Abstract

Abstract Halal logistics has an important role in global Muslim consumer’s way of life. Muslim countries follow Shariah law strictly. Thus, Halal logistics activities must segregate facilities for halal and nonhalal products. In addition, the world Muslim population has risen steadily. It influences production and export volumes from Thailand to the global trade of halal products increasing. Logistics service providers (LSPs) have been seeking an opportunity for creating a business competitive advantage into new situations. They can create and deliver better benefits to customers than their competitors and simultaneously earn higher profits than the average of other LSPs. A variety and flexibility of logistics activities come together to make services more desirable to the target market. Although many studies have been carried out on the influence of value creation, a part of halal logistics research in Thailand is rare. For the reasons mentioned, the objective of this paper to describe the influencing value creation in halal logistics activities from a literature review to be a conceptual framework development. Establishing the issues concerning value creation of halal logistics causality are best explained by the following resource sharing, innovation solutions, and risk management.

Highlights

  • Islam is the second largest religion in the world

  • The global halal market in 2018, the trade of halal global was valued at 326.38 billion dollars, which was a high expansion of 10.6 percent in comparison from 2013 to 2017

  • The aim of this paper is to explain the information obtained from a literature review with an emphasis on relationships between resource sharing, innovation solution, risk management and value creation

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Summary

Introduction

Islam is the second largest religion in the world. Muslim refers to anyone who believes in Islamic principles that Sharia law is applied to Muslims in the way of life. Regions with abundant resources saw the opportunity to supply customers demand in the halal market that there is not a Muslim majority country. The global halal market in 2018, the trade of halal global was valued at 326.38 billion dollars, which was a high expansion of 10.6 percent in comparison from 2013 to 2017. It shown a continuous growth (National Food Institute, n.d.). Thailand is ranked 9th exporter of halal products. The international fragmentation of production effect to Muslim consumers concerns a difference to halal standards in different countries. Competitive advantages, customer service-levels improvement, and overall logistics costs reduction can be helping exporters to achieve an effective strategy by logistics outsourcing (Talib, Rahim, Chin & Hamid, 2017: Tian, Ellinger & Chen, 2010)

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