TESCO HALAL LOGISTIC FACILITIES AND CUSTOMERS 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 logistic facilities

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.

Transportation
Source

Production

Processing & Packaging

Storage

Retail

Halal Value Chain

CONSUMER

HALAL STANDARDS ON FOOD (MS1500:2009)

Requirement on Syariah REQUIREMENTS

Source of food, ingredients, processing aids

Management & Facilities

Internal Halal System

Production & Hygiene

cross contamination Segregation

Ritual Cleansing

Dedicated halal premise

Hygiene

HALAL STANDARDS ON LOGISTICS (MS2400:2010) REQUIREMENTS

Requirements related to Shariah Management responsibility Halalan-Toyyiban system requirement Halalan-Toyyiban risk management plan summary

Implement the standard accordance to Shariah requirement and practices of the recipient and/or importing country

The management of the organization shall define and document policy and commitment with regards to identification, evaluation and controls related to Halalan-Toyyiban integrity

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 application of HalalanToyyiban principles can be summarised in a HalalanToyyiban Management Plan

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HALAL STANDARDS vs TESCO HALAL GOVERNANCE

STANDARDS REQUIREMENTS
Requirements related to Shariah Management responsibility

Halalan-Toyyiban system requirement

Halalan-Toyyiban risk management plan summary

TESCO HALAL GOVERNANCE

All obligation are on suppliers Halal Advisory Board
Tesco Standards: Food products to obtain Halal Certification and adhere to Halal requirements

Tesco Halal Framework to cover risk analysis

TESCO HALAL LOGISTIC FACILITIES

Handling dedicated halal products only
The products/ premise not halal certified All ingredients are halal certified

Meat and Poultry from Halal Certified abbatoir Imported from JAKIM & DVS approved plant

Understanding On Halal Logistics

Understand On Halal Product And Services Minimum Segregation

67.31% understand halal involves the whole supply chain

94.74% agree that segregation between halal and non halal is important
85.71% emphasized segregation need to be implemented at every level of supply chain

Dedicated Halal warehouse should implemented for storage - 36.85%

no mixing of halal and non halal in the same zone in supermarket 49.12% Segregation include checkout counters, trolleys and baskets 77.19%

Dedicated container should be applied in transportation 42.11%

CONSUMERS PERCEPTION ON TESCO HALAL FACILITIES

Knowledge on Tesco Halal
91.23% perceive halal as important when shopping at Tesco

51.79% know bakery products are halal

17.86% do not know

63.64% know meat products are halal

23.64% not sure

99.21 % agree that having halal certificate is important for product selling in Tesco

30.36% are not sure

12.73% dont know

94.74% suggested that Meat, bakery section and logistic facilities should apply halal certificate from JAKIM

Bakery Meat

58.97% know from staff 38.46% depend on the ingredient label

45 % know from staff 47.50% depend on copy of halal certificate

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 Jakims halal requirement.

BUSINESS ORIENTATION VISIT (UK)

Preserve the historical premises e.g. Battersea Power Station
Retaining the expertise and extending the competency e.g. Addleshaw Goddard, Senergy Limited

Customers satisfaction as a key focus e.g. British Airways, Tesco

Employees are the internal customers that need to be treated fairly. E.g Standard Charted Bank, Tesco

Digital communications are fully optimised e.g. emails, conference call, video conference.

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.

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