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TradeLens: Solving complex difficulties with a lean platform – INSIDE NKG | MAG
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TradeLens: Solving complex difficulties with a lean platform

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TradeLens: Solving complex difficulties with a lean platform

Even before the Covid-19 crisis aggravated the existing problems in logistics, NKG Board of Management decided on a remarkable project: the start of the digitization of several steps of the coffee supply chain. With support from ICL (Internationale Commodity Logistik), the implementation of the platform TradeLens has been initiated. TradeLens offers the realization of transparency about where to find the coffee at each moment and enables digital document and data handling.

Imagine huge amounts of paper being used and thrown away, people manually documenting data from Hamburg to Honduras and couriers delivering documents all around the globe causing delays and high costs. Somewhere in between you find Kay Lohse, Managing Director ICL (or any other person working in coffee supply chain management), thinking that in our digital era there has to be an easier way to find out where his coffee is.
Even before the pandemic, there were several problems interfering with the supply chain, for example weather conditions, political issues, absent vessels and congested ports.

“Where is my coffee?” – An easy question difficult to answer

When in 2020 the pandemic changed not only our everyday life but also the global economy, 20 % of the demand shifted from the first half of the year to the second half. The shipping lines did not have enough vessels and containers and could not fulfill these high demands. Destination ports were congested, creating even longer waiting times. In addition to these issues, global political and weather-related disturbances negatively affected the circumstances with, for example, Trump and his decisions regarding trade and taxes, the Brexit in Great Britain, or the hurricanes in Honduras. The results were over all increasing supply chain related costs and tremendous delays. Many of these problems have the same background: different participants use different IT-systems and lack a standardization of communication. Through analogue document and data handling, there is no possible visibility of the transport events, and the data flow is hugely inefficient. “The pandemic aggravated the existing problems, pushed digitalization forward massively and showed us once more that there is the need for a consistent digital solution for all participants involved in the coffee supply chain,” describes Lohse, “to be informed about every step of the coffee journey, to take advantage of digitalization and thus manage the coffee supply chain proactively is more important than ever before.”

Finding a digital solution for analogue problems

In 2019, ICL started testing the platform TradeLens, a software tool invented by IBM and Maersk Line, one of the most important players in shipping. TradeLens combines state-of-the-art technologies, like blockchain for best possible data security, with practical functionality. The platform offers two important approaches to tackle some of the main pain points in the coffee supply chain: Firstly, it facilitates the tracking of every transport event from every stakeholder involved in the coffee supply chain transparently. Secondly, TradeLens enables digital document and data handling and thus supports the digitization of the many steps of the supply chain. Every party involved will be connected to one platform and will benefit from the information, data, and documents available.

In this short Video, Kay Lohse from ICL (Internationale Commodity Logistic) shows an exemplary shipment from Uganda to Poland visible via TradeLens.

Past preparations and future possibilities

For about 18 months, ICL validated many different cases with TradeLens, and it was easy to get the first partners involved. The implementation and onboarding are already completed with Becamo, NKG Stockler, Bernhard Rothfos, Ibero Uganda, Berindo Jaya, Neumann Gruppe Vietnam, and Bero Coffee Singapore. Although it, of course, is a bit of effort to connect to the platform, the companies were convinced that the advantages for every stakeholder outweigh by far. At the moment, ICL is putting a workshop together to roll out TradeLens in the whole NKG. The workshop will not be designed for new participants only but also for everyone working with TradeLens in the past months. The first impressions and feedback will be used to further develop the platform iteratively and customize it further to NKG’s needs. “Thanks to real-time information, we will be able to proactively manage the supply chain,” Lohse is convinced. “Through this, we will improve services for customers and facilitate every stakeholder to enhance their supply chain flexibility and reliability. Besides, TradeLens offers even more opportunities for future projects. Transparency gains more and more importance and is, for example, the basis for calculating the carbon footprint of our whole coffee supply chain. So, there are many more exciting topics to come.”

Picture of Julia Wichert

Julia Wichert

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