Halal requires a supply chain approach

A series of high profile halal issues and scandals in recent years with top brands have shown that halal reputation and loyalty from the Muslim consumer can change very quickly. It seems that companies are under continuous scrutiny and under the reputation spotlight more than ever before. Major brand owners are concerned with their company’s halal reputation. Unfortunately, companies only find out the actual value of their halal reputation (they just lost) when they manage a halal issue or crisis poorly. Even though halal reputation is hard to define and value, it is evidently critical to track its performance. Today, many companies do not have these new halal reputation risks on their radar screen.

Muslims want assurance that the food they consume is a true manifestation of Islamic principles. A supply chain approach is therefore critical for a robust halal supply chain, in ensuring the halal integrity for the Muslim consumer at each link in the halal chain and realising a true halal value chain.

Halal supply chain management is a rather new discipline in supply chain management, where Islamic principles and guidelines are being applied to supply chain management, with the sole purpose to extend halal assurance from source (supplier), where the product is possibility halal certified, up to the point of consumer purchase (retail or restaurant). It is essential to recognise that Islam is complex. Islamic school of thought, religious rulings (fatwas) and local customs shape halal requirements. This leads to different interpretations in Muslim markets on how halal is organised at source and further downstream into the supply chain.

LBB advises organisations in the design of robust halal supply chains that are better able to protect the halal integrity throughout the supply chain by design. Our halal experts have developed advanced reputation management tools to allow for effective mitigation and recovery in case of a halal issue or crisis. For more information, please contact our nearest office.