Following are the global challenges coffee rome faces

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Following are the Global challenges Coffee Rome faces in the supply chain: The first and foremost is the climate change. Coffee as one of the agricultural products fell victim to the climate change impacts. Disproportional high attitude rains, extreme temperatures, and severe hurricanes have enabled high-cost pests, and diseases onslaught that directly impacts the coffee farms as well as the coffee yields. Logistics is the largest global challenge that faces Coffee Rome. Logistically issues of this firm are only the starting point. The uncertainty especially when working with numerous suppliers across the world is endless.
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AEC Consulting Pty Ltd The One International College Suite 2C, Level 1, 1C Grand Ave, Camellia NSW 2142 P: 1800-THE-ONE (843-663) E: [email protected] Version: v2.0/April 2019 RTO No. 22270 CRICOS Provider No. 03091A Page 36 of 53 BSBRES801 Initiate and lead applied research Another challenge that the company faced is the rising prices of the coffee beans. This has been partly resulted by the increasing demand for the coffee beans. The Coffee Rome margins are affected by prices hike of the coffee beans and the shortage in supply. Supply chain risks that the Coffee Rome faces Company identified the following major risks to coffee supply chain: Production risks o Drought o Pest and disease outbreaks o Erratic rainfall Market risks o Coffee price volatility risk o Steep and prolonged price fall o input price volatility o Counterparty risk o Exchange rate & Interest rate volatility Enabling environment risks o Reputational risk o Theft Considering the challenges and the risks that the company faces, the management has decided to change its strategic direction and develop strategies to introduce change in Coffee Rome’s global supply-chain management with the view on cost reduction by developing a Sustainable coffee supply chain management. Main factors that need to be focused upon to build up a sustainable supply chain network: A centralised system to manage its logistics networks and its supply chain across the continents. Digital technologies to be used to ensure the Coffee Rome supply chain is efficient and that the company can cope with the high-quality growing demand globally. Monitor the demand in real-time. Production, distribution, and schedules by doing so may be modified and developed in the time of need giving the supply chain of the company an added flexibility and allows Coffee Rome to address with agility peaks in demand. Supply chain management: This pays attention on the innovation of supply chain and logistics management to reduce energy consumption and control the pollution levels from the transportation and production process.
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  • Fall '15
  • RTO, AEC Consulting Pty Ltd, One International College

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