Lack of timely data is sending seafood companies towards a cliff.
In a heartbreaking move, Cozy Harbor Lobster filed for bankruptcy protection. The oldest lobster processing company in Maine services premier clients like Wegmans and Hannafords with lobster and fish. They buy from docks across the state and are a major employer for the state's fishery. They also have a reported $2.5m in outstanding debt.
We probably won't know exactly what happened for a while, but in our experience the quote from founder and CEO John Norton is telling: We had "trouble operating with workable margins."
Most seafood companies know their margins only in the rearview mirror. At the end of the month/quarter an accountant can determine the margins, but the guys/gals on the front lines only have a vague idea.
Decisions can be improved by having the folks buying and selling knowing the margins in real time. Should I raise/lower the prices? Buy more/less? What volume do I have right now? Should I push a different product/format? Should I wait it out?
We live in a reality where prices change almost daily and unless you have the ability to keep up you will not have workable margins.
Most legacy companies rely on spreadsheets transcribed from handwritten slips. Even if the transcriptions are accurate, the data is out of date and inaccessible to the folks making decisions on the front line.
For example: the price of boat run lobster went up $1/lb yesterday because of tariffs/supply/Covid/asteroid.... and my sorters got 25% chix. So my price for chix should now be?
BlueTrace works with companies who want to stay ahead of the curve. Call us and we will help you thrive in this new world.