TESCO HALAL LOGISTIC FACILITIES AND CUSTOMER’S

PERCEPTION ON IT

by:HAKIMAH MOHD YUSOF

JAKIM

Extension

PRESENTATION OUTLINE• Executive Summary• Content

– Objective of the Project– Methodology– Selection of Focus Area– Background of Project– Issued

• Recommendations and Summary• Business Orientation Visit (UK)• Report of Visit (Summary)

EXECUTIVE SUMMARY• Halal logistic services are new area in halal discussions

throughout the world• Malaysia had developed Halal Standards on 3 logistic

facilities i.e. warehouse, transport and retail facilities.• Literature shows that avoiding cross contamination is one

of the basic/major principle in halal logistics. Thus segregation is seen to be justifiable measure to control this issue.

• This project is to look into customers’ understanding in halal logistics with perception in halal segregation as element measures. Also to know their knowledge and perception on Tesco halal logistic facilities.

• A small survey was conducted to measure the perceptions

• The study reveals that customers perceived segregation as important factor to avoid cross contamination between halal and non halal.

• Customers prefer that a complete segregation is necessary in the supermarket, warehouse and transport. They would like to see a separate display zone of halal and non halal in the supermarket including the checkout counters, trolleys and baskets.

• On the perception of Tesco Halal Logistics facilities, customers perceive halal and halal logo is very important for products selling in Tesco. Customers know that Tesco bakery and meat are halal but they only depend on the staff and a copy of halal certificate from the abattoirs as they are unsure on the effort done by Tesco on halal compliance and suggest that Tesco obtain halal certification from Jakim.

• As Jakim just started to open the logistic Certification Scheme, this can be a starting point for further research to see the consumers expectation and the readiness of industries.

OBJECTIVE OF THE PROJECT

• To Study on Tesco Halal governance which relates to Fresh Distribution Centre, Meat Section and Bakery Section as compare to the Standards requirements.

• To look into the customers understanding in halal logistics and their perception on halal facilities in Tesco Store.

• How does the perception can contribute to further improvement for Tesco logisticfacilities

METHODOLOGY

• Interview– 7 respondents

• Site Visits and observation– Stores– Fresh Distribution Centre

• Survey Questionnaires– 57 samples– 3 Tesco stores– Muslims ( 80.36%)and Non Muslims (19.64%)

SELECTION OF FOCUS AREA

• Bakery Section

• Meat Section

• Tesco Fresh Distribution Center

BACKGROUND OF PROJECT

• Halal compliance is extending along the value chain, both upstream towards farms and downstream towards food services and towards transportation, warehousing and handling of halal products at retail services. A supply chain approach ensures integrity from farm to fork.

•Halal logistics is a newer phenomenon, where the Shariah is being applied to the logistics discipline.

"The Command & Control of goods flows in a value system in such a way that the Halal integrity is secured throughout the supply chain.“

CONSUMER

ProductionProcessing &

Packaging Storage Retail

Halal Value Chain

Transportation

Source

HALAL STANDARDS ON FOOD (MS1500:2009)

• REQUIREMENTS

11

The application of Halalan-Toyyiban

principles can be summarised

in a Halalan-Toyyiban

Management Plan

Organization shall identify, document and ensure overall

source (s) that could affect the

Halalan-Toyyiban integrity are controlled to

prevent reaching the end user

The management of the organization shall define and document policy and commitment with regards to identification, evaluation and

controls related to Halalan-Toyyiban

integrity

Implement the standard

accordance to Shariah

requirement and practices of the recipient and/or

importing country

HALAL STANDARDS ON LOGISTICS (MS2400:2010)

Tesco HalalFramework

to cover risk analysis

Tesco Standards:Food products to obtain Halal Certification and adhere to Halal requirements

Halal Advisory Board

All obligation are on suppliers

HALAL STANDARDS vs TESCO HALAL GOVERNANCE

TESCO HALAL GOVERNANCE

TESCO HALAL LOGISTIC FACILITIES

• Handling dedicated halal products only •Meat and Poultry

from Halal Certified abbatoir •Imported from JAKIM & DVS approved plant

• The products/ premise not halal certified

• All ingredients are halal certified

Understanding On Halal Logistics

Minimum Segregation

CONSUMERS’ PERCEPTION ON TESCO HALAL FACILITIES

Knowledge on Tesco Halal

ISSUE

• This is just a preliminary study for Tesco to know the perception of their customers towards their halal facilities. Further study should be done with proper research instruments and proper sampling to represent the total population of Tesco customers.

• The analysis was limited to the frequency and percentage of feedbacks from respondent due to the time consuming

• However, this study can be a starting point for Tesco to decide whether they would proceed with suggestion that their halal logistics facilities should apply for halal certification.

RECOMMENDATION & SUMMARY

• Tesco already had a platform to control halal compliance through their Halal Advisory Board and Tesco Standard.

• However to gain more customers’ confidence, it is suggested for Tesco to obtain Halal Certification on Bakery and Meat Section as 91.23% customers respond that Tesco should do that.

• In order to achieve that, Tesco need to develop an internal halal system in bakery and meat section according to the requirement of MS 1500:2009 and MS 2400:2010 as the current system only focus on the ingredients only not the whole process.

• Develop technical team in stores to look after the whole process in the two sections meet the standards and Jakim’s halal requirement.

BUSINESS ORIENTATION VISIT (UK)

REPORT OF VISIT

• Experience to compare between Tesco UK and Tesco Malaysia• Opportunity to meet with government and third party agency with related to

Tesco trade operation. e.g. UK Food Standards Authority, British Retail Consortium, Halal Food Authority.

• Overview on UK trading and business culture, environment.

•  No-one tries harder for customers: – Understand customers.– Be the first to meet their needs.– Act responsibly for our communities.

• Treat people the way you want to be treated: – Work as a team.

– Trust and respect each other.– Listen, support and show gratitude.– Share knowledge and experience

WE MAKE WHAT MATTERS BETTER, TOGETHER