{"id":26524,"date":"2026-09-16T10:38:01","date_gmt":"2026-09-16T03:38:01","guid":{"rendered":"https:\/\/coffiona.vn\/xay-dung-danh-muc-san-pham-cho-dai-ly-ca-phe\/"},"modified":"2026-09-29T13:54:08","modified_gmt":"2026-09-29T06:54:08","slug":"xay-dung-danh-muc-san-pham-cho-dai-ly-ca-phe","status":"publish","type":"page","link":"https:\/\/coffiona.vn\/en\/xay-dung-danh-muc-san-pham-cho-dai-ly-ca-phe\/","title":{"rendered":"Building a Product Portfolio for Coffee Dealers"},"content":{"rendered":"
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A coffee distributor’s product catalog isn’t a copy of a supplier’s price list. You don’t sell everything they have; you only keep in stock the product codes that your area actually buys consistently. Stocking too many codes means money is tied up in inventory and stock nearing its expiration date piles up; stocking too few means losing orders because customers have to find another supplier. This article guides you on how to choose a product mix based on regional demand, determine the optimal number of product codes, perform ABC analysis, and know when to cut a product code.<\/p><\/blockquote>\n

1. Where to Start with a Coffee Distributor Product Catalog?<\/h2>\n

The starting point isn’t the price list, but the customer map around your warehouse. List each group and estimate the volume: traditional coffee shops that use filter coffee often prefer a strong taste, buy by the kilogram, and purchase regularly every week; espresso shops need a consistent espresso supply across batches and are concerned about roasting dates; takeaway and bubble tea shops use coffee as a base for blended drinks, so they prefer a distinctly bitter, reasonably priced variety; grocery stores and mini-supermarkets need small packages with complete labels and long expiration dates; offices and factories buy filter coffee or instant coffee in boxes. The practical approach is to record all the questions you receive in the first two weeks, including those for items you don’t stock, because that’s what the market is telling you. A product catalog built from this data is always more accurate than one built on intuition or supplier advice.<\/p>\n

\"Building
Building a Product Portfolio for Coffee Dealers<\/figcaption><\/figure>\n

2. Conduct a Survey of Regional Demand Before Finalizing Product Codes<\/h3>\n

Before investing in your first batch, spend a week surveying at least 30 retail outlets within your intended service radius. For each outlet, ask five concise questions: how many kilograms do they consume per month, what flavor profile do they use and how are they prepared, what is their current price per kilogram, what packaging is most convenient for them, and what is their biggest complaint about their current supplier? The last question usually yields the most valuable information as it points to areas where you can fill a gap, such as slow delivery, inconsistent batch quality, or a lack of return policy for defective goods. After the survey, calculate the total production volume for each flavor profile and packaging; for groups accounting for less than 5% of total demand, temporarily withhold your order and record the data. This method ensures your first batch is based on actual market demand instead of requiring you to spend your own money searching for suppliers.<\/p>\n

3. Product Group Structure by Role in the Catalog<\/h3>\n

A healthy product portfolio always has four distinct roles. The lead group consists of popular, competitively priced, well-known items used to open the door and maintain customer traffic; this group should account for approximately 35\u201340% of sales but has thin margins. The main revenue group comprises mid-range items that customers consistently buy, accounting for about 30% of sales with moderate margins; this forms the backbone of the cash flow. The high-margin group includes specialty items, custom roasts tailored to the cafe’s taste, or gift sets, accounting for only about 20% of sales but potentially contributing the majority of profits. The defensive group accounts for the remainder, including items you keep simply to prevent customers from buying elsewhere, such as sugar, cream powder, or paper cups. Importantly, each item in the inventory must belong to a specific role; any item whose role you can’t define is almost certainly one that needs to be discontinued.<\/p>\n

4. Balancing Fast-Selling Items and High-Profit Margin Items<\/h3>\n

Many retailers are stuck because their product catalogs consist only of best-selling items: their carts are always full, sales are good, but by the end of the month, there’s almost nothing left. Conversely, a catalog of only high-margin products sells very slowly because customers are unfamiliar with them and the prices exceed the usual price range in the area. The solution is to combine both groups into a single order. When delivering a standard product to a restaurant, include a 250g sample of the high-margin product and ask the owner to try it out for a week to sell to a group of customers who stay longer. Set a specific goal: increase the proportion of high-margin products by one to two percentage points in total revenue each month. A simple way to track this is to calculate the average gross margin of the entire order instead of looking at each product individually, because an order with a product that leads customers with an 8% margin and another product with a 30% margin will still perform significantly better than an order consisting only of standard products.<\/p>\n

5. Choose the Packaging Standard for the Restaurant and for Retail Customers<\/h2>\n

Incorrect packaging can ruin a good product. Coffee shops that use filter or espresso machines usually buy in 500g or 1kg bags for convenient measurement and less waste when opening; 5kg bags are only suitable for shops using over 20kg per month, while for smaller shops, the coffee will lose its aroma before it’s finished. Retailers in grocery stores need 100g to 250g packages with complete labels and a long expiry date for shop owners to display with peace of mind. Offices and online retailers prefer filter bags, instant coffee in boxes, or 250g bags with a one-way valve. The principle is that each preference should have a maximum of two packaging sizes in the initial stage, as each size creates a separate inventory item. Ask the supplier directly about the minimum order quantity for each size to avoid having to buy an entire carton just to serve a single customer.<\/p>\n

6. Optimal Number of SKUs to Avoid Tying Up Inventory<\/h3>\n

The number of product codes should be determined by your budget, not your desired inventory. The simple formula is: divide your inventory budget by the minimum inventory value for each product code. If you have 120 million VND for inventory and each product code requires approximately 6 million VND to sell within a cycle, you should only have around 20 product codes. Importing 40 product codes with the same budget means every product code will be in short supply, and you’ll constantly run out of stock just when customers need it. In the initial phase, 15-25 product codes is a reasonable range for a dealership serving a district or county. Set a minimum threshold for each product code; for example, each code must achieve a minimum of 3% of total sales or sell to at least five different customers in a quarter. Product codes that don’t meet the threshold will be placed on a watchlist, not automatically kept in inventory just because you like them.<\/p>\n

7. ABC Analysis for Dealer Product Portfolio<\/h3>\n

ABC analysis is the quickest way to uncover the truth about your portfolio. Here’s how: export the last 90 days’ revenue for each stock, sort in descending order, and calculate cumulative revenue as a percentage. Group A consists of the top-performing stocks, accounting for approximately 70-80% of revenue, but usually only about 20% of the total. Group B includes the next stocks, reaching around 95%. Group C is the remaining group, often numerous but contributing insignificantly. The approach to each group must differ: Group A stocks must never run out of stock; maintain a higher safety margin and check inventory weekly; Group B stocks should be maintained at a normal level, and this is also where you can find candidates to upgrade to Group A; Group C stocks require careful scrutiny as they mostly represent “dead money.” Create an ABC table based on gross profit instead of revenue; you’ll often find some stocks with low sales but that sustain the entire month.<\/p>\n

8. Combine ABC with Demand Stability to Set Inventory<\/h3>\n

ABC indicates which codes are important, but doesn’t specify which are easy to forecast. Assign a letter to each code based on the level of production fluctuation between months: X represents consistent demand with small variations between months; Y represents clear seasonality, such as a sharp increase in gift items at the end of the year; Z represents erratic demand, dependent on a few large customers. Combining these two approaches gives you a very clear inventory policy. Code AX represents items that require regular, fixed-schedule orders with ample safe stock. Code AZ, while important, is difficult to predict, so it’s best to place orders based on confirmed orders or pre-agreed delivery schedules with large customers. Code CZ should almost always be placed on a custom order basis, without holding inventory. This two-way classification helps reduce capital tied up in inventory while maintaining a high order fulfillment rate.<\/p>\n

9. When to Add New Code and When to Delete Dead Code<\/h2>\n

Set criteria beforehand to avoid making decisions based on emotions. A product should be phased out if it meets the following criteria within 90 days: sales below your set threshold, inventory exceeding 120 days, only one or two customers, and a gross margin lower than the portfolio average. When phasing out a product, don’t discard it immediately; gradually sell it off through bundled sales or exchanges with the supplier if the contract allows. Conversely, a new product is worth adding when there are at least five customer inquiries per month, or a large customer commits to sufficient volume to cover inventory costs. The best operating principle is to add one, cut one: each time a new product is introduced, remove one product from the C category. This keeps the number of products and inventory under control instead of ballooning with each new product release from a supplier.<\/p>\n

10. Catalog Review Schedule and Immediate Tasks<\/h3>\n

The portfolio isn’t a one-time thing to do and then leave it. Set two fixed review cycles. The monthly cycle is for quick checks: which items are out of stock causing you to lose orders, which items are nearing their expiration date (less than one-third of their lifecycle), and which items have new customer inquiries. The quarterly cycle is for completely redoing the ABC table based on both revenue and gross profit, comparing it with the customer list to see if any major customers are disrupting the portfolio structure. The tasks you should complete this week involve three steps. Step one: Export 90 days of sales data and create the ABC table using a spreadsheet. Step two: Assign roles to each item according to the four groups mentioned and highlight in red any items without a clear role. Step three: Select the three weakest items to plan a liquidation sale and choose two promising items to sample for a trial offer next month.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A coffee distributor’s product catalog isn’t a copy of a supplier’s price list. 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