01 Costa Coffee
ROBUST AND RELIABLE SUPPLY CHAIN
Costa previously bought from six different coffee suppliers on a DDP basis but wanted to improve their product quality and supply chain.
Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee is present in 41 countries around the world, with over 2,700+ coffee shops in the UK&I and 1,100+ globally. In 2011, Costa Coffee purchased Coffee Nation, which is now Costa Express. Today, Costa Express operates in 16 international markets, with over 11,000+ coffee bars in the UK and more than 1,100+ globally.
Costa Coffee was looking to create efficiencies across their entire supply chain network.
Historically, Costa Coffee had imported their coffee beans in 65 kilo jute bags which were required to be unloaded from a container by hand, stacked onto pallets, placed into the warehouse and then delivered to the roastery. At this point they were then unloaded by hand, and ripped and tipped into the roastery hopper. This process was slow and labour intensive.
Our solution to Costa Coffee encompassed two main areas:
- To design and build a bespoke warehouse facility to complement the Costa investment in their state of-the-art roastery.
- To reduce manual handling or excessive logistic requirements in Costa’s operations.
Commodity Centre designed and fitted-out a 60,000 sq ft tailored facility dedicated to the handling and storage of coffee. Through the use of new racking systems and narrow aisle forklift trucks, a storage capacity significantly greater than Costa’s previous solution was achieved. Not only this but the quality of storage was far exceeded.
This facility included a customised loading-in and loading-out segregated area that housed state-of-the-art, tailor-made unloading and reloading machinery.
Commodity Centre suggested using a bulk shipping solution, replacing the smaller jute bags, to increase maximum product capacity placed in the shipping container from 19.2 to 21.6 metric tonnes. This initiative gave a 12.5 % reduction in required shipping containers; reduced costs; and reduced carbon emissions and energy usage.
These containers are then sent directly to Commodity Centre’s warehouse where they are decanted into reusable bulk bags and then stored in racked warehousing. When called down for delivery the bags are then decanted using custom-made, unloading machinery, then placed into a silo truck for delivery.
BENEFITS TO COSTA COFFEE
- 12.5% reduction in shipping costs.
- A bespoke and dedicated terminal.
- Zero manual handling at customer’s premises.
- Significant reduction in manual handling across the whole supply chain.
- 15% increase in raw coffee beans placed onto truck for delivery to the roastery.
- Electric powered forklifts.
- Reduction in costs, carbon usage & energy usage.
- Entire terminal powered by solar energy
Following Costa’s initial requirement in 2016, we have agreed a new long-term contract to continue the collaborative working relationship; providing the most efficient and sustainable supply chains.