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Digital coffee

Coffee logistics has been the bread and butter of the long-standing Vollers company in Bremen for more than 90 years. But digital services such as a digital marketplace and, more recently, a global auction platform and its corresponding interfaces have become increasingly important.

Credits: Vollers
As good as the coffee may be, you would never be able to enjoy it without tailored coffee logistics. Everyone in the Vollers Group in Bremen is well aware of that fact, as the owner-managed company has offered transport and storage services and port and raw materials logistics particularly for speciality coffee, which accounts for a very small fraction of the global harvest, since it was founded in 1932.

But according to Director Christian Vollers, who as the sole owner manages the company with three other directors, logistics now also entails a corresponding digitalisation strategy. Johannes Hartholt, Head of IT with 14 employees, and Anna-Lena Bahr, Head of Marketing, are in charge of implementing this strategy and report directly to the directors. Hartholt and Bahr work closely together to ensure that IT functions seamlessly and continues to develop. Moreover, the digital products focus on customer requirements.

V-Connect, online inventory management

There are already four digital products: V-Hub, V-Connect, V-Auction and V-Interface. It all began with the launch of the V-Connect application in 2019, which allows customers to access inventory online at any time. “The basic idea is to create transparency about the items in stock at all our locations,” explained Bahr. The inventory is updated every ten minutes and synchronised with Vollers’ enterprise resource planning (ERP) system.

“We continue to develop V-Connect with external partners to make more and more order types possible online for our customers,” said Hartholt. When they log in to the web portal, they can purchase the available services online there. A typical example is storing orders, maybe in order to outsource coffee. As the system requests all the relevant information, customers only need to check the order before it enters the coffee logistics company’s ERP system, which is a key benefit. They automatically receive a notification once the item has been picked up.

“None of our competitors in Germany have ever offered that,” emphasised Hartholt. After all, it’s difficult to illustrate the complexity of the Incoterms (the globally standardised terms and conditions of sale and delivery) in the IT process as well. But that is not to say that the company can rest on its laurels. “We need to work hard to maintain our slight advantage,” said the Head of IT.

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The V-Hub trading platform

Then the V-Hub global digital marketplace for green coffee was added to the portfolio in 2021. Vollers acts as a neutral platform operator and is open to both existing customers and companies whose coffee is warehoused by its competitors. The aim is to simplify the purchase and sale of green coffee.

“Coffee producers and traders can create their own shop on our portal. There they can present their raw goods and offer them for sale as well as advertise special offers,” explained the marketing manager. Coffee buyers can search for specific criteria such as flavour, origin and warehouse availability. Automated quotation sheets help launch the business. Customers can also request, customise and order templates on the portal.

“There are currently few online shops in the world of green coffee, which is the main benefit,” said Bahr. For a start, the platform provides lots of transparency in terms of the estimated 1,500 coffee roasters in Germany alone and increases the SEO ranking, which refers to the position in the search results. There are also other network effects for everyone involved, most notably: “The buyers have complete control over the degree to which they use the platform,” she emphasised. For example, prices can be entered and inventory uploaded for buyers who are signed in – but do not have to be.

The V-Interface solution

Introduced in 2022, V-Interface allows business partners to connect their ERP systems and databases with the logistics company’s system. “It can take around six months to set up an interface, as the solutions of different providers such as SAP, Microsoft and Google are rarely standardised,” reported the IT manager. “One key benefit is a reduction in error rates. Data is exchanged automatically, so there’s no reason to copy information from an email,” explained Hartholt. “But you still have the option to submit orders online via V-Connect,” added Bahr. “It depends on the customer’s level of digitalisation.”

The digital services range from the online marketplace and a customer web portal to the auction platform.

“We continue to develop V-Connect with external partners.”

Johannes Hartholt, Head of IT in the Vollers Group

Facts

Vollers Group

Established: 1932
Area(s) of business: Transport, storage, port and raw materials logistics with a key focus on coffee, cocoa, tea and metals
Locations: Bremen (headquarters) and 13 other locations in Europe
Storage space: 500,000 square metres
Employees: 430 (throughout Europe)

The V-Auction platform for coffee

V-Auction was the last component to join the ranks at the end of last year. The Vollers Group purchased an online auction platform specifically for coffee, machines and fundraising from British supplier Sensible Development, which is currently under protective administration, and renamed it accordingly. As of this year, coffee growers and their co-ops around the world can auction ultra-high-quality speciality coffees here, as they have for decades, but now in virtual form.

But traditional methods are also available. “We also offer hybrid formats,” stated Bahr. It takes the Vollers team around 200 hours to prepare for an auction like this, which then lasts about two hours. The marketing and sales departments support the auctioneers, depending on their needs, with a fee paid for each auction.

The team is already busy expanding the digital products even further. V-Connect is incorporating one port at a time to gradually integrate the estimated time of arrival (ETA). V-Hub and V-Connect could potentially be connected, and V-Hub further developed for the cocoa and tea product groups. After all, one thing is certain for Hartholt: “There’s no future without digitalisation.” (cb)

Vollers specialises in coffee, cocoa, tea and other high-quality raw materials and offers digitally supported logistics solutions.

“We also offer hybrid auction formats.”

Anna-Lena Bahr, Head of Marketing in the Vollers Group

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