The concept of halal logistics and supply chain

Introduction to halal logistics and supply chain

1. CHAPTER 1: The Concept of Halal Logistics and Supply Chain

2. Introduction of Halal Logistics and Supply Chain 2. Objectives of Halal logistics and Supply Chain. 3. Types of Logistics 4. Concepts of logistics and Supply Chain Management 5. Differences between logistics and supply chain management Outline

3. Halal Logistics Permissible and a way of life Halal An act driven by the halal industry to ensure halal integrity from the source, to end users and also for export markets. Permissible method of moving cargo from one place to another while upholding full integrity of the Muslim way of life by eliminating all haram, gharar and syak elements. Involves managing the material flow and information flow throughout the supply chain in accordance to a halal standard. Halal Logistics

4. Halal logistics is constituted of all logistics activities “from farm to fork”, covering procurement, handling, warehousing, transportation, and retailing aspects which must all comply with Shariah principles.   The appropriate halal standards must be applied along the entire supply chain, from the point of origin to the point of consumption, to avoid cross-contamination, and to ensure consistency with Islamic law.  A fully compliant Halal supply chain (HSC hereafter) would therefore require the application of appropriate halal requirements to conventional supply chain management (SCM) models.

5. Key principles and practices

6. The Halal Value Chain The interconnectivity of the value-added activities that will change input to output, and eventually achieve competitive advantage. In a halal value chain, there must be a clear segregation of halal products versus non-halal products.

7. Areas of Halal Logistics

8. The Halal Supply Chain A fully compliant Halal supply chain would therefore require the application of appropriate halal requirements to conventional supply chain management (SCM) models. In a globalized economy, where different partners and contractors may operate in non-Muslim countries, the probability of cross-contamination increases dramatically . HSC should revolve around nine specific dimensions, namely:

9. A network of connected and interdependent organizations mutually and cooperatively working together to manage, control and improve the flow of materials and information in compliance with the general principle of shariah Halal Supply Chain The process of managing the procurement, movement, storage and handling of materials, parts, livestock, semi-finished or finished inventory of both food and non-food items and related information and documentation flows through the organization and the supply chain in compliance with the general principle of shariah Halal Logistics The management of a halal network with the goal of extending halal integrity from source to point of consumer purchase. Halal Supply Chain Management

10. Logistics vs. Supply Chain LOGISTICS SUPPLY CHAIN DEFINITIONS Process of planning, implementing, and controlling the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customer requirements Encompasses the entire network of organizations, individuals, activities, information and resources involved in the creation and delivery of a product or services to the end consumer. It includes the flow of materials, information, and financial transactions from suppliers to manufacturers to distributors to customers. SCOPE Focuses on the physical movement and transportation of goods, including activities such as inventory management, warehousing, packaging, transportation and order fulfillment. Encompasses a broader perspective integrating various functions and processes, including sourcing, procurement, production, distribution and customer service. It involves the coordination and synchronization of activities across multiple organizations to deliver products or services to customers.

11. INTEGRATION Subset of the broader supply chain concept. It focuses on the operational aspects of physical movement and storage, often working in conjunction with other supply chain functions Integrates all the activities involved in the procurement, conversion and delivery of goods and services. It encompasses logistics along with other functions like procurement, production planning, demand forecasting, and customer relationship management. TIMEFRAMES Execution of activities in the short term, such as managing transportation routes, scheduling deliveries, and coordinating inventory levels. Involves long-term planning and strategic decision-making, such as selecting suppliers, establishing partnerships, designing distribution networks, and implementing supply chain strategies to achieve competitive advantages. CUSTOMER FOCUS Emphasizes meeting customer demands by ensuring timely and efficient delivery of goods. It focuses on optimizing transportation routes, minimizing delivery times and reducing costs associated with the physical movement of products. Takes a broader perspective, considering the entire value chain and customer experience. It aims to deliver value to customers by aligning all supply chain activities, including product design, sourcing, production, and distribution to meet customer expectations.