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Halal Logistics Thailand Oct 2010 D1.0


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ASEAN Logistics Network Symposium presentation by Marco Tieman, LBB Teams (M) Sdn Bhd

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Halal Logistics Thailand Oct 2010 D1.0

  1. 1. LBB | consultancy HALAL LOGISTICS at Ports & Terminals ASEAN Logistics Network Symposium 2010 Bangkok, 8-9 October 2010
  2. 2. LBB | consultancy Content 1. Introduction 2. The Global Halal Market 3. Halal Logistics 4. The Halal Logistics Standard IHIAS 0100:2010 5. Towards Global Halal Supply Chains 6. Q & A
  3. 3. LBB | consultancy 1. Introduction
  4. 4. LBB | consultancy About LBB International Our Identity LBB assists companies’ and governments’ logistics building blocks by delivering customised consultancy & research solutions that enable them to achieve a competitive advantage. Our Offices Bangkok – Kuala Lumpur – The Hague More information
  5. 5. LBB | consultancy Our Focus Agro Logistics Industrial Logistics Transportation Healthcare Logistics
  6. 6. LBB | consultancy Contribution to Society (I) LBB International holds the secretariat of the International Halal Logistics Standard (IHIAS 0100:2010) under the ICCI-IHI Alliance (Jeddah).
  7. 7. LBB | consultancy Contribution to Society (II)
  8. 8. LBB | consultancy 2. The Global Halal Market
  9. 9. LBB | consultancy Halal is used to describe anything permissible under Islamic law, in contrast to haram, that which is forbidden. This covers aspects such as behaviour, speech, dress, conduct, manner, and dietary laws. This dichotomy of usage is similar to the Hebrew term "kosher". Halal
  10. 10. LBB | consultancy 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!
  11. 11. LBB | consultancy The People 26-28% of population is Muslim
  12. 12. LBB | consultancy The Halal Market
  13. 13. LBB | consultancy Halal a big Market Evolutio n of Halal as Market Paramet er Evolutio n of Halal as Market Paramet er Mainstream o Supermarket o Global presence o Full product range o Diverse application Upmarket o Natural o Organic o Ethnic o Environment o Animal welfare Lifestyle Movement o New ‘green’ o Ethical & moral values o Popular culture Professional o Standard o Audit & certification o Composite compliance Worldwide availability & acceptance Halal compliant supply chain Influential opinion forming High level quality assurance mark €€ €€ €€ €€ €€€€ Source:ImaratConsultants
  14. 14. LBB | consultancy 3. Halal Logistics
  15. 15. LBB | consultancy Halal is extending in the value chain. Halal Logistics is the new trend, ensuring integrity from farm to fork. The responsibility of the Halal Integrity is with the brand owner. Now there is an international standard! Why Halal Logistics?
  16. 16. LBB | consultancy The goal of Halal Logistics is that the product of the logistics process is completely as desired, namely Halal. The Goal of Halal Logistics
  17. 17. LBB | consultancy Halal logistics is the process of managing the material flow and information flow throughout the supply chain in accordance to a Halal standard. Halal Logistics Definition
  18. 18. LBB | consultancy 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 Consumer The Principles
  19. 19. LBB | consultancy Muslim vs Non-Muslim countries Source: © 2010 LBB International
  20. 20. LBB | consultancy 4. The International Halal Logistics Standard IHIAS 0100:2010
  21. 21. LBB | consultancy 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. (4.1 Halal Warehouse, page 9, 10)
  22. 22. LBB | consultancy 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. (4.1 Halal Warehouse, page 9, 10)
  23. 23. LBB | consultancy Halal Compliant Terminal • The organisation shall ensure that there is a physical segregation of Halal cargo from non Halal cargo throughout the Terminal processes. (4.3 Halal Compliant Terminal, page 10)
  24. 24. LBB | consultancy Halal Compliant Terminals • Seaports • Air Ports • Rail Terminals • Inland Terminals
  25. 25. LBB | consultancy Halal Compliant Terminals • Complexity of parties involved • Data management • Handling of Halal Cargo • Stakeholders
  26. 26. LBB | consultancy General Requirements Physical segregation of Halal Cargo from non- Halal cargo throughout the terminal process Implications for: • Inspection & VAL • Livestock • Storage • Stuffing/unstuffing • Cleaning • Packaging & Labelling • Freight documentation
  27. 27. LBB | consultancy Northport (Malaysia) “Northport is Malaysia’s first Halal Port. Northport is fast becoming a Halal Hub in the region offering value-added services to all its traditional customers worldwide.”
  28. 28. LBB | consultancy MISC Halal Express (Malaysia) “The Halal Express service will leverage on MISC Integrated Logistics Sdn Bhd's halal supply chain, utilising its warehouse and cold storage facilities in Port Klang and its distribution centre in Jebel Ali as our main source of cargo for the service.”
  29. 29. LBB | consultancy Port of Marseilles (France) “Due to its important geo-strategic location and historic connections with former North African colonies, the Port of Marseilles (PoM) in France has evolved into a European hub for trade and commerce with Northern Africa.”
  30. 30. LBB | consultancy Port of Rotterdam (Holland)
  31. 31. LBB | consultancy 5. Towards Global Halal Supply Chains
  32. 32. LBB | consultancy The Halal SuperHighway Video “The Halal SuperHighway is a trade & logistics solution and is envisioned to become the De facto standard to facilitate Global Halal Trade”.
  33. 33. LBB | consultancy The Halal SuperHighway The Halal SuperHighway = Brick & Mortar (A hybrid model) Trade and Logistics Solutions Chain of custody Halal certification & standards Halal compliance Supply Chain Integrity
  34. 34. LBB | consultancy The Objectives 1. 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.
  35. 35. LBB | consultancy Increase the availability of Halal storage facilities world-wide in order to better facilitate global Halal trade and to reduce the costs of Halal Logistics The Objective
  36. 36. LBB | consultancy As goods spend a lot of time in storage, compliance with the Shariah Law is critical provides the missing link in a Halal compliant supply chain Companies who have Halal Storage available Companies who need Halal Storage Find a reliable logistics partner The Rational
  37. 37. LBB | consultancy 1 2 a 3 2b Register available Halal storage facilities System matching Direct facilitation Contracting The Process
  38. 38. LBB | consultancy Thank you Ir. Marco Tieman resources: Follow HalalLogistics.Info on:
  39. 39. LBB | consultancy 6. Q & A