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Supply Chain Management – Yield and Quality

Case Study / Diverse organisation with interests in fishing, tourism and property

Why We Were There

LSI was asked to carry out a review of the live lobster supply chain to identify opportunities to improve the quality of live product sold fresh into Asian markets. Our client recognised the opportunity provided by robust processes and measurement across the Supply Chain as a major competitive advantage, if it could be successfully implemented. The product was sold internationally at a spot price, to agents who place orders for available stock daily. Product is purchased from contract fishers daily at a landed price. Fisher relationships are critical, as is fisher education in quality handling procedures. However, there was a lack of formalisation and communication between sales and operations. There was also a lack of formal, robust metrics to feed back to fishers, and to measure handling at each part of the value chain.

Outcomes

25% reduction in quality loses

Revenue saving of $300k per year

Enhanced perception of quality in the marketplace

Improved process effectiveness, efficiency and compliance

Consistent training and assessment of workforce

Tool for ongoing monitoring and management of performance and change

The Approach

We carried out detailed identification of where value was being lost. LSI reviewed current measurement of quality, current skill and training levels of staff, and the effectiveness of management information and review.

LSI worked with the staff to address product quality at landing. We also spent time with the fishers to understand their role in the supply chain and communicate the importance of quality. LSI created a range of documentation and standard operating procedures around product specifications and quality. We carried out training to ensure that the staff understood the new procedures and why they were in place.

“This has been a very successful project and LSI’s methodology and people have provided a platform for success. We are achieving tangible gains and are exceeding financial payback targets for the project”

“Crucially, we have received very positive feedback from customers about our improved quality” – Chief Executive

Services Applied

Continuous Improvement

Operational Strategy

Process Design & Optimisation

Productivity / Efficiency

Programme / Project Management

Quality Management

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Supply Chain Management – Yield and Quality

A diverse organisation whose commercial interests include fishing, tourism and property