Supply Chain of Starbucks

By Saphalya Mohanty(138) Ashish Nirwani(140) Anant Suryawanshi(154)

Introduction & Agenda

About Starbucks The Supply Chain Procurement Overall Strategy Assessment Outlook

Quick Facts
Number one specialty coffee retailer in the world Broad product offering Astounding world presence Unique and always changing variety of coffee blends Strong procurement and SC relationship management

Product Offerings
Product offering: coffee beverages, complementary type breakfast foods, sandwiches, salads, coffee accessories, music and games. Alliances: Dreyers Ice Cream Jim Beam Brands PepsiCo

Markets
Strong global presence. Locations: North America, Latin America, Europe, the Middle East, India and the Pacific Rim.

Number of Stores in Main Regions Country # Stores United States 7,353 Japan 572 China 209

Countries Storage Roasting Facilities Plants FromSupplier Arabica to Latte

(Amsterdam x 1, U.S. x 3)

Roasting FromPlants Arabica to Latte plants Individual Retail Stores Warehouses are near roasting Distribution Centers (DC) Washington, Nevada, Pennsylvania
Everywhere in the US!

Approx. 9000 stores

Company Owned & licensed

Supply Chain Revisited

Storage Facilities

Roasting Plants Warehouses

Coffee Growers

Distribution Center

Retailers

Retailers

Retailers

Coffee Growers
Operations: Equatorial Belt High quality and service Send dried beans by ship Inventory: Storage facilities Information Technology: GPS tracking devices

Growers

Storage Facilities

Ship

Vendors
Operations: 40,000 suppliers Commodities products Inventory: Sends to Distribution Center by truck
Vendors

Distribution Center

Truck

Roasting Plants & Warehouses

Operations 3 in US, 1 in Amsterdam Roasting Plants Roast, de-stone, taste profile Packaging: Automated boxing Warehouses Palletizing systems Inventory: Truck Store palletized caf in warehouse

Distribution Centers
Operations: Distribution Center Located regionally 24 hours / 5.5 days a week Outsources distribution to 3PL Inventory: Warehouses Push/Pull boundary Order supplies from vendors Hold packaged products and merchandise Information Technology Retailers HighJump Software's Supply Chain Execution Solution to Streamline Product Distribution Truck Prepare for Future Growth

Retailers
Operations 10,500 Stores located globally Retailers Company owned and licensed Standardized regulations Relationship Management Truck Inventory Periodic Review Coffee, milk and paper products: Once per week Food products: Four times a week Information Technology Computers information systems

Procurement: Quality
Focus on high quality and service Pays premium prices Preferred customer

Procurement: Relationships
Long-term relationships Mutually beneficial Relationship management
Losing a vendor is like losing an employee you lose the money and time you put into training them, -John Yamin, Starbucks Vice President of food.

Corporate Social Responsibility

Fair Trade Movement
Price setting Focus on value of entire supply chain

Coffee for Conservation Project

Improves quality while focusing on environmental sustainability Current Regions:
Tanzania Rwanda Kenya Ethiopia

Overall SC Strategy
Maintains relational capital Focuses on quality and purity Education Strategic retail locations

Future Outlook
Starbucks can leverage their unique skill set develop relationships with and procure from other countries expand into other markets. continue assisting African coffee growers improve demand forecasting at the retail levels expand product offerings