Automation and Technological Innovation and Impact on Coffee Supply Chain in the UK Retail

Sector 1

Automation and Technological Innovation and Impact on Coffee Supply Chain in the UK

Retail Sector

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Automation and Technological Innovation and Impact on Coffee Supply Chain in the UK Retail
Sector 2

Project Definition

Automation and technological innovation has continues to differentiate logistics companies

globally (O’Reilly, 2012). This project examines how the coffee retail supply chain industry in

United Kingdom has been impacted on by the technological developments. The research fits into

the context of contemporary Supply Chain and Logistics Management field of study and

practice. Coffee retailers in the UK have to incorporate innovative ways of ensuring that their

supply chain operations meet the expectations of their customers. The graph below shows the

nature of competition in the UK’s coffee retail sector.

Fig. 1: Major Coffee Retailers in the United Kingdom (Statistica, 2017)

Based on the above graph, it is evident that the study of the automation and technological

innovation in the coffee retail sector in the UK market fits contributes to knowledge in the area

of Supply Chain and Logistics Management, given the nature of competition.

General Background

Previous research points out to reasons and effects of automation of operations in the supply

chain operations. In a study by Nair and Raju (2014), supply chain operations in the retail sector

are fast-adopting innovative solutions to previous operational challenges. For example, concept

of warehouse automation serves to reduce time wastage, resource allocations and operational

inefficiencies within warehouses. Similarly, Wang, Mcintosh and Brain (2011) also discovered

that the automation of supply chain operations is progressively taking shape in the field of

logistics.

While focusing on the case of Starbucks, Morai Logistics (2014) pointed out to the fact that

Starbucks uses an innovatively designed centralized supply chain management systems. Despite

having stores across six continents, the coffee retail giant centralizes most of its retail operations

in various markets, including the U.S. and UK markets. The automation of coffee retail supply

chain operations begin from the supplier selection process. The article by Nguyen (2016)

provides useful information on how the selection process is done on a competitive basis through

innovative technologies. Information systems are majorly the tool of communication between

retailers and their suppliers (Welch, Jacobsen, Mercier and Souza, 2014).

Purpose Justification
Automation and Technological Innovation and Impact on Coffee Supply Chain in the UK Retail
Sector 4

This study will benefit modern coffee retailers and students in the Logistics and Supply Chain

Management career line. Information from the study provides relevant up-to-date information

how to develop innovative solutions towards managing supply chain operations.

Guiding Questions

To remain within its scope, the study is guided by four main research questions. Based on these

questions, the research develops major themes that are critically analysed within the context of

the coffee retail supply chain in the UK. The following questions have been adopted.

a) What is the impact of technological innovation and automation of processes on the

operational efficiency in the UK coffee retail sector?

b) Which innovative approaches should coffee retailers adopt to keep their operations

aligned to the unique expectations of their suppliers and customers?

c) What are the costs and benefits of innovative technologies and automation to the coffee

retail sector in the UK?

d) What impact does technology and automation bring to the competitive strength of coffee

retailers in the UK market?

Action Plan

The study will adopt a secondary approach towards providing answers to the questions. A critical

review of literature has been adopted as the most viable technique for the study, given the

availability of previous research on the topic (Saunders, Philip and Adrian, 2012). The table

below summarizes the major steps in the study and the estimated duration.
Automation and Technological Innovation and Impact on Coffee Supply Chain in the UK Retail
Sector 5

Task/Duration Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12
Topic Approval
Generation of Outline
Planning
Identification of
Keywords
Keyword Search
Material Sampling
Development of Themes
Literature Review
Data Analysis
Discussion
Reporting

Contribution

Conducting this study is an eye-opener to me and others in the same career line because it

advocates for the progressive adoption of the latest technology. Studying automation of SCM

operations is a major contribution to the field of logistics because it facilitates for the elimination

of costs and reduction of inefficiencies (Qudrat-Ullah, 2018). The outcome of this study will be a

partial fulfilment for me towards career advancement.

References
Morai Logistics (2014). Case Study: How Starbucks Brews Logistics Success. Available at

https://hal.archives-ouvertes.fr/hal-00594799/document [Accessed on: January 4, 2019]

Nair, P.R. and Raju V. (2014). Overview of Information Technology tools for Supply Chain

Management. New York: State University of New York. Available at

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.362.4524&rep=rep1&type=pdf

[Accessed on: January 4, 2019]

Nguyen, H. (2016). Supplier Selection Process in Café Industry. Available at

https://www.theseus.fi/bitstream/handle/10024/113904/Nguyen_Hoa.pdf?sequence=1 [Accessed

on: January 4, 2019]

O’Reilly, J. (2012). Innovative Warehouse Strategies: Four Walls, Three Takes. Available at

https://www.inboundlogistics.com/cms/article/innovative-warehouse-strategies-four-walls-three-

takes/ [Accessed on: January 4, 2019]

Qudrat-Ullah, H. (2018). Innovative solutions for sustainable supply chains.

Saunders, M., Philip L, and Adrian T. (2012). Research Methods for Business Students. Sixth.

Pearson.

Statistica (2017). Leading coffee shop chains ranked by number of outlets in the United Kingdom

as of December 2016. Statistica. Available at https://www.statista.com/statistics/297863/leading-

coffee-shop-chains-in-the-united-kingdom-uk-store-number/ [Accessed on: January 4, 2019]

Wang, Q., Mcintosh, R. and Brain, M. (2011). A new generation automated warehousing

capability. Available at https://hal.archives-ouvertes.fr/hal-00594799/document [Accessed on:

January 4, 2019]

Welch, D., Jacobsen, R., Mercier, P. and Souza, R. (2014). Warehouse Automation as a Strategic

Catalyst. Available at

https://www.supplychain247.com/article/warehouse_automation_as_a_strategic_catalyst/

forte_industries [Accessed on: January 4, 2019]