This website uses cookies to ensure you have the best experience. Learn more

Supply Chain Management Of Starbucks Coffee Company

954 words - 4 pages

Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 63 countries. In 2007 the company was in a need of transformation. Peter Gibbons was hired to manage the supply chain of Starbucks. The company was reorganized and the supply chain has changed dramatically since then (Starbucks, 2012). Here is a diagram showing the supply chain network of Starbucks in 2014:

...view middle of the document...

Components of the supply chain
Starbucks has commitment to sell only the finest coffees and coffee beverages. To ensure compliance with their coffee standards, they control coffee purchasing, roasting and packaging, and the global distribution of coffee used ...view middle of the document...


Starbucks Supply Chain Objectives
Although Starbucks has a raft of metrics for evaluating supply chain performance, it focuses on four high-level categories to create consistency and balance across the global supply chain team: safety in operations, service measured by on-time delivery and order fill rates, total end-to-end supply chain costs, and enterprise savings. This last refers to cost savings that come from areas outside logistics, such as procurement, marketing, or research and development (Supply Chain Quarterly, 2010).
Supply Chain Conflicting Objectives
Suppliers typically want manufacturers to commit themselves to purchasing large quantities in stable volumes with flexible delivery dates. Unfortunately, although most manufacturers would like to implement long production runs, they need to be flexible to their customers’ needs and changing demands. Thus, the suppliers’ goals are in direct conflict with the manufacturers’ desire for flexibility. Similarly, the manufacturers’ objective of making large production batches typically conflicts with the objectives of both warehouses and distribution centres to reduce inventory. To make matters worse, this latter objective of reducing inventory levels typically implies an increase in transportation costs. (Slack 2011, chapter1)

Supply chain risks
With complexity driven by globalization, high transportation costs, poor infrastructure, weather-related disasters, and terrorist threats, managing the supply chain has become even more challenging. Uncertainty and risk are inherent in every supply chain. Delivery lead times, manufacturing yields, transportation times, and component availability also can have significant supply chain impact. Recent trends such as lean manufacturing, outsourcing, and offshoring that focus on cost reduction increase risks significantly. Similarly, outsourcing and offshoring imply that the supply chains are more geographically diverse and, as a result, natural and man-made disasters can have a tremendous impact (Slack 2011, chapter1). If any of the risks and uncertainties described actually occurs, Starbucks’ business, financial condition and results of operations, and the trading price of the company’s common stock could be materially and adversely affected. Moreover, Starbucks operates in a very...

Other Papers Like Supply Chain Management Of Starbucks Coffee Company

Ford Motor Company Supply Chain Strategy Case Report

3217 words - 13 pages dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. If we at Ford could find a solution to the obstacles of virtual integration, it could make our supply chain run smoothly with less

Globalization of Supply Chain Management Essay

1605 words - 7 pages in business network on supply chain. A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization in Supply Chain Management. 2.0 Definition of Globalization in Supply Chain Management Globalization in Supply Chain Management are worldwide networks of suppliers, manufactures, warehouses, distribution centers and retailers through which raw

To Review the Company, General Electric (Ge) Supply Chain and Its Components. Show How Expansion Within a Company Can Be Profitable over Time

1060 words - 5 pages has broaden their initial company from just electrical and appliance to healthcare equipment and even aircraft technology (Product & services, 2012). The six elements of the supply chain strategy are leverage, communications, efficiency, innovation, risk management, and continuous improvement (The 6 Elements of Supply Chain Strategy, 2012). When viewing a section of GE under GE Healthcare, they handle supply chain a little differently

A. Analyze Whether a Keiretsu Network, a Virtual Company, a Vertical Integration, or a Different Supply Chain Strategy Should Be Adopted

4121 words - 17 pages Task 3 A. Analyze whether a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy should be adopted. Identifying a strategy is the first step in a supply chain management strategy so that is where we start. There are many options when selecting a strategy that will work best for our market and each strategy has advantages as well as disadvantages. No matter what type of strategy we chose we

Greening Supply Chain Management

3312 words - 14 pages within their local community, eliminating the need for packaging ,shipping and keeping functional items out of landfills.(University of San Francisco Online, (2014). Best Practices in Environmental Sustainability) 2. Starbucks Starbucks has introduced principles of environmental sustainability and green supply chain management across the board .The company is setting out to achieve LEED® certification for all new company-owned outlets to

Supply Chain Management

2656 words - 11 pages Supply Chain Management Concerns BUS630/Managerial Accounting 8/22/2011 Supply Chain Management Concerns In the modern business world with an increase in technology and information-based consumers, it is no wonder why there are many issues that deal directly with supply chain management. The authors of Managerial Accounting for Managers define supply chain management as, “A management approach that coordinates

Supply Chain Management

6079 words - 25 pages and accepted definitions of supply chain management are: Managing upstream and down stream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management. Supply chain management is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within

Supply Chain Management

2599 words - 11 pages Supply Chain Management There are many aspects of business today. The most important and most expensive is not manufacturing and production cost. Today the most expensive aspects of any product is getting the product to the consumer and make sure that at all time the customer can purchase the product without delay. To consider the fact the forty five percent of purchases that are not necessary but spontaneous; those product must be seen and

Supply Chain Management - 1372 words

1372 words - 6 pages . Lucille Jenkins, CEO for the company is not sure which avenue to take to insert the supplier function of the chain management system. The CEO has many options to consider, however must look at what would be the best fit for the company. DIMCO supply chain structure has three components, external suppliers, internal and external distributors. DIMCO currently uses 375 suppliers worldwide, sends it’s finished products to a centralized warehouse that

Green Supply Chain Management

5854 words - 24 pages Green Supply Chain Management and Its Effects on Environmental and Operational Performance in Automobile Industry in Karachi Syeda Unaiza 7153, Talha Hamid 6307, Abdul Qadeer 6758,Hassan Sajid 6303 December 18, 2015 1 Contents 1 Introduction 1.1 Background of Study . . . . . . . . . . . . 1.2 Problem Statement: . . . . . . . . . . . . . 1.3 Objectives of Study . . . . . . . . . . . . . 1.4 Research Questions

Supply Chain Management - 552 words

552 words - 3 pages acquisition of goods and services was more difficult than expected. The knowledge of the purchasing function evolved within organizations and created an environment that incorporated more undertakings such as managing, stocking, and budgeting for those goods and services being acquired. Based on your research and readings, discuss how Supply Management and in particular Supply Chain Management benefits organizations in the public and private

Related Essays

“Starbucks Coffee Company: The Indian Dilemma”

2310 words - 10 pages Ateneo De Zamboanga University School of Management and Accountancy CASE ANALYSIS “Starbucks Coffee Company: The Indian Dilemma” Prepared by: Barbaso, Jan Paulo E. Bejerano, Hyacinth Vienne A. Deogracias, Scepter Jr. O. March 14, 2014 Background of the Case With a rich history, in 1994, Starbucks Coffee Company was formed and Howard Schultz became its President. Since then the company was the number one coffee retailer and

Ford Motor Company – Supply Chain Strategy

1752 words - 8 pages Executive Summary Ford’s existing supply chain is highly complex and there are several external factors that have contributed to the search for solutions to move past the costly supply chain challenges the company has been dealing with in recent years. The challenge in their current supply chain system revolves around the inefficient management of their large data base of suppliers, the existence of independent distributors and their inability

Ford Motor Company: Supply Chain Strategy

3125 words - 13 pages that are currently underway will improve Supply Chain management to increase shareholder value and Supply Chain responsiveness. In many businesses, survival and the ability to achieve strategic business goals is difficult without the use of information technology. It is because information technology, as illustrated in the case of Ford Motors, can help a company enhance customer and supplier intimacy, develop new products and services, and

Ford Motor Company Supply Chain Strategy

1395 words - 6 pages with them and develop direct links to Tier 2 suppliers. Ford should invest in setting up a more web-based supply chain system that would allow the Tier 1 suppliers to use their strong IT capabilities without having to invest a lot of capital in emerging technology and allow Tier 2 suppliers to access the system to input progress of production as well as to take part in future designs. There are several reasons why this web-based supply chain