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ECC & Nestlé:
Years of cooperation,
New joint possibilities
ECC & Nestlé:
Years of cooperation,
New joint possibilities
With their competences from longstanding experience, ECC is one of the main suppliers of Nestlé in Mexico. While ECC has been at their current location in Veracruz for more than 20 years, Nestlé just finished their innovative production factory in the first quarter of 2021 – which is by coincidence located in the direct surroundings. The new plant is able to process 20,000 tons of green coffee per year and is equipped with state-of-the-art technologies using green energy wherever possible to enhance sustainability. Nestlé now being this close to ECC establishes the foundation to further strengthen the existing connection between the two business partners. Right from the beginning, ECC was able to support as a helpful neighbor: when Nestlé had startup problems receiving their coffee bought from other suppliers, ECC gave them the necessary support of relocating the big bags on the adequate pallets for their warehouse to receive the coffee.
“We at ECC have the opportunity to create a competitive edge to all other suppliers in Mexico, just because of the closeness of the delivery point – through quicker logistic, shorter response, and cheaper delivery costs.”
Besides this friendly welcome, the proximity of the companies has lots of potential for both ECC and Nestlé. For their just-in-time delivery Nestlé depends on reliably suppliers, who have an excellent understanding of the supply chain, fast logistic services and facilitate the perfect timing of ordering the goods needed. This is where ECC comes into play. They can provide the warehouse storage, have lots of experience regarding their logistic services and are really close so that they can offer unbeatable delivery times and prices – the perfect qualities for Nestlé’s just-in-time delivery. This means less work, fewer costs by saving a lot of money for demurrage, the fastest and cheapest delivery possible and profiting from ECC’s logistic service experience for Nestlé. “We at ECC have the opportunity to create a competitive edge to all other suppliers in Mexico”, is Henrik Oehman, CCO, convinced, “just because of the closeness of the delivery point – through quicker logistic, shorter response, and cheaper delivery costs.”
The so called “just-in-time delivery” is a logistics strategy in which goods are moved along the supply chain right before they are needed in the delivery process. The goal is to have no more material or goods on hand than needed at the moment of delivery. Through this attempt, companies can reduce storage costs and timing delays immensely.
Together with Rothfos Corporation, ECC already did VMI (= vendor-managed inventory, a concept in supply chain management to enhance the supply chain performance) for Nestlé once, which worked very well for everyone involved. ECC took on the importation of the coffee sold by Rothfos Corporation and stored it in their warehouse for later delivery to Nestlé.
Right now, there is much to be explored about this great opportunity for ECC and Nestlé. They are currently working on intensifying their relationship, discussing possibilities of their cooperation, and will hopefully benefit from the advantages for both companies in the future a lot.
Follow Andrey Elson, CEO of KLD, through the new premises and let yourself be part of his passion for coffee and the new “Home of Coffee”. “Home of Coffee is realized as informational and infrastructural project which helps its inhabitants to increase sales and expertise and make coffee closer to clients and consumers.”
In 2020, NKG Stockler moved their head offices from Santos to Varginha, Brazil, the so-called “heart of coffee”. Next to rebuilt warehouse units with latest technologies for production lines and inventory management, a brand-new office area had been completed shortly before the previous NKG Connected issue in December 2020 was published. At the beginning of the year, the team moved into the premises, which had been completed by then.
Recently, many anniversaries had to be held digitally. The 20 years celebration of International Coffee Partners (ICP) on June 15th was no exception. During the online event “Focus on People! How the coffee sector can ensure smallholder families’ livelihoods” shareholders discussed the past and the future of ICP’s work.
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