Noorliza Karia, Muhammad Hasmi Abu Hassan Asaari and Siti Asma’ Mohd Rosdi

Introduction

Malaysia is a leader in the world’s halal industry and is positioning itself as a leading global halal hub with an expected annual export of RM50 billion of halal products by 2020, equivalent to approximately 8.7 per cent of the country’s GDP (The Borneo Post 2018). The Third Malaysian Industrial Master Plan (IMP3) 2006 to 2020 aims to further elevate Malaysia’s role in halal logistics and business; and become the world-renowned halal hub for the production and trade in halal goods and services (Ministry of International Trade and Industry (MITI) 2006). According to the Malaysian Halal Industry Development Corporation (HDC) vice-president of Industry Development Hanisofian Alias

Our halal exports stood at RM43 billion in 2017 and I am confident that we will be able to hit the RM50 billion mark by the end of 2020. Many non-Muslim countries have recognised the untapped potential in the halal market and are now racing to gain a footing, presenting a major business and export opportunity for us as Malaysia has always held the benchmark in halal production and certification.

(Borneo Post 2018)

However, in order to meet such goals and to facilitate international trade in halal products the development of appropriate halal logistics strategies is essential (Karia & Asaari 2016a).

The growth of halal-oriented business has increased the pressure for halal logistics by which halal supply chains remain secure. Pressures on halal logistics service providers (HLSPs) has also increased because the supply chain and transport network has increasingly come to include non-Islamic majority countries and regions, such as the USA, United Kingdom, Europe, China, Japan, and Thailand, all of which want to increase their share of the global halal market (see Chapter 19, this volume, on China’s export and trade initiatives). The fast-growing global halal markets are enormous (see Chapters 1 and 2, this volume) and only further increase the significant demand on advanced halal logistics services.

This chapter is divided into three main parts. First, a brief overview of the Malaysian halal industry and associated logistical issues. Second, a discussion of some of the key elements that need to be considered in halal logistics. Third, a case study of a Malaysian logistics company.

The Malaysian halal industry

In Malaysia, the halal industry is under the jurisdiction of the Malaysian Islamic Development Department (JAKIM), a government agency under the Religious Division of the Prime Minister’s Department of Malaysia, and the Halal Industry Development Corporation (HDC) which is under the purview of the Ministry of International Trade and Industry (MITI). Malaysia was one of the first countries in the world to develop halal certification and processing procedures when, in 1974, the Research Centre for the Islamic Affairs Division in the Prime Minister’s Office began to issue halal certification letters for products that meet the halal criteria. Since 2000 halal standards have been developed as part of a well-documented and systematic Halal Assurance System which included the introduction of a holistic standard for halal products through MS 1500: 2004 and the Malaysian Standard on Halal Food (MS 1500: 2009). This latter standard includes practical guidelines for the food industry on the preparation and handling of halal food (including nutrient enhancers). The standard sets the ground rules for halal food products and food businesses in Malaysia and is used by JAKIM as part of the basis for certification. Significantly from the perspective of Malaysia’s halal hub strategy, Halal Malaysia (2018) states, “It is hoped that in the future, the Malaysian Standard (Government official document) will be promoted internationally and recognised by other countries or blocks such as America, Europe, China and members of ASEAN.” JAKIM has been responsible for monitoring and regulating the halal industry in Malaysia since 2005 and its halal system programme is internationally recognised with over 50 halal agencies and bodies around the world having registered with it.

Halal logistics plays an essential role in halal manufacturing and halal tourism and the halal hotel industry. For instance, the granting of halal hotel certification (see Chapter 5, this volume). The Malaysian Ministry of Tourism has also set up the Islamic Tourism Council (ITC) to strengthen their aspiration to be an Islamic tourism hub and attract Muslim tourists especially from high-spending Muslim countries such as Saudi Arabia, Bahrain, Kuwait, Oman, and Qatar by developing the halal hotel industry and offering Muslim-friendly services in Malaysia.

Halal logistics

What does Allah want in logistics? Much halal literature highlights the significance of halal but is more concerned with what is halal (permissible) and toyiba (wholesome and good) in the food process, regulation, standards and product certification than understanding halal logistics and halal logistics service provision. Halal is not just the application of Shariah principles but also includes aspects of spiritual elements, behaviour, actions and decisions and values practised by the Prophet (PBUH). The ultimate goal of halal is being accepted by Allah. However, whichever definition or approach is used (see Chapter 2, this volume), the basic parameters of halal are constant: religious requirements, product/service excellence, competitiveness, well-being, and Allah’s blessing (Karia & Asaari 2016c).

As a set of Islamic values, halal encompasses three main dimensions: (1) Aqidah—a strong faith and belief; (2) Akhlak—aspects of good behaviour, attitude, ethics, morality which influences acts and decisions; and (3) Shariah—Islamic law set by Allah SWT that determines acts, rules, manners, methods, and which provides a practical system for food, family, life and business/commercial transactions (Muamalat). Briefly, a strong Aqidah such as a good intention, vision, or mission is able to drive a person to be highly committed and responsible in action, decision, and achievement and have a positive effect on Akhlak. The term Akhlak refers to positive values of and in Islam; the visibility of positive acts and decisions; the practices of virtue, morality, manners; and an act of ibadah (worship, submission, and devotion to Allah, including as demonstrated in relation to others) in Islamic theology and philosophy (Ismail, Othman & Dakir 2011). Under Shariah humankind holds dearly to Allah SWT in fulfilling duties as a servant of God, as a person, with duties towards nature, environment, surroundings and life as whole (Kamali 2010; Din 1985).

The term ‘halal service’ refers to Islamic-related business values and practices embedded in products and/or services These can also include service innovations: a new service portfolio or wider services, a comprehensive way to improve service, or a new way of thinking about the process, practices, operations, and management (Karia & Asaari 2014). As framed by the Quran, the term ‘halal service’ also assumes accountable business practices and processes, meaning that the Shariah-compliant business operates and performs with justice, honesty, truthfulness, sincerity, timeliness, and discipline (Karia & Asaari 2016b). A halal business model can therefore incorporate strategic halal service or service innovation which empowers a firm’s sustainable performance by maximising profits (economy), excellence of products/services (quality), ensuring the well-being of humankind (society) and the planet (environment), and observing religious requirements as well as minimising cost or hardship, and ultimately the desire for Allah’s blessing.

The term ‘halal logistics’ refers to Islamic-related business values and practices embedded in logistics systems such as an innovation in delivering halal products or services (Karia, Asaari, Mohamad & Kamaruddin 2015). Logistics is the movement and handling of materials, goods, or information from one point to another point. Therefore, halal logistics is an accountable logistics service, the Shariah-compliant logistics service/business that handles the movement of halal materials, halal goods, or information right from source of suppliers to the point of consumption, i.e. throughout the entire supply chain (Karia & Asaari 2014). The basic ingredients of the halal logistics system are constant: halal transportation, halal warehouse/storage, order processing, inventory, materials handling, and packaging. All halal aspects and Islamic-related business principles and values must be practised and performed right from the source of raw materials and flow into manufacturing till the finished products are distributed to the end user. For halal integrity to be ensured four key logistical functions need to be met: (1) a Halal Logistics Hub that provides secures halal storage for distribution from manufacturer to customer; (2) Halal Logistics Transportation with secure vehicles and equipment for halal products to avoid cross-contamination with haram products during transportation; (3) a Halal Logistics Route with a secure path from supplier to the customer; and (4) the provision of appropriate Halal Logistics Management that secures all managerial aspects of halal logistics, production, and distribution (Karia & Asaari 2014).

Halal logistics service provider (HLSP)

The term halal logistics service provider (HLSP) refers to the Shariah-compliant logistical firm that provides various types of halal logistics service such as halal transportation, halal warehouse, halal terminal, order processing, inventory, materials handling, and packaging. HLSPs are responsible for maintaining halal product/service integrity between production and end consumer and they support the halal integrity preservation among halal supply chain partners (procurement, manufacturer, retailer, supplier, and customer). The HLSP role is sizeable and is expanding rapidly with the growth in halal products and markets.

Halal logistics performance

Halal logistics performance has various dimensions. These include the extent of halal integrity preservation during the halal logistics processes and practices that depend on halal standards, halal regulations and government enforcement, contamination during delivery and storage or at the point of sale, issues of segregation (dedicated facilities in transportation, warehousing, and terminal), and issues of tractability and traceability. Economic performance is also a factor especially as some logistics service providers (LSPs) report halal operations use extra resources and have a relatively high cost (Karia & Asaari 2016a). Halal logistics may involve large initial capital expenditure or investment in halal logistics facilities and equipment, e.g. dedicated halal warehouse and vehicles (Talib, Hamid, Zulfakar & Chin 2015), and, for some products or markets, may not be cost-effective because of low consumer demand. Where this is the case it may weaken the likelihood of LSPs’ initiation of or compliance with halal logistics standards.

Different constructs may be used for measuring logistics performance (Wilding & Juriado 2004) and it remains undecided which key performance indicators (KPIs) should be used for halal logistics performance measurement. However, the development of performance measurement systems based on non-financial indicators is becoming of increasing interest to both practitioners and academics. In the case of the service industry, output is also relatively intangible and difficult to quantify and may need to be evaluated on firm internal operations performance. Nevertheless, performance measurement systems need to be clearly defined for the operational strategy of organisations and measured by multiple performance indicators (Ray, Barney & Muhanna 2004). Logistics performance measurements such as cost, customer service, delivery, quality, flexibility, and innovation have been acknowledged by previous logistics scholars (Table 21.1). It is also often measured in terms of three categories of firm competitive advantages: (1) service advantage, (2) innovation/service variety advantage, and (3) cost (Lai, Li, Wang & Zhao 2008).

Table 21.1 Logistics performance measures

Measure	Examples
Cost	Operational costs, appropriate service costs/charges
Customer service	Dimensions of delivery, flexibility, and quality
Delivery	Timely and reliable delivery
Quality	Service level
Flexibility	Quick response to customer enquiries, claims, and complaints
Innovation	Value-added services offered

Source: After Brah and Lim, 2006; Lai et al., 2008.

Green, Whitten and Inman (2008) defined logistics performance as the ability to deliver goods and services in the correct quantity and at the correct times as required by the customers. Halal logistics performance is therefore regarded as the HLSP’s ability to deliver the right halal products and services in the right quantity, right condition, right place, right time, right customers, and right costs. The measurements for halal logistics performance refer to the indicators of halal work performance and/or the result achieved in halal logistics practices or processes. Halal logistics practices uphold the halal logistics performance indicators by maximising logistics performance while maintaining integrity and adhering strictly to Shariah-compliant logistics business/service. Halal logistics performance measurement can be operationalised into: (1) customer service, (2) innovation service, and (3) cost. The term ‘customer service’ is conceptualised into three dimensions:

delivery—the efficient use of time from order to delivery: fast and reliable delivery,
quality—service level: order accuracy, packing/shipping accuracy, damage free and,
flexibility—quick response to customer enquiries, prompt follow-up of customer claims and complaints, to anticipate change, to adapt and to accommodate special or non-routine requests, and to handle unexpected events.

The term ‘service innovation’ refers to value-added service: additional service, unique/customised service, and the term ‘cost’ refers to operations costs: low service cost/charge, total logistics cost such as transportation cost, inventory and warehousing costs, and labour cost.

In summary, halal logistics practices are most likely to correlate with halal logistics performance comprised of multiple performance measurements such as customer service, service innovation, and cost. However, the effects of halal logistics practices are significant and will vary within and between performance indicators. Nevertheless, LSPs should be committed to halal logistics practices and their successful implementation.

Impact of halal

Value creation efforts such as environmental, industrial sustainability, green, lean, sustainable innovation, halal value creation, and shared value have increased attention as antecedents of sustainable performance and innovation (Yadav, Han & Rho 2016; Bocken, Short, Rana & Evans 2013; Karia & Asaari 2016a; Nidumolu, Prahalad & Rangaswami 2009). Firms may use several indicators to measure the extent to which their focus on positive value leads to improvements in sustainability (Bititci, Garengo, Dorfler & Nudurupati 2012; Reuter, Foerstl, Hartmann & Blome 2010; Nidumolu et al. 2009), cost reduction, revenues, and innovation (Nidumolu et al. 2009).

Karia and Asaari (2016a, 2016b) identified several antecedents for sustainable performance: product/service, profit, people, and planet. They described halal product/service in terms of firms producing product with quality, safety, purity, nutrients, wholesomeness and hygiene; and conducting services with principles of trust, dedication, honesty, timeliness, and discipline. Moreover competitiveness and positive outcomes of firms result from their positive products and/or services. In addition, halal product/service should induce employee commitment (perform jobs with sincerity and responsibly), employee well-being (well-trained employee performs excellent jobs), stakeholder interest, and social welfare.

Product/service

An important aspect of halal value is empowering firms to participate in their halal practices by offering halal services or producing halal products (Karia & Asaari 2016a, 2016c). The term ‘halal product/service’ refers to services with principles of trust, dedication, honesty, timeliness, and discipline; and/or products with quality, safety, purity, nutrients, wholesome; and hygiene (security of product, product liability) that are contributing to the overall achievement of firm outcomes.

Profit

The term ‘profit’ refers to maximum benefits of halal for firms, right value for stakeholder, or firm or public interest. In a wider sense, ‘profit’ refers to the impact of halal on economic or operational performance, i.e. reduce production cost, save materials and energies, and increase competitiveness. Halal requires fully halal resources and capabilities (equipment, technology, and knowledge) which contribute more effectively to firm’s growth and success and give positive effects on firm performance (Karia & Asaari 2016a). High levels of halal practices enhance profits, market share, product/service innovation, and maximise value for people and planet.

People

‘People’ refers to the impact of halal on employees, society, stakeholders, and the social value added. The successful implementation of halal should increase the likelihood that employees will be motivated to perform with sincerity, responsibility, commitment; and excel and be highly involved in their job. Halal also tends to enhance a good working environment, equal treatment, respect human rights, health and safety, and community well-being. Satisfied employees are also more likely to enhance firm competitive advantage in terms of customer service, service innovation, and cost (Karia & Wong 2013).

Planet

‘Planet’ refers to the impact of halal on the environmental and ethical values. Halal practices should promote green initiatives and encourage a safer environment. In Malaysia firms are encouraged to comply with the Shariah-compliant, Occupational Safety and Health and Environmental System Standard (IS0 14001) (Karia & Asaari 2016b, 2016c).

In summary, it is suggested that halal empowers 4P: products/services, profit, people, and planet. Firms that are highly committed to halal are more likely to provide high levels of service or practices; more effectively develop firm growth and success; and create an environment that elicits the best from employees and is safe.

Halal logistics achievement

Karia and Asaari (2016a) have been drawn to the question of what factors cause the success of a HLSP which can be emulated by other HLSPs and eventually become the ultimate success formula/model to other HLSPs. They suggest that halal value creation derives from a resource-based halal logistics (RBHL) approach and that an effective RBHL will enhance innovation capability and competitiveness. They summarise RBHL as being the right bundles of halal logistics, resources, and capabilities. In other words, the common and advanced physical, human capital (knowledge and skills), organisational, and relational resources are integrated to form the right RBHL. The right RBHL is leveraged to enable more cost-effective resource use and sustainability.

Halal value creation is the strategic importance of achieving the innovation capability of halal logistics practices and subsequently enhancing firm performance and competitiveness. Halal logistics practices produce positive effects on RBHL by employing fully halal logistics service capabilities. Consequently, emerging RBHLs are an important aspect of successfully implementing halal logistics practices in a firm that can contribute to its ability to launch successful halal goods and/or services, and to have positive effects on profits and market share. However, to do this means involving participation from supply chain partners. Strategic halal value creation therefore depends highly on the support of top management and/or leaders who see halal value creation as part of their strategic management responsibilities. Indeed, most successful halal logistics practices depend heavily on changing people’s attitudes and activities and getting them involved in the process because the knowledge resources of staff and stakeholders are crucial to executing halal warehousing and halal transportation; utilising logistics technologies, and implementing other intangible resources such as relational resources (Karia & Asaari 2016a). Because halal logistics aims to create an environment that elicits the best from HLSPs, it is hoped that halal logistics will lead to maximising profits (economy), excellence in products/services (quality), ensuring the well-being of humankind (society) and the environment, observe religious requirements, as well as minimise cost or hardship and ultimately meet the desire for Allah’s blessing.

Halal logistics practices

The term ‘halal logistic practices’ refers to a logistics integrated system that dominates Islamic-related business values and practices by providing fully halal logistics service capability. Karia and Asaari (2016a) note that halal logistics practices have been acknowledged to be slightly slow in the real-world setting of halal logistics. Although the significance of the halal industry has been acknowledged for decades, halal logistics practices are relatively new with respect to the delivery of halal products/service in Malaysia. The research thus emphasises the issues involved in implementing halal logistics in practice (what a LSP actually does to demonstrate its commitment to halal) rather than halal logistics ownership. The following case of an anonymous Malaysian logistics firm discusses the practical effect of halal logistics practices.

Case profile

ABC’s vision is to offer the best value and highest possible service level and it aims to become Malaysia’s main total logistics player in the industry especially on halal trade facilitation. As a JAKIM halal-certified logistics provider, ABC offers a full range of halal logistics services encompassing halal warehousing and halal transportation. In addition, it is expert in container haulage, warehousing, international freight forwarding, distribution, supply chain solutions and cold chain solutions, and has captured 70 per cent of the local market and 20 per cent of the ASEAN market; and has international networking in Asia, Europe, America, and Australia.

ABC has an experienced workforce of over 1,300 and a fleet exceeding 500 prime-movers, 3,100 trailers, and 4.5 million square feet storage facility. ABC has also invested extensively in information technology applications with the latest technology of logistics, packaging, transportation, and distribution using data warehouse, business performance management, user-interface, and business analytics tools.

Halal logistics implementation and halal logistics competency

The successful implementation of halal logistics depends heavily on resource-based halal logistics (RBHL). The emerging RBHL have been acquired by ABC to produce positive effects on its performance by improving innovation capability and profits and by enhancing competitive advantage. Figure 21.1 provides a SWOT (Strengths, Weakness, Opportunities and Threats) analysis that summarises corporate image, knowledge and skills; and innovative service providers as being the strengths of ABC that empowers it to take responsibility for halal logistics practices. Nevertheless, despite having external opportunities, ABC still has some weaknesses and threats that require it to be proactive with halal service provision in order to have a better position to meet the needs of halal global customers.

Figure 21.1 ABC Strengths, Weakness, Opportunities, and Threats

An important aspect of halal logistics practices is empowering ABC staff and stakeholders to participate more in the development of its halal logistics services. Halal logistics practices require maximum commitment of ABC. The high level of RBHL enhances successful halal logistics and service capabilities which is transformed into the benefit of profits for ABC and value for customers. ABC Company successfully offers halal logistics services in terms of:

Halal storage and warehousing
Halal transportation (containerised and conventional)
Halal distribution
Halal shipping
Halal freighting for sea and air cargo
Customs facilities
Halal value-added services such as labelling and packaging
Halal advisory services on certification.

Halal logistics practices produce positive effects on RBHL by improving ABC’s commitment to halal logistics service capabilities. ABC focuses on halal in logistics and supply chain in practice (what ABC does to demonstrate its commitment to halal logistics practices). The practical effects of halal logistics practices are:

Inbound activities—only accept halal products for storage pick and pack service, stores consolidation and distribution.
Import and export—set up in-house customs which allow customs clearance for import, export, and transshipment to be handled smoothly and in compliance to halal standards, guidelines, and regulations.
Support functions—a specific call centre has been established in order to cater for halal inbound and halal outbound calls on questions, enquiries, escalations, complaints, and telemarketing.
Standard practice—all processes in ABC must be halal guided, safe and secure.

The nature of halal logistics practices is reflected in the four main criteria that empower ABC to incorporate halal value creation in delivering halal products/services. The following describes details of each criteria.

Importance of halal certification

ABC has realised the vital importance of halal certification in increasing confidence in Muslim consumers and preserving halal integrity. It has experienced an increase in the number of consumers after obtaining a halal certification. ABC incorporates halal value creation in terms of being proactive in its services that provide halal logistics services for an increasing number of halal products and/or halal customer requirements.

Current trends indicate that Malaysian customers have moved towards increased halal food consumption. Demographic changes, such as an increase in female workers and a decline in home meal preparation, mean that ABC needs to focus on added-value products and services. Hence, ABC plays its role in increasing the amount of halal food items available in the market by delivering halal foods to consumers. As emphasised in interviews:

Halal is used in every life of Muslim. But currently we have initiated all activities based on halal procedures. Halal logo is popular now among Muslim and even non-Muslim.

Now Malaysia become one of the main player in halal logistics and begins to penetrate global market. Halal is crucial for our life even for health, safety and our daily needs.

Challenges in halal certification

ABC claimed that the Standard set by JAKIM is difficult to abide by and may not be cost-effective. The common challenges encountered are: (1) the criteria and requirement of JAKIM to be followed, and (2) various operational problems including product operations, inventory management, documentation, and goods storage between halal and non-halal goods. ABC claimed:

Halal operations must follow certain criteria, we did not mix all goods between halal and non-halal goods.

ABC is similar with other forwarders and logistics industry. We must follow requirements set by JAKIM. JAKIM more focuses on customer service, transportation, warehousing, freight forwarding and contract logistics.

In addition, there is still a lack of integration and communication between JAKIM, the Halal Industry Development Corporation (HDC), and logistics service providers. The transition from HDC to JAKIM made certification renewal process more complex and take longer. This implies that there is still no standard halal guideline and halal logistics competency model. The situation is also complicated by a shortage of halal logistics professionals that are halal experts or Shariah educated.

Strategies

ABC has proactively offered halal logistics services and, innovatively, has dedicated halal warehousing and halal transportation as part of its halal logistics practices. It complies with the halal segregation policy in warehouse and transportation. Halal warehousing refers to the physical segregation and separation of goods throughout warehouse processes: receiving, put away, storage, cross-docking, value-added logistics, order picking, and shipping. Halal transportation refers to the halal and non-halal goods not being mixed in a container, common transportation vehicle, or on handling equipment such as forklift, trolley, and pallet.

Being an innovative firm, ABC also employs logistics technologies for improving its halal services and halal integrity preservation.

We use latest technologies to encounter any issues and solve it professionally. Internet web and networking is easy for customer to communicate with us. We have our own web which empowers a lot of information about our company background, strategies and customer service.

We have customer satisfaction survey. We have 1 to 10 which 1 is least satisfied and 10 is most satisfy. The satisfaction score is usually ranked above 7.

Technology is a major variable that influences the development of many of ABC’s services/products. ABC utilises the following technologies for the management of halal food supply chains:

Wireless devices
Intelligent scale
Electronic shelf labelling
Self-check-out machine
Global Positioning System (GPS) Integrated Transportation System
Radio Frequency Identification (RFID).

Support

The government agencies hold responsibility for protecting consumers from corrupt and ignorant certifiers and providers. They have undertaken initiatives for awareness and understanding of the importance of halal certification through formal education, training, conferences, and exhibitions. ABC emphasised that it has received government support and intervention in regards to halal certification.

We are pleased to be able to achieve halal certification and gains government support whose encourage all industries to become halal. We have received tremendous support.

In addition, the firm indicates it needs more support and information being made available on halal business and practices especially halal logistics training.

In summary, ABC has faced some challenges to enhance its competitiveness to be a halal-certified leader in logistics. The challenges are:

To remain a halal-certified logistic service provider (LSP). ABC is facing challenges with customers’ complaints. Every complaint is crucial and challenges ABC to prove its halal integrity that halal process is conducted throughout the manufacturing, inventory, stock, transportation, distribution, arrangement, and selling.

Business expansion. It is difficult to obtain new business partners or client base because all clients must first be halal-certified or at least have the halal product certification before seeking ABC services. This is a tedious process and not many clients want to embark on this, perhaps due to low awareness on halal concept. This perhaps could cause ABC to lose out on business opportunities.

No universal halal standard. Confusion, misunderstanding, and abuse in the halal audit and certification process has occurred internationally due to there being no universal halal standard. New regulations and/or agency requirements also prolong certification processes.

Market penetration. It is not easy to penetrate countries such as Saudi Arabia, Oman, Iran, and Iraq because each has its own halal logistics companies which are offering similar services. Malaysia’s halal recognition is important but has little value in some international markets to stand as a competitive advantage.

Be most competitive. ABC needs to develop and sustain its competitive advantage by having strategic capabilities that are not easy to be imitated by their nearest competitors.

Conclusion

The chapter commences with an overview of the Malaysian halal logistics industry and reviews research on halal logistics studies from LSP perspectives. The terms ‘halal service/business’, ‘halal logistics’, ‘halal logistics service providers (HLSP)’, and ‘halal logistics performance’ are framed by Shariah law. This chapter has explained the constructs of halal integrity preservation and halal logistics performance measurements. Novel features include the framework of halal impact, halal logistics achievement, and halal logistics practices. Halal thus potentially empowers sustainable performance antecedents by maximising profits (economy), excellence products/services (quality), ensuring the well-being of humankind (society) and the planet (environment), observing religious requirements, as well as minimising cost or hardship, and ultimately the desire for Allah’s blessing. The resource-based halal logistics (RBHL) is an important aspect of successfully implementing halal logistics practices which produce positive effects on profits and market share by empowering halal service capability and by enhancing competitiveness. Overall, halal responsible firms, halal certification, and Shariah-compliance have become important strategies for business performance and sustainability.

Logistics service providers should focus more on the significant importance of halal towards competitive advantage and sustainability. Logistics providers should perceive halal value creation as a commitment, a responsible obligation towards business processes and practices, to safety in handling, warehousing and transportation, and meeting and satisfying customers’ new needs and requirements. There is evidence that firms that proactively and innovatively initiate halal value creation in their halal services and/or halal logistics practices in turn enhance their service capabilities as well as profits for them and added value for customers.

Acknowledgement

This work was supported by the Research University Grant, Universiti Sains Malaysia [grant number [1001/PMGT/811216].

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HALAL LOGISTICS

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