About Lavazza

Luigi Lavazza S.p.A. is an Italian manufacturer of coffee products. Founded in Turin in 1895 by Luigi Lavazza, it was initially run from a small grocery store at Via San Tommaso 10. The business of Lavazza S.p.A. is currently administered by the third and fourth generations of the Lavazza family.

Luigi Lavazza S.p.A., the Italian coffee major entered India by acquiring Fresh & Honest Café Limited, India’s leading coffee, vending and retailing, company in 2007. Fresh and Honest Café Ltd is a 100% subsidiary of Lavazza, which is one of the leading Coffee company in India operating in away from home channels – HoReCa, Corporate Offices, Vending and has significant presence in the premium modern trade space. In the home segment, it offers Qualità Rossa, Crema E Gusto, Club, and Caffè Espresso.

Lavazza’s current business model was selling and renting coffee vending machines. This led to :

  • Reduced revenue
  • Revenue leakage due to spare part sales
  • Lack of visibility for management to determine which product sells where.
  • Low drag coefficient.

Customer Story

Transition to coffee-as-a-service business model

SOLUTION COMPONENTS

Oracle Engagement Cloud

Lavazza chose Oracle Engagement Cloud to track coffee vending machine assets, monitor spare parts consumption, engage field service engineers effectively. Spare parts consumption was down by 45% after going live on Oracle Engagement Cloud due to better management of spares.

Implementation Services

Spectrum7’s consultants advised Lavazza on their movement to selling coffee as a service. With custom IoT design, the legacy coffee vending machines of Lavazza were retrofitted to become “smart”. Further, Spectrum7 integrated their ERP, IoT as well as Oracle Engagement Cloud to provide a single dashboard reflecting key relevant indices.

SpecIoT

With Spectrum7’s IoT platform, Lavazza was able to retro-fit older machines with state of the art touchscreen and sensors. This allowed Lavazza to determine the beverage that was being consumed across the country. Further, the IoT device had the capability to raise service tickets when the machine underwent any failure. This was key in Lavazza’s new business model in ensuring that the assets are near zero downtime.

Analytics

With predictive analytics, Lavazza was able to determine coffee consumption across the country based on historic data. Armed with this input, operations could plan more effectively. Further, components failure for the asset were also predicted, thereby increasing asset life and reducing maintenance.