Costa Express picks Tools Group to manage replenishment

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Costa Express, the self-serve division of Costa Coffee, has selected ToolsGroup’s SO99+ software to improve the replenishment of its self-serve coffee bars.
The aim is to build a cost-effective system that will calculate more effective inventory levels than is possible using the current manual approach.
Costa Express is undertaking this improvement to its supply chain to support its growth following Whitbread’s acquisition of its parent company, Coffee Nation last year.
The company set a goal to put 3,000 machines into operation nationwide by 2016 from a starting point of 900 in 2011.
It has already reached 2,200. However, with high growth comes greater urgency to prevent shrinkage at retail sites, a growing problem which cost British retailers £4.9 billion in 2011 according to the Centre for Retail Research.
Supply chain manager Chris Clowes said: “Our unmanned coffee bars use incredibly modern technology including integrated telemetry that provides real-time reporting on machine performance and drink sales. Now we need to modernise our planning systems to tap into this wealth of data as we scale our business. This is not only to prevent costly waste and shortages, but to improve service by ensuring that our machines are always stocked with the coffees and drinks that customers demand.:
The software will forecast demand, optimise inventory and generate the replenishment proposals for, distribution and procurement operations. Calculations are based on on-line demand data supplied from each of the coffee machines. ToolsGroup will host the software for Costa Express and provide it on a subscription.

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