White Coffee is a wholesale coffee importer, roaster, and distributor. They purchase and blend coffees for the high-end food service and retail trades throughout the US.
”Upgrading our system was a critical task, and the grant funds were a great assistance in helping us reach our goals. Our upgrade is fully functional and already achieving significant hard and soft cost savings.
Jonathan WhiteEVP
Situation
Prior to embarking on this project, White Coffee faced various operational challenges as result of a near obsolete IT system infrastructure. Specifically, there were challenges with limited system memory and system speed, which caused a loss of critical data and company-wide delays in retrieving and inputting information.
In addition, aging software could no longer be updated, which restricted White Coffee’s ability to leverage technology that would help their company to grow. Overall, White Coffee risked potential catastrophic system failure, in the event of a loss of functionality, without ease of upgrade.
Solution
White Coffee applied for a Futureworks NYC Ops21 grant, partially funded by the New York City Economic Development Corporation. With this grant, they were able to upgrade their IT system infrastructure, hardware and software.
This new system installation (cabling, switches, routers, and servers) increased the speed and capacity of their entire network. In addition, this hardware has allowed them to install up-to-date software (ERP, manufacturing, customer service, web server, and roasting software), which can be incrementally updated for many years to come.
Results
These IT system updates reduced White Coffee’s operational costs by an estimated $77k per month. Improved inventory management helped to reduce finished goods inventory by 19% and WIP inventory by 37%, freeing up crucial warehouse space. This new technology also lowered the need for overtime by 85% with increased machine utilization.
The company enjoyed an estimated 10-15% increase in sales thanks to new capabilities from updates to the customer ordering portal and web server. They were also able to create a new “route sales” functionality, allowing same day order and delivery capabilities, which not only reduces distribution costs but also increases customer satisfaction – at no cost to White Coffee. The new IT system can be updated for many years to come, delivering additional long term opportunities.
Ops21 is a multi-faceted program designed to help NYC manufacturers learn about and adopt advanced technologies, specifically advanced materials, robotics, and digital manufacturing. It is part of the greater Futureworks NYC initiative, which aims to help manufacturers embrace advanced technologies and increase local production.
Ops21 Grant funds are generously provided via the Futureworks NYC Ops21 program, which is funded by the New York City Economic Development Corporation (NYCEDC) and led by the New York City Industrial and Technology Assistance Corporation (ITAC).
ITAC can help you locate, apply for and receive funding for a variety of projects. Contact us today to learn how you can qualify!
