The Logistics Of Shipping Canadian Maple Syrup Products To International Markets

Demand Management Process

The purpose of writing this report is to understand about the logistics of the The Canadian Maple Syrup Company to ship the products from Canada to England, Ireland and Scotland. The  The Canadian Maple Syrup Company is responsible for making the syrup from the Xylem SAP, Red Maple or black Maple trees. Extracting of maple syrup started from the North American peoples or European settlers who proposed the production methods for refining syrup processing. Canada produces approximately 80% of the total maple syrup marketed to the different countries it has been noted at approximately 7300000 gallons of maple syrup was produced in the year of 2016 the largest producer of maple syrup cube AC produces about 70% of the Global production. This report is to understand about the competitiveness of the The Canadian maple Syrup Company in the international market and evaluating the supply chain management strategies of the company. This report also comprises of the issues related to the marketing of the product in the global market and how the company can contribute towards the social responsibility for the customers. Issues related to the transportation methods and the factors influencing the entry of The Canadian Maple Syrup Company are also addressed in this report. Factors impacting the legal issues and terms and conditions are also listed in this report to understand the approach to enter into the international market (AGR).   

The principle for selecting the The Canadian Maple Syrup Company for the international trading is the market. It has been analyzed that due to the demand of maple syrup in the international market, the company started the trading in the Global market. Through this market, the The Canadian Maple Syrup Company balances the customer requirements by using the supply chain management. The company approached the loyal customers proactively to fulfill their demand and match the supply by sending the product to the market with minimum disruptions at the right place. This helps the maple syrup company to balance their customers and proactively respond to the anticipated demand of the syrups. This also helps the maple syrup company to increase the profitability, their loyal customers, and their suppliers. Improving the supply chain management can also help the company in far reaching conclusions or suggestions. The forecasting for implementing the effective and efficient demand from the customers is necessary to analyze the strategic and operational processes that help in improving the market of the The Canadian maple syrup company. The below figure describes the example of the variability of the demand of the The Canadian Maple Syrup products in the international market.

Supply Chain Management Strategies

The Canadian Maple Syrup Company continues to use the Global supply chain management and its structure for the implementation. It has been identified that there are 8 key processes that helps in the implementation of the supply chain and these are mentioned below with their description:

1. Customer Relationship Management: – Relationship management helps the The Canadian maple syrup company to establish the relationship with the customer and developing the long-term business partnership with them. This also includes the contract as well as (PSA) Product-Service agreements between the user or customer and the The Canadian Maple Syrup Company.
2. Customer Service Management: – This helps in managing the Product-Service agreement and provides an integrated set of information of the customers (Canadian Government).
3. Demand Management: – This management helps in providing the schema for maintaining the customer requirements using supply chain capabilities.
4. Order Fulfillment: – The The Canadian maple syrup company fulfills all the orders of the customers and use all the activities required to define the requirements of the customer and the network which need to be followed for the Logistic purpose.
5. Manufacturing flow management: – This includes the requirements which are necessary for the movement of Maple Syrup products from the manufacturing plant and then implementing it to manage the flexibility and the supply chain management.
6. Supplier Relationship Management: – This provides the structure of the relationship between the suppliers and helps in analyzing the management of the Product-Service agreement between the The Canadian maple syrup company and its suppliers.
7. Product development and commercialization: – This helps in providing the schema for developing and launching new product to the market, keeping in mind, the customer demand and then sending them to the suppliers for the distribution.
8. Returns Management: – This includes all the processes or operations related to the reverse Logistics, returns avoidance, gate keeping, etc. for building the customer loyalty (Croxton, Lambert and García-Dastugue).

It has been analyzed that The Canadian Maple Syrup Company produces approx 68 million pounds of the maple syrup and export approximately to the 50 countries. The below table shows the statistics of the The Canadian maple syrup company export to the international market up to the year 2010. 

This demand Management process helps in envisaging the demand of the customers and analyzing on how the demand can be fulfilled using the capabilities of the supply chain management. For this process, the The Canadian maple syrup company should understand the need of the customers and analyze the capabilities of the manufacturing and the network of the supply chain. The information for the CRM is also required to accomplish this demand after the evaluation the supply Company can set the goals and objectives to increase the demand by remaining cost effective. 

The various ethical issues related to the The Canadian maple syrup industry include the following factors:

• Principles: – The production of the syrup must be considered as an ongoing activity. Overboard should not affect the health of the person in particular leading to the obesity or other health problems. This syrup must be taken in a limited quantity and an individual must follow the balanced diet because of the ingredients used in making the syrup like sugar, salt, fats, etc. There should be awareness programs for the individuals so that they can follow the healthy balanced diet (Methodist). The relationship between the retailers, consumer, suppliers, and producers must be analyzed properly. The society must also take special steps to create an event for making the people aware about the health.
• Exposure: – There must be proper areas of concern so that manufacturers, distributors, marketers of the syrup who should consider it as an ethical matter. To make the The Canadian maple syrup industry included in the CFB portfolios, it is necessary to provide a level of exposure that must result in a company’s exposure. This approach totally depends upon the circumstances on which the strategy has been applied to the The Canadian maple syrup and the condition in which syrup is being taken by the individual (Cilliberti and Scozzi).
• Methods of Production and distribution: – There are different number of issues with Maple Syrup Company because of the methods of production and distribution used by the company. The package syrup should be clearly hygiene considering health and safety procedures, precautions and quality control as their great importance. The issues which need to be considered are the factors which are as follows, but not limited to the, use of child labor or illegal immigrants, the action must be taken as per the International Labor Organization (ILO) standards, improper use of pesticides on Maple trees, misuse of the water resources, environmental damage to the land, or the soil, thereby, affecting the natural environment, growing modified crops, etc.
• Marketing Issues: – This is a major concern to the syrup industry. So the areas must be identified to figure out the issues. The various areas of difficulties are, increasing obesity through marketing campaigns, over-Packaging of the syrups, using the aggressive marketing campaigns or strategies which may harm the health of an individual, practicing inappropriate marketing campaigns, misleading via wrong information, inappropriate sponsorships, negotiating with the consumer and the usage of vending machine which may harm the health of the individual (Enevoldson).
• Fair Trade and trade justice Issues: – If there is an increase in an interest of the employers, owners, customers, clients, suppliers, therefore providing a fairly traded product to fair price to the producers in the countries which are well developed and can get a positive contribution from the society, making the prices down for the consumers may be ethically not appropriate if it is using the unethical marketing strategies.
• Environment: – This should include the awareness regarding the problems created by the waste products, following the policies that support biodiversity, avoiding the bad practices, writing down the clear policies to limit the quantity of intake per day by an individual (Kerry Logistics).

The steps which can be taken to be a good citizen in the community social responsible the company practice social Logistic social responsibility that which is considered as the socially responsible management of the supply chain considered and data cross functional.

The Canadian maple syrup company areas which should be covered are purchasing social responsibility sustainable packaging reverse logistics sustainable transportation and sustainable warehousing these practices must be used in proper way.

The Quebec, is the largest producer largest of maple syrup holding approximately 90.83 percentage of shares in comparison to the production of maple syrup in the US with approximately 3 million gallons of volume. Maple trees, including the sugar Maple and the black Maple, Maple trees and the red maple are the common species from where the syrup is expected. The Manitoba Maple, big leaf Maple and the Silver Maple are the other sources from  which the syrups are extracted (Sheela). There are various flavors like Malta, strawberry, furanone of the maple syrup, maple syrup is also used for the topping of various products of Bakery such as pancakes, cakes, French toast, Waffles, bread rolls, etc. Further, the maple syrup marketed to the international countries using the market segmentation.  The market segmentation of the maple syrup is based on the raw materials, distribution channels, regions, applications, etc. The maple syrup segmented market analyzed on the basis of distribution channel such as retail stores, supermarkets, online stores, etc. This may also help the The Canadian maple syrup company to increase the revenue and turnover over the end of the year (ISSUU).

Ethical Issues Related to Canadian Maple Syrup Industry

There are 5 modes to enter into the foreign markets, which are listed as exporting, ownership, licensing, joint ventures, and export processing zones. The Canadian Maple Syrup Company uses the exporting method to enter into to foreign market (Morello).  The exporting method allows the The Canadian Maple syrup company to distribute the syrup and other alternative products into the foreign markets without any risk due to the low cost of implementation. Also, the level of risk associated with the exporting methods to trade in the foreign countries is also low for the business owners. Exporting method is one of the basic foreign market entry strategies for small businesses all around the world. This strategy or method eliminates the cost for repackaging, marketing in the industry infrastructure development. Thus, the company can invest on the other trading charges like those of transportation cost, tariffs, governments, etc. Competition in the global market and local customers and their demands exporting the goods in the Europe or in the Global market allowed to company to sell and enhance the sale in the existing international market (Team).

This is to scrutinize the impact of trade agreements into the Canadian Maple syrup company and how the method applied impact the legal issues to enter the international market. To support the flow of goods, services, labor, the comprehensive economic and trade agreement has been announced by the Canada and the European Union which helps in reducing the tariff and non technical barriers. There are a number of sectors which helps in bringing the opportunities to beat the foreign competitions. In the year 2012, Canada has been ranked as 12th in trading partners with European countries which was also led by the US, China, and Russia (Heneghan). As per the Federal government, the market is estimated at approximately dollar 2.5 trillion with is equal to 18% for business services. It has been noted that the results of the agreements are to make from and economic perspectives. Further, the impact also varies across different countries depending upon how the company adjusts to change by changing the trade environment. Also, all temporary foreign workers as per the CETA will include the professional so that the highly skilled professionals, or employees can work in the countries like in European countries and Canada. After analyzing the sectoral analysis, it has been noted that the overall net profit for the Canadian economy depends upon how the company add up the changing environment (MarketResearch). The syrups exported by the The Canadian Apple industry are considered as approximately 9000 tariff lines. Vice versa of this would be the importance of the products of the Canada at the lowest prices. It has been noted that after enhancing the channels for trade with the European Union, the GDP of world in the year 2012 has been counted to 19. 5%, which alternatively, provided the net benefit to the Canada for the long term (Cooper). The trade with the European Union as a share of Canada GDP is as shown in figure:

Modes of Entering Foreign Markets

The maple syrup company had put a special attention on setting in the areas of work which includes the negotiation of the payment terms and has identified the terms or other transaction which includes developing the marketing plan for the The Canadian maple syrup company.

To continue to work on the aspects of the IMSI and Associate message and work on the environmental benefits had made the The Canadian Maple Syrup company to put special input on the government protocols, rules and regulations which can negatively impact on the The Canadian maple syrup company. They put a special emphasis on changing the label requirements announced by the FDA and Health Canada and the The Canadian food inspection agency CFIA. The primary focus of attention for  the Canadian Maple Syrup Company is related to the sugar labelled by requirements and the false or misleading market of pure Maple.

 The company has also planned to improve the marketing of the syrups throughout the Global market by engaging the social media. This can be done by solving the concerns regarding the misrepresentation of the syrups which let out directly to the consumers and by influencing the government rules.

 Continuing to the strategy of the awareness and education programs with a special focus on the quality and service in the production of maple syrup products. This strategy helps the Maple Syrup company by sponsoring the organization of the schools and education, training such as Maple research center, center Acer, UVM Procter radiance opposite of the Canadian maple syrup company (Institute).

The Company puts an emphasis on important areas like the elimination of the packaging process and likes from production for appropriate labeling, regulations like maple syrup, and other waters such as RO concentrate and permeate. The international market for the The Canadian episode maple syrup is not good, but the competition that is very high. The Other factors which court high pressure on the profit margins of the The Canadian maple syrup company there may be ongoing challenges which include maintaining the syrup from time to time to save the syrup from getting exhausted. In accordance with the new classification of the The Canadian Maple Syrup, and based on the grading of the syrups, the agreements made the The Canadian maple Syrup company to revise their prices. The list of the revised prices is as follows:

• Golden and Delicate Taste:   $$ 2.95
• Dark and Robust Taste:  $$  2.85
• Processing Grade: $ $ 1.80
• Amber and Rich Taste:   $$ 2.94
• Very Dark and Strong Taste:  $$ 2.55 

Conclusion

This report was written to make the reader understand about the logistics of the The Canadian Maple Syrup Company, which produces approx 7300000 gallons of maple syrup in a year 2016. This report has been written to understand about the competition of The Canadian maple Syrup Company in the international market and evaluating the supply chain management strategies of the company. This report comprised of the issues related to the marketing of the product in the global market and how the company contributed towards the social responsibility for the customers. Issues related to the transportation methods and the factors influencing the entry of The Canadian Maple Syrup Company have also been addressed in this report. Factors impacting the legal issues and terms and conditions have also been listed in this report to understand the approach to enter into the international market. This report concluded that the The Canadian maple syrup company should understand the need of the customers and analyze the capabilities of the manufacturing and the network of the supply chain. This report also intended to make the reader understand about the trading of the Maple syrup Company and the demand of the customers.

References

AGR. “Canadian Maple Syrup: Pure Liquid Gold.” 2013. <https://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/CB-MC/PDF/4689-eng.pdf>.

Canadian Government. “Maple Products European Market Analysis.” 2015. <https://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/6591-eng.pdf>.

Cilliberti, F and B Scozzi. “Logistics social responsibility: Standard adoption and practices in Italian companies.” International Journal of Production Economics 113.1 (2008): 88-106. <https://www.sciencedirect.com/science/article/pii/S0925527307003118>.

Cooper, L. “The Comprehensive Economic and Trade Agreement.” 2013. <https://www.rbc.com/economics/economic-reports/pdf/other-reports/CETA.pdf>.

Croxton, K, et al. “The Demand Management Process.” 2002. <https://fisher.osu.edu/supplements/10/1418/demand_5.pdf>.

Enevoldson, N. “What Is Social Responsibility?” 2017. <https://www.imasocialentrepreneur.com/social-responsibility/>.

Heneghan, C. “How international trade agreements factor into the food industry .” 2015. <https://www.fooddive.com/news/how-international-trade-agreements-factor-into-the-food-industry/404420/>.

Institute, International Maple Syrup. “Supply, Demand and Pricing for Maple Syrup.” 2017. <https://www.internationalmaplesyrupinstitute.com/uploads/7/0/9/2/7092109/imsi_board_of_directors_meeting_summary___january_9th_2017dc_lc__jan_12th.pdf>.

ISSUU. “Syrup market global industry analysis, size, share, growth, trends and forecast, 2013 – 2019.” 2015. <https://issuu.com/amyjames1/docs/syrup_market_-_global_industry_anal>.

Kerry Logistics. “Serving as a good corporate citizen.” 2017. <https://www.kerrylogistics.com/eng/OUR_COMPANY/About_Us/responsibility/responsibility.jsp>.

MarketResearch. Maple Syrup Trends: U.S. Retail Market Trade Brief. 2014. <https://www.packagedfacts.com/Maple-Syrup-Trends-8512606/>.

Methodist. “Ethical Issues Relating to the Food Industry.” 2005. <https://www.methodist.org.uk/downloads/ei_ethical_issues_relating_to_food_industry.pdf>.

Morello, R. “Five Modes of Entry Into Foreign Markets.” 2016. <https://budgeting.thenest.com/five-modes-entry-foreign-markets-25303.html>.

Sheela, A. “Syrup Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.” 2017. <https://www.prweb.com/releases/2014/04/prweb11723410.htm>.

Team, Tradestart. “Market Entry Strategies.” 2017. <https://www.tradestart.ca/market-entry-strategies>.

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