Inbound logistics is where purchased inputs such as raw materials are often taken care of, and where there is contact with external companies such as suppliers - in Zespri's case, growers.
Hort16A (Green Kiwifruit) is grown in orchard all around the world in places such as Italy, New Zealand and Japan. These growers own orchards that specialise in growing Hort16A. They have specific licences issued by Zespri that allow them to grow this variety of kiwifruit and be able to have their kiwifruit distributed by Zespri.
Quality control is important to Zespri, as they have had issues in the past of third-party growers in China growing their own green kiwifruit and selling it under Zespri's name that is not actually part of the company nor does it meet Zespri's standards. Zespri decided that instead of trying to compete against these growers, they would offer them a part in the Zespri brand and as a result would be licenced and trained to meet Zespri's quality. As part of human resourcing, these third-party growers are recruited, and trained to meet quality control and standards. Zespri will make sure to procure only from licenced growers.
After Gold3 (G3/SunGold Kiwifruit) was introduced, orchards and growers had to be issued a new licence to be able to grow this new variety of kiwifruit. By issueing licences, Zespri is able to continue to uphold their quality standards. The support activity of human resourcing is evident here as growing the new varity of G3 requires new techniques and skills that is learned and taught to the growers.
Similarly to Hort16A, there is also third-party growers that attempted to grow their own gold kiwifruit. Zespri again offered them recruitment and training to not only eliminate this competition, but to also improve and increase Zespri's productivity and efficiency. Zespri will make sure to procure only from licenced growers.
The innovation affects inbound logistics by causing Zespri and their third-party growers to undertake research and development in growing a new varity of kiwifruit (G3). It also affects inbound logistics by new growers are needing to be trained, and more orchards will specalise in this variety.
Alongside research and development, there may be new firm infirstrucure as the introduction of a new variety means that there will need to be jobs and roles dedicated to teaching the growers on how to grow this new variety.
From their initial introduction, G3 and Hort16A have both had an increase in trays sold, sales and revenue made. In the future, Zespri's forcasts are for these numbers to continue to increase steadily. The innovation of G3 is sustainable in the future due to it's immuntiy against PSA which is a virus that sticks around yearly. Although there may be increased costs of freight as there is a larger amount of kiwifruit for importing these imported raw materials into the packhouses and distribution centers in New Zealand, however the increased revenue Zespri is earning due to a new variety of kiwifruit they're producing, they will be able to allocate costs for these issues that arise as the company increases.
In the future, Zespri may choose to introduce a new variety of kiwifruit, such as the Red Kiwifruit they are researching at the moment. This is a consideration that will need to be made as there will need to be more orchards and growers trained in these new varieties, as well as there may be less G3 kiwifruits produced as there may not be enough orchards so G3 may need to be comprimised to make room for a new varitey.
In the future Zespri is needing:
An early transition into production of over 1,000 hectares of non-producing SunGold Kiwifruit licences released prior to 2021.
Time required for SunGold Kiwifruit licences to come into production and to account for production of SunGold Kiwifruit from organic orchards while awaiting their BioGro certification.