Halal Logistics Practices: Logistics Service Provider Cases in Indonesia

Abstract

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.

Mapping the barrier and strategic solutions of halal supply chain implementation in small and medium enterprises

“…In a study conducted by Hasan (2021), the establishment of halal SCM was based on three key factors: direct exposure to haram substances, adherence to Muslim consumer principles and the potential for contamination. Furthermore, the success of halal logistics implementation was found to be influenced by fundamental factors, including government support and promotion, clear standardisation and rules related to halal logistics, customer awareness and general prerequisites for halal certification in logistics service (Saidah and Lestari, 2021). Following that, Tieman (2011) explored the implementation of halal practices in SCM, specifically elaborating on the fundamental principles underlying the management of halal products within the supply chain.…”

Analysis of Beef Halal Critical Points with Halal Logistics Approach and Risk Management

“…The trend of halal logistics is increasing from year to year because halal logistics can provide better guarantees to consumers (Fathi et al 2016). Halal logistics is not only a trend but also a necessity (Saidah and Lestari 2021), especially in Muslimmajority countries.…”