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Sealord NZ- Operations Management

Sealord- Operations Management

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Sealord NZ- Operations Management

Contents

Sealord- Operations Management.........................................................................................................1


Executive summary...............................................................................................................................3
Introduction to the company..................................................................................................................3
Sealord’s areas of operation...................................................................................................................4
Sales and marketing...............................................................................................................................4
Operation management models/concepts/framework............................................................................4
Operation management strategy models................................................................................................6
Quota management system................................................................................................................9
Emerging Integrated Electronic Monitoring and Reporting System..................................................9
Key components of an effective operation strategy.............................................................................10
Operation management model /framework in Sealord.........................................................................11
Sealord’s operation management framework.......................................................................................11
Recommendations for Sealord.............................................................................................................13
Conclusion...........................................................................................................................................14
References...........................................................................................................................................15
Sealord NZ- Operations Management

Executive summary

The assignment exhibits the operations management of a New Zealand based company, titled

Sealord in detail. The company specializes in harvesting sea fishes and shellfishes from the

ocean. Discussion will be done on the company from the perspective of operation

management. This will also reflect the key concepts and frameworks required for the

operation management. The strategic operation management will include discussion on the

management models, their frameworks and concepts used to determine the current position of

the company. From the derived analysis, recommendations will also be illustrated for the

company about how it should proceed in the future (Bozhko, Pogozhev & Меlnikov, 2018).

Introduction to the company

Sealord, started in 1961, excels in the harvesting of deep-sea fishes, promises to provide good

quality sea food to its customers, while making sure that the aquatic life of the animals

remains healthy and undisturbed. The company has its sea operations being conducted in

New Zealand and Australia, and seems to be one of the largest fishing companies in Southern

Hemisphere. The company owes almost 50 years of tremendous experience in this field,

along with expertise in operations related to harvesting and processing and marketing (D &

Chinnamma, 2017).

The prime objective of the company is to deliver excellent quality food to their customers.

The company was established in 1961, in Nelson, under the ownership of two prominent

owners. Sealord is half owned by the Moana New Zealand titled Aotearoa Fisheries Ltd. And

the other half is owned by the globally owned sea food company called Nippon Suisan

Kaisha. Sealord is one of the largest sea food companies in New Zealand with a long chain of

subsidiaries connected around the world with the help of global linkages. The major interests

of the company include Sealord King reef, which is a barramundi farm located in

Queensland, and Petuna Aquaculture, which is a joint collaboration of Salmon and Ocean

Trout Joints in Tasmania (Dixon & McGregor, 2011).


Sealord NZ- Operations Management

The company till date employs around 1100 people in New Zealand and other countries. It

owns assets worth $775m and revenues costing to $450m (Francis & Sagar, 2012).

Sealord’s areas of operation

The fishing operations for Sealord are based in Nelson. Here, all operations related to deep

water harvesting are managed from initiation to sales. There, almost 7 deep vessels are being

operated in the waters of New Zealand and Willwatch from where the fishes are being sent to

Southern Indian ocean with its base, located in Mauritius (Hayman, Lamm & Anderson,

2013).

The company also has a partnership with Rockliff family located in Tasmania. Sealord

specializes in deep sea venturing in Australia too while collaborating with Petuna

Sealord deep water fishing ltd. The company also excels to provide processing facilities

in Nelson. The company’s farming operation based in Queensland, provides a high

quality and reliable sea food to its customers (Heinrich & Krause, 2016).

Sales and marketing

The company promises to deliver excellent quality sea food and frozen products to its

customers based in New Zealand and Australia, under the brand name, Sealord. They also

specialize in the marketing of canned salmon and tuna in New Zealand. From New Zealand

itself, Sealord exports around 40% of the sea food in around 40 countries (Hunt & McManus,

2015) (Mangi, Smith & Catchpole, 2016).

Operation management models/concepts/framework

As per the guidelines mentioned by The Nature Conservancy, the companies engaged in the

fishing industry, need to maintain and secure the livelihood of the fishes, stability in the

supply of sea food, concrete coastal surroundings, as well as a healthy ocean. Sealord

promises to fulfil all the guidelines laid forth by the TNC (Martins, 2017).
Sealord NZ- Operations Management

The company has a long-term collaboration with the fisheries and knows to inculcate

appropriately, the advents of science and technology. They are adopting the best strategies

and policies to achieve the desirable outcomes (Shumak, 2017).

The recently launched Quota Management System in New Zealand in 2016, is giving major

fishery goals to company and its subsidiaries. The QMS aims to portray the status of the

fishes and their major fishing sectors. The fisheries and aquaculture department enroutes its

fishing operation management in three prominent areas (Skinner, 2012): -

1. Monitoring, controlling and Surveillance.

2. Fishing safety

3. Impact of fishing on the environment.

The framework in the fishing industry includes focussing on the following: -

1. Vessels and operation of fisheries

2. Fishery harbours

3. Processing of fisheries

4. Distribution and storage of fishes

5. Marketing management (Weekers & Zahnow, 2018).

Sealord’s operation management deals with focus on fisheries operation management. Under

the fisheries management, the company needs to procure about the availability of fish

resources, and how many permits must be given from different stocks. The challenge of

determining the fishing mortality, should be allowed on a stock basis (Wolf, Georgic &

Klaiber, 2017).

The section reveals a different perspective about what fisheries operational management is.

There are many easier ways to determine the OFM. This does not involve any particular

strategies or policies to be followed. For example, any company can introduce their rights and

policies using transferable quotas to achieve the desired objectives (Zhang, 2013).
Sealord NZ- Operations Management

The core of operational management planning consists of the following:

1. Documentation of the manner in which the fishing is to be executed in the particular

management cycle.

2. The process which can be used to do this.

The operational management plan involves Strategic planning, the objectives of the ministers

and their representatives. The models and frameworks include discussions based on stock

status, management objectives, management measures for controlling the capacities and

limiting fishing mortality. It also includes monitoring, controlling and surveillance. Apart

from this, the operation management focusses on conservation, and managing ecosystem.

Also, discussion on Integral coastal zone planning will be an integral part of the assignment.

The management approaches will highlight on the Monte Carlo Simulation models in which

the recruitment and general population will randomly vary and levels of fishing mortality and

other parameters shall be compared.

Operation management strategy models

Capacity Management Model- Sealord is New Zealand’s largest fishing industry and

specializes in the harvesting of shell fishes, sea food and other frozen sea products. These

products are highly perishable and thus the company has to make strategies to preserve the

products as to maintain the quality of the product. The speed of delivering the products in the

market should also be taken care; as there are various competitors in the market and the

freshness of the products is always a concern hence the company should manage the speed of

catering the demand of the market. Mostly the inventory of the sea products depend on the

demand of the products, sometime demand is high and sometimes it is low, hence the

company accordingly has to manage the capacity of the product so that inventory could also

be managed. Company also has to look after the cost invested as no company wants to get

into losses because of the damaged or perished products (DE ALESSI, 2012).
Sealord NZ- Operations Management

Supply Chain Management Model- It helps in the smooth flow of the products and minimal

costing and providing high quality goods to their customers in various ways. Sealord is

efficiently using the SCM model to deliver good quality products as early as possible. A

supply chain in any business comprises of various components that are responsible for the

production of raw materials, their distribution, and their final journey of making them reach

to their consumers. The analysis of the supply chain for Sealord includes the flow of material

from upwards to downwards like a staircase. The supply chain is analysed at three levels.

How the production of the fishes has been done, what is the distribution network, what would

be the pricing strategy, all operation management is done either weekly or daily. The supply

chain of Sealord is also responsible for bringing improvements in the organization of the

network, collaborating with different partners and acquisition of leadership skills for the

company (Edwin, Moore & Guard, 2019).

Process and Technology Management Model- Sealord used Datacom solutions for

managing the product quality, as this software helped the company in managing the inventory

of the sea products by keeping a track on the quality and perishability of the product and

keeping an eye on the products which are about to ripe or even the stock that is damaged

during transportation. Also to maintain the quality of the fishes since the starting the

company used a latest technology named PVC liner, where the fishes can be sorted as per

their species and size before even entering the fishing vessel. Sealord also uses latest

technologies in the supply chain to transport the fishes and other sea products at the highest

speed so that people can enjoy the freshest fishes. The Datacom solutions also provided a

solution to the employees by taking the orders from the customers online and also in

promoting the products and the account management of the company. Datacom solutions also

provide facilities for pricing as compared with the competitors in the market as to maintain

the profitability of the company. Also it provided the mobile solutions to the company and its

employees so that they can track the orders given by the customers and the subsidiaries

(GENG & LI, 2017).


Sealord NZ- Operations Management

Development and Organization- This management model is divided into two sections of

improvement and innovation. Section of improvement will include the points of improvement

in all the performance indicators of the organizational operations strategies. Section of

innovation will include the new technologies or strategies that can be used in different

performance areas as to increase the profitability of the organization.

Improvement

Improvements can be done in the process of storing the fishes and other sea products so that

the products remain fresh and also some improvement should be made in the distribution

process so that the products can reach the consumers and the retailers in fresh quality only.

For keeping the products fresh for longer time the company can also use the cold stores.

Sealord is already having a well established supply chain which distributes the products in

high speed to the subsidiaries and the customers but then the company has to maintain the

speed of the distribution channel also to keep pace with the continuous demand for the

products in the market. Sealord has to introduce certain policies regarding the health and

safety of the employees, as the staffs catches the fishes in the sea and during that time

anything can happen with the employees, so the company has to look after certain

precautions and steps for the safety of the employees. The product prices should be best in

the industry as the company tries to deliver best quality product in the market but it also has

to be taken care that the competitors should not take advantage of the pricing policy of

Sealord (Gustavsson & Riley, 2017).

Innovation

The company has done certain innovation to stand on the promise of delivering quality sea

food to the customers by introducing PVC liner in the fishing process. This innovative

method helps in sorting the fishes according to their sizes and species so that the customer

can get best quality fish and other seafood. Also the company can include some innovative

techniques in the cold stores like battery charged shuttle system which is controlled by
Sealord NZ- Operations Management

remote and pallets can be assessed even at the highest point without disturbing other racks in

the store. This strategy will enhance the quality of the products as the products will not be

perished in the cold stores and also the speed of taking out the products will decrease as to

assess one rack others will not have to be touched or moved. Some innovative methods can

be used by the company to take the customers feedback as to make better the dependability of

the company on the feedback of the customers can be improved and they can work on

improving their functioning and operations of the company. The ordering system and the

payments systems can be digitalised which will make it easier and systematic to order the

products and make payment through digital mediums (Hersoug, 2018).

Quota management system

In its operational terms, Sealord is enlightened in good quality delivering of fisheries and

other sea products using the quota management system. The fishery management has evolved

using the QMS. However, it is being strongly believed, that the use of QMS can enhance the

operations management, keeping in consideration the marine ecosystems rather than just

focussing on stockage of fishes. The company would rather be adopting a management

strategy that has a good approach towards conserving ecosystem as well. There was a

scenario when the New Zealand fishery industry was observing a downfall, but the

introduction of this framework widely worked. And the pressure that was being exerted on

the marine environment is over and smoothened to a distance of about 12 nautical miles. The

entire structure was revised and emphasis was laid on how to protect and restore the marine

ecosystem while bagging credits in fishing business too (Mariat-Roy, 2014).

Emerging Integrated Electronic Monitoring and Reporting System

This system adopted by the Sealord is a boon to the fishing industry. It is their first step

towards the modernization of coastal fisheries. The integration of the system has made

Sealord grab the potential to manage fisheries, improve the collection of data and increase its

supply chain. This also gives a chance to the company to identify their target market, and
Sealord NZ- Operations Management

track incidents of when and how the fishes were collected. Sealord was highly benefitted of

the ways to exhibit and improve their packaging methods and styles. This updating of the

packaging and labelling methods brought the company at par with other fishing companies

located in Australia, UK and Hong Kong (McCormack, 2017).

Management plans prepared on an annual basis provide operational goals about how to

manage fisheries and their business. These plans also exhibit as to how the fishermen will be

exploiting the fish stock, annually or seasonally, and would extend information to their

stakeholders. The OFM plans designed remain crucial for a year, it also gives information to

the company that all stakeholders will necessarily not be participating in the planning

process. But after this process is established, it stabilizes the operation process and becomes

comparatively similar year by year (Rivard & von Zharen, 2018).

Key components of an effective operation strategy

There are five components of an effective operation strategy that ensures that the company is

using the best strategy for their business. The business strategy is the key to drive the

operation strategy and excels to enhance the production of the company considering a

minimization of costs. These strategies develop the company to fight under all circumstances

in a competitive market (Stergiou & Tsikliras, 2011).

The steps that drive a successful operation strategy are: -

1. Initiate your strategic plan – It is essential to identify the plans that drive your

objectives and let the company achieve its set goals. The company must ensure that it

possesses a strong strategic plan, and are channelized in the right direction, and that

everyone’s efforts are equally acknowledged.

2. Focus on the goal- The goals set by the company must not be complex. The increase

in complexity will make the employees lose their interest in achieving their

objectives. Revision in the organizational structures, use of good quality and

technology is essential from time to time for the company to be goal-oriented.


Sealord NZ- Operations Management

3. Usage of leading indicators- Choosing the correct KPIs is mandatory for the

operation strategy to be successful. The leading indicators are the elements that

measure the goals expected in future and help the company achieve them.

4. Give KPIs an open space- The KPIs of any organization help the employees to guide

for their goals for the next financial year. If the employee strength is less than 15, the

company needs to hold a planning session annually, where everyone associates and

frame new KPIs for another financial year.

5. Have an effective communication- It is essential to communication effectively

within the organization to achieve benefits. It is not necessarily required that every

operation plan comprises of projects. The operation strategy basically describes the

structure of the organization, in what ways do different branches operate and what

measures should be taken to achieve strategic goals (Torkington, 2016).

Operation management model /framework in Sealord

Sealord’s operation management framework


In lieu of preserving the fisheries and their ecosystems, the science and the aquaculture

departments have been struggling through years to solve the crisis that is coming in the way.

Sealord is one of the emerging companies in fishing industry in New Zealand who has been

developing various approaches to deal with the ethical problems, managing of commercial
Sealord NZ- Operations Management

fisheries and their uncertainties. New Zealand was the first country to build a management

system that used the individual transferable quotas and has been highly beneficial in guiding

the companies about the methods of protecting the fishes, their ecosystems and the fishing

industry as a whole. In its initiation stage, some issues were no looked upon to be serious.

The issue related the stocking of the fishes, taking care of other multispecies, their

environments and surroundings. Sealord, has managed to resolve such issue to a considerable

extent, and the outcomes have been found to be positive. Their management and expertise

and the company as a whole have adopted professionalized methods and streamlined their

activities. Various initiatives have been taken to overcome the negativities with the

positivities. Comparing Sealord with other companies, they possess a good stock status of

fishes and sea food, their harvesting methods meet all the parameters of Aquaculture and

their considerate effort to protect their marine environment is commendable.

Sealord was the first fishing company to adopt the ITQs framework as a mode of managing

the fisheries. The ITQs adopted by them are quite comprehensive and incomparable to any

other fishing industry. The individual transferable quotas are responsible to present shares of

total allowable commercial catches, the TACC, which comprises of the total catches. This

also includes the allowances for the recreation of the fishes, and other activities related to

fishing. To conclude on a whole, the launch of ITQs has been remarkably beneficial to

Sealord in terms of achieving sustainability and positive development of the fishes as well as

conserving the species of fishes that can be profitable in the current scenario as well as in

future. Its’s main focus is on the biological conservation and protect the marine environment

from overfishing. Sealord also uses the paper trail system. This system helps the company to

keep a track for where the fishes were captured and their journey till it reaches to the retailer

or exporter. The system also holds accountability and responsibility at various levels. The

paper trail system adopted by Sealord also helped them to convince the government to take

the infringements done on the fishes on a serious note and levy heavy fines and
Sealord NZ- Operations Management

imprisonments if there is any harm caused to the fisheries as well as their environments. This

system is quite sophisticated and ensure the safety of the fisheries.

Recommendations for Sealord


Fishing done on a commercial basis, is dangerous to undertake and has proven to ring the

highest mortality rates than any other occupation. A large number of vessels are either lost or

damaged each year while the fishing operations take place in transition from to and from the

fishing grounds. The performance of fishing industry, as a whole has been accorded to be

poor because there are various issues and concerns that are troubling the fishermen. The non-

regulation of the fishing vessels due to frequent maritime activities has made the fisheries

quite unsafe. There have been various measures taken to ensure the safety of the fishes, and

some have been implemented as well and have proven to bring significant performance. The

Sealord’s safety records can be improved as well, but this will require utmost cooperation and

attention to ensure the safety from all angles. More federal involvement is required to collect

all safety measures and plan a cohesive and effective strategy. Also, the company must plan

implementation of basic safety rules as well as the expansion and construction of available

resources with the help of support from the state governments, fishery management councils,

industries and commissions and other administrations that are interested to support the

process. All the benefits acquired for the safety program need to be taken due care of the fact

that they are being vailed at reasonable costs.

Establishment of an Integrated Safety program is a widen approach that can be used by

Sealord to protect its fisheries and other management systems. Sufficient goals and objectives

must be set for the company and rest ensured that they are followed to the core. A data base

must be prepared where various types of problems faced by the company can be recorded,

evaluation and monitoring of results can be done too. The vessels that are constructed must

meet all the safety measures as well as ensuring the improvement of the country’s fleets.

Various training programs, researches and developments can be done internally to maintain

the standards of the company as well as to achieve the desired objectives. The safety rules
Sealord NZ- Operations Management

and guidelines must be monitored from time to time and amendments can be done if required.

The company must get the inspection of the fishing vessels on a regular basis.

Upgrading the safety administration will immensely help Sealord to predict, and maintain

a healthy communication with different fishing agencies, councils etc. This will help the

company to monitor its current capabilities and statuses and also help determine its potential

in future. The evaluation of the maritime enforcement program can also be done which will

determine as to what level this program will effectively be implemented for a fishing industry

like Sealord. Implementation of safety vessels program can also be done to prevent hazardous

activities in future. Another part of goals includes the monitoring of manpower, costing and

implementation of rules and regulations.

Conclusion
Sealord, the emerging fishing company in New Zealand is quite confident and promises a

good sustainability of its operation management. The reports reveal that the company has no

previous records of malfunctions or deliberate attempts of catching fisheries. Though the

company has raised few concerns, but they are trying their bet to resolve them. The issues

include the difficulties caused in handling of fish vessels and processing of fishes on daily

basis. Sealord has got extended support from MPI, since then they have been looking after

the conservation of fisheries. Sealord is also working at its best to modernize the ways and

methodologies of protecting the natural resources with a promise that they will stay intact for

the upcoming generations as well. They also ensure the company’s non-participation is any of

the illegal practices or disputes.


Sealord NZ- Operations Management

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