Halal Logistics Thailand Oct 2010 D1.0

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HALAL LOGISTICSat Ports & Terminals

ASEAN Logistics Network Symposium 2010Bangkok, 8-9 October 2010

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Content

1. Introduction2. The Global Halal Market3. Halal Logistics4. The Halal Logistics Standard IHIAS

0100:20105. Towards Global Halal Supply Chains6. Q & A

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1. Introduction

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About LBB International

Our IdentityLBB assists companies’ and governments’ logistics building blocks by delivering customised consultancy & research solutions that enable them to achieve a competitive advantage.

Our OfficesBangkok – Kuala Lumpur – The Hague

More informationwww.lbbinternational.com

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Our Focus

Agro Logistics

Industrial Logistics

Transportation

Healthcare Logistics

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Contribution to Society (I)

LBB International holds the secretariat of the International Halal Logistics Standard (IHIAS 0100:2010) under the ICCI-IHI Alliance (Jeddah).

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Contribution to Society (II)

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2. The Global Halal Market

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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

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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!

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The People

26-28% of population is Muslim

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The Halal Market

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Halal a big Market

Evolution of

Halal as Market

Parameter

Evolution of

Halal as Market

Parameter

Mainstreamo Supermarketo Global presenceo Full product rangeo Diverse application

Upmarketo Naturalo Organico Ethnico Environmento Animal welfare

Lifestyle Movemento New ‘green’o Ethical & moral valueso Popular culture

Professionalo Standardo Audit & certificationo Composite compliance

Worldwide availability & acceptance

Halal compliant

supply chain

Influential opinion forming

High level quality

assurance mark

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3. Halal Logistics

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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?

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The goal of Halal Logistics is that the product of the logistics process is completely as desired, namely Halal.

The Goal of Halal Logistics

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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

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Halal products are segregated from non-Halal products to:

1. avoid (cross) contamination2. avoid making mistakes3. ensure consistency with Shariah and the expectations of the Muslim Consumer

The Principles

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Muslim vs Non-Muslim countries

Source: © 2010 LBB International

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4. The International Halal Logistics Standard

IHIAS 0100:2010

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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)

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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)

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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)

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Halal Compliant Terminals

• Seaports• Air Ports• Rail Terminals• Inland Terminals

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Halal Compliant Terminals

• Complexity of parties involved• Data management• Handling of Halal Cargo• Stakeholders

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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

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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.”

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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.”

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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.”

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Port of Rotterdam (Holland)

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5. Towards Global Halal Supply Chains

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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”.

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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

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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.

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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

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As goods spend a lot of time in storage, compliance with the Shariah Law is critical

HalalStorage.com provides the missing link in a Halal compliant supply chain

HalalStorage.comCompanies who have Halal Storage available

Companies who need Halal Storage

Find a reliable logistics partner

The Rational

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1

2a

3

2b

Register available Halal storage facilities

System matching

Direct facilitation

Contracting

The Process

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Thank you

Ir. Marco [email protected]

resources:www.ihialliance.org

www.halallogistics.infowww.halalstorage.com

www.halalsuperhighway.com

Follow HalalLogistics.Info

on:

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6. Q & A