Challenges and Strategies in Halal Supply Chain Management for MSEs in West Sumatra: A Participatory Action Research Study

2.1 Food safety, food quality, and halal supply chain

Ensuring food safety, quality, and halal supply chain management are paramount in the food industry. These aspects require meticulous attention and robust systems to uphold consumer trust and compliance with religious dietary laws. Food safety involves implementing practices and protocols to prevent contamination, illness, and other health hazards associated with food consumption [19, 20]. It entails maintaining stringent hygiene standards throughout the supply chain, from production and processing to distribution and consumption [21, 22]. Measures such as regular sanitation, proper storage, temperature control, and adherence to food handling guidelines are imperative to mitigate risks [23].

Food quality, conversely, concerns the availability, accessibility, and affordability of food for all individuals within a population [24, 25]. It encompasses strategies to ensure consistent access to safe and nutritious food sources, particularly amidst climate change, economic instability, and geopolitical conflicts. Sustainable agricultural practices, diversification of food sources, and equitable distribution channels also contribute significantly to enhancing food quality on a global scale [26].

Halal supply chain management targets explicitly adherence to Islamic laws governing what foods are permissible (halal) and prohibited (haram) for Muslims to consume [27]. It involves compliance in avoiding forbidden ingredients and substances harmful to health and ensuring halal and haram product segregation throughout the supply chain [28]. Effective management of halal supply chains entails implementing comprehensive traceability systems, rigorous quality control measures, and collaboration with certified suppliers and regulatory authorities [29]. It ensures adherence to religious requirements and fosters transparency, trust, and credibility within the halal market [30, 31].

2.2 Halal supply chain management

The essence of halal supply chain management is ensuring food safety throughout the supply chain, especially concerning halal products. It involves effectively utilizing resources from ingredients to finished goods to customers [30-32]. For this system to function efficiently, senior management’s steadfast dedication is essential in executing halal policies, which form the foundation of the supply chain organization [33, 34]. Additionally, establishing strategic alignment between company strategies and halal policies is crucial [35].

Halal supply chain management employs a systematic strategy to oversee the movement of resources, data, and funds through strategic collaboration and alignment among all stakeholders. Its objective is to ensure that every supply chain step upholds halal principles [36]. Thus, it can meet quality standards, ensure product superiority, and deliver halal products as expected [37, 38].

Halal supply chain management benefits all components, not just MSE owners [35]. Hence, governance, infrastructure, appropriate information technology, competent human resources, and vertical and horizontal collaboration must support its implementation [36]. Here, the government plays a crucial role in formulating strategies and regulations and implementing halal supply chain programs to enhance national product competitiveness [39].

Optimizing halal management efficiency involves integrating critical elements throughout the supply chain process. Firstly, ensuring that raw materials strictly adhere to Halal standards is vital for halal food producers [40, 41]. Robust procurement practices and transparent processes for sourcing raw halal materials minimize the risk of contamination or non-compliance, thus safeguarding the integrity of halal products and ensuring consumer safety [42, 43]. Moreover, principles must be embedded into the production and processing phases to uphold the integrity of halal products [44]. Utilizing Halal-certified equipment, segregating production lines, and providing comprehensive staff training prevent deviations from Halal standards, maintaining product quality and safety [45].

Ensuring the quality and safety of halal food doesn’t end with production and processing; it extends to warehousing and distribution. This phase is critical for maintaining the integrity of halal products throughout storage and transit [46]. Strict adherence to proper storage practices, implementation of traceability systems, and compliance with transportation standards are essential measures to prevent contamination or disruptions, thereby preserving product quality until consumption [27]. Additionally, meticulous preparation and presentation of halal products are essential [3, 47]. Proper labeling and packaging effectively communicate halal certification to consumers, enhancing trust and confidence in product quality and safety [48, 49]. Establishing robust monitoring and reporting systems ensures continuous compliance, upholding product quality and safety [50, 51].

Neglecting halal supply chain management can result in using non-halal ingredients or methods, risking non-compliance and eroding consumer trust [52, 53]. Cross-contamination between halal and non-halal products during production compromises halal food integrity and may lead to religious concerns and reputational damage [30, 54]. Furthermore, inconsistencies or labeling errors due to the absence of halal supply chain management can cause confusion and distrust among consumers, affecting product marketability and causing financial losses [55, 56]. Therefore, prioritizing halal supply chain management is crucial for maintaining consumer trust, religious adherence, and brand reputation.

Halal supply chain management plays a critical role in ensuring the availability of top-notch halal food that meets the standards and preferences of Muslim consumers [37, 44]. Manufacturers are essential in this process, facilitating a reliable and steady supply of halal products through transparent and accountable procedures. By doing so, they address Muslim communities’ dietary needs and foster inclusivity in the food industry [57, 58]. In essence, effective halal supply chain management is essential for meeting the diverse demands of Muslim consumers and promoting accessibility to high-quality halal food products.

Previous studies have investigated the impact of halal supply chain management on maintaining the authenticity of halal practices within Malaysia’s food industry [54]. These findings suggest that the halal supply chain significantly influences the assurance of halal integrity in the food and beverage sector. Additionally, research has explored the halal supply chain specifically concerning apples [59], revealing concerns among Muslim consumers regarding potential risks associated with chemical processing that could compromise the fruit’s halal status.

Earlier studies have proposed comprehensive halal and mixed models as primary strategies for halal food distribution, with operational expenses, product quality, and halal authenticity serving as benchmarks for evaluation [60]. Moreover, research has identified risks, risk agents, and mitigation measures, strengthening the risk management framework in the halal frozen food industry. Prioritized mitigations for frozen food companies include training in good manufacturing practices, implementing halal Standard Operating Procedures, and ensuring the use of halal ingredients [5].

In Brunei, previous research has identified four sustainable supply chain management strategies that halal-certified food enterprises can adopt to achieve Sustainable Development Goals (SDGs): ethical sourcing, eco-conscious procurement, sustainable packaging, and green transportation [61]. Critical factors in effective halal supply chain management have been examined, along with testing of halal supply chain management models and evaluating the impact of halal practices on company sustainability performance [42]. Finally, significant barriers in halal supply chain management have been highlighted, with declining demand for halal products identified as a critical obstacle [62].

4.1 The issue of halal supply chain management

4.1.1 Procuring halal raw materials issues

MSE owners have pinpointed the acquisition of halal raw materials as their foremost concern, underscoring six critical issues with substantial implications. A thorough examination of these issues provides insight into the challenges MSEs face in safeguarding the halal integrity of their products.

Table 1. Procuring halal raw materials issues

Table 1 delineates the issues related to procuring raw halal materials and presents the choices made by MSE owners. The issue of “Limited access to high-quality halal raw materials” recorded the highest frequency, with 16 selections constituting 94.12% of responses. It indicates that MSE owners view limited access to quality raw materials as a significant hindrance to their operations. Conversely, “Fluctuations in price and availability of halal raw materials” received the lowest frequency, with 12 selections representing 70.59% of responses. While still noteworthy, this suggests that MSE owners may perceive other challenges as more pressing than this particular issue.

The discoveries mentioned above are intricately linked to halal food production’s quality and safety standards. Limited access to premium halal raw materials can compromise the quality and safety of halal food items. This situation may lead to the inclusion of substandard ingredients, potentially posing health risks [41]. Moreover, the absence of an efficient distribution system or network for halal raw materials exacerbates these concerns, resulting in delays in procurement and storage practices and ultimately impacting the quality and safety of the raw materials [3, 65].

Furthermore, the high expenses associated with acquiring halal raw materials may pressure companies into taking shortcuts or compromising on quality, thus potentially jeopardizing food safety standards [61, 66]. Additionally, the absence of information regarding dependable sources of halal raw materials adds to the quality and food safety concerns, heightening the likelihood of obtaining halal raw materials from unverified or uncertified suppliers with dubious practices [67].

Challenges in meeting halal certification criteria for imported raw materials or those procured from foreign suppliers can also impact food quality and safety. This uncertainty can arise from doubts about these materials’ compliance with halal standards [61]. Finally, fluctuations in the prices and availability of halal raw materials can disrupt supply chains and production processes, potentially compromising the quality and safety of halal food products through ingredient substitution or procurement from less dependable suppliers [41].

4.1.2 Production and processing process issues

Moreover, MSE owners also draw attention to a significant issue concerning the production and processing process. Seven notable constraints have been identified in this domain. A comprehensive exploration of these issues seeks to shed light on the obstacles MSEs encounter in enhancing their production and processing procedures.

Table 2. Production and processing process issues

Table 2 illustrates the challenges encountered in production and processing processes, highlighting the most and least frequently chosen options by MSE owners. “Inadequate infrastructure and equipment for efficient production” emerged as the most prevalent issue, garnering a frequency of 15 selections, constituting 88.24% of responses. It suggests that MSE owners perceive the lack of suitable infrastructure and equipment as a significant hurdle in achieving efficient production. Conversely, “High operational costs affecting profit margins” received the lowest frequency, with 11 selections representing 64.71% of responses. Although still noteworthy, this indicates that MSE owners may view other issues as more pressing than the impact of high operational costs on profit margins.

Inadequate infrastructure and equipment within food processing can lead to inefficiencies, jeopardizing food quality and safety through increased contamination risks or mishandling of materials [30, 52]. The scarcity of skilled labor and technical training exacerbates these risks, as untrained workers may inadvertently compromise product quality, safety, and compliance with halal standards [68].

Variations in raw materials make maintaining consistent product quality challenging, raising concerns regarding food safety and halal compliance [23]. Non-compliance with halal, safety, and cleanliness standards further heightens risks, potentially resulting in contamination, counterfeiting, or the inclusion of non-halal ingredients [41]. Limited access to technology and resources for process improvement and innovation exacerbates these challenges as MSEs struggle to implement effective food safety measures or adapt to evolving halal quality standards, compromising product integrity [69].

High operational costs compound these issues, potentially driving MSEs to take shortcuts, such as compromising quality or neglecting halal compliance to maintain profit margins [6, 45]. Lastly, poor waste management practices can lead to environmental contamination and health hazards, jeopardizing food quality, safety, and the integrity of the halal supply chain [3].

4.1.3 Warehousing and distribution issues

Additionally, MSE owners often face substantial challenges related to warehousing and distribution. These issues span multiple facets of storage and logistics, influencing the efficiency and effectiveness of the distribution process for MSEs.

Table 3. Warehousing and distribution issues

Within Table 3, the foremost concern among MSE owners is the inadequacy of storage facilities for halal products, as indicated by its frequency of 16 and a percentage of 94.12%. Conversely, the issue least favored by MSE owners is the challenge of tracking and tracing halal products throughout the distribution process, impacting transparency and accountability. This issue garnered a frequency of 11 and a percentage of 64.71%.

Underlying issues in warehousing and distribution significantly impact halal supply chain management, food safety and quality. Insufficient storage facilities for halal products threaten their integrity, potentially leading to contamination or spoilage, thus risking consumer health and eroding trust in the halal supply chain’s integrity [70]. Poor temperature control during storage and transportation exacerbates these risks, as temperature fluctuations can accelerate bacterial growth, increasing the likelihood of foodborne illnesses and compromising safety standards [32].

Segregation challenges in warehouses and the risk of cross-contamination between halal and non-halal products raise ethical and religious concerns. The accidental consumption of non-halal items due to mingling violates religious dietary laws and undermines confidence in halal certification [23, 71]. Additionally, the scarcity of certified halal logistics services disrupts the flow of halal products, leading to delays, inefficiencies, and increased costs, ultimately impacting food quality and safety [31, 72].

Issues in transportation scheduling and logistics coordination further compound delays and inefficiencies in product delivery, disrupting supply chain operations and diminishing customer satisfaction [70]. Complications in tracking and tracing halal products during distribution processes hinder transparency and accountability, making addressing issues such as contamination or counterfeiting challenging, thereby posing risks to food quality and safety [73]. Non-compliance with halal certification requirements during transportation and storage may result in regulatory breaches and legal repercussions, damaging the business’s reputation and undermining the credibility of halal products and the integrity of the supply chain [14].

4.1.4 Product preparation and presentation issues

Another notable challenge encountered by MSE owners pertains to product preparation and presentation. Seven significant issues have been identified through the FGD process. These issues encompass various aspects of effectively preparing and presenting products, influencing the overall competitiveness and appeal of MSE offerings.

Table 4. Product preparation and presentation issues

Table 4 illustrates the concern most frequently highlighted by Micro and Small Enterprises (MSE) owners is “Compliance with halal requirements during food preparation, such as sourcing halal-certified ingredients and avoiding cross-contamination,” which garnered a frequency of 16 occurrences, representing 94.12% of responses. Conversely, the issue least favored by MSE owners is “Cultural or regional preferences in food presentation while adhering to halal guidelines,” selected 12 times, constituting 70.59% of responses.

These findings underscore several crucial food quality and safety aspects in halal production. Adherence to halal requirements, such as utilizing certified ingredients and preventing cross-contamination during food preparation, is imperative for maintaining halal food products’ quality and safety standards [30, 54]. Challenges in ensuring consistent product quality and taste across different production cycles can raise concerns about food safety and authenticity, thereby impacting consumer satisfaction [15, 74].

Furthermore, the scarcity of certified halal packaging materials presents a challenge in ensuring that the packaging process aligns with halal standards, thereby preserving the quality and safety standards of halal products [25, 75]. Difficulty accurately labeling halal products undermines transparency and consumer trust, potentially leading to confusion or mistrust. Providing adequate training and awareness among staff regarding halal food handling procedures is crucial to prevent potential violations of halal requirements and uphold product quality and safety [23].

Maintaining good hygiene and sanitation during food preparation is essential for upholding halal product quality and safety standards and preventing contamination that could compromise food safety [76]. Accommodating cultural or regional preferences in food presentation while adhering to halal guidelines adds complexity to ensuring food quality and safety, necessitating careful consideration to preserve halal integrity and ensure consumer satisfaction [77].

4.1.5 Monitoring and reporting issues

Another equally crucial issue concerns monitoring and reporting, with owners identifying eight significant matters. Table 5 will provide a comprehensive breakdown of these issues, shedding light on the complexities of monitoring and reporting practices.

Table 5 provides an analysis of monitoring and reporting issues. The concern most frequently highlighted by Micro and Small Enterprises (MSE) owners is “Lack of real-time tracking and monitoring systems across the supply chain,” which garnered a frequency of 16 occurrences, representing 94.12% of responses. Conversely, the issue least favored by MSE owners is “Inadequate mechanisms for addressing non-compliance or discrepancies in reporting,” selected 13 times, constituting 76.47% of responses.

Table 5. Monitoring and reporting issues

These findings underscore critical issues impacting the halal supply chain, food quality and safety standards. The absence of real-time tracking and monitoring systems throughout the supply chain presents significant challenges, hindering the ability to promptly identify and respond to threats to the quality and safety of halal food [78, 79]. Moreover, inconsistent reporting standards among different entities involved in the supply chain make it challenging to ensure the accuracy and authenticity of reported data concerning halal compliance, food quality, and safety [57, 80].

This lack of uniformity leads to uneven access to information, intensifying efforts to uphold the integrity of the halal supply chain and ensure the quality and safety of halal food products [81]. Additionally, challenges in verifying the accuracy and authenticity of reported data exacerbate this issue, increasing the risks of non-compliance and potential hazards to food quality and safety [2, 82]. Limited transparency in reporting practices further exacerbates the problem, making it difficult to grasp the status of halal compliance, food quality, and safety across the supply chain [56].

Furthermore, integrating data from various sources for comprehensive monitoring complicates efforts to track and manage halal compliance, food quality, and safety risks [54, 83]. The insufficient allocation of resources for monitoring and reporting activities and the capacity to implement robust monitoring mechanisms and address emerging issues effectively also pose a challenge [84]. Additionally, mechanisms incapable of addressing non-compliance or discrepancies in reporting, combined with the lack of standardization in reporting formats and protocols, impede comparability and analysis, hindering efforts to mitigate food quality and safety risks and uphold the integrity of the halal supply chain [54].

4.2 Solutions for halal supply chain management issues

4.2.1 Solution for issue procuring halal raw materials

Conducting FGD with MSE owners has proven pivotal in identifying practical solutions to issues related to procuring halal raw materials.

Table 6. Solution for issue procuring halal raw materials

Table 6 provides a comprehensive breakdown of solutions for procuring halal raw materials, detailing their frequency and the percentage of MSE owners who have chosen them. The solution most favored by most MSE owners is “Improving access to high-quality halal raw materials by establishing partnerships with reliable suppliers or producers.” This solution has a frequency of 16 and a percentage of 94.12%. It emphasizes that MSE owners widely acknowledge the significance of improving access to high-quality halal raw materials through partnerships.

In contrast, the solution with the lowest frequency, selected by the smallest percentage of MSE owners, is “Implementing proactive planning and monitoring mechanisms to manage and mitigate the impact of fluctuations in the price and availability of halal raw materials, including diversifying sourcing options and maintaining strategic stock levels.” These solutions have a frequency of 11 and a percentage of 64.71%. It suggests that while these solutions remain significant, they are not as commonly favored by MSE owners compared to others listed in the table.

In Table 6, three prioritized strategies have been identified for Micro and Small Business owners. The first is improving access to high-quality halal raw materials by fostering partnerships with reliable suppliers or producers, which was chosen by 94.12% of respondents. Following closely, establishing an efficient distribution network specifically for halal raw materials was favored by 88.24% of respondents. Lastly, exploring cost-saving strategies to alleviate the high procurement costs of halal raw materials, such as bulk purchasing or negotiating better prices with suppliers, was selected by 76.47% of respondents.

Ensuring the production of halal processed foods necessitates prioritizing several critical actions by MSEs. One crucial step is establishing supplier partnerships to uphold stringent quality and safety standards [38, 85]. This strategic collaboration is pivotal in ensuring reliability across the halal supply chain. By forming robust partnerships, MSE owners can secure a consistent and high-quality supply of halal raw materials, thereby upholding the safety and quality of their end products [41].

Developing an efficient system or network for the distribution of halal raw materials is also paramount [30]. A well-structured distribution system streamlines supply chain operations and optimizes the management of halal ingredients [3, 86]. MSEs can mitigate risks to product safety and quality through timely and efficient delivery. This simplified distribution network minimizes operational inefficiencies and reduces the likelihood of contamination or counterfeiting during transit, thus safeguarding the quality and safety of halal products from source to consumer [32, 87].

Furthermore, implementing cost-saving strategies, such as bulk purchasing or negotiating better prices, is vital for enhancing the efficiency of halal supply chain management [42]. By leveraging economies of scale and employing strategic negotiation tactics, MSEs can effectively control production costs while upholding product quality and safety standards. These cost-saving initiatives enable MSEs to improve business profitability without compromising the integrity of halal products [36]. By optimizing procurement processes, MSEs can maintain a competitive edge in the halal market, ultimately delivering high-quality, safe halal food products that meet consumer expectations and preferences.

4.2.2 Solution for issues in production and processing processes

Upon the conclusion of data collection through FGD with MSE owners, the researcher has effectively collated solutions to challenges related to production and processing processes. The subsequent table offers a thorough summary of these solutions, furnishing valuable insights for tackling significant issues within the domain.

Table 7 presents solutions for challenges encountered in production and processing processes, providing insights into their frequency and the percentage of MSE owners who have opted for them. The solution with the highest frequency, chosen by the most significant proportion of MSE owners, is “Investing in upgrading infrastructure and acquiring appropriate equipment to enhance production efficiency,” with a frequency of 16 and a percentage of 94.12%. It underscores improving production efficiency through infrastructure upgrades and equipment acquisition.

In contrast, the solution with the lowest frequency, selected by the smallest percentage of MSE owners, is “Implementing cost-saving measures such as energy-efficient practices or bulk purchasing to mitigate high operational costs and maintain profit margins,” with a frequency of 11 and a percentage of 64.71%. While still noteworthy, this suggests that MSE owners may not consider cost-saving measures as critical compared to other solutions listed in the table.

Table 7. Solution for issues in production and processing processes

Table 7 identifies three prioritized strategies for MSE owners regarding issues in production and processing processes. Investing in upgrading infrastructure and acquiring appropriate equipment to enhance production efficiency was chosen by 94.12% of respondents. Implementing strict quality control measures and developing standardized processes to address variations in raw materials and maintain consistent product quality was favored by 88.24% of respondents. Enforcing rigorous compliance with halal, safety, and food hygiene standards through regular inspections and training programs was selected by 82.35% of respondents.

Enhancing production efficiency through infrastructure and equipment upgrades represents a multifaceted endeavor crucial for the halal food industry. These investments extend beyond mere operational improvements; they also play a pivotal role in upholding the integrity and safety of halal products [32, 69]. By allocating resources towards appropriate infrastructure, companies can streamline the separation and handling of halal ingredients, ensuring their authenticity and guarding against contamination [71, 88]. This strategic alignment with halal standards ensures compliance and fosters consumer trust, demonstrating a commitment to maintaining the quality and safety of halal food throughout the production chain [54].

Stringent quality control measures form the cornerstone of consistent product excellence within the halal industry [58, 72]. Adherence to standardized processes throughout the supply chain is imperative, guaranteeing that each production stage meets established criteria. This meticulous approach enhances the overall quality of halal products and instills confidence in consumers regarding reliability and safety [23, 77].

Compliance with halal standards is not just a regulatory obligation but a fundamental pillar underpinning product credibility and consumer trust [14]. Routine inspections and robust training programs are essential for reinforcing adherence to these standards, thereby upholding the integrity of halal products [54]. Such dedication not only preserves consumer trust but also fosters enduring relationships, as consumers recognize and appreciate the efforts made to ensure the quality and safety of halal products [37, 82].

4.2.3 Solution for issues warehousing and distribution

By fostering collaborative efforts between researchers and MSE owners, seven comprehensive solutions have been identified to tackle challenges in warehousing and distribution. These solutions are meticulously outlined in the table below, providing clear pathways towards improving efficiency and effectiveness in these crucial operational domains.

Table 8. Solution for issues in warehousing and distribution

After analyzing the data presented in Table 8, it’s evident that the most favored solution among MSE owners is to “Invest in expanding storage facilities designed for halal products to accommodate increasing demand,” garnering a frequency of 16 and a percentage of 94.12%. Conversely, the least preferred solution is to “Implement robust tracking and tracing systems using barcodes to monitor halal products throughout distribution, enhancing transparency and accountability,” which obtained a frequency of 12 and a percentage of 70.59%.

In Table 8, three prioritized strategies have emerged for MSE owners concerning issues in warehousing and distribution. Firstly, investing in expanding storage facilities designed for halal products to accommodate increasing demand was favored by 94.12% of respondents. Secondly, installing proper temperature control systems in storage areas and vehicles to maintain the integrity of halal products and prevent spoilage or contamination was chosen by 88.24% of respondents. Lastly, implementing strict segregation measures and developing procedures to avoid cross-contamination among halal and haram products in warehouses were selected by 82.35% of respondents.

For MSEs engaged in producing halal processed foods, implementing several priority solutions is imperative. Firstly, expanding dedicated warehousing facilities for halal products is essential [89]. This step is critical as it allows MSE owners to produce halal products safely, adhering to halal principles while maintaining high quality [90]. Having adequate warehousing facilities is vital to prevent the mixing of halal and non-halal products, thereby averting contamination that could compromise the integrity of halal items [50].

Secondly, installing proper temperature control systems in warehouse areas is paramount [76]. Maintaining the correct temperature is crucial for preserving product quality and ensuring the safety of halal food. By implementing suitable temperature regulation systems, MSE owners can guarantee that halal products remain top-quality throughout distribution. This measure will mitigate the risk of damage or contamination due to incorrect temperatures, enhancing brand reputation and increasing customer satisfaction [45, 77].

Thirdly, MSE owners should enforce stringent segregation measures [91, 92]. Rigorous separation between halal and non-halal products is essential to comply with halal standards. By implementing strict segregation measures in storage warehouses and throughout the distribution process, MSE owners can ensure that haram products do not contaminate halal ones. Success in implementing strict segregation will preserve the authenticity of halal products, thereby upholding the quality and safety of food items [30, 37].

4.2.4 Solution for issues of product preparation and presentation

Expanding on the identified challenges, researchers and MSE owners collaborated to formulate solutions for product preparation and presentation issues. These solutions are visually represented in the subsequent table, providing valuable insights into improving the quality and presentation of products within MSEs.

Table 9 outlines a range of solutions addressing product preparation and presentation issues. The solution that emerged as the most frequently chosen involves “Building partnerships with suppliers that provide halal-certified ingredients and implement procedures to prevent cross-contamination during food preparation.” This option received 16 votes, accounting for 94.12% of responses. Conversely, the solution least favored is to “Adapt food presentation to accommodate cultural or regional preferences while adhering to halal guidelines, thus meeting the needs of diverse consumers while maintaining halal compliance.” This choice was selected by 12, representing 70.59% of responses.

Table 9 shows the three prioritized strategies for MSE owners regarding product preparation and presentation issues. It is building partnerships with suppliers that provide halal-certified ingredients and implementing procedures to prevent cross-contamination during food preparation, chosen by 94.12% of respondents. Developing well-documented standard recipes and consistently training staff to follow proper steps in the production process to ensure product quality consistency, favored by 88.24% of respondents. Ensuring adequate labeling of halal products to provide clear and accurate information, thus enhancing transparency and consumer trust, was also selected by 88.24% of respondents.

In light of the solutions proposed, three distinct approaches emerge as critical for MSEs operating within the halal food sector. Firstly, MSES must forge partnerships with suppliers offering halal-certified components. This step ensures the integrity of their supply chain, guaranteeing that all ingredients used in the production process adhere to halal standards [52, 93]. To further bolster this, robust procedures must be implemented to prevent cross-contamination during food preparation, thus safeguarding the quality and safety of halal products [30].

Table 9. Solution for issues of product preparation and presentation

Secondly, MSEs should concentrate on developing well-documented standard recipes and consistently training their staff. Standardized recipes form the bedrock for maintaining consistency in the quality and safety of halal products [32, 53]. By meticulously documenting recipes, MSEs can ensure that each product meets the requisite standards, irrespective of personnel or production variations. Additionally, investing in staff training ensures that employees possess the necessary knowledge and skills to adhere to correct procedures throughout the production process [23, 76].

Lastly, accurate labeling of halal products is paramount for MSEs. Clear and precise information on packaging plays a pivotal role in enhancing transparency and facilitating informed consumer choices [69]. Accurate labeling assures consumers of the product’s halal status and promotes trust and loyalty toward the brand [66, 94]. Furthermore, transparent labeling demonstrates a commitment to ethical business practices, fostering a positive relationship between MSEs and consumers [44].

4.2.5 Solutions for issues monitoring and reporting

Insights gleaned from MSE owners have played a pivotal role in devising monitoring and reporting solutions. The ensuing table delineates these solutions, providing a comprehensive overview to bolster the efficacy of monitoring and reporting mechanisms within MSEs.

Table 10 offers an in-depth look at solutions to tackle monitoring and reporting issues. The solution most frequently favored by Micro and Small Enterprises (MSE) owners is to “Implement real-time tracking and monitoring systems throughout the supply chain to enhance product visibility and traceability,” with a frequency of 16 occurrences, representing 94.12% of responses. Conversely, the solution least preferred by MSE owners is “Develop mechanisms for addressing non-compliance or discrepancies in reporting, such as implementing corrective action plans and conducting regular audits,” selected 12 times, constituting 70.59% of responses.

Table 10. Solutions for issues monitoring and reporting

Table 10 presents the solutions that MSEs owners prioritized to tackle issues concerning monitoring and reporting within their businesses. The most favored solution, chosen by 94.12% of respondents, involves implementing real-time tracking and monitoring systems throughout the supply chain to enhance product visibility and traceability. Additionally, 88.24% of respondents opted to utilize technology such as barcodes or digital signatures to improve the verification of reported data, thereby enhancing accuracy and authenticity. Similarly, an equal % of respondents, also at 88.24%, highlighted the importance of improving transparency in reporting practices.

Integrating real-time tracking and monitoring systems throughout the halal supply chain can provide Micro and Small Enterprises (MSEs) with invaluable insights into their operations [78]. These systems offer business owners real-time visibility into the movement of raw materials, production processes, and distribution channels. Its heightened visibility facilitates proactive decision-making, ensuring the production of high-quality and safe halal food [80, 95]. Additionally, by monitoring each stage of the halal supply chain, MSEs can promptly identify and address potential issues or deviations from quality standards [41].

Adopting barcodes or digital signatures furnishes MSEs with reliable data verification, enhancing accuracy and authenticity across their operations. For example, barcodes facilitate seamless product tracking from production to delivery, streamlining inventory management and reducing the likelihood of errors or discrepancies [96]. Similarly, digital signatures provide a secure method for validating transactions and documents, ensuring their integrity and authenticity [69, 97].

Fostering open communication and data exchange among stakeholders is essential for promoting transparency in reporting practices within the halal food industry [2, 52]. MSEs can play a pivotal role in facilitating this exchange by actively engaging with suppliers, distributors, regulatory bodies, and consumers. By advocating transparency and information sharing, MSEs can cultivate trust and credibility within the industry while also addressing concerns related to information asymmetry [98]. Moreover, open communication encourages collaboration and innovation, enabling MSEs to adapt to evolving market demands and regulatory requirements. By prioritizing a culture of transparency and cooperation, MSEs can position themselves as trusted partners in the halal food ecosystem [93].