Optimising Halal supply chain with blockchain-driven risk management

The Halal industry, a significant driver of global economic growth, is confronted with unique risks that threaten halal integrity throughout the supply chain. Effective risk management is critical yet underdeveloped within this sector. This paper explores the utilisation of blockchain technology to enhance the management of halal-related risks, ensuring compliance and integrity from production to consumption. Blockchain’s inherent capabilities, such as traceability, transparency, and immutability, address critical issues like contamination, non-compliance, and fraud. The research explored the key risk factors in the halal supply chain, examined how blockchain can mitigate these risks, and developed a Blockchain-Driven Supply Chain Risk Management Model for the halal industry. Focusing on Malaysia's halal sectors, including food, cosmetics, pharmaceuticals, modest fashion, and tourism, this study evaluated how blockchain can improve supply chain performance metrics like cost-effectiveness, timeliness, reliability, and sustainability. By integrating blockchain, businesses can ensure real-time data transparency, prevent unauthorised modifications, and enhance the overall integrity of halal products. The findings are expected to contribute to better risk management practices, operational efficiency, and competitive advantage for halal firms in the global market.