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A Review of Halal Supply Chain in Malaysia: Pharmaceutical & Cosmetics
... Additionally, perhaps Brunei could venture into the untapped halal pharmaceutical industry (Mohezar et al., 2016) -given the country is performing well in the halal pharmaceutical front (DinarStandard, 2019). Rather than focusing on the halal food logistics, where competition is intense and products are saturated, shifting the focus on the logistics and distribution of halal pharmaceuticals could also encourage halal integrity (Rayner et al., 2017) and allow more room for the country's logistics sector to grow. ...
Purpose: Despite the thriving global halal industry and logistics’ vital role in the halal supply chain, knowledge and research on halal logistics remain limited, particularly in Brunei Darussalam. Hence, the purpose of this paper is to understand the current state of knowledge by identifying the halal logistics constraints in Brunei Darussalam.
Design/methodology/approach: The paper uses the theory of constraints, inductive reasoning and support from a review of relevant academic journal articles, to uncover the hindering factors surrounding halal logistics in the country.
Findings: The paper identifies five critical issues, which occur from internal and external factors, that constraint the growth of halal logistics in Brunei Darussalam.
Research limitations/implications: The qualitative design limits this conceptual piece. However, the paper could be beneficial in informing the academic and industry circles of the potentials and challenges in Brunei Darussalam, particularly in its logistics sector.
Originality/value: This study is the first to investigate halal logistics in Brunei. The study positively contributes to the understanding of the halal logistics constraints in Brunei as well as adds to the growing body of halal logistics literature and enriching the halal research sphere.
... The phrase "HALAL" must not be misused by advertisers. This includes any statements or pictorial related to Islamic religion such as the usage of the Quranic verses with the aim of confusing the consumers [36,37]. ...
The pharmaceutical business of Malaysia has been encountering dynamic
development throughout the years. Sales and advertising need obligations of
pharmaceutical organizations to spread the product information and materials through
a precise regulatory pathway of advancing the sales of products. The pharmaceutical
manufacturing hub in Malaysia is under the supervision of the Ministry of Health (MoH)
of Malaysia. An execution of various laws and the establishment of regulating authorities
have been done to govern the pharmaceutical business and protecting the community.
While the laws are executed, the legislature or related specialists should watch out for
the present medicinal issues to pass judgment on the viability of the current laws in
overseeing the pharmaceutical sales and advertisement. The public should be exposed
to the advertisements which help the consumers to settle on level-headed choices on
the utilization of medications without confounding, misdirecting and beguiling cases.
However, such activities are commendable if they are following the enactment and rules
provided by the respective authority.
This study examines the influence of halal supply chain knowledge on Muslim and non-Muslim consumers' intention to purchase halal food products. This includes knowledge of halal feed, the halal slaughtering process, halal handling and storage, halal packaging, halal logistics, and halal retail. Convenience sampling was used as the sampling method for the study. Targeted respondents were both Muslim and non-Muslim consumers in Selangor, Kuala Lumpur, and Putrajaya (Klang Valley) in Malaysia. Based on the suggestion from Roscoe (1975), 360 respondents were targeted for this study. Out of 360 questionnaires distributed, 304 (84 percent) were usable and valid for further analysis. This study focused on knowledge supply chains and further identified that knowledge has a direct influence on consumers' purchase intention for halal food. Knowledge of halal slaughtering, storage, and packaging, in particular, are among the best predictors of consumers' purchase intention for halal food. Shaari and Arifin (2010) found that knowledge is a key influence in halal purchase intention. However, in terms of the supply chain, knowledge of the process tends to be focused around people in the industry and not general consumers. Hence, this study investigated how far consumers' knowledge of halal supply chains affects their purchase intention.
Purpose: The aim of this study is to discover the critical success factors (CSFs) for the Halal supply chain management because this area is gaining recognition. Plus, the aim is to use the CSFs for future research.
Design/methodology/approach: The study is based on the application of CSFs on the Halal supply chain. A comprehensive literature review is undertaken to discover the CSFs of conventional supply chain and to apply it to the Halal supply chain.
Findings: Government support, transportation planning, information technology, human resource management, collaborative relationship, Halal certification and Halal traceability are the CSFs for the Halal supply chain.
Research limitations/implications: This study only discusses the CSFs related to the Halal supply chain and ignoring other forms of Halal businesses. This study only concerns on English literatures and omit other languages. The study lacks empirical evidence and future research should be done to test the CSFs relevancy.
Practical implications: This study addresses stakeholders of the Halal supply chain CSFs, which have not been fully understand and appreciated.
Originality/value: CSFs concept has never been attempted on the Halal supply chain. Therefore, this study appraises the concept of CSFs and adds value to the knowledge on the Halal supply chain.
Purpose: The purpose of this SWOT analysis study on Halal logistics industry in Malaysia are to identify the strengths, weaknesses, opportunities and threats in the Halal logistics environment and to uncover strategies to leverage on the strengths and opportunities and rectifying the weaknesses as well as overcoming the threats.
Methodology: This study comprises of two methods; literature review and interviews. Extensive literature reviews were obtained from leading databases and the articles recorded matches/related with the keywords. In addition, the respondents from the interviews consists of middle and top level managers with reputable knowledge, expertise and experience in the Logistics and Halal industry. After the literature were reviewed and information were transcribed from the interviews, reduction techniques were done to group and summarize the variables into the four SWOT categories.
Findings: The SWOT categories, consisting of strengths, weaknesses, opportunities and threats are generated from the literature reviews and supported by the respondents’ views, vice versa. Examples of SWOT analysis done are as follow; strength (strong government support), weakness (inconsistent Halal definition), opportunity (Muslims’ population growth) and threat (No uniformity on Halal standards).
Research Limitations: The SWOT analysis done for this study only demonstrates the internal and external environments and not the assumption that there are certain to be correct as it contains every imaginable matters that are in relation to Halal logistics. Plus, the analysis done does not show how to achieve competitive advantage, merely as a guideline and the SWOT analysis done may be outdated as the environments are constantly changing.
Practical Implication: The study hopes to contribute for future researches and act as a guide for the Halal logistics players to have better understanding in their business environment.
Originality/Value: This study is the first of its kind, to incorporate SWOT and Halal logistics. Hence, this study will add in more value to the existing academic research done on SWOT Analysis and broadening the Halal and logistics business understanding, not only in Malaysia but globally as well.
Purpose – In this study, Ajzen's Theory of Planned Behavior is used as a theoretical framework with the aim of extending prior research examining halal food purchasing behavior in Malaysia. Design/methodology/approach – Data are collected through self-administered questionnaires. This paper uses multiple regression analysis to identify the factors affecting halal food purchasing behavior of Malaysian consumers. Findings – The multiple regression analysis results indicate that all factors have positive and significant influence on halal food purchasing intention. Research limitations/implications – Like other empirical studies, this study is not without its limitations. The sample size itself is relatively small. The study can be strengthened by increasing the sample size and including participants in other geographical areas. This study also considered only three antecedents of halal food purchasing among consumers in Malaysia. As Malaysia is actually trying to play for a bigger role in the halal industry, more research is needed to identify and address problematic aspects of consumption of halal food. Potential correlations between some of the independent variables (e.g. trust, moral obligation, habit, and self-identity) need to be reported in a future study. Originality/value – This study contributes to and extends our understanding of the halal food purchasing behavior, identifying the rationales for purchasing of halal foods. From a managerial viewpoint, the findings provide support for investment decisions and for decisions relating to the establishment of Malaysia as a halal hub that address and take the concerns and needs of businesses and Malaysian Government agencies into consideration.
The halal industry is still in its early stages of development, and efforts to chart the way forward in compliance with Islamic principles are desirable and necessary. As with Islamic banking in the early years, this industry has also been largely driven by market demands and realities. It would be advisable to enrich the achievements of the halal industry with research efforts that advance a better understanding of Islamic principles and the scientific knowledge relevant to our concerns. The article begins with a review of evidence in the Qur'an and hadith on the halal or mubah, and then proceeds to address the haram. The later part of the article covers the reprehensible (makruh) and the recommendable (mandub) respectively, as well as fiqh and the relationship between Islam and science.
This research paper aims to establish the principles of halal logistics. This exploratory research paper is based on a large discussion group held in Malaysia to define the scope of halal logistics, its principles and foundation for Muslim and non-Muslim countries. Halallogistics covers warehousing, transportation and terminal operations. The establishment of these principles serves as a guide for the creation of a global halal logistics system; minimising hardship for the halal industry; define cross-contamination between halal and haramand how to avoid it; create an evolution of a complete halal value chain and supply chain; and benchmark with existing standards and best practices. For Muslim countries, halal logistics is based on avoiding direct contact with haram, addressing the risk of contamination, and perception of the Muslim consumer. For non-Muslim countries, halal logistics is only based on avoiding direct contact with haram and addressing the risk of contamination. Since this paper is an exploratory study, it provides some insights into the minimum and preferred level of halal logistics in Muslim and non-Muslim countries. However, quantitative research is needed to confirm this difference in consumer perception between Muslim and non-Muslim countries.
Purpose
– This study aims to assess the possibility of implementing lean practices in the Halal food supply chain, and the barriers to their implementation.
Design/methodology/approach
– A survey was used to identify the perceived issues and attitudes towards implementing lean practices in the supply chain. The questionnaire was distributed to 300 Halal food firms in Malaysia. A total of 61 usable replies were received.
Findings
– More than 70 percent of the firms reported that lean supply chain (LSC) has not yet been implemented in their firm. Data analysis shows that 14 percent of non-lean firms urgently need to implement lean manufacturing. Market competition and uncertainty was highlighted as an important barrier in implementing LSC among lean firms. In contrast, lack of customer awareness of LSCM practices was recognised as a major barrier in non-lean firms.
Originality/value
– There is little documentation regarding the status of LSC implementation in the Halal food industries, and therefore identifying the necessity of its implementation and the important impediments was identified as a gap in the existing literature. This paper provides insightful information on the necessity of implementing lean manufacturing practices in Halal food supply chains.
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.
The author would like to thank the following people for their participation in the in‐depth interviews: Mr Darhim Hashim (IHI Alliance Ltd, Malaysia), Mr Ahmad Azudin Abd Khalid (IHI Alliance Ltd, Malaysia), Professor Dr Abd‐Elaziem Farouk (Brunei Darussalem University, Brunei), Professor Dr Yaakob Che Man (Universiti Putra Malaysia, Malaysia), Dr Suhaimi Ab. Rahman (Universiti Putra Malaysia, Malaysia), Associate Professor Dr Mohamad Akram Laldin (International Shari'ah Research Academy for Islamic Finance, Malaysia), Associate Professor Ghaffarullah (Universiti Teknologi Mara, Malaysia), Dr Nor Azman (Halal Industry Development Corporation, Malaysia), Mr Irfan Sungkar (University of Malaya, Malaysia).
In order to accomplish the intent to further develop halal sector in Malaysia, something need to be done to introduce a comprehensive and suitable tracking and tracing technology for sustain the integrity of halal product and to develop a proper technological framework that can support the entire supply chain of halal product process. Tracking and tracing technology for Halal Supply Chain in Malaysia are given less attention. To overcome the halal product integrity issue, and in achieving the objective as halal hub country, Malaysia should setup alternative or solutions. Combinations of ICT technology and halal supply chain world by develop a technology that could be imply in the halal supply chain process framework could be one of the solutions. In information technology (IT) world, technologies suppose be the best formula to be added in to make the world more convenience and effective living by all kind of culture and religion. In introducing the radio frequency identification (RFID) technology to the Halal Supply Chain, there are several type of RFID in the market currently and which one should be identified to be use in this problem area. In fact, before putting the new technology that been discussed, modified original framework also should be count in too.
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