Munich Personal RePEc Archive

Innovation in logistics services – halal logistics

Jaafar, Harlina Suzana and Endut, Intan Rohani and Faisol, Nasruddin and Omar, Emi Normalina (2011): Innovation in logistics services – halal logistics. Published in: Proceedings of the 16th International Symposium on Logistics (ISL), Berlin, Germany (2011): pp. 844-851.

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Abstract

Purpose: The expansion of liberalization of trade and services has forced companies to consider the global market demand in their competitive strategic planning. Hence, business organisations need to be continuously as innovation could promise potential growth and development so as to gain competitive advantage in being ahead in the market. Specifically, supply chain has always been viewed as the most important areas to be innovated as it would be an effective means to gain efficiencies and eliminate accumulating competitive pressures and thus increasing innovations. Thus, the purpose of this study is to present a case study that demonstrates an innovation created in the logistics services, i.e. halal logistics services, as to fulfil the increasing demand of the customers throughout the world particularly the rising number of Muslim population.

Research approach: This study uses case study approach to elaborate the implementation of halal logistics practice. In achieving the objective, related literature concerning the halal concept is reviewed and explained to provide better understandings of the concept and how it is applied to logistics services. The emphasis on the innovativeness of this concept is also included. The data for the case study is gained from in-depth interviews with the corporate and operation managers of two leading logistics service providers in Malaysia, who are the subjects of the case.

Findings and Originality: This study found new logistics services that are able to fulfil the growing demand of the customers especially the increasing number of Muslims. This is important as these services have taken into consideration several factors such as comprehensive hygiene practices and thus, is also crucial to other customers. However, understanding the basic concept of halal practice and the rationale of its implementation is very crucial before one can commit to its practice. This study contributes to the advancement of knowledge through the elaboration of a case study, which demonstrates the application of halal concept into logistics service practices.

Research impact: This study introduces a new concept of halal logistics, which applies the concept of halal into logistics. The needs to initiate more logistics services that are based on halal concept are crucial in meeting the needs of the increasing demand by the customers.

Practical impact: The findings provide insights to the practitioners of the importance in implementating halal logistics services. It also indicates the needs for logistics companies to be innovative in creating more halal logistics services to fulfill these demands.

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