A Study of Japan's Halal Food Supply Chain From an Inbound Perspective (Part 4)

4. Discussion Halal food is not yet widespread in Japan, but as more Muslim tourists travel to Japan, halal food will become more important from a Japanese inbound perspective. However, some companies say they do not wish to obtain halal certification because of its high cost. These companies have established their own Muslim-friendly policies, or obtained local halal certification at relatively low cost. Seventeen companies were considered periphery-facing and were classified as halal-certified or having a Muslim-friendly policy. Nine companies (5 manufacturers, 4 restaurants) hold halal certification. By choosing suppliers and customers, they maintain the integrity of the halal food supply chain. Another 8 companies (2 manufacturers, 5 retailers and 1 restaurant) adopted a Muslim-friendly policy, disclosing to customers whether the food materials (meat, vegetables, etc.) and/or ingredients are certified halal, or from which country they are sourced. Restaurants and retailers emphasize whether food materials are halal when choosing suppliers/manufacturers. Muslim-friendly policies also maintain supply-chain integrity through information disclosure. Frohlich and Westbrook proposed two types of supply-chain integration. One is delivery integration from supplier to customer: the forward physical flow of delivery. The other is information integration from customer to supplier: the backward coordination of data. Companies with a Muslim-friendly policy adopted a strategy of information integration rather than delivery. For example, some companies provide consumers with information about food integrity through their websites and social networking services (SNS). Halal-certified companies adopt both directions of supply-chain integration. To achieve delivery integration, one company to some extent uses private containers to ship halal food to consumers. Managers source halal food materials directly from manufacturers to avoid halal food being distributed together with non-halal food. However, fully halal-compliant delivery is hard to achieve in Japan, because most transport companies there distribute halal products together with non-halal products. In terms of information integration, some manufacturers provide retailers/restaurants and consumers with information about halal food, such as food materials and ingredients, and the manufacturing and storage methods of halal food. Supplier-facing companies maintain the integrity of halal food through high-quality procurement and processing of raw materials. However, they have no relationship with consumers. One consumer-facing company was not certified but provided Muslims with high-quality halal food information. The current state of halal certification and Muslim-friendly policies in Japan does not rule out the possibility that, in the supply chain, halal food is processed, made, distributed and sold together with non-halal products. We need to improve the halal food supply chain and the integration of its links to ensure high food integrity. 5. Conclusion Through analysis of Japan's certification system and interviews with 20 halal-food companies, we investigated the integrity of halal food. We also discussed how to establish high halal food integrity in Japan. As a result, 17 companies were considered periphery-facing. Halal certification and Muslim-friendly policies are gradually spreading in Japan. Companies with a Muslim-friendly policy adopted a strategy of information integration rather than delivery. Companies with halal certification adopted both directions of supply-chain integration. Acknowledgment We are very grateful to the halal experts and the 20 companies for cooperating with our interviews, and for their valuable comments on our research. References Ministry of Agriculture, Forestry and Fisheries Japan. Efforts relating to "Halal" in Japan. Ministry of Agriculture, Forestry and Fisheries Japan. Guideline towards the exportation of halal foods (revised version). K. H. Tan, M. H. Ali, Z. M. Makhbul, and A. Ismail, "The Impact of External Integration on Halal Food Integrity," Supply Chain Management: An International Journal, vol. 22, no. 14, pp. 186-199, 2017. M. H. Ali, Y. Zhan, S. S. Alam, Y. K. Tse, and K. H. Tan, "Food Supply Chain Integrity: the Need to Go Beyond Certification," Industrial Management and Data Systems, vol. 117, no. 8, pp. 1589-1611, 2017. Intan Marzita Saidon, R. M. Radzi, and N. A. 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