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Technological changes––the impact on the raw material flow and production

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Kjetil Aune

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kjetil.aune@nofima.no

European Journal of Operational Research ; Volume 144. p. 237–246. 2003

Bendiksen, Bjørn Inge; Dreyer, Bent

This paper examines the impact of technological changes on the raw material flow and the way the production is organised. The case studied is the Norwegian fish processing industry. The last years an increasing part of the fishing fleet has been rebuilt or replaced by newer vessels, where the catch is frozen on board. This change in supply, from fresh to frozen fish, has triggered investments in new cold storage plants along the Norwegian coast where most of these vessels now discharge their catch. These changes, involving new logistics challenges for the buyers, are about to change the entire market for raw materials, and also the fish processing industry itself. In the new competitive setting one of the most valuable resources among the processing plants, i.e. a location close to fishing areas, was devaluated. The bargaining power among the processing plants was decreased mainly because new entrants achieved easier access to the local raw material market.

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