Dragon Sourcing undertook a significant project to source suppliers for halal-certified nutritional food products in Indonesia. The scope focused on fish oil, krill oil, Omega 3, and fiber tablets, emphasizing meeting MUI Halal certification standards.
The project spanned Indonesia’s main islands, including Java, Sumatra, Kalimantan, Sulawesi, Bali, Maluku, and Western New Guinea (Papua).
Phase 1: Shortlisting Potential Suppliers
Approach
- Comprehensive understanding of MUI Halal requirements.
- Collection of detailed product specifications, production technology requirements, and certification standards.
- Identification of suppliers occurs through various channels like B2B websites, fairs, and industry networks.
Execution
- A long list of potential suppliers was created.
- Phone pre-screening is based on criteria such as product capability, size, existing MUI Halal products, and industry experience.
- 64 suppliers were identified across Indonesia, primarily in Java.
Phase 2: Recommending Suppliers for Auditing
RFI Process
- Develop and administer a detailed RFI template.
- The RFI process included translation into local languages and telephone follow-ups for maximum participation.
Analysis
- Rigorous analysis of RFI responses based on qualitative criteria.
- Creation of a supplier scorecard and comprehensive company profiles.
Outcomes
- For fish oil, 38 suppliers were identified, with 3 RFIs issued and 2 responses received.
- For Omega 3 oil, 15 suppliers were identified; 3 of them passed the phone pre-screening and were issued RFI, of which we received 2 responses.
- We identified 2 suppliers for Krill oil, but none passed the phone pre-screening, so no RFI was issued.
- Our team identified 37 suppliers for fiber tablets, of which just 4 passed the phone pre-screening and were issued RFI. We received only 2 responses for the RFI we gave to potential suppliers.
Dragon Sourcing’s meticulous approach to understanding the complexities of Halal certification and the Indonesian market led to the successful identification of qualified suppliers. The case exemplifies Dragon Sourcing’s capability to navigate intricate requirements and deliver tailored solutions in a challenging environment.