Group 7

NOWACO A/SLin, Alexandre, Rabi & Rabin

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Introduction

Problem statement

Interpretation & limitations

Scope

Methodology

Data collection method

Criticism of methods

Analysis of 4 challenges

Evaluation

Final Conclusion

CONTENTS

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Company introduction

• NOWACO A/S

• Business areas: Producing and trading frozen food & foodstuffs worldwide

• Frozen food: Pork, poultry, beef, fish & sea foods, vegetables and dried foods

• Fish factory in china and trading offices in 11 countries

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Problem statementWhat's NOWACO's current business process and strategy? How company manages to meet following challenges now or in the future?

1) How can NOWACO contribute to environmental sustainability in managing their business?

2) How can NOWACO improve their social responsibility in managing their business?

3. How can NOWACO employs shared information through the learning organization?

4. How can NOWACO integrate globalization and glocalization on managing their global supply chain?

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Interpretation & limitations

• NOWACO A/S fulfils all the requirement of semester projects

• Information's are limited for not allowing to contact company

• Business law and organizational management are not included in the project among the courses taught in 1st semester

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Scope

Gives general overview of the company's business processes and solutions to the

business challenges we decided to work on

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Research onion

Benchmarking

Whale curve & ABC

analysisLean principle

Implement new strategies Overview of company's business process and

strategy

Optimizing supply chain Most profitable customers and suppliers

To structure the project

How future supply chain should be

John R. Schermerho

rn model

Bridge to profit

Models

Methodology

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Data Collection Method

1. Secondary/desk research

2. Search engines: data monitor, market line, OECD and different academic journals, reports and articles

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Criticism of methods

Project is entirely based on

secondary data

Project is entirely based on

secondary data

Suggestion for quantitative

research

Suggestion for quantitative

research

Reliability of Internet source

Reliability of Internet source

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The analysis

Customer interface: Strong relationship, exhibition, worldwide representative office

Core strategy: Guaranteed quality and delivery on time, trading and distributing broad multi-temperature product range globally

Strategic resources: Extending and financing deals for the company as a whole

Value network: 9 representative offices worldwide, administration, shipping and finance in Denmark, most raw materials from north America

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Environmental sustainability

Analysis based on sister company “Bidvest food business”

Commitments: Achieved ISO 20000, reduce green house effect, use of renewable energy resources, support to partners for supply chain

Hypothesis: Applied ISO 20000 and ISO 14064

Bidvest long-term issues: Reduce environmental impacts; particularly carbon impact, healthier and sustainable foods, robust information on food labelling, demand for local and seasonal product

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Social responsibility

• Buy pieces that aren't genetically modified, farmed in sustainable environment and grown without growth hormones

• Efficient wastes management e.g. delivering parts of chicken and pork's to china from Europe

• Threats of bad Labour image and stereotypes about those (BRIC) countries

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Globalization & Glocalization

Markets: Suppliers:

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Growth expected

2015

2015

2010 ~ 2015

2010

Packaging: chilled processes, frozen processes and canned/preserved; flexible, looking attractive, looking better convey an image of freshness and quality

Distribution centre: 67.7%-supermarkets, 17.2% independent retailers, 17.2% convenience store, china, Russia and Indonesia shows market growth

Frozen meat accounts 41.3% of market’s value, brazil food S:A., Nestle S.A. & H.J. Heinz consist market share 5%, 2.8% and 1.9%

Market grow by 3.5% and expected to be 14.5% in 2015, Europe, Asia pacific and America consist 3 biggest market segment

Global frozen food market

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Knowledge - sharing

Case with Russian customerHelped him to send raisins back from Afghanistan to Russia and bought one sort of raisins from him while selling other sorts to him

Case with Chinese customerVisiting at Danish slaughterhouse came up with the idea of selling non used parts of chicken and pork's to china which is considered to be delicacy in Europe

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Learning organization practice

• Working for better performance and quality control

• Long-lasting partnerships, having flexible human resources wellness and keeping employee healthy

• Incentives to the employees such as healthy lunch, fresh fruits, in house exercise class etc.

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The evaluation

Explains what NOWACO can do about these challenges and how they can implement the

suggestions that we have presented

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Environmental sustainability

• Customer awareness: Follow cradle-to-grave policy, label on how to dispose or recycle

• Benchmark: Benchmark for being environmental sustainable

• Work force: Train employees for being environmental sensitive, alternative travel arrangement, work from remote

• Logistics: Implement LEAN thinking for reducing wastes and CO2 emissions

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Social responsibility

• Example with the frozen fish delivered to Qingdao: cuts logistics part thus reduce environmental impact

• Apply ISO 26000

• Sign up for, principle for responsible investment(PRI)

• Write code of conduct

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Globalization & Glocalization

• Logistics perspectives: Plan to handle implications of international logistic; inventory, handling and transport

• Risks management of geographical threats and transport breakdowns

• Evaluate multiple modes and cost options

• Apply LEAN thinking for reducing supply chain cost, improve quality and to get rid of 7 wastes

• Choosing right customers; ABC calculation and benchmarking

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Sharing knowledge

Create global virtual team

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How to create learning organization

• Mechanical system design --> Natural system design

• Awareness: Importance of it, from top management to blue collar workers

• Organization structure: Flat structure encourage innovations, openness, reflectivity

• Leadership: Help to guide the organization towards learning

• Empowerment: Empower employees & make responsible for their own work

• Learning: Flexible and encouraging organization so that people feel free to learn from the mistake

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Final conclusion

Environmental sustainability: Apply ISO 26000 cutting unnecessary transport, code of conduct to implement

Social responsibility: Cradle to grave policy, make employee aware of green cause, benchmark against competitors

Globalization and glocalization: Apply LEAN thinking, benchmarking for optimizing performance, strategy for future growth expected

Knowledge sharing: From mechanical to natural system design

Future scenario: 14% grow in 2015, constant growth over the period

Lin, Alex, Gurudatta & Rabin

Group - 7

Thank – you