Halal logistics opportunities and challenges

Abstract

Purpose The purpose of the paper is to investigate the challenges and opportunities for logistics companies in Malaysia to adopt halal logistics. Logistics plays a key role in protecting the halal integrity of halal food through proper transportation, storage and handling along the supply chain until it reaches its final destination. Design/methodology/approach This research builds on existing research published in the Journal of Islamic Marketing on halal logistics. In addition to an extensive literature review, five focus group discussions were conducted to discover the challenges and opportunities with regards to halal logistics services in Malaysia. Findings The results show that the future market demands and the competitive opportunities related to halal services are the main motivators of first movers in halal logistics. The early adopters of halal logistics face several challenges such as ambiguous halal guidelines, lack of international halal certification, lack of collaboration among governing agencies (i.e. logistics service providers (LSPs), Jabatan Kemajuan Islam Malaysia (JAKIM) and Halal Industry Development Corporation), a lack of cost-effective standards, an overly competitive transportation sector, lack of demand, lack of halal logistics compulsion, financial challenges and a general misunderstanding of halal practices. Practical implications The findings of the present study may help government policy makers recognise the issues that should be addressed in motivating logistics companies to adopt halal practices. Originality/value Although halal logistics plays a key role in protecting the halal integrity of halal products, there are few halal LSPs. This study contributes to the advancement of knowledge on the challenges and opportunities of adopting halal logistics.

Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry

“…Due to very high market uncertainty and price competition in the transportation industry, it is very difficult for the companies to keep the transportation service at a low cost and adopt biodiesel at the same time. Zailani et al [56] found that over-competition exists in the Malaysian transportation industry and thus price plays an important role as customers have numerous alternative choices for shipping their products. Previous studies have shown a positive relationship between competitive pressure and environmental practices [46,47].…”

Pengembangan Sistem Logistik Produk Halal di Indonesia

“…Untuk itu, dalam pemasaran produk halal memerlukan strategi dan manajemen yang baik terutama dalam logistik. Faktor yang menjadi permasalahan logistik halal adalah rendahnya sertifikasi halal secara internasional, panduan kehalalan yang ambigu, keuangan kolaborasi dan koordinasi, rendahnya permintaan serta rendahnya standar dalam mengukur efektifitas pembiayaan (cost-effective) [3]. Tantangan atau permasalahan ini menjadi motivasi bagi pemerintah untuk menyediakan pelayanan logistik halal secara berkualitas dan penyediaan standarisasi dalam penghantaran produk pada konsumen.…”

Inbound Halal Logistics Practices: A Case of Local Mosques

“…However, as revealed by Ahmad Tarmizi et al (2014) that financial resources are one barrier to implement proper halal logistics. Zailani et al (2017) further described that lack of financial resources may lead to many halal food SMEs unable to perform total halal logistics activities.…”

“…The local mosques that have good financial resources showed 1.483 times more likely to practice proper inbound halal logistics, as compared to the local mosques with inadequate financial resources. As argued by Zailani et al (2017), lack of financial resources could lead to the inbound halal logistics not being performed well by an organization. The result also showed that the local mosques that have good management support showed 0.721 times more likely to practice proper inbound halal logistics, as compared to the local mosques that did not have good management support.…”