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Uncategorized / July 2, 2021

NZKGI Performance and Supply Portfolio

Our Purpose

NZKGI monitors Zespri and industry performance to ensure the industry works in the best interests of all kiwifruit Growers. NZKGI works with all industry players to understand the operational and economic dynamics, while establishing and maintaining important industry relationships to position NZKGI as a credible voice for effective industry representation.

Through project implementation and monitoring, the Performance and Supply portfolio has continuously delivered a range of audits and practical outcomes with Growers best interests at the fore. Here are some of the portfolio highlights and achievements from recent years:

 

Zespri Key Performance Indicators (KPIs)

As part of NZKGI’s Performance programme the Zespri Annual 2020/21 Key Performance Indicators Grower Dashboard was released in November 2021 for a 5-year period (i.e. from 2016/17 through to 2020/21). The dashboard includes performance measures of onshore and offshore fruit loss; average premium pricing (green); NZ supply overheads, margin and sales; Research and Development; Global revenue per employee; Brand awareness; Zespri Group Limited (ZGL) dividend; and collaborative marketing.

Click here to view the Zespri Annual 2020/21 Grower Dashboard.

 

Zespri Monitoring

Grower Pool Audit – (Promotional Spend)

Monitoring of Zespri has been ongoing through regular meetings between Zespri’s Senior Executive and Supply team and NZKGI’s Executive and Forum members to review current issues and relevant topics. NZKGI initiated an audit of the promotional spend of the Zespri pools in March 2021 to ensure that changes resulting from the 2017 pool audit had been made and to ensure that the allocations between the pools were correct.

Results summary:

  • No adjustments were found to be made
  • Progress resolving controlled observations none of which considered significant
  • Improvement and consistency shown against allocation of pool costs
  • Continued focus required to ensure progress is maintained

NZKGI will continue to focus on this especially through Project Horizon Implementation.

 

Quality

Each season comes with its own challenges and fruit has differing qualities due to a variety of factors including on orchard, environmental, experience in the coolstore as well as during shipping. Because of the variable nature of these factors and the fact that it is a biological system it is difficult to pinpoint an exact reason for a poorer storing season.

Cost of quality is often thought of as the price of creating a quality product or service. While on the surface this appears to make sense, this definition is not entirely correct. In actuality the cost of quality is the cost of NOT creating a quality product. The difference is that the former definition covers product/service costs only. Cost of quality covers any cost that would not have been expended if quality were perfect.

Recently NZKGI reopened the report and identified that 2021 continued to have a lack of tangible outcomes, similar to 2018. Subsequently, NZKGI’s Performance portfolio has triggered a review to be developed to ensure relevant actions, solutions and structure be implemented as we map the road ahead.

 

Supply Chain End to End Process

NZKGI monitors industry supply and payment issues continually during the year through regular meetings between Zespri’s Senior Executive and Supply team and NZKGI’s Executive and Forum members. Two Grower representatives participate in the Industry Supply Group (ISG) meetings and five Grower representatives participate in the Industry Advisory Council (IAC), ensuring equitable outcomes for all Growers around supply and payment issues. Through the Weekly Update, and forum platforms NZKGI provides all Growers with discussion topics that occur through these industry groups.

 

The Road Map Ahead

Over the next 12 months, in addition to topics already mentioned in this summary, the Performance & Supply Portfolio will continue to evolve and has already started to review a future focus to identify key areas that can bring value add. The Growers voice on short term decisions by being accountable, independent, maximising the performance of the industry for the benefit of the Growers:

Why

  • Created better robust, clearer, precise visions and methodology
  • Mechanisms developed to improve, respond and adapt to the ever-ending wind of change
  • Implement future proof forward processes & clear communication platforms

How

  • Constantly improving, measurable KPI’s / benchmarks for NZKGI monitoring of the industry
  • Exploring tangible methodologies across all supply chain platforms
  • Leading relevant and topical sessions at various meetings that provide value-add to growers