Issues of Halal Supply Chain Management: Suggestion for Korean Traders

Abstract

Purpose – The purpose of this paper is to suggest countermeasures to reduce the damage of manufacturers in halal industries and to increase the transparency of the halal market along with raising some problems of halal supply chain management (HSCM).

Design/methodology/approach – To achieve to the aim of this research, halal supply chain is categorized as a green zone or a red zone according to the possibility of cross-contamination, and the study introduces 2 examples in Malaysia and Indonesia regarding cross-contamination.

Findings – More than 70% of the companies producing halal-certified products are, ironically, non Muslim suppliers under the halal certificate system and by using halal supply chain. Most Muslim countries do not exercise control over the completed halal supply chain. In most Muslim countries which do not exercise control over halal supply chain properly, there is always a possibility of cross contamination of products during the processes of distribution.

Research limitations/implications - This research has been conducted by accessing cases in halal supply chain. These cases are found in some Muslim countries, not all Muslim countries. Nevertheless, the authors found the possibility of these cross-contaminations in all Muslim countries, and it will damage the halal market.

Originality/value – While existing studies have focused on protecting Muslim consumers by ensuring the integrity of halal products in halal supply chain, there is no research on how to protect halal product manufacturers as another important axis of halal SCM.

Keywords: Halal, Halal Certification, Halal Products, Halal SCM, Halal Transparency

JEL Classification: L66, Q56, R41, Z10