The purpose of this study is to examine the relationship between zakat collection and distribution as core supply chain perspective for their economic impact in the region of Indonesia. The study collects the necessary data from various respondents who are paying zakat and interacting with various collections and distribution centers of zakat. A sample of 362 respondents is finally observed for descriptive, correlational and regression analysis. It is observed that both collection and distribution of zakat are core indicators in terms of supply chain with their economic outcomes. More specifically, zakat collection and distribution have positive impacts on equal distribution of wealth, cleanliness of wealth, economic growth, provision of educational facilities to needy students, and delivery of good health facilities in Indonesia. In addition, it is also found that more collection and distribution centers can lead to better economic output in the economy, where the role of mosques and Muslim community center is very important. Besides, some limitations in the current research need to be readdressed in future. First, the study has provided a limited context of zakat collection and distribution which could be expanded while adding the latest policies being adopted by the local government and their economic impact. Second, future studies could be reconsidered through getting the significant responses from those who are directly linked to the collection and distribution of zakat as they have much more body of knowledge about their economic implications.