SCCG Manages Warehousing Outsourcing Strategy For Coffee Hit
Established in 2008, Coffee Hit is one of the leading coffee equipment wholesalers, offering coffee equipment from the USA and Australia to consumers and coffee shops within the UK. As well as coffee equipment, the Coffee Hit portfolio also offers a wide range of cups, glasses and cleaning products. This way, the clients benefit of making their coffee service as clean and efficient as possible.
Coffee Hit currently focuses on equipment sales but is diversifying the product range to include the sale of its own range of coffee directly to customers.
Experiencing rapid business growth, Coffee Hit decided to enlist The Supply Chain Consulting Group (SCCG) to source for Coffee Hit, a very high quality and cost-effective warehouse service, to its customers as the company continues to grow.
Coffee Hit had two logistics operations: one operating in the UK and the second one in Netherlands. Coffee Hit were looking to transition to a new operation; and as such, required a third-party logistics company to combine both operations into a new single warehouse location within the UK. This was the contract that SCCG managed for Coffee Hit, via a competitive tender process.
Coffee Hit engaged further with the SCCG team, with requirement to select and implement the most suitable 3PL and Warehouse Providers, to adhere best to their continued business growth. Coffee Hit was flexible as to the location of its new warehouse, accepting locations outside of London.
The SCCG professional consultants analysed Coffee Hit’s current distribution costs and service provision, considering future targeted potential client requirements, with a view to provide a service requirement RFQ document, detailing prospective transport suppliers.
Following this, the consultants presented Coffee Hit with recommendations for the most suitable 3PL and Warehouse Providers, to ensure the scalability of the warehouse operation throughout the significant business growth curve, as well as reviewing the processes from storage requirements, goods-in and despatch.
Considering the business expansion, a warehouse functional requirement specification was developed, in order to suit the current and expected operational requirements. The distribution costs and service provision were upgraded, in order to meet the requirements of future potential customers and target market.
To identify the most suitable 3PL that can meet Coffee Hit’s unique business requirements, SCCG undertook an evaluation and comparison exercise, a mixture of quantitative and qualitative assessment, considering factors such as operational processes, standardisation towards best practice, implementation plan and associated costs, exception management and contingency planning.
Following the research, SCCG provided findings and recommendations based upon the preferred service providers for final selection. The 3PL service provider helped define the future state service level requirements and KPIs based on current best practice and Coffee Hit’s needs. Moreover, the 3PL now provides both, Coffee Hit’s warehouse and distribution services, so Coffee Hit benefits from sustainable inventory management, and in turn, the most economic transport costs.
“The Supply Chain Consulting Group team of consultants was truly professional. They identified ways to optimise the warehouse layout and methods to minimise the company’s distribution costs. As a result, Coffee Hit benefits ongoing, from improved service capability.” Director – Coffee Hit