Costa has awarded Howard Tenens a five year contract to handle the ingredients supply chain for its Costa Proud to Serve and Costa Express operations.
Howard Tenens started working with Costa Express following a tender process in 2012 lead by supply chain manager Chris Clowes, who identified an opportunity to drive efficiencies through the supply chain.
Clowes said: “The additional Proud to Serve business will help us deliver even more in terms of efficiency gains through Howard Tenens’ sustainable logistics offering and is an exciting step forward in our supply chain strategy. Through our logistics partnership we can now sustain both UK and International growth and have turned supplier – customer relationships into true partnerships.”
The new contract follows a detailed six month tender process and Costa is looking for further efficiencies and savings for the two brands.
During the initial 12 months relationship between Costa Express and Howard Tenens stock holdings have been centralised at one location rather than the previous nine sites.
Direct purchasing relationships have been developed with 15 suppliers providing in excess of 100 SKUs. Stock availability of over 99.9 per cent has been achieved while there has been a 50 per cent reduction in stock holding at partner sites.
There has been a move from landed purchasing to ex-factory gate generating annualised savings in excess of six figures with some products. Annual logistics have been reduced by 30 per cent and annual CO2 savings of 70 tonnes.