence supports that Halal assurance is important for the Muslim consumer to be extended from source to the point of consumer purchase. Tieman (2011) in his PhD research established the foundation of Halal supply chain management, which is based on direct contact with Haram, risk of contamination and perception of the Muslim consumer. In order to ensure the Halal integrity at the point of consumer purchase, the command & control of Halal supply chains is critical.

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 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. Therefore there is a need for a Halal supply chain system to facilitate efficient (Fisher, 1997) Halal supply chains globally.

The Halal SuperHighway is a trade & logistics solution and is envisioned to become the De facto standard to facilitate global Halal trade. The Halal SuperHighway is a brick and mortal business model, which is anchored on the collaboration with global gateways; physical logistics solutions; process excellence based on the International Halal Logistics Standard: IHIAS 0100:2010 (IHI Alliance, 2010); and an advanced ICT platform.

Figure 1.1: Business Model of the Halal SuperHighway

illustration not visible in this excerpt

Source: © 2011 LBB International

2. SUPPLY CHAIN STRATEGY

2.1 Competitive Strategy

Strategic Intent:

The Halal SuperHighway provides the critical role in authentication of Halal in a supply chain, market access and a cost advantage for the Halal Industry.

Halal Policy:

i. Responsibility: Command & Control of global Halal supply chains
ii. Scope of Halal certification: transportation, warehousing, terminal operations
iii. Promise: Halal integrity and market access
iv. Method of assurance: collaboration with key gateway partners, IHIAS 0100:2010 as Halal standard backbone, Halal logistics assets, Halal certification database and Halal compliance check on product-origin-destination.

Critical Success Factors:

1. Creating value for the Halal Industry
2. Compliance with the International Halal Logistics Standard IHIAS 0100:2010
3. Low threshold for supply chain partners to join (costs) and connect (flexibility of ICT solution) to the Halal SuperHighway

2.2 Logistics Objectives

Logistics Strategy: An efficient facilitation of Halal supply chains worldwide

Logistics Objectives:

1. High Quality: Compliance with IHIAS 0100:2010 in each step of the Halal supply chain.
2. Low costs: realised through its market platform (market access), logistics solutions to simplify segregation in a supply chain and collaboration with the industry to consolidate Halal flows.

2.3 Customer Service Objectives

Marketing Strategy:

Positioning: The gateway to global halal industry

Differentiation: The Halal SuperHighway provides the critical role in authentication of Halal in a supply chain, market access and a cost advantage for the Halal Industry.

Brand: Halal SuperHighway

Customer Service Objectives for manufacturers

Provide worldwide access to high quality Halal certified raw materials

Provide worldwide access to end markets

Authentication of Halal until point of consumer purchase

Consolidation of Halal standards

Standardisation of Halal packaging/load carriers

Customer Service Objectives for Trader

Provide worldwide access to high quality Halal products

Provide worldwide access to end markets

Authentication of Halal from source

Consolidation of Halal standards

Standardisation of Halal packaging/load carriers

Customer Service Objectives for Retail

Provide access to Halal products/suppliers

Authentication of Halal from source along the retail supply chain

Consolidation of Halal standards

Standardisation of Halal packaging/load carriers

Customer Service Objectives for logistics service providers

Handling of Halal volumes

Consolidation of Halal standards

Standardisation of Halal packaging/load carriers

Customer Service Objectives for Halal Certification Authority

Move Halal to mainstream

Improvement of market access of Halal products

Certification of companies in the Halal supply chain

3. SUPPLY CHAIN NETWORK STRUCTURE

3.1 Introduction

The key logistics processes (logistics value chain) of any organization consist of the following building blocks as shown in the figure below.

Figure 3.1: Logistics elements of a company

illustration not visible in this excerpt

Members of the Halal SuperHighway & roles

Configuration arrangements

Source: Vliet (1998)

Logistics Control

Supporting process that manages the primary logistics processes, namely: sourcing, materials handling and distribution.

Sourcing

Purchasing, receive, inspect, hold, issue, and authorize payment for raw materials and purchased finished goods.

Materials Handling

The main function of the firm (one or more): manufacturing, warehousing, vessel/ship/train turnaround.

Distribution

Shipping (picking, consolidation, packaging, labeling, etc) and transportation

A Halal supply chain consists of a combination of multiple organizations from farm to retail, also called the Halal Value System.

Figure 3.2: Halal Value System

illustration not visible in this excerpt

The Halal SuperHighway supports this supply chain through providing market access, visibility, Halal authentication and a Halal (logistics) reference.

Figure 3.3: Halal SuperHighway as supply chain controller

illustration not visible in this excerpt

The Logistics Control Framework of the Halal SuperHighway is shown in figure 3.4.

Figure 3.4: Control Concept of the Halal SuperHighway

illustration not visible in this excerpt

Source: © 2011 LBB International

3.2 Conductor

The conductor of the Halal SuperHighway is in charge of the command & control of the Halal SuperHighway to ensure a maximum performance of Halal integrity, market access and costs benefits to its users. The conductor is in charge of organising the Halal SuperHighway’s gateway partners, collaboration with Halal authorities, ensuring a thriving market place, ensuring innovative Halal logistics solutions to simplify segregation, compliance with IHIAS 0100:2010 and managing the day to day operations of the Halal SuperHighway.

There is a clear analogy with an orchestra: the dashed box shows the operational part of the Halal SuperHighway; the orchestra, while the conductor directs the players to create a harmonious performance (Halal compliant supply chain).

The Conductor has two key components:

1. Halal Integrity

Halal Authentication:

Halal certification database(s) (depositories with detailed information on different Halal Standards) and network (linkage to Halal Authorities and IHI Alliance)

Halal compliance check based on product, origin (which type of certification by which authority) and destination market requirements (meeting the certification requirements of destination market), also called a product OiDj-matrix.

Halal SuperHighway Standard and Standard Operating Procedures (IHIAS 0100:2010)

Knowledge Platform or Community to collaborative develop, test and commercialise logistics innovations for the Halal Industry.

2. Customer Service Management

Visibility of supply chain with tracking & tracing capabilities

Call centre to assist phone and email enquiries

Communication on Halal integrity issues

3.3 Halal Certification Body

Without complying with the requirements of Halal slaughtering, production and logistics activities, a Halal supply chain cannot be Halal assured from source to the point of consumer purchase. The explicit role of a certification body is to guarantee Halal slaughtering, production and logistics practices through certification of supply chain parties.

Although there is cost to get Halal certified, it provides traceability and increased transparency of Halal supply chains. This traceability and transparency function is an important element to foster the hybrid forms of coordination, which goes beyond conventional sharing of forecast and inventory data towards collaborative production planning, inventory strategies and better organisation of processes. Companies are encouraged to trust counterparts because it carries the certificate of an acknowledged certification body.

The Halal Certification Body has two key components:

[...]

Excerpt out of 38 pages

Details

Title
Halal SuperHighway
Subtitle
A command & control blueprint for Halal supply chains
Course
Halal supply chain management
Author
Year
2011
Pages
38
Catalog Number
V181612
ISBN (eBook)
9783656056638
ISBN (Book)
9783656057321
File size
1113 KB
Language
English
Notes
The Halal SuperHighway is the result of a 5-year research program conducted under the Halal Research Centre of LBB International in Malaysia.
Tags
halal, superhighway
Quote paper
Marco Tieman (Author), 2011, Halal SuperHighway, Munich, GRIN Verlag, https://www.grin.com/document/181612

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