KoRo 2 | Updates

By Constantinos Calios

KoRo optimizes the supply chain and prepares the LEH extension

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Public

Dear Companists,

the campaign is still running for a few days and there really isn't much left to achieve the campaign goal. We are totally grateful for all the support and encouragement from the entire company.

This week we would like to explain with you our progress within the supply-chain and the related preparations to place further KoRo products in the LEH.

 

I. Why is a stable supply chain important?

KoRo's business concept is based on skipping trade levels. Achieving this must always be considered at the product level. If we use the standard chain here, it becomes clear why:

 

Manufacturer > Exporter > Agent > Importer > Wholesaler > Dealer > Customer

 

A wholesaler specializes in representing the widest possible range of articles in order to enable a retailer to sell them on smoothly. There are wholesalers who partly act as importers, but partly also buy articles from other importers. As a rule, wholesalers map their own production processes so that dealers with their own labels can purchase all products from them.

The overall goal is to bind the dealer. This leads to the fact that the wholesaler can increase prices at will and one gets as a dealer in dependence of the product assortment. KoRo has historically started like this. With increasing growth, we have expanded our supplier network accordingly and now have over 65 existing suppliers with a total of 2500 potential suppliers. The higher one rises in the trade level, the less suppliers are designed to map wide product ranges or production processes.

The core competence is based on importing a few products - but in large quantities - directly from their origin. Manufacturers usually do not have any such structures. As a result, this means that if a company wants to skip trade levels, it must bring its own structures with it in order to buy in this way.

 

II. How did KoRo set up these structures?

Based on "Kopf schlägt Kapital"(Knowledge is more than capital), we are of the opinion that essential parts of a company, especially in operative business, should be outsourced to professional partner service providers because the service can be implemented much more efficiently than if it had to be built up within the company. KoRo's approach is always identical and is based on 2 questions:

 

1) Can the manufacturer fill the product himself?

-> This is the goal. For example, in the case of dried pineapple or mango. Filling 500 grams or 1 kg is much easier for manufacturers/farmers than displaying small food retail products with a full-surface design. The adaptation of KoRo, the flexibility of packaging type and size, focusing on the product, comes into its own here.

 

2) If no, bottling / production after import

We have already communicated several times in the latest updates, we cooperate with various bottlers across Germany and Europe, which we control via our central ERP system and have all product inventories and workloads in the system in view. The material disposition (containers, cardboard boxes etc.) is also taken over by the fillers, so that we can only focus on the supplier order and the sourcing component.

 

3) Special feature of nut mice

In the case of nut mice, the supply chain is even 3-stage:

 

Raw material ordering > Packaging > Filling

 

The step of the mashing is the most important here, since characteristics such as the degree of roasting and the degree of grinding determine the taste and quality of the nut mashes. We work together with several landlords here and separate the landlords who are responsible for the large containers, other landlords are responsible for the production of the LEH-Sachets.

 

III. supply chain in food retailing and short presentation of sachets

In retail, efficient structures are particularly decisive because errors in logistics or supplychain can lead to the fact that - in order to process the order in accordance with the contract - a price discount must be given to the retailer or increased logistics surcharges can be expected.

This is why we have developed central delivery guidelines with our bottlers and landlords so that sub-processes such as display assembly and production can be carried out directly by them. Sachet production is already in full swing. With sachets, the aim is to make KoRo products accessible to the general public by creating sample sizes. We have decided for the nut muse, because these are not yet available in the LEH in the quality and in the shop belong to the top sellers.

In the following video a few words and a short introduction to show how KoRo products should continue to be placed in the retail trade.

 

 

Many greetings and enjoy the summer!

Kosta



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