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Demystifying the coffee supply chain

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Written by algrano
on August 11, 2020

Algrano is happy to announce the migration from EXW to FCA contract terms as of Monday, August 10th, to provide more cost transparency to our customers. This decision is based on the feedback our customers have given us and is aiming to provide even more price clarity to Algrano users.

What changed? 


Under EXW terms our contracts covered all costs from the country of origin up until the coffee arrives at a warehouse. Additional costs of warehousing rent, releasing the coffee, and financing the coffee during warehousing were  invoiced separately. From now on under the FCA terms we take the responsibility for your coffee for 1 months after it arrives at the warehouse until the first release. 

 

As of now, our contract includes (FCA):

  • All costs from the country of origin up until the coffee is fully released from a warehouse
  • 1 month of warehousing with no extra fee
  • The first release from the warehouse with no extra fee (regardless of the release volume)

Timelines:
  • Shopping carts have already been updated in the platform. All new contracts will be signed under FCA terms
  • All orders submitted before Aug 10th will be executed under EXW terms

FAQs:

Q: Why did you decide to switch from EXW to FCA?

A: This decision is based on the feedback our customers have given us. We believe this solution will give our customers even more clarity on the price. Because every coffee has to go through the warehouse and by including outhousing costs we make transparent pricing even easier. 

Q: What if I don't want any warehousing? I want to release the coffee as soon as the coffee arrives in the warehouse; do I still need to pay 1 month of warehousing?

A: When the coffee first arrives in the warehouse, you are welcome to take samples and book in the deliveries at the best time to suit your business. The warehouse will charge us for the first month, even if the coffee is released the day after it arrives. To put into context, 1 month of warehouse rent is less than $0.03 USD / KG. We now build this into the total price. After 1 month, warehouse rent will be charged for any coffee still in the warehouse so you have full flexibility with your release dates.

Q: Why is only 1 month of warehousing included? What if I know that I want 6 months of warehousing with 6 releases?

A: 1 month is the default. Anything after 1 month, will be charged according to your usage. This gives you full flexibility to release coffee whenever you like.

 

 

Go to the platform to see the updated terms and browse new amazing coffees.

Rwanda

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