Changing the world for better... at least the world of gas stations)

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Costa Coffee: supply chain as a growth factor

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.

Author’s note
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.

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Delicious coffee with the minimum human involvement. Costa Express – white starts and wins

Vending as a sales technique is good – but only when it comes to newspapers, chocolates and chips, as well as personal care products. He who presses the button is the one who got the goods. Just pushed it – and continued their own way. Coffee beverages vending business now comes with minimum human involvement.

Coffee vending tend to vary in terms of product quality from “Lord, what is this ???” to “Well, okay.” Why is that? Because making of coffee – is a complex process with a thousand of nuances. No exceptions. The only thing that differs very much from a good “vending coffee» to a vending of a bad coffee” – is a chain Costa Coffee called Costa Express Company.

Costa Express Coffee – is an unexpected example of the coffee business in terms of a combination of indicators varying from “country of origin”. How this company was able to appear in the UK, a country of a totalitarian tea cult – it is a mystery. Nevertheless, it was there in 1971 when this brand appeared, which not only takes a confident second place in the World after Starbucks but represents today the very notion of “premium coffee vending” that tend to vary in terms of product quality, from “Lord, what is ???” to “Well, okay.” Why is that? Because making the coffee is a complex process with a thousand nuances. Virtually no exceptions. The only thing that is very distracting from the association with «vending coffee –is a vending of a bad coffee” – is a chain called  in Costa Coffee.

Project Marlow – сoffee GOELRO* plan

In 2011, Costa Coffee, the second largest chain of coffee shops, decided to expand its portfolio and hit the vending area.

The movement in the new direction began with the acquisition of the Coffee Nation chain – thus Costa Express brand was born. Costa decided not to lose time and quickly started to transform the quality of vending coffee to new heights.
The main tool for the breakthrough was going to be a new approach to the implementation of the vending machine itself to make it an example of all that people usually invest in the concept of “innovation”.

Brewing high-quality coffee “from-grain-to-the-cup” via the vending machine – it’s a constant challenge. At some stage it was even a challenge to the very common sense. Getting a consistently high level of quality in the long run was not allowed by the specific historical moment’s technology.

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The “Marlow Project” team

Is Your Cup of Coffee Worth Paying that Price?

How much should a cup of your favorite coffee cost? What key factors does the price include? Which coffee is cheaper? One will hardly find the exact answer to all those questions when considering a well-flavored aromatic drink, as we are speaking of a tasty one. 

Regularly proceeding with an in-depth statistics and analysis, coffee market experts are very unlikely to reveal the truth. They know that the average price may range from $0.5 to $1 per cup of your beloved espresso or Americano. Those drinks do not require additional ingredients like milk making cost price lower if compared with latte o cappuccino. Producers and marketers benefit from enormous revenues selling their products with up to 1000% markup. For this reason, the niche appears to have a great potential for businesses, which use all possible means to protect their segment keeping newcomers away. They established an average market price, which is about $1 per cup.

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Efficient Solutions to Reduce Human Factor Errors at Filling Stations

My colleagues often blame me for inventing efficient tools that reduce the influence of human factor. They often say I don’t like people.

Well, it’s true. You can’t like all the people, anyway. However, every time I share my ideas on the human factor, it does not mean I reproach filling station operators or other employees for being negligent or low qualified. You can always find a responsible and initiative person as well as those who suffer from a lack of ambitions being unable to perform an extra move. Some employees try their best to follow their duties and fulfill their every responsibility while other do not give a damn what employers expect from them. Others make efforts to be a real pain in the neck interfering with devices operation without having enough knowledge and operational skills.

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Auto purchases, CRM-system for competitive tenders and directories in the clouds

To simplify the work of purchasing department? To avoid hundreds of competitive tenders for each item? To gather together the information on the balance and delivery schedules? Easy.
“ADR” system developed by RusHOLTS has been solving these problems since 2011, making the work of gas station staff and managing companies much easier.
Auto purchases for retail
Solutions that automate procurement processes are actively developing in certain retail segments. A striking example – restaurants and shops at gas stations chains.
Product range in gas stations’s cafes and shops includes about 3 000 commodity items. At the same time, according to the established standards, the station may make an order starting from 500 rubles which, taking in the account the Russian distances, is simply ruinous for the suppliers that have no consolidation tools for trade flows, – Says Alexander Kuzmin, CEO of RusHOLTS – a company which is engaged in supplying on-fuel products for gas stations.
The situation is complicated by the fact that the large chains of filling stations are being built via buying incorporating the smaller ones, each of which uses their own accounting systems: Excel spreadsheets, “1C” and others. This makes it impossible to use standard solutions, so RusHOLTS developed and successfully introduced a number of services: “ADR”, coffee machines remote monitoring and other technological equipment.
As a result an online system for automated collection of information on all products at gas stations was created, on which are based the reports on the need for a particular product at a particular station on a daily basis. Gas station employees are using these documents to place orders with suppliers or service organizations that serve gas stations.
The system eliminated the need for holding hundreds of competitive tenders for each of the goods, increased the transparency of the process and the level of control. To the customer it is simply enough to select one or more operators, which will continue to provide comprehensive management services for the supply of goods and services within the contractual terms.

Full article >> http://www.b2b-center.ru/zakupki/analytics/resheniya-v-sfere-zakupok/

McCafe vs Starbucks business models – a difference that does not exist!

RBC TV tried to find out whose coffee business is better – McCafe’s & Starbucks’? Classic children’s question: “Who is stronger, an elephant or a whale?” And a boring grown-up answer: “Two subjects must be compared on common parameters”. It is strange that none of those present in the studio have not identified these “common parameters”, having lost sight of that in the competition between the two world HoReCa market leaders we observe frontal confrontation between players using virtually the same automated technology of coffee preparation and not the difference in the “approach to the consumer”.

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Excise stamps for all food products

Rospotrebnadzor (Federal Service on Surveillance for Consumer rights protection and human well-being) has developed a “Strategy for raising the quality of food products in the Russian Federation by 2030».

It’s really a big deal they are about to start – after all it is necessary to create a single unified information system, which will track the movement of food products – from components to finished products. Plus, they’ll have to introduce compulsory state registration of the basic kinds of food additives. “Excise stamp” on the whole range of food production, cool, #whythehellnot!
Dealing with grand challenges is a profitable endeavour, because while you’re fighting for peace around the world no one will ask you about the devastation in your own WC. We haven’t yet figured out the simple issues, which one won’t have time to do within this large-scale project or vice versa, and now it is a good time to identify the specifics. For example, how do you enter the legislative amendments that will help to distinguish the coffee beverage prepared from the so-called “coffee material”?

IT is an indispensable tool in the supply chain management

You get nowhere without IT. Information technologies are so closely intertwined with all the business processes of transportation and logistics companies, that even coffee machines monitoring is implemented as an remote solution. Here’s an interview with CEO of RusHOLTS Alexander Kuzmin for the magazine “Technologies and means of communication”, # 1, 2016.

– What the trends in the field of IT and telecommunications are priority for your organization?

– Logistics companies of 4PL level are engaged in supply chain management, they become part of the business processes of partners with whom they work. We organize the supply chain of gas station chains in all aspects that relate to the non-fuel business. Simply put, we supply all the necessary from the goods for sale, supplies, furniture, coffee machines to IT-solutions that automate processes of gas station’s daily operations. Gas stations chains as a retail object have a lot of features. Each store by itself is small, but the scale of the chain may be hundreds or even thousands of stations. The total number of chain’s cafe and store items is about 3000 SKU (items’ ID), the station may make an order starting from 500 rubles worth. And everybody can imagine Russian distances very well. The organization and supply chain management in these conditions are a heavy task requiring a lot of masterhood which is impossible without IT.

Coffee culture and spiritual braces

Starbucks is having problems. Again. At this time, customers in California believe they have not enough milk in their latte. IMHO (personal opinion of the author), whatever has been written about Starbucks it’s more popular than all other coffee houses in America put together.

Any American shopping mall is full of coffee establishments, but half the tables there are usually free. Only at Starbucks you may see a line of people from opening morning hours till late at night before closing. It’s coffee culture and “spiritual braces”.

You can only manage what you can measure

Still, there’s actually a real problem remaining. Underfill of milk is the most common complaint of customers at gas stations. You will be surprised how easily it can be solved. Milk actually is poured badly because the coaffee machines aren’t being washed properly.

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