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Coffee brand Lavazza invests in supply chain and acquires Mars Drinks

Italian coffee brand Lavazza has invested in new supply chain systems as it looks to better join up its global operations.

The business currently operates in more than 90 countries and employs over 3,000 employees through its subsidiaries and distributors. It runs business segments that include at home, away-from-home and office coffee service (OCS), but as it looks to grow further it has selected a range of solutions from JDA Software.

New supply chain solutions to be stirred in to the coffee brand’s enterprise technology include JDA’s supply planning and sequencing tools. The aim is to unite its system around the world and bring better control of the back end.

Patrizia Tedesco, group CIO at Lavazza, commented: “We look at our business processes in a holistic way as an enabler to support our customers’ satisfaction and organic growth.

“Today, having a flexible and integrated supply chain is a must to achieve these goals and to be competitive.”

Lavazza will deploy JDA in the cloud, using a software-as-service-based supply chain model, with the aim of gaining efficiencies in production, distribution, inventory and procurement.

The investment in JDA capabilities comes in the week Lavazza announced, subject to regulatory approvals and employee consultation, the acquisition of the Mars Drinks business.

Expected to close in December 2018, the deal entails the Flavia and Klix systems and is part of a strategy to continue the Lavazza’s growth in North America and Europe. The move will strengthen Lavazza’s OCS and vending channels, which it said offer considerable opportunities for growth and development.

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