When traditional logistic models and the organization of the supply chain have jeopardized the dynamic growth of the company, the owners of Costa Coffee went all-in. The company completely changed the leadership, adopted a new strategy for the organization of supply, hired a new logistics operator, and also introduced a new enterprise software to provide a new level of benefit from the telemetry component of its system. We believe that the final result speaks for itself.
When I was preparing this article, i was surprised by how similar problems had to be solved in RusHOLTS around the same time. An illustration of the similarity could be invention of the rad by Marconi and Popov. The problem is in the air and solution comes to those who are looking for it. Only RusHOLTS had to be tis own “new” logistics operator because of the lack of worthy proposals. No “regional partners”, no services outsourcing – only our own trained and well-managed structures that guarantee the high quality of work.
Developed by RusHOLTS experts ADR system, smart monitoring of coffee machines and analytics on customer request, a customer service of our own and the creation of the Monitoring Centre – are the details that make up the effectiveness of the coffee business.
Given Russian distances, poor road quality and penetration of the Internet in the regions, our experience of conquering Russian realities by telemetry is no less rich and interesting. And as you can see, quite in the style of the world’s leading coffee industry players!
Moving at a high-speed and operating 24 hours a day, the world has become dependent on coffee to maintain this pace of work. Do we run into the coffee shop or brew a cup of invigorating drink on our own in the office, staying overtime in the university library or in the hospital cafe, on the road or on vacation, we always look forward to the same level of quality of the drink, the familiar taste and adequate cost.
Costa Express brand was created by one of the largest operators in the HoReCa and owner of Costa Coffee – Whitbread Group in 2011, in order to promote self-service coffee, both as the company’s growth platform for the future work in general and as a the whole coffee industry in particular. We’ve already written about this in more detail.
The good performance of the first year of operation confirmed the reality of the ambitious plans of Costa Express to increase the number of machines at least to 3000 to the end of 2016.
Life without a supply chain manager
In the first months after the launch in 2011, the company’s business was in many respects like a blown horse. The existing fleet of coffee machines was transferred from under the Coffee Nation brand under the brand of Costa Express and some new partners have joined their servicing. The company worked to the point of exhaustion and under tremendous pressure to quickly get impressive dynamics of growth and justify the investment * of Whitbread. (* Approx. volume of project investment amounted to £ 60 million).
By April 2012, the company realized that in order to achieve the planned growth it will have to make some changes in the organization of the supply chain. At the time of making this decision, the company did not even have the position of supply chain manager. Traditional for the industry logistics and purchasing operations were distributed among employees of the financial unit and the engineering department.
At the first stage the staff of the company’s new business unit identified three fundamental functions of the supply chain, on which the business Costa Coffee should be based.
1. Management of ingredients replenishment for coffee making at the sales point
2. Providing sales points with spare parts for coffee machines.
3. Effective management of the delivery process of new Costa Express machines and their preparation for installation on the sales points.
The most critical for the entire business proved to be the first point, which will be discussed further.