Discuss about the Supply Chain Management of Environmental.
East Coast Trawl Fishery is one of the largest commercial fisheries in Queensland. It produces ten thousand tons of marine food every year. Due to this exemplary performance, its marketing strategies are significant to ensure that its market base expands. The East Coast Trawl Fishery mostly harvests prawns, bugs, squids, and other aquatic species. It is significant to realize that the East Coast Trawl Fishery does not operate as an independent entity, but it is under the management of Queensland Fisheries. According to Wolanski, Burrage, and King (2010), as much as The East Coast Trawl Fishery meets all the legal requirements of the Australian government on Guidelines for the Ecologically Sustainable Management of Fisheries; it has exhibited weak promotional and marketing efforts. Measuring and assessing the sustainability of the fisheries performance regarding marketing promotion and supply chain is significant to realize its long-term viability. The following graph would specify the total amount of the fisheries associated with East Coast Trawl.
The information derived from the above graph highlights that the efforts of East Coast Trawl dropped in 2015 whereas the efforts were higher in the year of 2005. However, the graph also indicates the drastic rise in the year of 2009. Through a report from East Coast Trawl Industry Development Plan 2010-2013, it is evident that the fishery has poor marketing and promotional activities (Wolanski, Burrage, and King 2010). This is a serious concern especially for a company in the food industry. Ideally, promotional activities have much weight compared to extraction activity. The East Coast Trawl Fishery is at risk of having many products but small market to sell its products. There is robust competition in the fishing sector in Australia, and this calls for substantial promotional activities to make the targeted customers aware of the existence and their quality products (Gribble and Dredge 2014). Promotional activity can include franchising its products so that they can have a large customer base and make the products to be in the proximity of the customers, a strategy that is suitable for perishable goods like fish.
Supply Chain Management (Quality and Relevance of the Theory)
The case study provides intriguing information on the supply chain of the fishery. The robustness of supply chain plays a vital role in the success of an industry. In the case of the East Coast Trawl Fishery, the supply chain starts from the individual fisherman, wholesalers, processing industries and finally the retailer who has the direct contact with the consumers (Hannah 2013). The government and other regulatory bodies affect the supply chain as they as oversight authority. However, despite having a simple and a successful supply chain structure, disunity can hamper the progress of an organization like the East Coast Trawl Fishery. The disunity of stakeholders can result from geographical separation and the draconian laws that the government and the regulatory bodies are inflicting to the stakeholders without consultations (Laloë 2015). Division of the members of the supply chain can lead to hiccups in the flow of the products from the individual fisherman to the consumer. When the stakeholders collaborate with the influencers such as the regulatory bodies and the government, then it is possible to achieve new audience and expand the fishery brand awareness.
The competition in the fishing industry and the fluctuations in the Canadian dollar affects the revenues of the East Coast Trawl Fishery (Rexfort and Mutterlose 2009). Moreover, due to a lot of competition for fish in the area the availability of prawns, the prices of prawns reduce thus affecting the performance of the country. This calls for a marketing strategy that can counter the growing competition from the production of prawns in this region. For instance, one of the marketing strategies that the East Coast Trawl Fishery can utilize in this market is the reduction of prawn prices to beat up the competition and afterwards adjust the prices after developing a consistent customer base, a strategy known as restrictive practices.
The following stakeholders are associated with the Supply Chain Management
- Whole Seller
Supply Chain Mapping
Supply chain mapping is a process that evaluates materials and structural procedure that are involved to bring the products in the potential market. Some of the key elements are associated with supply chain mapping. These elements are discussed further:
Physical flow determines the delivery of the appropriate product quality and volume to the potential consumers.
Information flow is the exchange of information among the customers and suppliers to gain the competitive advantage.
The relationship is clearly linked to the information flow across the value chain. The inclusiveness, transparency, and commitments between the partners are needed to be maintained in this process.
Supply Chain Mapping of East Coast Trawl
The fisheries in Queensland usually manage the East Coast Trawl. The operation head is the representative of this supply chain management. The above figure specifies that the fisherman deals with the agents and supply the products to the wholesaler. It gives an opportunity to get access to the available retail markets. The wholesalers supply these products to the international and domestic markets that finally reach to the potential consumers. The exchange of the information between these stakeholders is also specified in this mapping process. The flow of the information helps the company to gain competitive advantage in the business market. On the other hand, it is to be indicated that the maintenance of the relationship creates the better compliance procedures. The buyers will get access to improve the information through such relationship process in supply chain.
The main problem that the East Coast Trawl Fishery is experiencing in the Canadian fishing industry is overfishing. However, despite the efforts of the government to limit fishing to certain days, the problem seem to persist. The limiting mechanism aimed to prevent excess fishing. However, this mechanism was capped off after some time, and now fishing is limited to how much an individual has fished. Consequently, scraping off the balance in the fishing industry that was created by the limiting mechanism. In addition to this, too much government involvement in the activities of the company prevents the company from growing due to too much bureaucracy created by the government. (Somers, Crocos and Hill 2007). As much as the government is important in controlling the waters, it should not indulge itself in the operations of the fisheries. Furthermore, the problem of the overproduction of prawns is taking root in the fishery. Although there are other aquatic foods that the fishery produces, they cannot be deemed as important. This gives the market very few choices regarding variety.
The East Coast Trawl Fishery can take a chance in the production of other fishery products. This can enable the company to divulge into new markets and attract new customers. However, this is an uphill task since research is required to know the type of products that customers would prefer. The customer base will be assessed to relay the amount of a particular product, which is awaiting production. A streamlined supply chain of the fishery is ensured by putting all the stakeholders on board during vital decision concerning the fishing industry, also, providing bonuses to the individual fishermen will motivate quality products (Sumpton, Smith and Potter 2009).
Opportunities and Recommendation
According to Hamilton, Mulhearn and Poeckert (2011), maintenance of the supply chain value of the individual fishermen, wholesalers, the processor, and the retailer are important. A recommendation of transparency between each stage of supply should be in order. This is where every individual has the knowledge of what is going on at any point. Moreover, equity and fairness of the profits is an important aspect of the transparency issue. In addition to this, the government should involve the stakeholders before establishing rules that govern the fishery (Ye 2010). This will make everyone feel part of the decision hence foster unity.
In conclusion, upholding of the independence of the supply chain of the East Coast Trawl Fishery will still attract a large customer base. The fact that it is the largest producer of aquatic food products it is significant that promotional activities increase. This will remind the consumers that it still exists and continuous promotional activities will make a new product easily acceptable by the consumers.
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