Principles in halal purchasing

The purpose of this conceptual article is to investigate the application of halal in purchasing.

This article provides a discussion on the implications of halal for the purchasing function, in particular the purchasing portfolio matrix of Kraljic and the purchasing process model of van Weele.

Halal leads to stronger partnerships with suppliers (strategic and leverage products) and adopting various strategies to secure continuity of supply (bottleneck products). Therefore, conventional commodity categories in certain industries can be allocated different for halal certified products and services, resulting in possible different product and supplier strategies. Halal requirements also have impact on the purchasing process; its tactical and operational purchasing activities.

This conceptual paper shows that halal has implications for the procurement strategy and purchasing process, key components of the procurement function. However, more empirical research is needed through case study research and focus groups to better understand the challenges and solutions surrounding the sourcing practices of halal certified companies.

For halal certified companies it is important to extend halal towards purchasing. Effective alignment is required between the halal policy, procurement strategy and purchasing process. A procurement organisation can progress in three stages, from viewing halal compliance as opportunity, making its supply chains halal, to making its value chain halal.

Purchasing is an important marketing discipline in defining the buyer supplier relationship. This study contributes to the understanding of the purchasing function in a halal supply chain and value chain. It is the first study investigating the application of halal in purchasing.