SCOR model improves coffee company's efficiency

PUBLISHED : Tuesday, 10 November, 2009, 12:00am
UPDATED : Tuesday, 10 November, 2009, 12:00am

In terms of the diversity of its logistics needs, Tsit Wing Coffee is probably typical of many small and medium-sized enterprises operating in Hong Kong.

The company imports coffee beans from South America and Vietnam, tea from the mainland and Sri Lanka, and evaporated milk from Taiwan and Malaysia.

It exports some roasted beans to countries including Canada and Singapore. It has its own warehouse in Hong Kong and a fleet of 15 trucks for local delivery.

Wesley Chan, head of supply chain and technology, has seen the benefits the Supply-Chain Operations Reference (SCOR) model can bring.

'It provided a framework and best practices to improve our operational efficiency,' he said. 'We invited GS1 Hong Kong to advise us on our strengths and weaknesses and could see it made sense to apply the model in our company.'

Citing just a couple of examples, he said that afterwards the same volume of goods was stored in 15 to 18 per cent less storage space - leaving more room for additional products - and the number of stock-keeping units was reduced by roughly 30 per cent.

'We also rerouted trucks to eliminate duplication and are now talking about installing a barcode system in the warehouse to improve product traceability,' Chan said.