Halal logistics in malaysia and 5 continents

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  • very informative slide......!!! Thanks
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  • Hello Farid. The slides were very helpful. I am student from the Netherlands and I want to do my masterthesis (within supply chain management-program) about Halallogistics. Currently it is unclear how halal logistics is implemented in the Netherlands. Could you help me in any way? Thank you for you time.
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  • Slides were informative. Thank you.
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  • Dear Mr.Farid, I'm currently doing my thesis on the awareness and integrity of Halal product & services among Logistic Provider in Malaysia. Do you have any materials that can help me? And also if I may request the list of all logistic provider that provide halal services in Malaysia. Here is my e-mail muizasyraf@gmail.com
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Halal logistics in malaysia and 5 continents

  1. 1. HALAL LOGISTICS MOHD FARID AWANG AMIN ABDULLAH NORHAIZUM SAHRILGBI 795 – UiTM Shah Alam
  2. 2. CONTENT 1.  Introduction on Halal 2.  What is Halal Logistics? 3.  Standards 4.  Government initiatives 5.  Private initiatives 6.  Halal Logistics in 5 continents 7.  OpportunitiesGBI 795 – UiTM Shah Alam
  3. 3. INTRODUCTION •  What is Halal? •  Halal products •  Muslim populationGBI 795 – UiTM Shah Alam
  4. 4. Halal Halal is used to describe anything permissible under Islamic law, in contrast to haram, that which is forbidden. This covers aspects such as behavior, speech, dress, conduct, manner, and dietary laws. This dichotomy of usage is similar to the Hebrew term "kosher". Ir. Marco Tieman, ASEAN Logistics Network Symposium 2010 Bangkok, 8-9 October 2010GBI 795 – UiTM Shah Alam
  5. 5. HALAL HUB DIVISION : JAKIM GBI 795 – UiTM Shah Alam
  6. 6. Halal Products!  The production & consumption of Halal food has been traditionally the main focus of the Halal industry.!  However, the concept of Halal is not confined to food itself. Halal products and services also include cosmetics, pharmaceuticals, clothing, financial services, and logistics.!  Halal is extending both upstream (like animal feed) and downstream (like food services) the value chain and includes logistics!Ir. Marco Tieman, ASEAN Logistics Network Symposium 2010 GBI 795 – UiTM Shah AlamBangkok, 8-9 October 2010
  7. 7. GBI 795 – UiTM Shah Alam
  8. 8. The PeopleGBI 795 – UiTM Shah Alam
  9. 9. THE HALAL LOGISTICSGBI 795 – UiTM Shah Alam
  10. 10. •  Hypermarket•  Supply chain •  Restaurant•  Online •  Canteen •  Pasar malamGBI 795 – UiTM Shah Alam
  11. 11. HOW ALL THESE FOODS DELIVERED? IS IT (SC) CLEANS? DO THE SUPPLIER HAVE HALAL LOGISTICS @ SC?GBI 795 – UiTM Shah Alam
  12. 12. WHY NEED HALAL LOGISTICS? Ensuring integrity from farm to fork Ensuring integrity from seed to forkGBI 795 – UiTM Shah Alam
  13. 13. WHAT IS HALAL LOGISTICS?GBI 795 – UiTM Shah Alam
  14. 14. DEFINITION •  Halal logistics is the process of managing the procurement, movement, storage and handling of materials, parts livestock and (semi) finished inventory both food and non-food (and related information & documentation flows) through the organization and the supply chain in compliance with the general principles of Shariah Law.Halal Logistics Conference 201228 June 2012, Traders Hotel, Penang GBI 795 – UiTM Shah Alam
  15. 15. THE PRINCIPLES Halal products are segregated from non- Halal products to: 1. avoid (cross) contamination 2. avoid making mistakes 3. ensure consistency with Shariah and the expectations of the Muslim ConsumerHalal Logistics Conference 201228 June 2012, Traders Hotel, Penang GBI 795 – UiTM Shah Alam
  16. 16. Halal Logistics Conference 201228 June 2012, Traders Hotel, Penang GBI 795 – UiTM Shah Alam
  17. 17. Assoc. Prof. Hajjah Mariam Abdul Latif (UMS)Opportunities on Halal Logistics and ASEAN FTAs, HDC and MITRANS, June 2012 GBI 795 – UiTM Shah Alam
  18. 18. HALAL LOGISTICS SUPPLY CHAINGBI 795 – UiTM Shah Alam
  19. 19. EMERALD JOURNAL : Marco Tieman, (2011),"The application of Halal insupply chain management: in-depth interviewsGBI 795 – UiTM Shah Alam
  20. 20. EMERALD JOURNAL : MarcoTieman, (2011),"The application of As argued by all people interviewed, theHalal in supply chain management: perception of the Muslim is different,in-depth interviews depending on the Islamic school of thought, local Fatwas (religious rulings) and local customs. As mentioned during one of the interviews, Brunei requires even full segregation between stunned and non- stunned Halal slaughtered meat. Risk product characteristics: •  wet products have a higher risk as compared to dry products; and •  bulk products have a higher risk than unitised productsFoundation of Halal supply chain management GBI 795 – UiTM Shah Alam
  21. 21. Halal control activities and assurance activities in the Halal Supply Chain •  Warehouse •  Transport •  Terminal Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali, (2012),"Principles in halal supply chain management", Journal of Islamic Marketing, Vol. 3 Iss: 3 pp. 217 - 243GBI 795 – UiTM Shah Alam
  22. 22. 1. Halal control activities and assurance activities in the warehouseGBI 795 – UiTM Shah Alam
  23. 23. 2. Halal control activities and assurance activities in transportGBI 795 – UiTM Shah Alam
  24. 24. 3. Halal control activities and assurance activities in terminalsGBI 795 – UiTM Shah Alam
  25. 25. EMERALD JOURNAL : Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali,(2012),"Principles in halal supply chain management", Journal of Islamic Marketing HALAL SUPPLY CHAIN MODEL (Developed based on SC model by van der Vorst and Beulens (2002), based on Cooper’s SCM framework (Cooper et al., 1997) GBI 795 – UiTM Shah Alam
  26. 26. EMERALD JOURNAL : Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali,(2012),"Principles in halal supply chain management", Journal of Islamic Marketing GBI 795 – UiTM Shah Alam
  27. 27. Assoc. Prof. Hajjah Mariam Abdul Latif (UMS)Opportunities on Halal Logistics and ASEAN FTAs, HDC and MITRANS, June 2012 GBI 795 – UiTM Shah Alam
  28. 28. GBI 795 – UiTM Shah Alam
  29. 29. GBI 795 – UiTM Shah Alam
  30. 30. GBI 795 – UiTM Shah Alam
  31. 31. GBI 795 – UiTM Shah Alam
  32. 32. MALAYSIA HALAL LOGISTICS PROVIDER NO# COMPANY# ADDRESS## WEBSITE# Lot"37,"Lebuh"Sultan"Mohamad"1,"Kaw."Perindustrian" 1"CITRA"MULTIMODAL"SERVICES"SDN"BHD" Bandar"Sultan"Suleiman,"Pelabuhan"Klang,"Klang" www.citra.com.my" Selangor" Lot"37,"Lebuh"Sultan"Mohamad"1,"Kaw."Perindustrian" 2"FREIGHT"MANAGEMENT"(M)"SDN"BHD" Bandar"Sultan"Suleiman,"Pelabuhan"Klang,"Klang" www.fmmalaysia.com.my" Selangor" No."3,"Jalan"Sungai"Kayu"Ara"32/40," 3"GOLD"COLD"TRANSPORT"SDN"BHD" Seksyen"32,"Berjaya"Industrial"Park," www.goldcold.com.my" 40460"Shah"Alam" NO.1,JLN"13/5,"SUBANG"JAYA" 4"HAVI"LOGISTICS"(M)"SDN."BHD." 47500,"PETALING"JAYA" SELANGOR"DARUL"EHSAN" "" Lot"506,"Jalan"Pelabuhan"Utara,Bandar"Sultan"Suleiman," 5"IGLO"(M)"SDN.BHD." 42000"Pelabuhan"Klang,"Selangor"Darul"Ehsan," www.iglo.com.my" Malaysia." No."3,"Lengkuk"Gerudi"off"Jln."Pelabuhan"Klang"Utara," 6"JOHANN"FREIGHT"SDN"BHD" www.johannfreight.com" Klang,"Selangor" Batu"9,"Jalan"Klang"Lama,"" 7"KONTENA"NASIONAL"BERHAD" Seri"Sea"46000" www.kn.com.my" Petaling"Jaya" Zalina Idris, Capacity Development Division, HDC, Oct 2012GBI 795 – UiTM Shah Alam
  33. 33. STANDARDSGBI 795 – UiTM Shah Alam
  34. 34. STORAGE •  Non halal product / raw material should not be in the storage area •  The surrounding of storage must be clean and free from any contamination •  Storage for wet and dry raw ingredients should be separated, well arranged and systematic DISTRIBUTION & LOGISTICS •  Transportation and warehouse are assigned for halal products only •  Suitable temperature based on the product characteristicsGBI 795 – UiTM Shah Alam
  35. 35. MALAYSIA HALAL LOGISTICS STANDARDS Launch by Prime Minister of Malaysia during MIHAS 2010 : Halal Logistic and Cosmetic Standards, Department of Standards MalaysiaGBI 795 – UiTM Shah Alam
  36. 36. ! MS 2400-1:2010 (P) Halalan-Toyyiban Assurance Pipeline – Part 1: Management System Requirements for Transportation of Goods and/or Cargo Chain Services ! MS 2400-2:2010 (P) Halalan-Toyyiban Assurance Pipeline – Part 2: Management System Requirements for Warehousing and Related Activities ! MS 2400-3:2010(P) Halalan-Toyyiban Assurance Pipeline – Part 3: Management System Requirements for RetailingGBI 795 – UiTM Shah Alam
  37. 37. The International Halal Logistics Standard IHIAS 0100:2010GBI 795 – UiTM Shah Alam
  38. 38. Halal Warehouse •  The organisation shall ensure that there is a physical segregation of Halal cargo from non-Halal cargo throughout the warehouse processes •  The Halal products have a dedicated storage zone (floor storage) or racks, which are clearly separated by colour and/ or marking •  A dedicated cold room is available, or segregation from non- Halal through physical barrier or container (insulated box) is required for the storage of Halal products in case of refrigerated storage.GBI 795 – UiTM Shah Alam
  39. 39. Halal Transportation•  The transport is cleaned before use according to existing hygiene standard and according to ritual cleansing in case of an earlier non-Halal or unknown shipment (history of one shipment before this only),•  No mixing of Halal goods with non-Halal goods in case of bulk shipments and medium & severe najs in one container or transportation vehicle.•  There is no mixing of Halal goods with non-Halal goods in one pallet and/or load carrier.•  Halal shipments are provided with a tertiary packaging in case of mixing of Halal and non-Halal cargo in one container or transportation vehicle.GBI 795 – UiTM Shah Alam
  40. 40. Halal Compliant Terminal•  The organisation shall ensure that there is a physical segregation of Halal cargo from non Halal cargo throughout the Terminal processes.GBI 795 – UiTM Shah Alam
  41. 41. GOVERNMENT INITIATIVESGBI 795 – UiTM Shah Alam
  42. 42. Through one of the Government’s plan for thedevelopment of the industry in IMP3, theobjective has incurred Malaysia as the globalHalal hub for production and trademerchandize and Halal services such aslogistics.GBI 795 – UiTM Shah Alam
  43. 43. GBI 795 – UiTM Shah Alam
  44. 44. GBI 795 – UiTM Shah Alam
  45. 45. PRIVATE INITIATIVESGBI 795 – UiTM Shah Alam
  46. 46. GBI 795 – UiTM Shah Alam
  47. 47. INTERVIEW VIDEOGBI 795 – UiTM Shah Alam
  48. 48. The Halal SuperHighway The Halal SuperHighway is a trade & logisticssolution and is envisioned to become the De factostandard to facilitate Global Halal Trade .GBI 795 – UiTM Shah Alam
  49. 49. The Halal SuperHighway Trade and Logistics Solutions Supply Chain Integrity Chain of custody Halal compliance Halal certification & standardsThe Halal SuperHighway = Brick & Mortar (A hybrid model)GBI 795 – UiTM Shah Alam
  50. 50. The Objectives1.  The Halal SuperHighway provides a command & control centre to facilitate authentication of Halal in a supply chain, providing market access and a cost advantage for the Halal industry.2.  The Halal SuperHighway locks-in Halal producers in a country as well as Halal producers overseas that manufacture under license of a country s standard.3.  The Halal SuperHighway consolidates for SMEs and provides them market access.4.  The Halal SuperHighway connects Halal Ports & Terminals (Gateways).5.  The Halal SuperHighway promotes International Halal Logistics Standard (IHIAS 0100:2010) as the Halal logistics standard.GBI 795 – UiTM Shah Alam
  51. 51. GBI 795 – UiTM Shah Alam
  52. 52. ! H alalStorage.com, a LBB International initiative, was launched in 2008. ! Halalstorage.com is an online market place for the demand and supply in Halal storage. It facilitates in the search process for Halal storage worldwide ! HalalStorage.com envisions to increase the availability of Halal storage facilities world- wide in order to better facilitate global Halal trade and to reduce the costs of Halal LogisticsGBI 795 – UiTM Shah Alam
  53. 53. The Objective Increase the availability of Halal storage facilities world-wide in order to better facilitate global Halal trade and to reduce the costs of Halal LogisticsGBI 795 – UiTM Shah Alam
  54. 54. The Process 1 Register available Halal storage facilities Contracting 3 System matching 2a 2b Direct facilitationGBI 795 – UiTM Shah Alam
  55. 55. Halal Logistics - 5 ContinentsGBI 795 – UiTM Shah Alam
  56. 56. GLOBAL MARKET: POTENTIALGBI 795 – UiTM Shah Alam
  57. 57. •  World Muslim population of 1.98 billion in 2011 out of 7.0 billion World population.• With average annual growth rate of about 1.84% per annum.• Approximately 117,000,000 per yr. increase which does not include conversionwhich onUiTM Shah currently. GBI 795 – the rise Alam
  58. 58. HALAL MARKET Food & Beverage Pharmaceutical Cosmetics & Personal CareGlobal Halal products market is estimated at US$2.3 trillion excluding Islamic banking. GBI 795 – UiTM Shah Alam
  59. 59. REGIONAL HALAL MARKET VALUEUnited States According to the Islamic Food and Nutrition Council of America, the U.S. halal market is estimated at $17.6 billionThe top 10 major halal food markets are:1. New York City, New Jersey and Long Island metropolitan areas2. Los Angeles 9. Atlanta3. Chicago 10. Washington D.C4. Detroit5. Houston6. Dallas/Forth Worth7. South Florida8. San FranciscoGBI 795 – UiTM Shah Alam
  60. 60. REGIONAL HALAL MARKET VALUEThe Americas•  Muslims account for 0.6% of the population of the Americas, numbering 5.3 million. The Muslim population in Canada and the United States is expected to grow, presenting new opportunities in the halal food markets of North America.•  The largest Muslim population in South America resides in Argentina, numbering 1 million.•  The population of Muslims in the Americas is small compared to that of the Middle East; so many Muslims do not have convenient access to halal foods. As such, this market shows strong potential for growth, as Muslim consumers in the Americas continue to demand halal products. Canada’s close relations with the US and Latin America would contribute to its success in exporting halal products to these regions.•  Several US companies have recognized this opportunity, and have become significant exporters of halal products; companies such as Cargill, ConAgra, Tyson, and Oscar Mayer have halal product lines.Canada: Global Halal Food Market http://halalfocus.net/2011/05/09/canada-global-halal-food-market/GBI Page 8 of 18 795 – UiTM Shah Alam
  61. 61. REGIONAL HALAL MARKET VALUEAfrica"  South Africa, also known as the “rainbow nation” due to its diverse population, has also been actively hosting events focussing on Halal as a viable business concept."  With a Muslim population of approximately 1 million, South Africa is playing a major role in developing the regional Halal industry in Africa and is constantly seen as the gateway to the immense African market.GBI 795 – UiTM Shah Alam
  62. 62. Potential Markets for Canadian Exporters Canada has long-standing trade relations with several key halal markets. Canada’s top export market in the Middle East, the United Arab Emirates, is one such partner. Exports of bovine meat have increased 5383% since 2007, representing a new and lucrative market for Canadian beef exporters. Poultry exports to the country were high in 2009, likely because of the economic recession. Bangladesh is currently the largest Canadian agri-commodity buyer in South Asia. Despite strong trade relations with the country, Canada does not export significant amounts of beef and veal or chicken to the country. As one of Canada’s largest trading partners in the region, Canadian exporters will find a lucrative halal market in the predominantly Muslim country.GBI 795 – UiTM Shah Alam
  63. 63. Potential Markets for Canadian Exporters Poultry exports to Pakistan have increased 341% since 2005, and have seen a steady increase between 2008 and 2010. As Canadian exporters have already entered the poultry industry in Pakistan. there are several opportunities to export other meats and products that adhere to halal requirements. Canadian exporters have already entered the beef and veal markets of both Indonesia and Egypt. Two of Canada’s largest halal export markets in this category. This foothold will allow exporters to offer a wider range of products to consumers in these countries, including halal poultry and other halal products.GBI 795 – UiTM Shah Alam
  64. 64. HALAL IN AMERICACertifying Organization: Islamic Food and Nutrition Council of AmericaIFANCA halal certification is recognized by:!  United States Department of Agriculture (USDA)!  Majlis Ugama Islam Singapura (MUIS) (Singapore)!  Jabatan Kemajuan Islam Malaysia (JAKIM)!  Muslim World League (MWL) (Saudi Arabia)!  Majelis Ulama Indonesia (MUI)!  Islamic Committee Office of Thailand!  Philippine Halal Association!  United Arab Emirates (UAE) MunicipalitiesGBI 795 – UiTM Shah Alam
  65. 65. GBI 795 – UiTM Shah Alam
  66. 66. GBI 795 – UiTM Shah Alam
  67. 67. HALAL IN EUROPE•  Halal is no longer a taboo in Europe as awareness about halal products and certification has notably increased over the last couple of years.•  Advertising, certification and labels are also on the rise in Europe, particularly in France with estimated 5 million Muslim population. (Tieman, M, 2010, http://www.logasiamag.com/article/halal-logistics/1744)•  The European Supermarkets are now aggressively pursuing the Halal food retailing. The Global Market Potential of Halal, International Conference & Expo on Halal Industry , Lahore, Pakistan , 2010•  Russia & other markets – need to create awareness mitrans 2012GBI 795 – UiTM Shah Alam
  68. 68. Europe - The Port of Marseille•  The Port of Marseille- with the strong support of the Malaysian government, is actively developing this Halal Logistic sector.•  The idea was officially launched in 2012 by the Port of Marseille, when the launch of the ‘Hub to Hub Halal Logistics’ was set up with.•  Port of Marseille- is a unique tool to enter western markets.•  Minimizing risks for mass distribution players, the system will enhance business opportunities, including in western mature markets.•  An open door to outsiders in markets locked by multinationals.•  A potential bridge to emerging markets : from the sole transportation of Halal finished products to the integration of these products into downstream business development adapted to local markets : Africa and Asia can be served from South of EuropeGiraud. J – (HBD, PoM) World Halal Forum – Kuala Lumpur, Monday 4th April 2011GBI 795 – UiTM Shah Alam
  69. 69. Europe - Port of Rotterdam In the Netherlands, the Port of Rotterdam started with a consortium back in 2005 with Eurofrigo (Cold Room Warehousing) and VAT Logistics (logistics service provider) to provide halal logistics services and promote the halal gateway to Europe. (Tieman, M, 2010, http://www.logasiamag.com/article/halal-logistics/ 1744)GBI 795 – UiTM Shah Alam
  70. 70. Opportunities for Malaysia in Europe•  There remains a need to harmonize the halal standards in Europe, to simplify halal for the consumer and meet the diverse needs of the European consumers.•  Halal now being a global business and the international halal logistics standard is important where Malaysia Sandard is globally used as benchmark. (Tieman, M 2009)–  Malaysian Government expertise needed by European Companies in orderto set up the Halal Logistic Business (e.g PoM).•  Help Malaysian Enterpreneurs to enter the marketGBI 795 – UiTM Shah Alam
  71. 71. Opportunities for Malaysia in Europe • Port of Marseille- able to serve a potential target of 220 million consumers across Europe and the Mediterranean region. Giraud. J – (HBD, PoM) World Halal Forum – Kuala Lumpur, Monday 4th April 2011 • Port of Rotterdam - is currently creating a “Halal DistriPark “ to serve 30 Million Muslims in Europe.GBI 795 – UiTM Shah Alam
  72. 72. GBI 795 – UiTM Shah Alam
  73. 73. GBI 795 – UiTM Shah Alam
  74. 74. BELGIUMGBI 795 – UiTM Shah Alam
  75. 75. Australia • Australia have capitalized on their image as high quality, safe and reliable food suppliers. • Australia is one of the largest exporter to halal meat and mutton. • Australia holds the largest market share in Indonesia of dairy products, beef, seafood, fresh fruits, vegetables and few processed products. More than 80% of Australias cattle exports go to Indonesia. • Meat & Livestock Australia (MLA), for example, has launched a halal brand for Australian meat in the Middle East, in recognition of the increased sophistication of meat retailing throughout the Muslim world. http://www.worldhalalfood.com/HalalInfo/HRHalalLogistics1.aspxGBI 795 – UiTM Shah Alam
  76. 76. Opportunities for Malaysia in Australia • Malaysia has been particularly active and was the first country to introduce a halal logistics standard, now recognized globally as a benchmark (Tieman, M 2009). Malaysia can provide halal logistic expertise to Australian exporters in entering new market such as Europe and Africa. • Malaysian Brand as a halal superpower can help Australian exporter to enter Market for Islamic countries e.g Middle East Countries. • http://www.worldhalalfood.com/HalalInfo/HRHalalLogistics1.aspxGBI 795 – UiTM Shah Alam
  77. 77. Implementation of Halal Logistics - Push FactorGBI 795 – UiTM Shah Alam
  78. 78. GCC COUNTRIES !  The Cooperation Council for the Arab States of the Gulf (CCASG; Arabic: !"#$%&$ (&)&$ &*+& ,*$-.&$ "&/‎), also known as the Gulf Cooperation Council (GCC; ,*$-.&$ "&/ ((&)&$), is a political and economic union of the Arab states bordering the Persian Gulf and located on or near the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. Jordan and Morocco have been invited to join the council !  Among the highest economy and GDP of OIC members countriesSource : WikipediaGBI 795 – UiTM Shah Alam
  79. 79. Source : WikipediaGBI 795 – UiTM Shah Alam
  80. 80. Darhim Dali Hashim, CEO IHI, Malaysia, 2011 GBI 795 – UiTM Shah Alam
  81. 81. Darhim Dali Hashim, CEO IHI, Malaysia, 2011 GBI 795 – UiTM Shah Alam
  82. 82. GBI 795 – UiTM Shah Alam
  83. 83. Report from Brazilian ChickenProducers andexportersassociation (ABEF), 2011 GBI 795 – UiTM Shah Alam
  84. 84. GCC COULD FORCE BRAZIL TO FULLFILL THE HALAL LOGISTICS STANDARDGBI 795 – UiTM Shah Alam
  85. 85. GBI 795 – UiTM Shah Alam
  86. 86. CONCLUSION-  The awareness still low-  Room for improvement-  Need a “Halal logistics @ Halal Supply Chain” logo?-  Less required in Muslim country-  Issue in Muslims minority country-  Too focus on Halal of products and services-  Increase cost of doing businessGBI 795 – UiTM Shah Alam
  87. 87. THANK YOUGBI 795 – UiTM Shah Alam

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