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A Different Kind of Hawke’s Bay Map

A Different Kind of Hawke’s Bay Map

Regional Strategy Project – Supply Chain Mapping

Supply chain mapping is one of the five regional projects that have been successful in attracting NZ Trade and Enterprise Regional Strategy Funding for projects with significant regional benefit. The projects are underway and run for one year.

The project involves mapping the end to end supply chain linkages across major industry sectors in Hawke’s Bay. Project management is by Venture Hawke’s Bay with support from the EIT and local industry.

The study will look across businesses and major industry sectors, their suppliers, through transport and infrastructure, to customers at each level. Mapping will assess the opportunities, gaps bottlenecks and risks in these supply chains. For agricultural products this is commonly referred to as a ‘farm to plate’ approach.

The key benefit expected from the project is building a more robust platform for improved business collaboration and co-ordinated export led growth. Other results expected are improved customer service, and overall cost reduction.

“We are only as good as our weakest link, and this project aims to strengthen the links in the export supply chains for Hawke’s Bay businesses,” says Venture Hawke’s Bay’s Innovation and Productivity Manager, Don McLeod.

The leadership group for this project has representation from major industry sectors in the region, with McCains, Pan Pac Forest Products, the Port of Napier, Wineworks, Pipfruit NZ, Future Products Group and the EIT on board. There is also representation from the meat industry, the region’s largest industry sector by GDP, and transport and logistics – the ‘glue’ of any international supply system.

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Sponsors confirmed so far are the Port of Napier, Pan Pac Forest Products, and Pipfruit NZ. EIT business students will assist the Venture Hawke’s Bay project management team with research, and case study development.

The businesses to be mapped in the study will be selected from key industry sectors. During the mapping process, an assessment tool is being developed to assist other regional businesses and their suppliers at the conclusion of the project.

Agriculture forestry and fishing make up 17.3% of the region’s GDP, manufacturing 26.2% of which food and beverage constitutes 16.2%, and transport and storage 3.2%.

“Together these three industry sectors make up close to half of the region’s $4.4 billion GDP, but are worth much more if we extend the supply chain relationships to include product and service providers to these businesses, and downstream activities such as retailing,” says Mr McLeod.

Amongst the larger supply chain challenges for Hawke’s Bay, as a largely weather dependent producer region, is managing local industry trade and exports around the significant volume, often highly seasonal commodity products.

“Container volumes through the port can vary by up to three times between the low months of winter, to the March to May peak season months”, the Port of Napier’s Chief Operating Officer, Chris Bain says.

“Making these business connections for world class supply chain management will be crucial to our export-led business growth in the future” says Mr McLeod.

Project updates will be posted on the Venture Hawke’s Bay website.

ENDS

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