Operations convert the inputs into the desired product, when all the required materials have been collected. The factory converyer belts are typically used in this stage of the value chain and production.
Hort16A (Green Kiwifruit) is ordered from their respective growers (post-harvest operations), and is then shipped to a packhouse to be re-packed into Zespri's packaging. This is where the Kiwifruit is checked for quality control, as well as cleaned to eliminate any pests or bugs that may appear on the kiwifruit. Packaging such as the trays, containors and boxes the kiwifruit is places into is procured and ordered to the packhouse. Hort16A is then packed into their kiwifruit boxes, which are green and focus on the features and benefits of green kiwifruit on the packaging. Finally the kiwifruit is checked for quality control before it is ordered and sent off to wholesalers and distributors for consumer sale.
The support activity procurement is an important part of the operations part of the value chain. Sourcing the packaging and other raw materials such as the kiwifruit to be used in the operation of the product is vital to the sucess of the product. There is chilled transport from the grower's farms to the packhouses, which is procurement (sourcing raw materials - kiwifruit). These kiwifruit's transport to and from the packhouse, as well as during their time at the packhouse, will need to be chilled in order to be up to Zespri's quality standards, and to sustain the longevity of the kiwifruit to prevent it from going off.
the stages of Zespri's packaging lifecycle is as follows:
Raw Materials
extraction and manufacture of raw materials
transport of raw materials to pack manufactuing site
Manufacture
Manufacture of packaging components
transport of packaging components to location of use
Transportation
Transport of packaging components from the ports to export markets
Transport through the markets to end consumer
End of Life
Packaging manufacture waste
Packaging component disposal through the supply chain.
The colour associated with the G3 (SunGold Kiwifruit) variation is yellow and gold. Therefore the kiwifruit will need new stickers and packaging that go with the SunGold Kiwifruit theme. As part of research and development, new stickers and boxes will be developed. Procurement will also occour as new raw materials such as the G3 variety from the growers, as well as the boxes and packaging will need to be sourced. These will be ordered and then just like the green kiwifruit they would be checked and packed into their new boxes. Throughout this process, there will be quality checks to ensure the kiwifruit, as well as the processes that occur during operations are up to Zespri's quality standards.
Wholesalers will also purchase more stock from Zespri for their retailers as there is more to chose from and more variety. Instead of just 5 pallets of green kiwifruit, they may purchase 5 pallets of green and 4 pallets of gold kiwi. Therefore there are purchasing more and there will be an increase of stock coming in and out of the packhouses.
The innovation affects operations by causing Zespri to procure more raw materials, this being a new variety of kiwifruit as well as new packaging and boxes that need to be ordered and used in production. As part of human resourcing there will be more staff needed and jobs available due to the increase in the company and its production.
Due to a constant aesthetics change, the stickers and boxes may need to be updated in the future which will be an extra use of time and resources. However, the current system will be sustainable in the future due to it's timelessness. The operations factory and packhouses may need to expand as there is an increased amount of kiwifruit being sold.