Coffee logistics and technology: What do experts have to say? Part 2
Written by Grace Heifetz
Following up the first webinar session of the three-part series The Logic of Coffee Logistics: Overcoming the Logistic Challenges of the Coffee Supply Chain, the second part, held on June 2nd, explored concrete case studies and challenges to digitalized logistics. During this session, moderated by Stuart Ritson, Osito Coffee’s Director of Sales for Europe and UK, panelists Kenean Asefa Dukamo of Daye Bensa Coffee, Kume Chibsa of Afrovalley, and Maria Grajales Gomez of Col-Spirit shared their experiences with us.
Case studies showcase digitalized logistics at work
In the case of Ethiopia’s Daye Bensa Coffee, Kenean described how greater communication and visibility was made possible by the creation of their own software. Kenean said that after discovering that available softwares on the shelf weren’t suiting the needs of their company, they decided to come up with a homegrown solution. Kenean added that using existing tools had “created visibility towards what we are doing and has also created collaboration between departments, it has helped us to plan better and to be data-driven” but when the business needed to scale up, they saw the need of building their own digital solution, which will be ready in a few months. Their digital tool will make it possible to be more data-driven and increase their ability to forecast inventory and shipping by enhancing organization.
Regarding Afrovalley, a blockchain agro cross-border commodity trading and logistics platform, their founder Kume described the role of digital logistics as a way of empowering farmers and their communities. “The project was started in an effort to support the farming community because the farming community in Ethiopia is composed of 80% of the population (...)”, said Kume. So “for us, [it is] community development. And, community development means farmer empowerment.”
For Col-Spirit, their company’s both importing and exporting capacities require a digital platform that can support both operational sides. Maria described the challenges of coordinating and planning timelines for moving coffee when working in two different countries and the need for a digital solution for their growing operations. “We need a solution that we can actually integrate. Something that while [we are] managing the inventory in the warehouse in Germany, gives us enough time to plan to actually export the coffee from Colombia.”
Universality of digitalized logistics is still a challenge but customized approaches offer a solution
While digital solutions can be an important tool, panelists reflected on the universality of their application and the need for bespoke approaches. Maria described the legal and linguistic barriers that can arise when trying to implement the same digital tools in different countries. She mentioned that while language is the main barrier, “if you just go to [the] specifics of the coffee, that’s a completely different world”. Finding a platform that integrates logistical shipping details as well as coffee specifics, in real time, and can then communicate them to all parties involved is difficult but necessary to build trust by increasing transparency.
Substantial challenges can also arise when it comes to the implementation of this software, from finding out what type of data is exactly needed or desired by clients, to making software work for both the farmers and suppliers. Kume discussed risk management and company vision in relation to the importance of trust-building, describing how “transparency and trust are one of the biggest complaints that you hear”, she said. “You need one to support the other, so it’s not something that you can look at separately.” While power is inherently in the hands of buyers when it comes to coffee, digital tools can help with legitimizing buyers as well as farmers, helping to empower them and to build trust on both ends.
Data holds the key to unlocking potential
The Logic of Coffee Logistics series concluded with a session held on June 16th, that was focused on looking toward the future of coffee logistics. Together with moderator Amaris Gutierrez-Ray, Director of Coffee and Roasting for Joe Coffee Company, the panelists Brianna Dickey of CropConex, Guillermo Grassi of edoxOnline, and Felipe Cam of Mercon Coffee Group, turned to the future of digital logistics and started by discussing the necessity of data within this system.
Brianna stressed the importance of data as a key to unlocking potential in terms of data visibility for better risk mitigation and reducing delays, as well as fully engaging stakeholders across the board with the supply chain processes. “Thinking about data being this fundamental core component being able to increase efficiencies, reduce some of the data silos, increase the coordination from end to end, the only way that we’re going to get true data visibility is if we have a fully engaged supply chain”, said Brianna.
Creating a culture of digitalized data sharing
In addition to data collection, digital processes make data sharing more efficient and thus more beneficial for all parties involved in coffee supply chains. Felipe spoke about the impacts that a large company like Mercon has seen firsthand when it comes to digitalizing data collection. For the last ten years, the company has worked to create a culture of process automation that includes data integration and secure data services, and he stressed the “need to change the culture” to be welcoming of and willing to embrace digitizing processes.
Collaborative commerce must be embraced
Within the coffee industry, panelists stressed the importance of collaborative commerce. Guillermo explained how digitalization of the multiple documents required for international translation of goods, like the Bill of Lading, with programs like edoxOnline, can help to eliminate fraud and maximize convenience industry-wide by replacing paper documentation. New worldwide initiatives related to the interoperability of supply chain digital technology “have the capacity to transform global trade by standardizing processes,” said Guillermo. The openness of this community “absolutely welcomes every company that wants to be part of this transformation, led by the electronic Bill of Lading adoption,” he added.
Brianna similarly emphasized the importance of industry-wide change for easier means of integration. Despite the concerns some companies have about whether or not to share their data or about how much of it is proprietary to themselves, this is a fundamental aspect for the effective future of technology integration. She described a successful industry-wide adoption of digitalization as a “team sport”, one that requires democratized access to the technology so that a protective and collaborative system can be created.
Envisioning the shared future of digital supply solutions
As for the successful future of digital logistics implementation in the coffee industry, Felipe summarized some key goals that include: the need for more open data sharing and collaboration, more secure encrypted safe networks, and a need to maximize automation resources and prioritize more sophisticated platforms at ports and shipping lanes that utilize online documentation.
Guillermo ended the webinar with an important message for the future of coffee supply chain efficiency, urging people not to wait for technology to become the standard to be able to enjoy all that can come from embracing digital solutions to improve coffee supply chain processes. “Be an early adopter. Enjoy technology from the beginning. Get substantial benefits out of it.”
The discussion on the challenges and future of coffee logistics has just started as we aim to continue the conversation with "The Future of Coffee Logistics Summit 2022" soon. More information on the summit will become available in the following months, So stay tuned!
Grace Heifetz
Grace Heifetz is studying Diplomacy & World Affairs at Occidental College in Los Angeles, California. She is interested in community-led change and sustainability within the coffee sector, and is currently learning more about these issues while interning with The Chain Collaborative.