Supply Chain Deep Dive

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 Contents
What is Aromato SmartBrew?

SmartBrew manufacturing and distribution process

Competitor manufacturing information

Our supplier options

Our distribution options

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 What is Aromato SmartBrew?

Specifications
Size Top diameter 8cm
SmartBrew allows consumers to have all of their Bottom diameter 8cm
favourite Aromato coffees anytime, anywhere. Height 26cm
Capacity 500ml
Weight 0.68kg
Colour options Black, Red, Purple, Green
Once the coffee is brewed, the SmartBrew keeps
Maximum capsules 3
coffee warm for up to 12 hours, in its self-contained Price £49.99
100% leak proof and BPA free travel mug. Battery life 10 cups of coffee
Charge time 1 hour

Purchase Options Price

1 SmartBrew on-the-go £49.99
It is an on-the-go travel cup in which three Aromato coffee travel cup
capsules can be stored inside. At any time of the day, the
2 SmartBrew with 20 £65.99
consumer can select which of the three coffees they would standard Aromato coffee 20x
like at that given moment and enjoy a delicious, high-quality capsules

coffee at a simple press of a button. 3 SmartBrew with 50 £79.99

Aromato coffee capsules
of your choice
50x

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SmartBrew Manufacturing and Distribution Process

For the initial launch, SmartBrew will be manufactured by an

external supplier and distributed globally.

Providing the initial launch is a success, we will then look to bring

SmartBrew is the operations in-house over the next two years, so that
SmartBrew is sold
External supplier then distributed SmartBrew will be produced on-site at one of our Aromato
online and in-store
manufactures to our regional depots across our global
production plants.
SmartBrew across the global market
market

The end-to-end process will need to be as

sustainable and streamlined as possible.

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 Competitor Manufacturing Information
Competitor Product Manufacturing Issues Figures

Cuppino launched the ‘Warm Cup’
six months ago. The Warm Cup
Cuppino allows consumers to set the
temperature of the cup and keep
their coffee warm whilst on the go.
The ‘Warm Cup’ is manufactured in China
and is made through a simple semi-
automated manufacturing process. The
final product is then shipped worldwide.
The Warm Cup is manufactured
using non-sustainable materials.
Cuppino customers have
expressed concern following the
lack of social responsibility shown
by the organisation.
Time to production: 23
days
Price (500+ units): £16
Retail Price: £72

Royal Café is a medium-sized
European-based business who sell
‘Royal Café-on-the-go’, a thermal
cup that complements their Royal
Café machines. The cup attaches to
your home machine and makes your
Royal Café
coffee whilst you are busy. The cup
can then be transported around, on
the go with the consumer.
‘Royal Café-on-the-go’ is manufactured in
Amsterdam, Netherlands, and then
distributed across Europe. Royal Café have
partnered with a technology specialist to
ensure compatibility of the cup with the
machine.
The Royal Café cup has seen issues Time to production: 16
with supply and demand. As the days
product picked up, the demand
outgrew the manufacturer’s Price (500+ units): £8
capacity. This has impacted Royal Retail Price: £32
Café’s reputation amongst
consumers.

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Competitor Manufacturing Information
Competitor Product Manufacturing Issues Figures

Neucafe is an American-based company Neucafe Cup is produced by a Neucafe have experienced some Time to production:
specialising in unique coffee flavours for the small-scale manufacturer who issues with production time, 38 days
vegan market. Their ‘Neucafe Cup’ is a plastic specialise in sustainable which is significantly slower than
Neucafe cup with thermal properties, sourced from 100% products. The manufacturer the estimated production time, Price (500+ units):
recycled materials. The Neucafe cup has an also plants one tree for every leading to increased waiting time £4.80
inbuilt filter system, where consumers insert £5,000 it makes. for consumers. Retail Price: £20
coffee bags into the top.

Caffeinated have experienced Time to production:

some issues with the technology 26 days
Caffeinated’s ‘Filter Flask’ is a technologically- ‘The Filter Flask’ is malfunctioning in both the
enabled thermos flask. It has an inbuilt filter, so manufactured by technology manufacturing process and the Price (500+ units):
Caffeinated all consumers need to do is insert their filter specialists, ensuring quality products themselves, despite the £11
coffee into the top and press go, with the added assurance to their customers. top of the range quality
advantage of being able to set the temperature. Retail Price: £46
assurance and artificial
intelligence used.

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Supplier Options
Urban England
Overview How they would propose to manufacture this Timeline
product
Founded in 2001, Urban England is located in London, Process Time (per 200 units)
UK. It is a small and local supplier for many consumer 1. Import all materials to their warehouse from Receive Materials 4 weeks
goods businesses in the UK. Although based in the UK, competitive overseas providers. Assembly Process 3 days
the size of the business means that the majority of 2. Ensure the best prices on imported materials. Packaging 2 days
materials are imported from overseas and partnerships 3. Fast turn around from receiving materials to final Total 33 days
with other suppliers are often needed to ensure a product.
sufficient supply chain. Price
Units Assembly cost (per unit)
Manufacturing Process Customer Reviews 0-200 £20
Urban England pride themselves on manufacturing “Urban England are fantastic, we have been trusting 200-500 £18
products in the UK. SmartBrew would be manufactured them to manufacture our products since they 500 + £15.70
using a combination of manual and automated opened and have never had any issues.”
assembly lines. Urban England haven’t updated their Customers
manufacturing equipment in the last four years. “We have frequently experienced supplier issues
Other
However, they are considering the consolidation of with Urban England, ensuring that all materials
warehouses to improve the efficiency of their reach the UK at the same time is difficult, and
Global FMCG
operations. They also don’t have the packaging sometimes can take up to 10 weeks.”
equipment we require and so this would have to be UK FMCG
outsourced to one of their partners.
Start Up FMCG
Supplier Cost Speed Sustainability Reliability
0% 20% 40% 60%
Urban England

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Eco-Assemble
Overview How they would propose to manufacture this Timeline
product
Founded in 1990, Eco-Assemble is based in Brazil. They Process Time (per 200 units)
pride themselves on being a sustainable assembly 1. Self contain the assembly of the final product. Receive Materials 2 weeks
point for world changing FMCG products. They allow Assembly Process 2 days
materials to be imported, however, always endeavour 2. Product made from at least 50% recycled material. Packaging 0.5 days
to ensure at least 50% of a product/packaging is from Total 16.5 days
recycled or locally sourced materials. This is in an 3. Packaging is 100% recycled material.
attempt to minimise the carbon footprint of the Price
product. They also use a clear Forecast Accuracy target,
Units Assembly cost (per unit)
constant production wheel reviews, and stock policy
Customer Reviews 0-200 £21
updates to continually work towards a more efficient
process. “Eco-Assemble are the best supplier we’ve found, 200-500 £20
they make sure that our product is made from 500 + £18.90
Manufacturing Process 100% recycled material.”
Eco-Assemble use an efficient semi-automated Customers
process. They have recently upgraded their machinery “Eco-Assemble not only work to manufacture our
to include some of the latest technologies in product on time, but they work in partnership with Other
manufacturing such as artificial intelligence and us to ensure our carbon footprint is as low as
machine learning, which has reduced overall possible, they’re a supplier that really care.” Global FMCG
production time by 12%. UK FMCG
Start Up FMCG
Supplier Cost Speed Sustainability Reliability
0% 20% 40% 60%
Eco-Assemble

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Robotiics
Overview How they would propose to manufacture this Timeline
product
Founded in 1989, Robotiics are based in Tokyo, Japan, Process Time (per 200 units)
and pride themselves on being at the forefront of 1. Use leading technology to produce the product. Receive Materials 3 weeks
technology in the manufacturing world; and specialise Assembly Process 0.5 days
in global FMCG. Their aim is to supply smart, which 2. Use imported materials desired by the client. Packaging 0.5 days
means they use leading technologies to make Total 22 days
efficiencies that will reduce the production time of 3. Can produce at late notice by using advanced
products. technology. Price
4. Use crowdshipping approach for last-mile delivery. Units Assembly cost (per unit)
Manufacturing Process
0-200 £30
Robotiics use a stripped back manufacturing process 200-500 £29
that utilises technology to its full potential. They have Customer Reviews 500 + £26.50
brand new equipment that is highly reliable and will
“Robotiics are brilliant, the technology they use is the
endeavour to use AI and machine learning, along with
best on the market, meaning that the time-to-product Customers
the newest 3D printing technology to ensure a speedy
completion is extremely quick.”
manufacturing process.
Other
“Robotiics are significantly more expensive because of
the technology involved, and sometimes we have faced Global FMCG
delays due to some malfunctions in the technology UK FMCG
used.”
Start Up FMCG
Supplier Cost Speed Sustainability Reliability
0% 20% 40% 60% 80%
Robotiics

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Refinement
Overview How they would propose to manufacture this Timeline
product
Founded in 2006, Refinement are located in Shanghai, Process Time (per 200 units)
China. They pride themselves on their quality 1. Use leading technology in quality assurance. Receive Materials 3 weeks
assurance standards, and ensure quality at every stage Assembly Process 1 day
of the manufacturing process. They believe this is key 2. Deliver an efficient and single manufacturing Packaging 0.5 days
to both client and FMCG customer satisfaction. process from product to packaging. Total 22.5 days

3. Use imported materials desired by the client. Price

4. Use 3PL provider to hold/deliver finished goods. Units Assembly cost (per unit)
Manufacturing Process
0-200 £25.50
Refinement use a semi-automated production system, 200-500 £22.40
with built-in quality assurance measures at each Customer Reviews 500 + £20.00
individual stage. The process ensures that the number
“We switched to Refinement one year ago, and since
of damaged goods are minimal. Since implementing
we’ve seen our damaged goods decrease significantly, Customers
their new QA technology two years ago, they’ve seen
and with the use of technology, the end-to-end process
the incidents of damaged goods decrease by almost
is still quite speedy.” Other
50%.
“You pay for quality, and although Refinement is slightly Global FMCG
more expensive than some other manufacturers, we’ve
UK FMCG
found it’s worth it to maintain our reputation.”
Start Up FMCG
Supplier Cost Speed Sustainability Reliability
0% 20% 40% 60% 80%
Refinement

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Distribution Options
Average supplier Average supplier Supplier distance from
Supplier Air Cargo per 5000 Shipping per 5000 units
Aromato Regional Depot lead time through Air lead time through Aromato regional depot
Name units (cost per mile) (cost per mile)
Considerations:
Cargo Shipping (miles)
North and Central America 23 days 37 days 4,255
Europe 21 days 35 days 1,432
Different suppliers have
Middle East 26 days 40 days 6,972 partnerships with different
Urban
Africa 24 days 38 days 5,292 £0.13 £0.06 distributors, which vary on several
England
South America 28 days 42 days 8,156 parameters. We will need to take
Asia-Pacific 29 days 43 days 4,842 this into consideration when
Oceania 31 days 45 days 2,723 considering how the product will be
transported from the manufacturer
North and Central America 15 days 19 days 4,554 to the regional depots.
Europe 16 days 20 days 4,875
Eco- Middle East 17 days 21 days 6,293 For the launch, there will need to be
Assemble Africa 17 days 21 days 200 £0.16 £0.08 50,000 units sent to each of our
South America 14 days 18 days 4,829 seven regional depots.
Asia-Pacific 16 days 20 days 10,237
Oceania 18 days 22 days 6,956

North and Central America 22 days 26 days 5,146

Europe 23 days 27 days 6,613 Maximum load per journey:
Middle East 26 days 30 days 5,979
Robotiics Africa 25 days 29 days 6,281 £0.09 £0.07 Shipping: 87,500 units
South America 24 days 28 days 8,748
Asia-Pacific 18 days 22 days 1,892 Air Cargo: 175,000 units
Oceania 19 days 23 days 5,340
CO2 Emissions (average per 3,000
North and Central America 22 days 26 days 7,230 miles):
Europe 23 days 27 days 5,457 Shipping: 300kg CO2e
Middle East 25 days 29 days 4,220
Refinement Africa 24 days 28 days 10,164 £0.10 £0.09 Air Cargo: 750kg CO2e
South America 24 days 28 days 6,978
Asia-Pacific 18 days 22 days 700
Oceania 18 days 22 days 3,557

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BAT Property – Confidential – For internal use only.