New Product, Supply Chain Risk Analysis and Assessment in the Canned Fruit Industry

Supply chain is becoming increasingly complex, dynamic and globally dispersed which have maximized the SC vulnerability and exposures to many internal and external risks that have the potential to cause a huge distraction to a part or a complete operation of SC activities and flow. As a result, most businesses have started to realize the need for mechanism to identify and assess those risks in early stages and then manage them in the most effective way to survive the adverse consequences that may come about especially when introducing new products to the market.

This report aims at analysing some of the risk factors that can be seen most influential to the operation of SC in the canned fruit manufacturing industry particularly at the introduction stages of new products. The risk identification and assessment process used on the supply chain within the industry will be discussed. The risk management and monitoring procedures that are essential for the mitigation of the identified risks will be also highlighted.

The main findings of the report reveal that the canned fruit SC risks is similar to those of other industries except that some risk factors are more likely to be given more attention due to the likelihood of their occurrence considering the nature and design of the SC in this industry. Risk factors such as demand forecasting, environmental risks and the food safety and regulations are more considered when developing new products in this industry. That was clear when analysing Heinz and its major brand in Australia, Golden Circle SC risk management procedures and process in NPD. The two companies appeared to employ modern risk management techniques and analytical tools to uncover uncertainties and design the right responsive action to mitigate that risk.

1. Introduction

Dealing with today's ever changing and turbulent business environment have put a substantial pressure on most businesses to adopt and employ the required measures and assessment procedures in their supply chain to avoid unpredictable risks that may cost the business hug looses. The reality of the current business environment involves a complex network of suppliers, partners and customers which have brought about more risks and uncertainties to businesses (see figure. 5 in the appendices for more illustration of today's SC reality). Also, the large number of links that need to be created between members of the SC have increased the possibility of risks being