Supply Chain for Prima Fisk Fish Sausage - Case Study Example

Name: xxxxxxxxxxx Course: xxxxxxxxxxx Institution: xxxxxxxxxxx Title: Supply Chain for Prima Fisk Fish Sausage Date: xxxxxxxxxxx TABLE OF CONTENT Product Description 5 Dealing with competition 6 Supply Chain, integration, flexibility and responsiveness 8 Conclusion 9 References 10 Appendix………………………………………………………………………………………....11 Supply Chain for Prima Fisk Fish Sausage Abstract This paper provides a description of a global supply chain for Prima Fisk fish sausages. It highlights how the raw materials of processing the product are obtained and the distribution of the product in the Australian and North American markets. Moreover, this paper has discussed issues revolving around this supply chain such potential competition, the management of risk sources, supplier integration and supply chain agility, flexibility and responsiveness. Based on the findings of this paper, it is evident that this supply chain is elaborate and intertwined. However, the Prima Fisk Fish Sausage supply chain is integrated, flexible and responsive thus it is bound to enable the firm to have sustainable supply sources and maintain its competitive edge in the target markets. Introduction Fish sausages are rare commodities in most markets around the world, although they are common in Japan, Thailand, China, Philippines and Malaysia. Following, the Second World War, Nippon Suisan Co., one of the largest fishing companies in Japan undertook a study on how to manufacture fish sausages from whale meat. With time, the processing of fish sausages has gradually become a booming enterprise in Japan and other countries around the world. (Stewart 1964). However, in a considerable number of countries particularly Australia and some parts of North America fish sausages continue to become rare commodities. Over time, it has become evident that consumers are increasingly turning to fish consumption as a healthier alternative for red meat. This is mainly because, fish acts as a rich source of protein and also provide essential vitamins and minerals like phosphorous and calcium (Delgado et al 2003; Babal 2010). Nevertheless, variety fish products are lacking in most markets around the world. Therefore, the introduction of the new “Prima Fisk Fish Sausage” into the Australian and North American markets can help meet the growing demand for fish products. This paper will describe a global supply chain for Prima Fisk fish sausages in reference to obtaining raw materials to produce the product and the distribution the product in the Australian and North American markets. Moreover, this paper will discuss issues revolving around this supply chain such as addressing potential competition, the management of potential sources of risk, supplier integration and supply chain agility, flexibility and responsiveness. Product Description Prima Fisk fish sausages are protein-rich, low-fat and high-energy gourmet food suitable as sandwich fills and for any occasion. There are no harmful additives included in these products, these fish sausages are essentially made from fish meat, spices and gluten-free flour. The only fat present in these fish sausages are fish oil and small portions of vegetable oil. Prima Fisk fish sausages are tasty, rich in nutrition and have a great cultural appeal that offer a variety of flavor inspired by exotic cuisines from Thailand, Mexico, India and the Mediterranean US (Prima Fisk, 2012). The main processing firm for Prima Fisk fish sausages will be based in Brisbane, Queensland. Prima Fisk fish sausages will comprise of a supply chain that is elaborate and intertwined. The ingredients of these products will be supplied by two categories of suppliers, Tier 1 and Teir 2 suppliers. Tier 1 suppliers consist of fish farmers who supply Prima Fisk fish sausage manufacturers with fish meat to make the sausages. Tier 2 suppliers comprises of local retailers and processors who supply the firm with spices, gluten-free flour, fish oil, vegetable oil sausage and wrappers. The suppliers will transport their supplies to the main Prima Fisk processing firm in Brisbane using a fleet of refrigerated trucks. After the fish meat, species, gluten-free flour, fish oil and vegetable oil supplies are transported to Prima Fisk main processing firm in Brisbane, these ingredients will be used to process Prima Fisk fish sausages. Subsequently, the processed sausages will be sent to Detmold packaging group in Brisbane where they will be packaged using packages with Prima Fisk’s company logo. After the sausages are packaged, they will transport by various distributors to retails stores across Australia and shipped to other retail stores in various North American regions. Consumers can thereafter purchase Prima Fisk fish sausages from retail stores in their local areas or directly from the whole sale distributors. See Appendix 1 for a pictorial presentation of Prima Fisk Fish Sausage Supply Chain. Dealing with competition According to Lambert & Cooper (2000), in today’s competitive business environment, businesses not only compete as sole independent entities but also compete as supply chains. Given that Prima Fisk Fish Sausage is a new product in the Australian and North American market, it is bound to face competition from well established companies which process fish products. Basically, well established products in the market have more advantage than newly introduced products in the market (Tybout & Calkins 2005). Well established companies that process fish products in Australia and North America are bound to have solid supply chain networks and relationships. As a result, they may be able to reach more consumers in the market and yield more profits. This may in turn act as a hindrance for Prima Fisk Fish sausage product from developing and enhancing its competitive edge in the market. In order for Prima Fisk to effectively develop its competitive in the market, some of the supply chain strategies that the company should employ include; developing effective supplier relationships, cost control and providing effective customer service (Ankleseria 2008; Wisner 2011). In order to develop effective supplier relationships and partnerships, Prima Fisk should focus on creating and using effective communication channels and strategies with its suppliers. Wisner (2011, p. 75) observes that a beneficial supplier relationship or partnership requires open communication, mutual trust, common future direction and clear understanding of standards and expectation. Thus Prima Fisk should work towards developing effective supply chain relationships and partnerships by committing itself to develop mutual trust relationship, open cooperation and communications with its suppliers. The firm can also respond to the competition in the market by implementing effective customer service. Basically effective customer service entails delivering the right product, in the right condition, in the right quantity, at the right price and at the right place (Arlbjorn 2010). Thus, Prima Fisk should develop strategies of meeting customer expectation and responding to the local and global growth. Some of the strategies the company can employ include conducting market research, market segmentation and developing Customer Relationship Management (CRM) Systems. Managing potential sources of risk Given that fish meat is the key ingredient used in the processing Prima Fisk Fish Sausages, a sustainable supply of fish meat is essential. The lack of a sustainable supply of quality fish meat is therefore a potential source of risk. As a result of increasing fish consumption among consumers in Australia and North America, it is plausible to conclude that fish reserves may become depleted. Furthermore, environmentalist observes that there is a worrying trend that fishing is not done at sustainable level due to its constantly increasing demand. Moreover, regulatory demands, increasing labour rates, freight prices and commodity prices are also other potential risk sources that may affect this supply chain. In order for Prima Fisk to effectively manage or minimise these risks, Prima Fisk’s supply chain should be evaluated and redesigned regularly in response to market risks and changes (Kersten 2006). Supply Chain, integration, flexibility and responsiveness In order for Prima Fisk fish sausages to develop a competitive edge in the market and cope with a demanding market it is essential for its supply chain to be integrated, flexible and responsive to the needs of the market. Foremost, in order to realise supply chain integration, supplier integration is crucial. In this case, supplier integration will be realised through open communication and information sharing between the processor and Tier 1 and Tier 2 suppliers. Given that communication is the most essential aspect of supply chain integration, information technology mediums will be used so as to facilitate fast and easy flow of information from processors to the suppliers, packagers, distributors and retailers. Sanchez & Perez (2005, p.683) note that, one of way of measuring the flexibility and responsiveness of a supply chain is through the availability of alternatives in the supply chain. The flexibility and responsiveness of this supply chain to market and environmental uncertainties chain is embedded on outsourcing supplies from different suppliers and outsourcing different packaging, freight and distribution services based on the suitability of the suppliers or service providers to the needs of the market or environment (Sanchez & Perez 2005). In addition to this, this supply chain is responsive to the needs of consumers by enabling them to purchase Prima Fisk fish sausages either from wholesale distributors or retailers at their local retail stores. Conclusion Prima Fisk Fish Sausage is bound to be successful in the Australian and North American markets mainly because studies show that that consumers are increasingly turning to the consumption of fish products as a healthier alternative for red meat products since fish provides a rich source of protein , vitamins and minerals (Delgado et al 2003; Babal 2010). Moreover, the supply chain of this product is integrated, flexible and responsive this will in turn enable the processing firm to have sustainable supply sources, minimise production costs, manage and minimise risks effectively, maintain its competitive edge in the target markets, reach a wider base of consumers and enhance the profitability of its fish sausage product. References Arlbjorn, J., 2010, Supply Chain Management: Sources for Competitive Advantage, Academica, Cambridge, CA. Ankleseria, J., 2008, Supply Chain Cost Management: The Aim & Drive Process of Achieving Extraordinary Results, AMACOM, New York. Babal, K., 2010, Seafood Sense: The Truth about Seafood Nutrition and Safety, Accessible Publishing Pty, Laguna Beach, CA. Delgado, C., Wada, N., Rosengrant, M., Meijer, S. & Ahmed, M., 2003, The Future of Fish: Issues and Trends to 2020. Retrieved on June 28, 2012 from Kersten, W., 2006, Managing Risks in Supply Chains: How to Build Reliable Collaboration in Logistics, Verlag, Munich. Lambert, D. & Cooper, M., 2000, ‘Issues in Supply Chain Management’, Industrial Marketing Management 29, pp. 65–83. Prima Fisk, 2012, Fish Sausage Facts: Assortment, Retrieved on June 28, 2012 from Sanchez, A. & Perez, M., 2005, ‘Supply chain flexibility and firm performance: A conceptual model and empirical study in the automotive industry’, International Journal of Operations & Production Management Vol 25, No.7, pp. 681-700. Stewart, G., 1964, Advances in Food Research, Volume 14, Academic Press, Waltham, Massachusetts, pp. 368-403. Tybout, A. & Calkins, T., 2005, Kellogg on Branding: The Marketing Faculty of the Kellogg School of Management, John Wiley & Sons, New York. Wisner, J., 2011, Principles of Supply Chain Management: A Balanced Approach, Cengage Learning, London. Appendix 1 Figure 1: Prima Fisk Fish Sausage Supply Chain Suppliers Read More