Implementing air cargo halal warehouse: insight from Malaysia

Abstract

Purpose This study aims to discuss the challenges in implementing halal warehouse in the air cargo context along with the standard handling process for the storage of halal product for import and export purposes. This is vital to ensure that halal products do not get contaminated and should comply to halal logistics standard throughout the supply chain process. Design/methodology/approach This exploratory study adopts single case study to better understand the definition of halal warehouse, the challenges in implementing halal warehouse and also the standard handling process for the storage at the warehouse for import and export purposes. A well-guided case study protocol is followed. Findings Five categories have found to be the main challenges in implementing halal warehouse. They are coded as halal product trade, halal asset and facility, halal standard of procedure, human factor and perspectives between logistics provider and halal agencies. With regard to standard handling process for import and export purposes in airgo context with compliance to Shariah at the halal warehouse, there are seven main steps involved for import and nine steps involved for export. Research limitations/implications As this paper is among the pioneer study that looks into halal warehouse implementation, it has some limitations. Further empirical study in a bigger context may be performed quantitatively, and multiple case study approach may also be adopted to get deeper insight in understanding halal warehouse implementation domain of study. Practical implications This study contributes to the understanding on the gap in the field with adhering or complying with the practice. It will provide input to the authority in understanding the current limitation and suggestion by the practicing companies. Social implications Halal requirement in non-Muslim countries are not very well implemented and understood, whereby the understanding of the concept of Halalal Toyyiban throughout the supply chain process is critical. The main aim of halal logistics is to avoid cross contamination between halal and non-halal product during the transport, at the storage in warehouse and also in handling. This study contributes to the understanding of halal warehouse implementation. Originality/value There is a critical dearth of academic study that focuses on halal logistics specifically in transport and warehouse. This empirical case study provides basic understanding of implementing halal warehouse and presents the challenges and also required guidelines in handling halal product at the warehouse for both import and export purposes.