The halal F&B industry in Malaysia is rapidly growing, fueled by increasing demand for high-quality, halal-certified products.
The Malaysian Investment Development Authority (MIDA) recognizes Malaysia as a key halal hub in a MYR 13.3 trillion market, contributing nearly 10% to its GDP and attracting international interest, especially from Muslim-majority countries.
Halal food exports are projected to rise from MYR 8.8 trillion in 2021 to MYR 13.3 trillion by 2027, driven by a global Muslim population of 1.9 billion in 2022, representing 24% of the world’s total.
However, ensuring freshness and quality hinges on efficient logistics—a growing challenge for many businesses.
“E-commerce Making New Demands!” — The Growing Importance of Halal F&B Logistics
Last month, Ninja Van participated in Selangor Internation Expo (F&B) 2024 (SIE 2024), where, as a leading courier service provider, we delved into the root issues affecting halal logistics.
But, to grasp why these measures are essential, it’s crucial to understand the growing importance of effective logistics in the halal F&B industry.
In Malaysia, the demand for halal-certified products has surged as consumers prioritise quality, safety, and religious compliance, putting pressure on halal F&B businesses to meet these expectations while maintaining freshness.
In fact, the global halal food and beverage market, valued at MYR 5.5 trillion in 2022, is projected to reach MYR 9.4 trillion by 2032, growing at a CAGR of 5.73% from 2023 to 2032.
According to the same research, it is a fact that the global halal food and beverage market is bolstered by key factors such as shifting demographics and increased awareness of halal products among both Muslims and non-Muslims.
As consumer awareness of halal certification rises, many F&B companies are adapting their offerings to tap into this growing demand.
At the same time, this shift in consumer preference has made efficient, reliable logistics a vital component of success in the industry.
However, challenges like stringent halal standards, mislabeling, and supply-demand imbalances pose significant hurdles. The market is witnessing trends towards:
- Halal food authentication
- The growth of halal-certified non-alcoholic beverages
- Rising appetite for convenience foods among younger consumers
Distribution channels are evolving, with e-commerce emerging as the fastest-growing segment. Geographically, the Asia-Pacific region dominates, housing over 63% of the global Muslim population, while markets in India and other areas remain largely untapped.
Why is this forecasting important?
For halal F&B businesses to thrive, they must now embrace logistics strategies that not only maintain product quality but also ensure compliance with halal standards at every step—from inventory replenishment to perishable goods handling.
Top 3 Logistics Challenges in Halal F&B
From inventory management to maintaining a reliable cold chain, efficient logistics is crucial for sustaining a competitive edge in the market.
Here are some common issues faced by halal F&B businesses in Malaysia:
A. Inventory Management
- Keeping stock levels consistent is essential to not only avoid product shortages or overstocking—both of which can disrupt business operations and customer satisfaction—as well as ensuring halal-certified products are always available and fresh.
- Inventory mismanagement can result in wasted stock and missed sales opportunities.
🤔 What is replenishment with an example? Inventory replenishment means ordering stock to meet demand without overstocking and moving it from storage to main locations. Ninja Restock by Ninja Van is a great example—click here to learn more.
B. Cold Chain Logistics
- Halal perishable products, such as frozen or chilled foods, require a well-maintained cold chain to preserve quality. Any break in the cold chain, from production to delivery, can compromise product integrity.
- Poor temperature control and improper storage facilities increase the risk of spoilage, making the product unsuitable for sale—ultimately, lead to a loss of consumer trust.
C. Delivery Mistakes
- Late deliveries and product damage are frequent issues in halal F&B logistics. These missteps, often caused by ineffective logistics planning, can tarnish a brand’s reputation and frustrate customers.
- Delays, spoiled products, and damaged items result in financial losses, especially in a competitive market where consumers expect reliability and quality.
💡 Did you know? Many logistics operations in Malaysia still rely on third-party transporters using traditional communication methods, leading to miscommunication and delays. Fortunately, Ninja Restock by Ninja Van solves these inventory transfer issues—check it out here!
Why Some Companies Are Struggling?
Despite the growth potential in the halal F&B sector, many businesses are facing significant challenges that hinder their profitability (Extensive, 2024).
Correlation Between Logistics Efficiency and Profitability
There is a direct correlation between logistics efficiency and profitability in the halal F&B sector. Efficient logistics not only ensures timely delivery and product quality but also minimises operational costs.
Businesses that invest in streamlined logistics solutions tend to see improved customer satisfaction, repeat purchases, and higher profit margins.
Conversely, those that neglect logistics often find themselves grappling with increased expenses and decreased revenue.
“Smart & Innovative!” — Reliable Solutions for Improving Halal F&B Logistics
During Ninja Van’s participation in SIE 2024, it became clear that logistics challenges are a significant concern for many halal F&B businesses. To address these issues, Ninja Van introduced two innovative solutions: Ninja Restock and Ninja Cold.
A. Introducing Ninja Restock
Ninja Restock streamlines inventory management for halal F&B businesses, offering flexible, frequent deliveries—even as often as daily—to meet demand fluctuations.
The service’s no minimum order quantity (MOQ) policy allows businesses to order exactly what they need, avoiding overstock or surplus costs.
With competitive pricing based on cubic meters (CBM), halal F&B businesses can manage costs effectively while keeping shelves stocked and ready.
Benefits for Halal F&B Businesses:
- Reduced Wastage: Ninja Restock’s frequent, right-sized deliveries help businesses prevent spoilage and reduce waste, ensuring lower costs.
- Maintain Product Availability Without Unnecessary Surplus: Businesses enjoy greater visibility and control over stock, adjusting to consumer demand without excess inventory.
- Cost-Effective Pricing: CBM-based pricing ensures fair costs, enabling better financial management across frequent, efficient deliveries.
B. Ninja Cold for Perishable Goods
Ninja Cold specialises in cold chain logistics, providing dedicated services for perishable goods to ensure safe transportation and delivery.
This solution is particularly vital for halal F&B products that require strict temperature control throughout the supply chain.
How Ninja Cold Ensures Quality:
- Safe Delivery of Frozen Food: Advanced refrigeration systems maintain the integrity of frozen products during transit, safeguarding them from spoilage.
- Maintaining Product Quality from Warehouse to Delivery: Ninja Cold helps halal F&B businesses preserve product quality and comply with halal standards.
By adopting Ninja Restock and Ninja Cold, halal F&B businesses can significantly improve their logistics efficiency, reduce operational challenges, and focus on delivering high-quality products to their customers.
“Paving the New Way of Logistics!” — Ninja Van’s Role in the Halal F&B Sector
As the leading courier service provider in Malaysia, Ninja Van has played a pivotal role in enhancing the logistics landscape for halal F&B businesses.
Our commitment to this sector is evident through our innovative solutions, and this is translated to our clients’ success story.
“Smaller Orders More Frequently!” — Faber-Castell’s Success Story
Faber-Castell, a prominent global manufacturer of art and writing materials, encountered significant challenges in efficiently distributing its products throughout Malaysia.
The key issues included:
- Limited distribution coverage
- Slow delivery times
- Absence of real-time tracking
These challenges hindered Faber-Castell’s ability to meet the demands of its B2B customers, particularly in the education and corporate sectors.
However, a comprehensive logistics solution was on the horizon.
Ninja Restock offered an extensive nationwide network that ensured broad coverage. Its advanced technology, particularly real-time tracking, transformed Faber-Castell’s logistics operations.
Loo, the Warehouse Manager at Faber-Castell Malaysia, shared,
“With their just-in-time approach, we’ve seen a remarkable transformation in our operational efficiency. By fulfilling smaller orders more frequently, we have minimised inventory holding and prevented out-of-stock and overstock situations in our stores and warehouses.”
Previously, Faber-Castell relied on traditional stock transfers for inventory replenishment, resulting in only about 30% visibility into their delivery processes.
The transition to Ninja Restock provided them with unprecedented visibility into their supply chain.
Moreover, traditional inventory transfers often proved costly over time and were not well-suited for long-distance deliveries.
Ninja Restock’s 100% online platform empowers Faber-Castell to efficiently manage, monitor, and address delivery issues, with dedicated account managers resolving problems within 24 hours.
This strategic partnership has enabled Faber-Castell to optimise inventory management and better meet customer expectations.
📞 Want to Know More About Ninja Van?
1. What is Ninja Restock, and how does it benefit my business?
Ninja Restock is an inventory replenishment service that helps businesses manage stock levels efficiently, reducing waste and ensuring products are always available to meet customer demand.
2. How does Ninja Cold ensure the safe delivery of perishable goods?
Ninja Cold utilises advanced cold chain logistics, including temperature monitoring and refrigerated transportation, to maintain product integrity during transit, preventing spoilage and ensuring high-quality delivery.
3. What types of businesses can benefit from Ninja Van’s logistics solutions?
Any halal F&B business, including those dealing in perishable goods, snacks, beverages, and more, can benefit from our tailored logistics solutions designed to improve efficiency and product quality.
4. How can I get started with Ninja Restock and Ninja Cold?
To begin, simply contact our team for a consultation.
- Ninja Restock: Contact us now to know more about inventory replenishment.
- Ninja Cold: Contact us now to know more about frozen food and perishable goods delivery.
We will assess your logistics needs and provide customised solutions to enhance your operations.
