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e-Foodtech Future – For a Muslim people, the halal status of a food product or medicine is absolutely necessary. Products circulating in the market must be free from pork or other ingredients which will make the products no longer halal.

Based on data from the Global State Islamic Economy (2018-2019) which discusses the global halal industry, Indonesia ranks 10th overall from halal food assessments, sharia finance, halal tourism, Muslim fashion, halal media and recreation, to cosmetics and medicine- halal medicine. Seeing these potentials and opportunities, of course, more effort is needed to be able to realize the halal industry in Indonesia.

Halal supply chain management is an activity to use resources effectively in the entire supply chain starting from raw materials to the end product until in the hands of consumers to ensure food safety in the supply chain, especially for halal. The legal code for living an Islamic life that has been declared and ordered by Allah is known as Sharia which means “Islamic law”. Therefore, Halal Supply Chain Management is very important to ensure that halal products do not move to gray or haram areas. Gray areas are odd things between halal and haram.

In developing an integrated halal supply chain, it must start with the right commitment. Halal requires commitment from top management through halal policy, which acts as a basis for supply chain organizations. The company’s strategy must have a strategic fit with the halal policy. The halal policies include discussing: (1) organizational responsibility in protecting halal integrity along the supply chain, (2) the scope of halal certification in the organization, (3) guarantees / promises to consumers or customers, and (4) guarantee methods (mechanisms control).

The purpose of the supply chain refers to the actual design parameters of the halal supply chain model (logistical control, supply chain resources, supply chain business processes, supply chain network structure and halal performance). The orientation of supply chain objectives can be divided into 2, namely: (1) External (also called customer service goals, such as reducing supply chain lead-time) and (2) Internal (also called logistical objectives, such as the consolidation of halal cargo flows). Proper formulation of supply chain objectives is key because there is a strategic match between supply chain objectives and design parameters.

Supply chain business processes describe sourcing, management of manufacturing and distribution flows. In sourcing and distribution, this process defines the level of segregation needed in transportation, storage and handling of sea / air / land terminals.

Product characteristics and market requirements are important for halal supply chain regulation. Large and cold chain products (cold, frozen) are considered more sensitive as unitised and ambient environments (dry). The level of segregation is more stringent for sensitive categories compared to less sensitive categories. Market requirements are also important to deal with, where Muslim countries require tighter segregation in logistics than products intended for non-Muslim countries. The logic behind this is to minimize difficulties in non-Muslim markets as well as to meet special requirements in Muslim markets based on Islamic Schools of thought, local fatwas and local customs (such as ritual cleansing).

Kavadya Syska, Coordinator of Food Technology Study Program, Faculty of Science and Technology, University of Nahdlatul Ulama Purwokerto said that the halal supply chain (halal supply chain performance) must be EFFECTIVE (overcoming the quality of the process and minimizing waste), EFFICIENT (low cost and high utilization of special assets) , and ROBUST (slightly halal rejects and high availability of halal assets). The optimal halal supply chain must have a strategic match between the company’s strategy, halal policy, supply chain objectives and logistical parameters as well as alignment between product characteristics and market requirements and logistical parameters. Although this is not an easy process, it is important to start, step by step, in the professionalization of the halal supply chain.


Sources: interviews and references analysis

Food Technology, UNU Purwokerto: Creative, Innovative, Fantastic

Food Technology, UNU Purwokerto: Developing Creative and Innovative Future

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