Advancing Halal Supply Chain Management: Integrating Blockchain Technology for Enhanced Traceability and Compliance

Abstract

This is because the Halal industry is growing rapidly because of the increasing demand of Halal-certified foods, cosmetics, pharmaceuticals, and finance worldwide. Nevertheless, integrity, traceability and compliance remain problematic in the supply chains of the industry. The classical Halal supply chain systems are in transparent form and prone to fraud and contamination, which diminishes the consumer confidence. The secure and immutable nature of blockchain technology is a good solution in enhancing the Halal Supply Chain Management (SCM).

The paper discusses the application of blockchain to improve authenticity of certification, traceability, and frauds detection in Halal SCM. I combined both mixed-method techniques such as case studies of Halal-certified businesses in food, cosmetics and pharmaceuticals, interviews with 15 experts, including certifiers and blockchain developers, and a survey conducted among 200 Halal industry stakeholders.

Findings indicate that blockchain significantly enhances traceability by establishing real-time and tamper-resistant logs of all the supply chain actions to ascertain that all Halal standards are observed. It also helps to prevent fraud by securing certification information and is more transparent to assist in enhancing consumer confidence.

Nevertheless, despite such advantages, there are still adoption issues such as high cost, technical complexity, change resistance, particularly among the small and medium enterprises. The paper notes that standardized processes, cooperation, and education are required to facilitate the use of blockchains.

In general, the study shows that blockchain has the potential of transforming the SCM of Halal and suggests additional research on the standards and combination with IoT and AI.