Logistics digitalization as a key ally of the specialty coffee sector
Written by Carolina Pirola - article sponsored by Vollers Group
Coffee logistics have never been simple. Getting coffee from the port of origin to consumers involves a huge array of moving parts that need to work like clockwork. Even the smallest disturbance or incident can have ripple effects throughout the entire supply chain. However – at least up until the COVID-19 pandemic – the logistics involved in shipping commercial coffee had become more or less predictable in terms of ETAs and total costs. The rise in popularity of specialty coffee has added challenges to the coffee supply chain. Instead of large shipments of single lot containers, logistics professionals handle specialty coffee with up to 30 different lots shipped in one container. All lots have to be identified, separated and stored individually, and then finally released bag by bag.
European logistics company Vollers was one of the early adopters of technology as an ally for optimizing their operations in the specialty coffee sector, taking steps towards digitalization well before 2020. The company now has three digital platforms under the umbrella of V-Digital, each catering to different customer profiles and responding to a range of needs.
Picture credit Vollers
Improving communication to enhance efficiency
Although Vollers had been moving commercial coffee for decades, the flood of orders generated by the specialty coffee market made the company rethink the way it operated. “This is a much more complex situation for us as warehouse keepers than if you have to unload a whole container with just one lot,” explains Marketing Manager Anna-Lena Bahr. To optimize their work, Vollers launched V-Connect, the first part of its three-pronged digitalization push aimed at making communications with their clients more efficient. V-Connect started off as a platform where customers could independently keep track of their green coffee stock in real time but continues to be upgraded with additional functionalities, including sample ordering, ownership transfers, and a financing feature.
Perhaps the most game-changing of all new functionalities was their delivery orders feature. Giving customers a more systematic way of requesting deliveries has significantly optimized the process for all parties involved. “The way our customers used to call off their coffee out of our warehouse was too unstructured,” says Anna-Lena. “We would get a phone call, an email, a fax, even a Whatsapp requesting coffee to be delivered from the warehouse,” but the information was often incomplete, which led to delays. Now, their customers can fill out a simple online form that includes all the details the company needs to successfully complete a delivery. Guatemalan specialty coffee importer Coffee Bird has been working with Vollers since 2017 and uses V-Connect on a daily basis. As their Account and Operations Manager Alexandra Dalton explains, before implementing the tool there “used to be a long paper trail. V-Connect has simplified our flow of receiving containers and releasing coffees to our customers. It has also facilitated checking our inventory and avoiding headaches related to doing stock counts.”
Picture credit Vollers
Beneficial for companies of all sizes
Digitalizing even just a few small steps of the logistics operations can help streamline the process of moving coffee by minimizing errors and saving time, regardless of the size of the coffee trader. Paper documents and offline tools lead to inefficiencies, especially in companies handling large volumes. However, the use of digital tools such as V-Connect can be particularly interesting for smaller companies that may not be able to develop their own IT solutions internally or purchase larger enterprise resource planning (ERP) systems. Solutions like V-Connect give smaller organizations the opportunity to easily digitalize parts of their operations, even if the staff is not familiar with coffee logistics. “We call it ‘logistics made easy’,” says Anna-Lena, “because it is a four-step process that anyone can do.” In fact, at Vollers they’re seeing an increase in the number of smaller companies that reach out to them. “Those who don’t have their own ERP system are very happy to receive these tools because it really is like their order management system (…) and it also serves as some kind of guidance” when placing delivery orders.
According to market research company TechNavio, “the specialty coffee shops market value is set to grow by US$ 64.82 billion, progressing at a [compound annual growth rate] of 13.62% from 2020 to 2025.” This growth – along with the continued challenges of post-pandemic logistics and the rising popularity of micro and nano lots – will require improved efficiency in logistics operations. With this in mind, Vollers wants to not only develop new features but also make their systems a little better every day, according to the needs of their customers.
Vollers is a sponsor of our upcoming ‘The Future of Coffee Logistics Summit,’ which will take place online on November 17th and 18th. You can get your tickets here.
Carolina Pirola
Carolina Pirola is a journalist and communications specialist based in Madrid, Spain. A personal interest in sustainability led her to investigate coffee farming communities in the Canary Islands and northern Argentina, where she discovered the multitude of challenges & inequities that smallholder producers face.