ABSTRACT

As the biggest Muslim population, Indonesia relies strictly on halal products where the concept of halal includes the distribution and the production process such that all the process has to comply with sharia law and halal principles requirements. This study focused on the dairy products that had been supplied from one of the biggest milk suppliers in Indonesia with aims to investigate the efficiency of the milk cooperative for maintaining the quality of milk from the cold chain process perspective and halal supply chain and logistics perspective. This research is using a qualitative case study method. Semi-structured interviews were conducted, and the interview was performed in three days. Even though the milk quality has been confirmed to be of high quality in their supply from their dairy farmer, the cold chain distribution is still not efficient since the cooperatives still experience multiple big losses for the rejected milk from the industries. Overall, the halal supply chain and logistics that have been with the milk cooperative through the cold chain process still need to be improved because all operations from “farm to fork” must comply with sharia law and principles requirements to uphold their halal integrity. This research finding is expected to provide the industries and the cooperatives to be able to seek the importance in increasing the efficiency of supply chain and logistics of their cold chain in order to maintain their financial (by avoiding the loss) and non-financial values in upholding the Halal integrity in all their operation processes.