-
Freezers
are the constraining resource and hence their uptime
is critical
-
Skill
in peeling is critical
-
Yield
is important at each stage
-
Grading
decides the price in the market
-
Which
country to be targeted for which product at which time
is critical to maximize realization
-
Raw
material purchase requires skill
-
Myriad
payment terms to be taken care of while pricing
finished goods
-
Pricing
fluctuations in domestic & international markets of
raw material and finished products
-
Complex
Market Mechanisms:
-
Duty structure changes
-
Large catches in China – dumping in Japan – Lowering
of price by Japan and hence by US also
-
Behavior of competition
-
Fluctuating currency conversion rates ( in turn
increasing or decreasing value of stocks held
overnight) impacting profitability
-
Uncertainties
-
Dollar conversion
-
Buying behavior of customers
-
Policies and duties of importing countries
-
Competitive behavior in the markets and their
strategic moves
-
Raw material availability (quality, quantities and
prices)
-
Experience in buying and selling is critical
-
Largely manual
-
Perishable
commodity
-
From
purchase point to customer delivery
-
Many variables
-
Logistics is critical
-
Quality management
-
A few
good decisions can give us Lacs of Rs and the reverse
is also true.
-
We
however keep on making decisions which is the way of
doing business
-
The
current level of value spread is low and hence
maneuverability is also low
-
Seasonality
in business