Blockchain-Driven Halal Supply Chains: Enhancing Transparency and Efficiency While Ensuring Shariah Adherence

Halal food supply chain is the trend researched issues in recent years. The increasing awareness of halal food consumption as well as safety and healthy food causes an upward movement of demand for the halal food market significantly. In the halal food supply chain, a halal food product that is not entirely following the Islamic principles can make the food become haram. Consumption for meat is estimated to increase in the next decade globally. The problems in halal supply chain risks are contamination and doubt in a halal product. The downstream sector of the meat supply chain in Indonesia consists of logistics, wholesalers, and retailers. The demand for meat in Indonesian food services is the highest compared to other categories. Few food services and logistics in Indonesia have been halal-certified. This study focuses on the risk of the halal meat supply chain in the Indonesian downstream sector. The two-step methodologies that consist of the literature review and the validation with experts are used for identifying the risk of meat, especially beef in the Halal Supply Chain. The findings of this study show that there are 48 risks of the halal meat supply chain in the downstream sector.

Halal Supply Chain Management requires an assurance that the entire process of procurement, distribution, handling, and processing materials, spare parts, livestock, work-in-process, or finished inventory to be well documented and performed fit to the Halal and Toyyib. Blockchain technology is one alternative solution that can improve Halal Supply Chain as it can integrate technology for information exchange during the tracking and tracing process in operating and monitoring performance. This technology could improve trust, transparency, and information disclosure between supply chain participants since it could act as a distributed ledger and entitle all transactions to be completely open, yet confidential, immutable, and secured. This study uses a Blockchain Network with three channels and uses raft consensus algorithm in designing web interfaces and testing their capabilities. From the web interface, there were no failures in the validity test during the invoke test and the query test. In addition, the web interface was also successfully tested to thwart the formation of a block in case of data input errors from the user. The server can also do the process as a provider of information and validator for the web interface. From the results of simulations conducted on the Blockchain Network that was made, Blockchain’s transaction speed is fast and all the transaction is successfully transferred to other peers. Thus, Permissioned Blockchain is useful for Halal Supply Chain not just because it can secure transactions from some of the halal issues, but the transaction speed and rate to transfer data are very effective.

This paper presents the authors’ viewpoints in an attempt to explore the extent of halal supply chain deployment in actual businesses, practices and operations as compared to the extensive generation of new knowledge, theories and principles in halal supply chain or equivalently the halalan-toyyiban supply chain management. These viewpoints are deduced from the summarized selective literature on past research and studies done on halal supply chain, critical success factors, halal certifications, effective value chain in halal logistics together with the studies’ recommendations that were being examined, followed by discussions on actual practices in the alms of reality in halal supply chain management in businesses. Based on this literary review, new body of knowledge and findings on halal supply chain was much generated and shared among the academicians and institutions of higher learning, but the acceptance and its deployment has yet to be implemented holistically in real business practices and in the industry. Findings such as critical success factors, value chain analysis, syariah compliances and adherence to halal standards on halal supply chain in businesses need to be extended, transcended and simplified into operational manners as best standard practices for business players, entrepreneurs, logistics operators and workers to deploy halal supply chain management assurance system in their respective industries. In conclusion, halal supply chain deployment is still in its early stages; the halalan-toyyiban supply chain assurance will slowly but surely take place integrating both principles and practices towards business sustainability and competitiveness.

The Halal supply chain, which encompasses the sectors of food, medicines, cosmetics, has enormous challenges to comply with Islamic rules, maintain product traceability and combating fraud. Given the increasing global demand for Halal products, the demand for technology innovations to enhance supply chain transparency and ensure Halal compliance is growing. This paper explores the application of Digital Twin (DT) technology in Halal supply chain management, highlighting its ability to address these challenges. The main research question of this paper is as follows: How can Digital Twin technology facilitate transparency, traceability, and compliance in the Halal supply chains? The current study employs a qualitative methodology through a review of the extant literature and reviews of industrial case studies. The study reveals that the Digital Twin technology promises to considerably improve the operational excellence of Halal supply chains through real-time Halal status monitoring ensuring that products comply with religious and ethical requirements along the supply chain. The main applications include tracking Halal certification, preventing cross-contamination, and enhancing transparency for certification bodies, manufacturers, and consumers. The results indicate that Digital Twin technology has the potential to transform Halal supply chains by reducing fraud, improving operational efficiencies, and building consumer trust. As a comprehensive Halal compliance solution, Digital Twin can enable a more transparent and trustworthy Halal certification process on a global scale. The study extends the knowledge body on technology innovations in supply chain management especially with religious and ethical product certifications and sets the stage for future research in the area.

In the volatile globalised market, risk management of the supply chain is essential, but it becomes vital to the management of faith-based supply chains. Therefore, this study aims to identify and prioritise risk dimensions and their associated risk elements as required for managing a Halal supply chain. Initially, 42 risk elements of the Halal supply chain are identified through literature review and categorised into seven dimensions with the opinion of an expert team. Further, fuzzy BWM is applied to prioritise these risk dimensions and associated risk elements. The finding suggests that the production-related risks are highly significant, while sustainability-related risks are least significant among the identified risk dimensions in the Halal supply chain management. The mitigation of the production- and planning-related risks is to be addressed on priority. This study’s significant contribution is to provide a comprehensive list of risks related to the Halal supply chain management and their prioritisation towards effective management of the same.

To fulfill the halal needs of consumers or the community of Pesantren, the implementation of a Halal Supply Chain in every product is very important. Moreover, in boarding schools that offer various business units, a halal supply chain can be applied to create a halal ecosystem to foster better social change. This study is a qualitative study with a comparative approach on the objects of Darussalam Drinking Water (AMIDAS) and Khizanah Bakery (Manufacturing) and Gambia Market (Retail/Distributor), which are business units of Pondok Modern Darussalam Gontor.. The results of this study indicate that the supply chain in the PMDG business unit has been well implemented. Meanwhile, halal supply chain activities are divided into three; first, halal supply chain resources include organization, information management, physical separation, and Islamic human resources. Second, halal supply chain business processes are halal manufacturing and halal logistics. Third, the halal supply chain network for Amidas and Khizanah Gontor Bakery as producers sources materials from manufacturers, produces goods, stores them in warehouses, and distributes them to retailers, sub-retailers, and so on. Gambia as a distributor receives products from producers according to halal standards and then provides them to customers. All halal supply chain activities have been carried out in accordance with Islamic principles.

The fast-growing number of Halal integrity issues has attracted the scholar's debate on improving integrity in practicing the Halal supply chain. To investigate how firms comply with Halal procedures in supply chain may not possibly provide much potential research gaps. The application of technology in improving Halal supply chain management on blockchain technology should be given urgent priority. The aim of this chapter is to explore the possibility to integrate blockchain technology to improve the use of Halal supply chain management. Blockchain technology will help the Halal based oriented firm in the supply chain to trace the source of the raw materials, products, labeling information, and Halal product distribution to strengthen the supply chain networks. Blockchain technology-driven Halal supply chain shall overcome and surpass issues related to Halal integrity and certifications which could also have an impact globally.

The halal supply chain has gained increasing scholarly and industrial attention since 2012, driven by rising consumer awareness among Muslim and non-Muslim populations. While extensive research has explored its evolution, trends, and key focus areas, a systematic synthesis of this literature remains lacking. This study addresses this gap by comprehensively reviewing existing research on the halal supply chain, mapping its development, and identifying critical areas for future inquiry. Using the Web of Science (WoS) and Scopus databases, the review analyses publications from 2012 to 2022, following the PRISMA framework to ensure methodological rigour. After systematic screening, 79 relevant articles were selected and analysed based on citation trends, geographical distribution, theoretical foundations, methodologies, and disciplinary perspectives. The findings categorise the halal supply chain into six major industries: food and beverage, logistics, halal parks (infrastructure), retail, cosmetics, and the broader halal industry. The analysis reveals a growing emphasis on compliance, traceability, and sustainability, with significant regional and sectoral variations. Despite progress, several gaps persist, including limited cross-industry comparisons and insufficient exploration of emerging halal supply chain management technologies. This study consolidates key insights from prior research while proposing future directions, such as deeper investigations into industry-specific challenges, consumer perceptions, and digital integration. Researchers and practitioners can enhance halal supply chains’ efficiency, transparency, and global credibility by addressing these gaps. The study contributes to the literature by providing a structured overview of the field and guiding future scholarly and practical advancements.

Halal Supply Chain Management (HSCM) is transforming the way halal products are certified, tracked, and distributed. However, challenges such as regulatory compliance, technological readiness, cost, and stakeholder trust continue to impact AI adoption in the halal industry. This study employs the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to analyze the causal relationships among key factors influencing AI adoption in halal supply chains. Seven key criteria were identified: Technological Infrastructure, Regulatory Compliance, Cost of Implementation, Data Security & Privacy, Scalability & Adaptability, Stakeholder Readiness, and Consumer Trust & Perception. The findings reveal that Technological Infrastructure is the most influential factor driving AI adoption, impacting Regulatory Compliance, Scalability, and Consumer Trust. Conversely, Consumer Trust & Perception emerged as the most dependent factor, highlighting the importance of transparency in AI-based halal certification. Regulatory Compliance plays a dual role as both a cause and an effect, emphasizing the need for standardized AI-driven halal certification frameworks. The results suggest that investment in AI-driven traceability, blockchain-based halal authentication, and automated compliance verification can significantly improve halal supply chain efficiency and consumer confidence. This study provides valuable insights for policymakers, halal certification bodies, and industry stakeholders by identifying key enablers and barriers to AI adoption. Future research should explore hybrid Multi-Criteria Decision-Making (MCDM) approaches, economic feasibility analyses, and real-world case studies to further validate AI-driven solutions in halal supply chains.

Ensuring halal integrity from source to shelf introduces distinctive risk exposures, including contamination, fraud, and certification gaps, and requires resilience capabilities that safeguard both religious compliance and operational continuity. This bibliometric review maps the intellectual structure of halal supply chain research on risk and resilience using science mapping outputs, including keyword co occurrence network, overlay, and density visualizations.Three major knowledge domains emerge. The first centers on technology enabled integrity, including blockchain, traceability systems, RFID, and smart contracts. The second focuses on assurance and governance, encompassing halal certification, Shariah compliance, institutional mechanisms, and trust formation. The third domain addresses logistics and operations, particularly halal logistics and food safety management. Overlay visualization reveals a temporal shift toward digitally mediated transparency, especially blockchain and artificial intelligence applications, alongside sustainability as more recent research priorities. Density mapping identifies “halal,” “blockchain,” “traceability,” “halal supply chain,” and “food safety” as enduring conceptual anchors within the field.

In distributed environment, a digital transaction or operation requires transparency and trust among multiple stakeholders. Several approches address such issues however, among these blockchain provides a viable solution which has received wide acceptance in the recent past. Permissioned blockchain solutions adopt more efficient consensus algorithms and smart contracts. There are many smart-contract solutions exists (such as, etherium, IBM blockchain, hyperledger fabric), however, much of them mainly follow traditional access control models. A role-based access control model provides controlled access of resources to members. This research work presents an extended usage control model known as DistU (Distributed Usage Control). DistU is proposed to capture all possible access control models required by a business for permissioned blockchain frameworks. DistU can monitor a resource continuously during the operation and update the attributes accordingly, performing different actions, such as denying or revoking permissions. We believe that the proposed DistU usage control model can provide a fine-grained control for blockchain resource management. The paper also contributes to provide a protoype implementation of fine-grained permission model on Hyperledger Fabric. The reason of selecting Fabric for this research is that, it is the first execute-order achitecture blockchain that provides a platform to develop general business applciations. Secondly, it is an opensource operating system of permissioned blockchain with huge industry support.

Halal supply chains are vulnerable due to their credence quality attributes, importance of maintaining halal integrity throughout the supply chain, need to avoid doubt, lack of control of food norms, and sensitivity of the Muslim consumer towards halal. These vulnerabilities make halal supply chains complex to design, manage, and optimise. Transparency of halal supply chains is needed in order to ensure trust and authenticity of a halal brand. The principle of a shared database that is safe, open and verifiable without a central operator is an attractive proposition to embed trust and authenticity for halal food, cosmetics, home care, and pharmaceuticals.

This study explores the technology empowerment in the halal supply chain using bibliometric analysis. Based on 67 articles from the Scopus database (2011–2024), the research employs tools like Publish or Perish (PoP), Microsoft Excel, and VOS Viewer to reveal the intellectual framework of relevant literature. The finding indicates a steady increase in manuscript productivity from 2011–2024 despite a declining citation trend. Journal of Islamic Marketing, Marco Tieman, Malaysia, and the National University of Malaysia, Malaysia emerged as the most prolific journal, author, country, and institution that produce the most, respectively, in publishing on the topic. The paper that has influenced other research the most is Tieman's, entitled “The application of Halal in supply chain management: In-depth interviews.” Seven significant keyword groups that frequently appeared in 67 articles were found in this study. This bibliometric analysis highlights the increasing academic interest in technology empowerment within the halal supply chain, particularly in integrating blockchain, AI, and IoT to enhance transparency and efficiency. While Malaysian and Indonesian researchers lead the field, contributions from non-Muslim-majority countries reflect the growing global relevance of halal logistics. Future research should focus on addressing gaps in technology adoption, regulatory harmonization, and risk management to ensure a more resilient and efficient halal supply chain.

Reviews and reputation scores of sellers play an important role in decision-making process of potential buyers in an e-commerce system. A trustworthy and reliable reputation system is a crucial component in the e-commerce ecosystem, as buyers rely on it to make informed decisions. In this work, we propose a privacy-preserving decentralized reputation system designed to include countermeasures against some known attacks. Our model is built on two permissioned blockchains, namely Hyperledger Indy and Hyperledger Fabric. Hyperledger Indy provides an infrastructure for implementing verifiable credentials with Zero Knowledge Proof support, which is essential for privacy preservation, while Hyperledger Fabric is a robust platform for implementing smart contracts. One of the key advantages of the proposed approach is the use of verifiable credentials for digital identities of sellers, feedback tokens issued to buyers after performing an e-commerce transaction and discount tokens issued to buyers after feedback submission. This helps to ensure that the feedback and identity information is authentic and tamper-proof, reducing the likelihood of identity-related attacks. Additionally, the collection of feedbacks and application of business rules are implemented as smart contracts on Hyperledger Fabric blockchain. This provides a secure and transparent mechanism for processing feedback, reducing the likelihood of unfair feedbacks. Overall, the proposed approach presents a robust reputation system that can help reduce identity-related attacks and unfair feedbacks. The privacy-preserving nature of the system ensures that sensitive information is protected while still enabling the verification of digital identities. The use of feedback and discount tokens incentivizes buyers to provide accurate and honest feedback, which can help reduce unfair feedbacks and identity-related attacks. Finally, the use of smart contracts ensures transparency and immutability, which enhances the overall reliability of the system.

Chapter 16 - Halal biotechnology product: halal supply chain compliance and integrity risk