Implementation Of Halal Logistics Research Articles

Implementation of Halal Logistics in Halal Pharmaceutical Industry: A Study on Halal Warehouse System in Pharmaniaga Lifescience

The halal industry has become one of the main economic markets for world market growth. The need for halal in many industry segments has sustained the halal ecosystem, including the halal supply chain of products and services. Aside from halal food and beverages, halal pharmaceuticals also have a high demand for halal products and are marketed by Muslims worldwide. With the delicate, unique, and complex characteristics and processes of halal pharmaceuticals, a particular industry must take part in all requirements and measures throughout its supply chain. Thus, this research emphasized the role of halal warehouses as part of the essential logistics facilities for storing halal pharmaceuticals. Many risks will arise regarding the status of halal pharmaceuticals if the products are kept, stored, and handled in a manner underlined by the competent authority. Hence, this research focuses on discovering and ascertaining the industry implementation of halal requirements in warehouse management. This qualitative case study research was based on the data collected through interviews with the informants from the Warehouse Department of Pharmaniaga Lifescience (PLS). The research results revealed the PLS warehouse process flow, their halal implementation in warehouse management, and their perception of the importance of halal warehouse practice for halal pharmaceutical products. This could offer significant insight to the manufacturers, patients, users, researchers, or academicians.

The Implementation of `Halal Logistics' During the COVID-19 Pandemic to Optimize the Transportation of Halal Products at PT BGR Logistics, Jakarta

One of the several disruptions caused by the COVID-19 virus is business transportation and logistics problems. Handling logistics and quality service is one of the keys to the success of selling halal products on the market. PT BGR Logistics is currently implementing a halal logistics system, especially in the Warung Pangan application, which is one of its businesses. This study aimed to determine whether the implementation of halal logistics during the pandemic can improve service quality. Hopefully, this article can be used as a reference for the future of PT BGR Logistics and by the general public. This study used a quantitative method with a sample of Warung Pangan application users as buyers around JABODETABEK.
 Keywords: Halal Logistics, Halal Product, Disruption Covid 19,Service Quality

Identification of Retailer Needs for Influential Logistics Activities in the Implementation of Halal Logistics for Perfume Products Using the Fuzzy QFD (Quality Function Deployment) Method

Determining the needs of retailers in implementing halal logistics can be identified using the Fuzzy QFD (Quality Function Deployment) method. Assessment of retailer needs was carried out by 3 sources. Then the results of the assessment are translated into Fuzzy numbers and then the HOQ matrix is designed. Based on the research conducted, obtained 7 retailer needs and 13 technical characteristics that influence the implementation of halal logistics. Then from 4 kinds of levels of relationship between each technical characteristic, 2 kinds of assessments were obtained, namely the level of strong positive and weak positive relationships. Assessment of the strength of the relationship between each retailer's needs and logistics activities in the context of implementing the halal logistics system for the value of the "Very Strong" relationship can be seen in the relationship between special packaging and ordering costs and special packaging with guaranteed goods condition. As for the value of the strength of the "Medium" relationship, it can be seen in the relationship between the concoction according to the wishes of consumers with the ordering fee and the halal guarantee fee with the ordering fee.

Measuring halal logistics implementation

PurposeThis study aims to identify the suitable indicators and their scale for measuring the level of logistic halal implementation and then develops the measurement system based on those indicators and scales. Moreover, this research also applies the measurement system in food, beverage, and ingredient companies.Design/methodology/approachThis study collected data through web-based closed questionnaires and short telephone interviews. This study succeeded in obtaining seven valid data sets from filling out validation and analytical hierarchy process questionnaires by a panel of experts. This study also obtained 97 valid data sets from filling out the questionnaire about the current condition of each indicator related to halal logistics (HL) implementation. Then, the framework for measuring HL implementation was designed based on the multi-attribute value theory approach.FindingsThe aggregate value of HL implementation in ingredient companies belongs to the excellent implementation category. In contrast, the aggregate value of HL implementation in food and beverage companies only belongs to the good implementation category. Then, according to the size of the company, the large-sized companies have the higher means of the aggregate value of HL implementation for preferred indicators than small- and medium-sized companies. However, all size companies belong to the good implementation category.Research limitations/implicationsThis research has several limitations. The preferred indicators are only measured by the Likert scales. Future research may benefit from inducing the qualitative approaches to measure the condition of each indicator better. Secondly, this research only consisted of 97 food, beverages and ingredients companies. Thirdly, this research only measured the HL implementations to a particular sector or industry. Future research could benefit from replicating the work in similar and dissimilar contexts, adding the sample size and comparing the level of HL implementation between Muslim and non-Muslim companies, and moreover, enhance the measurement of HL implementation by including consumers and other actors involved, such as the government.Practical implicationsThis research provided a basis for helping the government and policymakers understand and evaluate non-performing indicators in HL implementation before formulating several actions.Social implicationsUnderstanding the current HL implementation conditions could facilitate a more effective response in designing some appropriate alternative actions.Originality/valueThis research contributed to measuring HL implementation with a new indicator, a new scale and a new object in an empirical case of food, beverages and ingredient companies in Indonesia.

Halal Logistics Practices: Logistics Service Provider Cases in Indonesia

This study examines critical factors in affecting halal business management, particularly challenges in Halal logistics implementation faced by the logistics service provider as well as its potential and opportunities for Halal based business in Indonesia. An In-depth, semi-structured interview is conducted to deepen the understanding and to provide detailed data of the study. The study found that there are several factors influencing halal logistics implementation. In terms of business strategy, there are external and internal factors that affect halal logistics practices. Such as market-driven, perception benefit of halal logistic certification followed by customer loyalty, challenges in implementing halal logistics, the complexity of operation halal logistics, and invariably regulation factors. All of those factors have become a prior factor in implementing halal logistics practices. The findings can provide a guideline in how to implement halal logistics practices in logistic service provider business, especially in transportation and warehousing process, along with the expected result for its business performance.

Impact of internal and external factors on halal logistics implementation

PurposeThe purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second, this study aims to investigate the impact of internal factors on the IHL through competitive pressure (COP) as a moderating variable.Design/methodology/approachThis study used primary data that were collected through offline questionnaires. The questionnaires were intended to identify the internal and external conditions of a company and the level of the IHL. The internal condition consists of five factors, namely corporate image and reputation (CRE), entrepreneurial intensity, social responsibility (SRE), expected business benefit and halal integrity (HIN). The external factors consist of demand or customer pressure (DCP), government support (GOV), market share expansion and COP. This study considered the factors belonged to internal and external companies on the basis of the conceptual model from Ab Talib et al. (2015), Zailaini et al. (2015) and Ab Talib and Chin (2018) as they have clearly distinguished the important factors for the implementation of the concept of halal into internal and external groups and most of those factors are frequently stated by the other researchers.FindingsThere were 148 questionnaires administrated, 84.5% of which were properly filled in, completed and returned. For internal factors, the result of the study confirms that CRE, SRE and HIN have a positive significant impact on the IHL. For external factors, the result of the study confirms that DCP, GOV and COP have a positive significant impact on the IHL. Then, the result of the study also confirms that COP can make the impact of good CRE on the IHL stronger. This condition did not happen for the other internal factors.Research limitations/implicationsFirst, it is debatable that internal and external factors and the IHL are only measured by the Likert scales. Future research may take the benefits of inducing qualitative approaches to better measure the condition of internal and external factors and the level of IHL practices through observation and probing. Second, this study was limited to the respondents from companies in Indonesia, which is a Muslim-dominant country and this study does not take into account the differences in the target market and the company’s owner, size of operation and financial capacity. Future research should test the conceptual model in a non-Muslim country and should include controlling for variables to generate a more conducive finding. Third, this study only uses the limited variable as the internal and external factors. Therefore, as many variables represent technological, organisational and environmental factors, they could be included in the future research framework.Practical implicationsThis study practically contributes to the halal concept implementation body of knowledge by identifying the relationships between the internal and external factors and the IHL. Understanding this relationship will help the management of food, beverage and ingredient companies, as well as the government or policymakers in making better decisions and strategies to strengthen the IHL.Social implicationsThe IHL may help the food, beverage and ingredient companies to be competitive and achieve organisational improvements.Originality/valueThis study is among the few studies that scrutinized the rationale behind the IHL by Indonesian companies. Although halal logistics plays a key role in protecting the halal status of any given product, this topic is still rarely explored, especially with the case study of Indonesian companies.

Public perception of transportation systems in the halal logistics

The current government, Government Business Entities and mass media in Indonesia are starting to pay attention to halal, because the turnover of halal products worldwide has reached nearly 2 trillion dollars while Indonesia is still more likely to be a consumer than a producer. Not only food, consumers in the world today want cosmetics for pharmaceutical products that have been halal-certified. In Indonesia, problems with the halal market potential are currently still affected by discourse. Indonesia's awareness is still limited, it has not dared to act, whereas in non-Muslim countries themselves many implement halal supply chains. The establishment of the Halal Hub Port in Tanjung Priok as the first Halal Hub Port pilot project in Indonesia was the forerunner to the establishment of the Halal Hub Port in other parts of Indonesia. In addition to the availability of halal logistical infrastructure, it is also necessary to pay close attention to the needs of halal logistic transportation needs. This research was conducted on 89 respondents who are academics of the Islamic University of Malang. By using the Descriptive Analysis method, it will be known which of the variables that most influence the discourse of the halal transportation / cargo system in Indonesia. The results of the study showed that more than 90% of respondents considered important variables needed in the implementation of halal logistics, namely sorting goods according to types as well as halal and non-halal, separating halal and non-halal products, setting the position of goods in cargo, using vehicles specifically for halal products, maintenance of cargo cleanliness, training of halal logistic officers, and health care for halal logistic officers. In addition, the use of halal logistic stickers can also provide halal logistic warranty from producers to consumers.

CHALLENGES FACED BY NON-MUSLIM TRANSPORTER IN ADOPTING HALAL LOGISTICS CERTIFICATE

The objective of this study is to unveil the issues encountered in the implementation of Halal Logistics from the perspective of the Non-Muslim transporter's company. As Halal is relevant to both Muslims and Non-Muslims, Halal products have been recognized and known worldwide in particular for health, safety, and hygiene. However, the introduction of two Halal concepts in Malaysia has created confusion among Non-Muslim transporter companies that are evident in low participation in Halal Logistics certification. With that, the purpose of this study is to identify the barriers that Non-Muslim transporters company face in adopting Halal logistics certificate and maintaining the integrity of Halal status throughout the supply chain process. This study is exploratory in nature and data are collected through a series of in-depth interviews. The results of this study identified the various issues involved in the implementation of Halal Logistics, such as investment costs, government support, and enforcement as critical success factors in encouraging non-Muslim transporters to participate in the adoption of the Halal Logistics Certificate. The barriers and influences factors identified in this study will be used as a reference for potential future research.

Mapping the barriers for implementing halal logistics in Indonesian food, beverage and ingredient companies

PurposeThis study aims to identify the barriers to halal logistics implementation; rank the barriers of halal logistics implementation in food, beverage and ingredient companies; and identify the relationship among the identified barriers of halal logistics implementation to derive key managerial insights.Design/methodology/approachThe paper first describes the concepts of halal logistics and discusses the barriers in implementing halal logistics from previous research studies. Then, on the basis of previous research, this study identifies 13 barriers to halal logistics implementation. The study uses interpretive structural modelling (ISM) methodology to find the rank of the barriers and also the direct or indirect relationship among those barriers. The study also uses a panel of experts consisting of the representative from Lembaga Pengkajian Pangan, Obat-obatan, dan Kosmetika Majelis Ulama Indonesia (The Assessment Institute for Foods, Drugs, and Cosmetics – The Indonesian Council of Ulama or LPPOM MUI) and the representatives from 23 food, beverage and ingredient companies to determine the rank of, and the relationship among, the 13 barriers.FindingsThe result of data processing with ISM methodology indicated that lack of support for logistic service providers and lack of customer demand and reluctance to pay for halal logistics occupied the topmost level. These barriers are affected at the lower level and have less influence than the remaining barriers. The result with ISM methodology also indicated that lack of commitment of management is the main barrier to implementing halal logistics. Moreover, according to the result of data processing with ISM methodology, this study suggests some managerial implications to overcome the barriers that hinder halal logistics implementation.Research limitations/implicationsThis study has several limitations. First, the scope of the study is limited to the barriers faced by Indonesian food, beverage and ingredient companies and overlooks other barriers to halal logistics encountered by other industries or other services as well as other regions or countries (i.e. other Muslim or non-Muslim countries). Future studies should attempt to uncover other industries or other services or a cross-industry comparison as well as other regions, other countries or a cross-region or cross-country comparison. The second limitation is related to the possibility of biased opinions from the experts, and the third limitation is that the identified barriers do not test in a real environment. To eliminate these limitations, future studies should involve more experts from different areas of the halal industry and should test the identified barriers to implement halal logistics in the real scenario.Practical implicationsThis study assists managers and policymakers in understanding the order in which these barriers must be tackled and adopts a strategy to successfully implement halal logistics.Social implicationsThe study has indicated that the barriers to implementing halal logistics can be mitigated because these barriers have the most influence on the system identified.Originality/valueThis study considers the application of ISM methodology to an empirical case of barriers so as to implement halal logistics. The study uniquely contributes to the field of halal logistics because it represents initial research that has analysed the barriers of halal logistics using ISM methodology.

A sustainable model for halal pharmaceutical logistics

The need to implement halal into pharmaceutical logistics and supply chains is essential for halal integrity assurance. Nevertheless, logistics research is almost non-existent concerning the understanding of halal pharmaceutical logistics (HPL). The implementation of halal logistics is more stringent in pharmaceutical logistics than other industries. As predicted, a study concentrating on pharmaceutical transport is therefore critical concerning empowering halal integrity assurance of supply chains for facilitating halal healthcare products/services. The paper focuses on theoretical development and research model for HPL. To address the issue, the study consolidates reviews concerning the research domain of halal logistics. The novelty of this study is in developing and modelling five resource-based halal logistics and transforming them into sustainable competitiveness. This paper deepens knowledge of halal pharmaceutical logistics, thereby enabling such logistics and transportation providers to implement halal logistics. A new research model offers strategic halal resource orchestration for halal pharmaceutical logistics.

A sustainable model for halal pharmaceutical logistics

The need to implement halal into pharmaceutical logistics and supply chains is essential for halal integrity assurance. Nevertheless, logistics research is almost non-existent concerning the understanding of halal pharmaceutical logistics (HPL). The implementation of halal logistics is more stringent in pharmaceutical logistics than other industries. As predicted, a study concentrating on pharmaceutical transport is therefore critical concerning empowering halal integrity assurance of supply chains for facilitating halal healthcare products/services. The paper focuses on theoretical development and research model for HPL. To address the issue, the study consolidates reviews concerning the research domain of halal logistics. The novelty of this study is in developing and modelling five resource-based halal logistics and transforming them into sustainable competitiveness. This paper deepens knowledge of halal pharmaceutical logistics, thereby enabling such logistics and transportation providers to implement halal logistics. A new research model offers strategic halal resource orchestration for halal pharmaceutical logistics.

The Importance of Halal Logistics Implementation in Indonesia in Compliance with Domestics and Global Halal Market Requirements

Halal logistics is very crucial in ensuring and maintaining halal requirements of halal products from production to consumption. However, the concept of halal logistics is not very well understood and implemented in Indonesia by either the regulators or the logistics players due to a lack of concern from various parties. Therefore, this research is conducted to explain the halal logistics concept, define a potential standard for halal logistics and give recommendations on how the implementation of this concept can be executed in Indonesia, in compliance with domestic and global halal requirements. The methods used in this research are a literature review and a theory analysis, concept and also rules and policies that in force in Indonesia, which in the end can be seen clearly whether halal logistics has been implemented or not to compliance domestic and global markets. The result shows that there is no specific regulation yet in Indonesia in terms of halal logistics and distribution. The authors proposed several recommendations of how to conduct and treat appropriate halal distribution process, which it is expected will be able to be fundamental for the government and MUI to implement and certify it as the regulation standard.

Halal Logistics Implementation in Malaysia: A Practical View

Concept of halal is not only acceptable world wide by the Muslim society but also to the non Muslim. However, the implementing of halal logistics in daily operation experience a few difficulties especially on the implementation part. Although there are many academic research paper that highlight the issue of halal logistics and the critical success factor, until today, halal logistics in Malaysia is still experiencing a hiccup. This paper try to highlight a few simple ways of implementation of halal logistics that could enhance the total implementation concept at the very least cost to create benefit to all society. The Paper deals with a few aspect of possible implementation and practice to facilitate the halal logistics approach in daily operation. The main objective is to look at the possible method of implementation and critical success factors towards the implementation of halal logistics operation in daily goods movement in Malaysia.

Towards successful adoption of Halal logistics and its implications for the stakeholders

PurposeThe purpose of this paper is to understand the major critical success factors (CSFs), which are instrumental for effective adoption and implementation of Halal logistics (HL) in Halal supply chain (HSC) environment.Design/methodology/approachIn total, 15 CSFs/CSF clusters were identified and used to develop an interpretive structural modelling-based hierarchal and structural model. Further, analysis categorises driving and dependence power of factors. MICMAC has been undertaken to analyse how these CSFs and their hierarchies relate, with paths and levels.FindingsIt was found that there is a need to develop proper guidelines, standards and codes, to train the Halal logisticians. Robust ICT and its appropriate implementation seems as the backbone of the HSC. HL emerges as a key component for the Halal industry to succeed, and the same is required to extend the integrity of the Halal products from the farm to the fork. That’s to develop Halal as an intrinsic characteristic. Thus, organisations should have support from specific CSFs. The paper provides managerial implications, recommendations for effective implementation of HL and further in identifying the pull effect of HL.Research limitations/implicationsThe model so developed is contextual and based on the perception of qualified experts, and they can have biasness of Halal meat supply chain.Originality/valueAn academic research taking views from different stakeholders with findings valuable to researchers and the policy planners.

Factors Influencing Readiness towards Halal Logistics among Food-based Logistics Players in Malaysia

Logistics is part of supply chain which involves many business entities such as suppliers, manufacturers, distributors and retailers. All these entities will work together to acquire raw materials and transform them into final products. Halal logistics is an approach to avoid contamination of perishable, raw materials and food products during transportation or distribution activities. It is also to avoid products missed information and to ensure that Muslim consumers will receive and consume only the Halalan Toyibban products. In Malaysian Standard for Halal Logistics (MS 2400:2010), halal logistics requirements according to Shariah law are including the requirement of logistics providers for transportation, warehousing and retailing. The requirement usually involved from processing to handling, distribution, storage, display, serving, packaging and labeling. There are few concerns regarding the implementation of halal logistics among logistics players. First, there is concern whether these players follow all guidelines and standards for halal logistics. Second, there is concern whether these players segregate their workers and facilities in producing and distributing activities for halal and non-halal products. This study seeks to investigate factors that influence readiness towards halal logistics among food-based logistics players. Face-to-face interviews were carried out with 156 managers representing logistics companies located in Peninsular Malaysia. Factor analysis was carried out to analyze the data obtained from the managers. The results revealed that support from management, enforcement of Halal Assurance System (HAS), environments controls, employee acceptance and company vision to change were the factors that influenced readiness towards halal logistics.