Complex Coffee

I came across this youtube video for Baileys Coffee and I started to wonder, do Baileys actually make any money out of it?

How much does the extra complexity cost them.

First there is the product complexity: extra labels, different flavours, extra SKU’s…
Secondly there is process complexity: change overs, work arounds, reduced forecast accuracy…
Finally there is organisational complexity: extra brand managers, coffee buyers, business groups…

And all of those issues interact, the new brand manager won’t forecast accurately so they run out of labels.

As they have Original, Crème Caramel, Mint Chocolate and Coffee flavours the cost maths isn’t 4+4+4 = 12; it is 4x4x4 = 64.

Mind you, the bottle I got for Christmas still tastes great.

Speak Your Mind