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Coda Coffee and Bext360 Supply Chain Machine Vision AI IoT and Blockchain Case Solution

Solution Id Length Case Author Case Publisher
2712 1460 Words (5 Pages) William E Youngdahl, B. Tom Hunsaker Thunderbird School of Global Management : TB0539
This solution includes: A Word File A Word File

Coda Coffee is incorporated by two brothers in Colorado, the brothers have previously worked for a coffee company, and they were upset about the unethical practices used by these companies, and because of this, the two-brother decided to start their own company. The company focuses on sustainable practices, and the company has always focused on paying fair wages to its farmers and helping the community. The wholesale customers are the major customers for Coda coffee, but now the company has also entered the retail business. The company got into a partnership with Bext360, that allowed the company to work towards sourcing the best quality coffee beans for its customers. The incorporation of AI helps the company to determine the quality of coffee beans, and implementing blockchain gives Coda coffee transparency about its supply chain. The SaaS solution has also provided many benefits, but it comes with certain limitations, and Coda coffee needs to decide whether it should get its own SaaS license to have more control on data. 

Following questions are answered in this case study solution

  1. How does bext360's SaaS solution ensures transparency in the supply chain? What are the key strengths and limitations?

  2. What are the benefits and limitations of Fairtrade certification for Coda?

  3. How can Coda sell the value of their partnership with bext360 to their wholesale and retail customers? (how should they market themselves)

Case Analysis for Coda Coffee and Bext360 Supply Chain Machine Vision AI IoT and Blockchain Case Solution

1. How does bext360's SaaS solution ensures transparency in the supply chain? What are the key strengths and limitations?

The owner of the SaaS License would have to pay 1-2% of the service charge of the price of coffee beans at a wholesale rate in return of using the machine and software. The owner has the right to give permission to the others who are part of the supply chain to view data, and not just that, they will be able to add blocks to the blockchain network. The benefit of SaaS for Coda coffee would be that it will help the customer to see details about how the coffee is sourced, the customer will be able to scan a QR code on the cup of coffee through this, they can see the place from which coffee is sourced, and they can also confirm the by applying sustainable practices the farmer has been paid a premium for its production. Also, the SaaS solution will allow the shipping company to add blocks related to events like origin, destination and information about the lot volume. Incorporating SaaS solutions will allow customizable horizontal permissions to ensure that across the supply chain, there has been visibility regarding data entry, but it gives total transparency to the license owner. Though there are a number of benefits of incorporating SaaS solution but the company needs to beware of its limitations, the Coda coffee is concerned that as the cooperatives will start licensing Bext360 technology, would the company have access to the private data of Coda coffee, which they might require in the future to control data and also for security purpose it essential for Coda coffee to purchase their own SaaS license instead of relying on Bext360, their own license will allow the company to take everything in their control and reduce any sort of risk associated with it. 

2. What are the benefits and limitations of Fairtrade certification for Coda?

The Fairtrade certification has a lot of benefits for Coda Coffee, the certification will help in connecting the producers of coffee beans with end customers, it also promotes fair trading conditions, and it will empower the farmers to fight against poverty, it will help the farmers to make their position strong and take lives in control better than ever before. The Fairtrade certification also helps in empowering the community by encouraging a more equitable trade model that will benefit society as a whole, and it will benefit the workers, consumers, farmers, earth and the industry. Fairtrade certification proves that a company is working for the betterment of the environment and are opting for sustainable development.

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