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Halal as a System: Why Supply Chains Decide Compliance

Depok, Indonesia — Discussions on halal compliance are often narrowly framed as issues of Shariah understanding. When violations occur, the prevailing assumption is almost always the same: insufficient religious knowledge or weak religious supervision. Yet, in modern industrial practice, many failures in halal compliance arise not from ignorance of Islamic law, but from the way supply chains are designed, managed, and operated.

This critical point is emphasized in the research article “The Objective of Halal Supply Chain: Merging the Shariah Perspective and the Industrial Requirements,” published in the International Journal of Academic Research in Business & Social Sciences in December 2024. The study delivers a clear central message: halal must be understood as a system, rather than merely a legal status or a certification label.

Integrating Shariah Principles and Industrial Realities

The study draws on two primary sources of analysis. The first is the Shariah perspective, derived from classical and contemporary Qur’anic exegesis, particularly the concept of halalan tayyiban—which frames halal not only as “permissible,” but also as “good, safe, and wholesome.” The second is the industrial perspective, examined through Malaysian regulations and standards, including the Trade Description Act 2011 and MS 2400:2019 on halal supply chain systems.

This integrated approach is crucial because the global halal industry does not operate in ideal conditions. It functions under production targets, cost-efficiency pressures, cross-border logistics systems, labor shift rotations, and subcontracting practices. In such environments, halal compliance cannot rely solely on good intentions; it must be embedded within system design.

Six Core Objectives of the Halal Supply Chain

By synthesizing Shariah principles and industrial requirements, the study identifies six core objectives that determine whether a product remains genuinely halal from upstream to downstream processes.

First, halal integrity. Halal status does not end with raw materials or slaughtering procedures; it must be preserved at every stage—processing, storage, distribution, and delivery to consumers. In complex systems, a single point of failure can compromise the entire halal claim.

Second, prevention of contamination. Contamination is often unintentional, resulting from flawed operational designs such as shared facilities, non-segregated equipment, or cleaning procedures compromised in the pursuit of time and cost efficiency.

Third, assurance of safety and quality. The concept of tayyib demands more than the absence of prohibited elements. Products must be safe, hygienic, and of high quality. Consequently, halal supply chains must align with modern food safety and quality standards.

Fourth, transparency and traceability. In extended supply chains, clarity regarding product origin and movement is essential. Without robust documentation and traceability systems, halal claims risk becoming assumptions rather than verifiable assurances.

Fifth, Shariah compliance in operations. Compliance is assessed not only by outcomes but also by processes—how products are handled, packaged, stored, and transported. It is at this level that everyday managerial decisions play a decisive role.

Sixth, building consumer trust. Ultimately, halal is a matter of amanah (trust). Consumer confidence—among both Muslim and non-Muslim consumers—is built not through logos alone, but through consistent, auditable, and verifiable systems.

From Labels to Systems

These six objectives demonstrate that halal challenges are often not rooted in a lack of Shariah knowledge, but in how Shariah values are translated into operational systems. As production pressures intensify, costs are minimized, and responsibilities are dispersed among multiple actors, the meaning of halal can gradually erode—often unnoticed.

Understanding halal as a system therefore requires acknowledging that compliance exists at the intersection of religious values and industrial realities. It depends on supply chain design, organizational culture, and managerial resolve to establish non-negotiable boundaries, even under commercial pressure.

Conclusion

The future of the global halal industry will not be determined by the number of certificates issued, but by the quality of the systems that support them. By positioning halalan tayyiban as a normative principle and industrial standards as operational instruments, halal supply chains can evolve into systems that are not only Shariah-compliant, but also credible, efficient, and sustainable.

In this context, halal compliance is no longer merely a religious obligation—it is a reflection of systemic integrity.


Reference:

Sirajuddin, M. D. M. (2024). The objective of halal supply chain: Merging the Shariah perspective and the industrial requirements. International Journal of Academic Research in Business and Social Sciences, 14(12), 3878–3896.