Halal logistics in Malaysia: a SWOT analysis

Abstract

Purpose – The purpose of this strengths or weaknesses, and its external opportunities or threats (SWOT) analysis study on Halal logistics industry in Malaysia is to identify SWOT 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. Design/methodology/approach – This study comprises two methods: literature review and interviews. Extensive literature reviews were obtained from leading databases and the articles recorded matches or related with the keywords. In addition, the respondents from the interviews consist of middle- and top-level managers with reputable knowledge, expertise and experience in the Logistics and Halal industry. After the literature was reviewed and information was transcribed from the interviews, reduction techniques were used to group and summarize the variables into the four SWOT categories. Findings – The SWOT categories, consisting of SWOT, are generated from the literature reviews and supported by the respondents’ views and vice versa. Examples of SWOT analyses done are as follows: strength (strong government support), weakness (inconsistent Halal definition), opportunity (Muslims’ population growth) and threat (no uniformity on Halal standards). Research limitations/implications – The SWOT analysis done for this study only demonstrates the internal and external environments and not the assumption that they are certain to be correct, as they contain every imaginable matter 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done does not show how to achieve competitive advantage, merely as a guideline and the SWOT analysis done may be outdated as the environments are constantly changing.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 implications – The study hopes to contribute in future studies 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.

Halal Meat Supply Chain Traceability based on HACCP, Blockchain and Internet of Things

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“…Furthermore, Halal logistics is still in infant stage even in Malaysia which aspires to become the Halal hub in the future [32] and there is no a successful model of a logistics company practicing total Halal logistics [5]. This refers to the lack of the knowledge and experts in conducting conveniently Halal logistics.…”

“…Likewise, the origin of the packaging materials still matters. The production of plastic packaging which uses animal-origin gelatins and the use of oil as a lubricant to assist the production of metal cans could void Halal status if they are derived from not properly slaughtered animals or from animals whose Halal status is questionable [32].…”

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“…SWOT is a strategic planning technique that is elaborated as strength, weakness, opportunities and threat [20]. Although there are certain strategic planning techniques such as PEST, PESTEL, Porter five forces, Growth-share matrix etcetera, none of them can explain current status quo of Bangladeshi Apparel Industries in comparison to global market (especially China, India, Vietnam) better than SWOT analysis.…”

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“…One of the important concepts that influences Muslims is Halal, which means "something permissible by Islamic law", [48] and especially concerns food consumption. Muslims are permitted only to consume Halal foods that follow Islamic principles in the process of manufacturing, preparing, packaging, and distribution [49]. Indonesia and Malaysia developed their own Halal certification systems.…”