This document provides an overview of Starbucks' global supply chain and operations. It details how Starbucks sources high quality coffee beans from growers primarily located in the equatorial belt. The beans are then roasted at plants in the US and Netherlands before being distributed to over 10,000 Starbucks stores worldwide through a network of warehouses, distribution centers, and third-party logistics providers. Starbucks focuses on developing long-term relationships throughout its supply chain and has social responsibility programs to support coffee farmers. The company aims to continue expanding globally and assisting coffee growers while improving demand forecasting and product offerings.
This document provides an overview of Starbucks' global supply chain and operations. It details how Starbucks sources high quality coffee beans from growers primarily located in the equatorial belt. The beans are then roasted at plants in the US and Netherlands before being distributed to over 10,000 Starbucks stores worldwide through a network of warehouses, distribution centers, and third-party logistics providers. Starbucks focuses on developing long-term relationships throughout its supply chain and has social responsibility programs to support coffee farmers. The company aims to continue expanding globally and assisting coffee growers while improving demand forecasting and product offerings.
Original Description:
this is about the supply chain management on starbucks
This document provides an overview of Starbucks' global supply chain and operations. It details how Starbucks sources high quality coffee beans from growers primarily located in the equatorial belt. The beans are then roasted at plants in the US and Netherlands before being distributed to over 10,000 Starbucks stores worldwide through a network of warehouses, distribution centers, and third-party logistics providers. Starbucks focuses on developing long-term relationships throughout its supply chain and has social responsibility programs to support coffee farmers. The company aims to continue expanding globally and assisting coffee growers while improving demand forecasting and product offerings.
This document provides an overview of Starbucks' global supply chain and operations. It details how Starbucks sources high quality coffee beans from growers primarily located in the equatorial belt. The beans are then roasted at plants in the US and Netherlands before being distributed to over 10,000 Starbucks stores worldwide through a network of warehouses, distribution centers, and third-party logistics providers. Starbucks focuses on developing long-term relationships throughout its supply chain and has social responsibility programs to support coffee farmers. The company aims to continue expanding globally and assisting coffee growers while improving demand forecasting and product offerings.
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STARBUCKS
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
CONSUMERS Age range: 18-24 years Higher than average incomes. Highest usage of coffeehouse brands: self- employed or work full-time. Race/Ethnicity All White Black Asian Hispanic Starbucks Coffee 18% 18% 13% 27% 24% Distribution of Starbucks Coffee by Race/Ethnicity MARKETS Strong global presence. Locations: North America, Latin America, Europe, the Middle East and the Pacific Rim. Prospective expansion into Brazil, India and Russia.
Country # Stores United States 7,353 Japan 572 China 209 Number of Stores in Main Regions Supplier Countries Storage Facilities Roasting Plants (Amsterdam x 1, U.S. x 3) FROM ARABICA TO LATTE FROM ARABICA TO LATTE Roasting Plants Washington, Nevada, Pennsylvania Distribution Centers (DC)
Approx. 9000 stores Company Owned & licensed Warehouses are near roasting plants Everywhere in the US! Individual Retail Stores SUPPLY CHAIN REVISITED Coffee Growers Roasting Plants Storage Facilities Warehouses Distribution Center Retailers Vendors 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 Roast, de-stone, taste profile Packaging: Automated boxing Palletizing systems Inventory: Store palletized caf in warehouse Roasting Plants Warehouses Truck DISTRIBUTION CENTERS Operations: Located regionally 24 hours / 5.5 days a week Outsources distribution to 3PL Inventory: Push/Pull boundary Order supplies from vendors Hold packaged products and merchandise Information Technology HighJump Software's Supply Chain Execution Solution to Streamline Product Distribution Prepare for Future Growth
Distribution Center Truck Retailers Warehouses RETAILERS Operations 10,500 Stores located globally Company owned and licensed Standardized regulations Relationship Management Inventory Periodic Review Coffee, milk and paper products: Once per week Food products: Four times a week Information Technology Computers information systems Truck Retailers RESPONSIVE OR EFFICIENT?
Predictable demand with seasonality Long term fixed and future contracts Periodic review inventory system High inventory level Efficient Responsive Efficient Efficient Efficient! 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 DEVELOPMENT OPPORTUNITIES FUN FACTS (OPTIONAL SLIDE) Starbucks only purchases 2% of the worlds coffee Coffee beans are originally green Coffee is the 2 nd most valuable commodity after oil Coffee trees can grow up to 30 ~ 40 feet