Mastering the Logistics Complexities of International Halal Supply Chains

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1 Mastering the Logistics Complexities of International Halal Supply Chains Demystifying Halal Supply Chain Century Total Logistics Sdn. Bhd. Certificate No: KLR

2 VIDEO PRESENTATION

3 Essence of Halal Cleanliness Best Practices Quality Transcends - Colour - Race - Nationalism

4 Overview Critical Control Point (CCT) Shariah Compliance Checklists CCP Raw Mat CCP CCP 1) Physical Check:- Shariah Compliance Checklists a) Cleanliness/ 1) Odor Physical Check:- b) Contamination Shariah Compliance Checklists a) Cleanliness/ Odor c) Spillage Shariah Compliance Checklists 1) Halal Certificates b) Contamination Shariah Compliance Checklists 1) Halal Certificates 2) Shipping Documents c) Spillage 1) Previous Modes 2) Shipping Documents 3) Relevant Certifications 2) Certificates (e.g. Health/ Vet/ CCP MSDS and 3) Relevant CCP Certifications Ingredients List) 3) Labels (e.g. Health/ Vet/ MSDS and Plant Ingredients W List) & D 4) Verification for Integrity/ 4) MHE & Pallets Cleanliness Contamination 4) Verification for Integrity/ 5) Storage Area Contamination 6) Pest Control CCP CCP CCP

5 Issues in Halal CCP Threats Equipment & Handling Packaging Cross Contamination Segregation Climate Control Order Processing Time Order Preparation Time Order Shipping Time Complicated / Inefficient Supply chain Exposure to Environment Long SC Lead Time Halal Integrity

6 Century : Halal Logistics Consultancy in Halal logistics aspects An Exchange/ System linking Demand and Supply and competent supporting services. Marketing and Trading Hub Assistance in terms of outsourcing/ procurement, marketing, branding, packaging, etc. Allow producers/ manufacturers to focus on core business. Certification Methodology in line with the updated Malaysian Standards endorsed by Standards Malaysia, JAKIM, SIRIM and HDC. Halal process integrity

7 Challenges Politics Red Tapes High Cost / Uneven ROI Dedicated Investments Differing Interpretations Non Standardisation Fragmentation

8 Intermodal Framework CARGO MANAGEMENT Integrated Post-Unloading Break-Bulk Storage Management Repackaging WAREHOUSE MGMT. Inbound Procurement 3PL/4PL Reverse Logistics INTEGRATION SERVICES Interface to Systems Cargo/Log/Storage Integration AIR/SEA/LAND TRANSPORT Voyage/Route Management Multi-carrier/Integrated Billing Multi-Modal Transport

9 Regional Halal Distribution Towards MS1900:2005 Syariah compliant specific logistics services and solutions to meet the identified needs of Muslim consumers worldwide via freight and distribution channels in and across the regional network and beyond Quality as the Power of Partnership with Our Customer Complete cover of what our customer needs Reliable service Premium quality Reliability among the entire supply chain Quality Elements Quality Elements Data Accuracy Packing, Handling Storage, Handling Packaging, Handling On Time Delivery Order Entry Production Transport Warehouse Distribution Marketing Invoicing

10 Regional Procurement Hub Dispatch Plan C C Direct Transportation Post Production Inventory Transfer. Custom EDI Documentation JIT Storage / Consolidation / Cross-Dock/ Order processing & fulfillment Factory Temporary Storage /Yard Facility Temporary Storage /Yard Facility End Consumer JIT transfer/ Milk Runs? End Production Plan Alternate modes Start Buyer Supplier Fulfillment Plan P.O. Order Planning Origin Country Destination Country

11 Integrated Logistics Management Raw Material Country A Domestic Market Inland Transport Clients End Customer Manufacturing Plant Country A W A R E H O U S E Multi Modal Clients End Customer Export Cross border Clients Raw Material Country B Market End Customer

12 Halal Market Significance Potential, estimated captive market of 1billion consumers of Halal products and services. The number is increasing rapidly. Increased awareness more countries are requesting for Halal certified products Demand from non-muslims increasing. Range of Halal products expanding, leading to bigger markets. Expansion of Halal counters at Hypermarkets and Supermarkets Requires acceptable endorsement of process integrity in production and logistics. Global Consumer Trend: Food Quality, Security, Safety

13 Desired Deliverables Halal Integrity: Provide end-to-end Halal logistics management, shipping, tracking. Cost Controls: Leverage on our strength and know how to plan and execute the best and most cost effective solutions. Efficiency: Evaluate your logistics processes and recommend strategic enhancements to streamline your supply chain. Compliance: Ensure that all shipping, packaging and storage processes are compliant with constantly-evolving governmental, industry, transportation and shipping regulations.

14 Benefits Facilitate Halal certification Consultancy in Halal logistics and Halal integrity of products Systems - enabled Marketing and Branding enhancement Regional distribution centre Allow producers/ manufacturers to focus on core business Ensure products marketed comply to international rules and local laws Century works closely with recognised bodies to harmonise Global Halal standards

15 Recognition First company to be accredited as Integrated Logistics Services Provider Ministry of International Trade and Industry Ministry of Finance First in Malaysia to obtain the certification by Lloyd s for Quality Management System Provision of Supply Chain Management Services Provision of Ship-to-ship Transfer ( STS ) operations First logistics company in Malaysia to have secured the MS1900:2005 Quality Management Systems according to Islamic perspectives from Sirim QAS International Sdn Bhd International Freight Forwarding Services Warehouse Management Services Road Transport Services Certification of OHSAS 18001:2007 Strategic alliances with key Ports Represented in more than 70 countries worldwide

16 THANK YOU Prepared by Dr. Mohamed Amin Kassim 28 June 2012 Century Logistics Holdings Berhad ( A) P. O. Box Port Klang Selangor Darul Ehsan, Malaysia Tel: (603) Fax: (603) Web Site:

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