Supply Chain Evaluation of NH Food Australia

This presentation provides an evaluation of the supply chain management of NH Food Australia, a subsidiary brand that sells beef products across Australia and other countries. It includes an overview of the company, its supply chain management, steps involved, SWOT analysis, supply chain drivers, and recommendations for improvement. The presentation also includes an infographic on the overall supply chain process of NH Food.

Supply Chain Evaluation of NH Food

Overview of NH Food, Australia
• NH Food Australia is a wholly owned subsidiary brand, which has its supply chain brand
named as Angus. The company sells multiple beef products across Australia and other
countries as well.
• The incorporation was in 1978 and headquartered in North Sydney, Australia (https://www.nh-
foods.com.au, 2018).
• The company is an emerging and one of the most profitable brands among companies
operating under the Australian Beef Industry

Supply chain management (SCM) of NH Food
Australia
• The packed products have greater share per capita
fresh meat consumption sold in the retail channels
• The supply chain activity varies depending on the
beef market share in the domestic consumption.
• According to the Australian Agriculture Report,
domestic beef market share is dominated by
supermarkets (57%), followed by Food Service (27%)
and Specialty (16%) (Laari et al 2017)
• The company has implemented integrated SCM
overseas, to offer stable and fresh meat supply.

Supply chain management (SCM) of NH Food
Australia

Steps of Supply chain management (SCM) of
NH Food Australia
• Production
• Processing
• Retail
• Food Service
• Import
• Export
• NH Food’s Beef production is conducted by Angus Genetics and
processed by the Lot feeder, followed by the entrance of end product
into domestic market mainly via supermarkets
• The retail chain is conducted by Costo (warehousing)
SCM Process

Strength
Own supply chain unit
Highly emerging and most profitable
Collaboration with the production and processing
Improved value added services to the customers
Export process facilities located in prime cattle areas
Weakness
Mutual investment and independence among the stakeholders
is low
Lack of adequate vendor managed inventory
Complexity in production
Decreasing number of domestic livestock farmers
Opportunity
Memorandum of understanding with major suppliers of Queensland for
domestic cattle production
Supply chain of red meat products are booming and would provide more
than 54% business growth in within 2020
Threat
New entrants in the Queensland and Wales Currency
fluctuation
Imposed higher taxation on the overall SCM and logistics
process
SWOT analysis of Supply chain
management (SCM) of NH Food

Supply chain drivers of NH Food
Australia
The NH Food’s SCM process is driven by the market trends and its
dynamics (Beef Central, 2018). It is also driven by the following
parameters:
• The degree of direct sourcing by Full-service Supermarket Chains
• The ratio of improved value added services to the customers
• The degree of integration between the whole sellers and beef speciality
retailers
• The degree of market transactions in the Australian and international
market
• Production house of NH Food are driven by pushed operations

Supply chain drivers of NH Food
Australia
• The overall production depends on the market analysis and customers’
insight (Mancilla and Sepúlveda, 2017).
• Key highlights on the need of improving the process orientation of
supply chain
• Projecting those improvements through Beef Seminar 2018 and
engaging the customers in open forum
• Underlying relationship between the stakeholders exists in the overall
SCM of NH Food
• Promotion of Whyalla Angus Feeder cattle supplier to increase the
brand awareness

NH Food’s beef value chain and its
strain points
• Changes in the balance of supply-demand due to the growing
world population
• Decreasing number of domestic livestock farmers
• Support for increased fresh meat consumption
• Short term volatility due to the weather uncertainty
• Complexity in production
• Invisibility in supply chain
• Currency fluctuation and pricing strategy

NH Food’s beef value chain and its
strain points
• Changes in the balance of supply-demand:
Forecast shows that until 2040 the world’s population would be 9.21
billion. Thus, the balance between supply-demand would be affected
(Reimann and Ketchen, 2017).
• Decreasing number of domestic livestock farmers
The domestic farmers have reduced by 25%, which is affecting the
overall SCM process of NH Food (Devin and Richards, 2016).

NH Food’s beef value chain and its
strain points
• Support for increased fresh meat consumption
Average beef consumption has increased by 35%, (projected 110 million tons
by 2028), which is another pressure point on value creation for the
stakeholders (Reimann and Ketchen, 2017).
• Complexity in production
 The government initiatives to help small enterprises are affecting the
production scenario of NH Food.
 Almost 86.7% revenue earned by the SMEs operating in Queensland, while
the large enterprises are earning only 13.3% (Nadali et al 2017).

NH Food’s beef value chain and its
strain points
• Invisibility in supply chain
 The stability of NH Food is found extremely high in the Red Meat Zone
 Impact of the export marketers and their currency on beef is ever changing
and highly volatile
• Institutional healthcare:
 FSANZ’s food production standards also reshaping the supply chain
behaviour of NH Food
 Primary production by Angus and storing by Costo warehouse is completely
regulated by the Act 2000 Queensland (Lower and Temperley, 2018).

Recommendations
Key highlights on recommendations:
Based on the existing SCM strain points of NH Food, a few key highlights
are pointed out, which is as follows:
• Improving the supply chain value
• Enhancing the market competitiveness and brand awareness in different
regions through cutting edge marketing theory
• Attracting more customers to improve the ROI in the SCM process

Recommendations
Mutual investment and interdependence needs to be higher:
The power is rigorous in the processors and retailers of NH Food along
with the retail supermarkets (Sani et al, 2017). However, Angus’s power
depends on the scarcity of the cattle. Thus, mutual interdependence and
investment among Costo, Angus and NH Food can offer a substantial
supply chain process.

Recommendations
Memorandum of understanding with major suppliers of Queensland:
Since the company is located in North Sydney, the perception of buyers from
different provinces, towards the SCM authenticity might vary. Jie and
Gengatharen (2018) stated that harnessing knowledge asset is higher in
Queensland. Thus, producers and processors’ relocation to Queensland might
significantly impact on the overall SCM effectiveness.

Recommendations
Utilising market intelligence and digital marketing:
Along with the seminar to market the production unit and processors of NH
Food, market intelligence also needs to be taken place. Product and quality
control information also needs to be considered to differentiate the SCM
effectiveness in different regions of Australia. This analysis would help NH
Food improving the overall SCM performance.
On top of that while penetrating other regions of Australia, the company can
utilise the concept of digital marketing to get on board with elevated realty .
Based on the feedback sessions, the gaps in the SCM can be identified and
mitigating solutions can also be initiated.

Info graphic Presentation
Figure 5: Overall Supply chain process of NH Food
(Source: Created by author)

References
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