Supply Chain Management and the Seafood Industry Research Paper

Supply Chain Management and the Seafood Industry - Research Paper Example This globalization has the effect of causing the corporate world to lend greater importance to supply chain management. A fish and seafood supply chain can be described as a set of fishers, agents, processors, distributors, and wholesalers/retailers/food services who together. Action taken on any level will have an effect on the others. Literature Review The retail seafood sector has experienced steady sales gains over the last five years. Rising seafood prices and greater merchandising challenges face the seafood sector as the recession eases and the population becomes more open to dining out. Manufacturers are designing items with unique, new, and innovative flavor profiles, aimed at the consumers seeking both convenience and cost. Literature is also suggesting that retailers focus strongly on in-store marketing and strategies to generate and retain loyal customers. Seasonal items should be appropriately merchandized and cross merchandizing should not be neglected. 2010 fish and se afood sales revenue reached 15.8 billion with a forecasted growth rate of 4.7% over the next five years and sales likely to reach 20 billion dollars (Mitchell, p 8). The Role of Supply Chains in the Global Seafood Crisis Consumption Issues Health/Sanity Risks Brand Image Risks Scarcity/Irregular Quality Business Loss Price Increase Increased Fish Consumption Changes of Diet Preferences; Fish Preferences Health Issues Global North Urbanization: Higher per Capital Consumption Higher Levels in Global North Rising Income Levels in Global South Meat Crisis-Shift of Consumption (Vallejo, p16). Recommendations Analysis shows that a major failure of supply chain management is the lack of traceability. To maintain sustainability supply chains need to function well and information has to flow from end to end. On a more refined level this would translate into consumers being able to make decisions that consider the sustainability of stock and also social and environmental conditions. Implement ation of traceability systems will also help to meet the ever increasing and tightening requirements regarding health and safety for food. This could possibly lead to smaller producers being excluded from International markets. The sophistication of consumers in quickly emerging economies is growing along with regional ones as well. Sustainable fisheries must depend on reducing fishing efforts and developing and implementing traceability mechanisms. In 2006 mega-giant Wal-Mart announced its’ goal to carry 100% MSC certified seafood in their stores by the end of last year. This presented a significant target to competing seafood chains and chain management if they wanted to maintain pace with competitors. Wal-Mart is the only one of 129 North American businesses that sells MSC certified products. This has created a demand in the market for suppliers to meet in supplying retail and restaurant markets with certified seafood which is a huge recommendation in today’s global environment. Conclusion The food service sector is very aware of the sustainability issues in the fish and seafood sector. Many have developed policies towards using sustainable sourcing and are focus on chain management theories in order to implement these policies in the best manner. Many are not predisposed to openly sharing information about their policies or the