Oughtred Coffee and Tea Ltd. Case Study

1. List 5 major steps in the supply chain process that Oughtred undertakes when it acquires raw unroasted beans to the eventual delivery of the finished product at this Oughtred warehouse?

1. Partnerships – With United States sources, 2% Jazz, ethical and sustainable farms in Columbia, Ethiopia, Brazil, Central America
2. Transportation – Gets to the warehouse and to clients in a timely manner using freight trucks predominately, boat/ferry and air if necessary.
3. Forecast/Demand – Purchase green beans during the low time/season for maximum profit, seasonal crop timing
4. Production – Roasting plant located in Delta, BC
5. Distribution – Centers located in Nanaimo and Delta, BC

2. With which companies does Oughtred compete? On what criteria do they compete with them? Price, Quality, Variety, Timeliness, Service, Others?

Oughtred Coffee and Tea Ltd. competes with:

• Bows and Arrow Coffee Roasters, Discovery Coffee, Red Barn Market

Larger competing outfits:

• Nabob (Coffee and Tea), Folgers, Starbucks, Tim Hortons

Note: Essentially any company or outfit that handles coffee is a competitor in this near saturated market. In the Douglas Magazine, an article states there are about 52 coffee shops in downtown core alone, that is equivalent to 1 coffee shop per block. This statistic gives a sense of how much coffee Victoria goes through!

Competing Criteria:
Price:  Is always without a doubt setting the ideal price determines whether it attracts clients and keeps them as loyal buyers.

Quality: Is a top priority for Oughtred in terms of freshness and high-grade to meet clients/ customer’s demands. Their associates travel to the coffee/ tea farms across the globe to sample and ensure the expectations are met at the source while being sustainable.

Variety: Carry a wide range of products from seasonal coffee beans, specialty coffee/generic coffee, teas, syrups, coffee/tea equipment.

Timeliness: Reliability is essential in any business but Oughtred will work into the wee hours of the night, extend working hours/days and do whatever it takes to get the product/equipment to the client/customers.

Service: Belief in old school quality service mixed with the passion of coffee culture. Provides direct walk in accessibility, 24 hours round the clock service, they are the only wholesaler that still provides the complete customer experience.

Others: Oughtred delivers above and beyond what is promised, they are the only outfit that still provide the full customer experience. Anyone can walk in and a representative will explain everything from coffee beans, tea, equipment use, sourcing and anything that helps inform a client/customer. This in turn shows transparency and builds a trust relationship with the company.

I agree with the factors they are using, in order to compete in this market, they must go above and beyond to ensure repeat clientele basis.

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