TABLE OF CONTENT

BACKGROUND OF COMPANYPG 2

INTRODUCTIONPG 2

HUMAN RESOURCE MANAGEMENT..PG 3

SUPPLY CHAIN MANAGEMENT..PG 4

SUGGESTION..PG 6

REFERENCE..PG 7
Background of company

Starbucks, the world's largest coffee chain, is the most proud and carefully roasted coffee bean. The
Starbuck Corp has been promoting the best quality coffee and services to its customers, making it
the third home for customers. On average, there are more than 12000 chains in 37 countries.
In January 31, 2017, the American coffee giant Starbucks launched a new voice assistant feature in
the company's mobile app, My Starbucks, to allow users to voice order and pay. One of the most
important reasons for Starbucks's rapid growth and expansion in recent years is the good grasp of
Starbucks's supply chain in operation. In addition to coffee, Starbucks also offers a wide range of
food, in order to maintain the freshness of the ingredients, in addition to coffee beans, vegetables,
meat, milk and so on, still inseparable from the local supply. Therefore, in Starbucks's supply chain
management, inventory management, suppliers and their upstream and downstream management
of supply chain are regarded as the most critical link

INTRODUCTION

This report regarding about the supply chain management and human resource management in
Starbucks which faced high wage payment and mobile ordering.
Supply Chain management

Today, with the rapid development of electronic information technology, the electronic supply chain
has also been adopted by the major companies. Many people take the electronic commerce and
supply chain with trading activity and product distribution in online, in fact, when enterprises use
electronic means, usually network technology to manage the supply chain, it produces the electronic
supply chain. In this paper, through the introduction of Starbuck Corp coffee beans distribution
methods and supervision, to analyse its unique supply chain management model and concepts.

Inventory management analysis, Starbuck Corp inventory management business process is more
complex. In the supplier received Starbucks's purchasing department issued the consignment orders,
arrange production and ensure the products from production to start into the Starbuck Corp sales
department in the warehouse time period not exceeding two weeks. When the Starbuck Corp Sales
Department received customer orders and arrange shipment of the goods, inventory is shipped
quantity product ownership transferred to the sales department, automatic settlement order ERP
system Starbuck Corp Sales Department to start the subsequent settlement process. Inventory
management problems, Starbucks as a company with thousands of branches, although it managed
to achieve perfect inventory management, but there are still some problems inevitably. One of the
problems is that its inventory structure is not very reasonable. Starbucks uses the method of
economic quantity order to manage inventory. Under this inventory management method,
sometimes seems to be inadequate or excessive storage, increasing order costs or storage costs, and
thus seriously affecting the efficiency of enterprises. The cause of this phenomenon is mainly
because the product management department regularly conduct regular observation to adjust
inventory structure to each sales department, but because of the change in sales cause inaccurate
observation, which leads to the difference of the inventory model and actual structure. While the
supply department is not in-depth analysis of the market demand, especially for those who often
produce fluctuations in demand products In addition, the inventory management system adopted
by Starbucks is powerful, but it cannot provide enough support for material requirement planning.
This part of the network connection that is produced and sold is not reasonable. Each link manages
inventory, supply and demand, and production, planning, distribution, and other information cannot
be shared. The inventory control strategy is also different from each other, which inevitably results
in distortion of demand. As a result, demand is expanded.

.To ensure the quality of the food, Starbucks requires its commercial RFID tag to measure and record
the temperature inside the truck every few minutes. And Starbucks's staff needs to analyse the data
in time to find out what's wrong and find out the cause of the problem and solve it. In this way,
Starbucks can spend less human resources to achieve the control of food raw materials. And the
upper reaches of the supply chain cooperation in December 12, 2012, Starbucks introduced varieties
of coffee at the same time, with the Yunnan Academy of Agricultural Sciences and the city
government cooperation, was founded in Yunnan in sixth in the world. Starbucks needs to
strengthen the supply chain management of coffee beans in China. First of all, it is the selection of
coffee beans. The natural growth environment is critical to the growth of coffee beans, not all coffee
beans are suitable for growing in hot and humid areas of Yunnan. In the selection, Starbucks in
dozens of varieties carefully selected four kinds of high-quality coffee varieties. Selection not only
considers the quality of the coffee and the local climate of Yunnan and other conditions, but more
importantly, considers whether these seeds can resist the local insect threat in the process of
planting in Yunnan. In the process of planting, Starbucks give full consideration to the planting
spacing, varieties interplanting, terraced planting (soil erosion) factors and reasonable in the
harvesting of trees under the condition of space layout and so on, its purpose is to achieve and
maintain the healthy growth of coffee when the perfect two aspects of ecological environment
integration; and in the daily management, Starbucks will be the local precipitation, wind, soil and a
series of in-depth analysis of data mining, establish a set of perfect fertilization scheme, to ensure
the coffee thrive etc.. In addition, although Starbucks can control its quality and growth at the
source of the product, it grows on the coffee tree

The coffee beans to a cup of coffee, in which the process to go through dozens of procedures,
thousands of kilometers of transport. The success of the planting base in Yunnan means that
Starbucks has successfully planted upstream. For Starbucks, this makes it no longer limited by the
price of raw materials, and is able to control the quality of its products. That's why many businesses
are now moving upstream.

Starbucks reported that transactions, an important measure of customer traffic, dropped 2% in the
most recent quarter, in large part due to problems caused by mobile ordering. The company said
bottlenecks created by a wave of mobile orders pouring into busy stores have resulted in crowds
that turn some customers away.
Human Resourcement management

In Starbucks, all employees are called "partners", diligent, positive, good service attitude and
vocabulary are marked; and Starbucks employees high satisfaction and low flow rate, turnover rate
is also well known, these are made in Starbucks human resources management achievements.
Starbucks experience in human resource management of the enterprise is worth a lot of reference
and learning, this paper from the aspects of Starbucks employees, recruitment, occupation
promotion path analysis Starbucks is how to proceed from the aspect of human resource
management, together with the growth of partners.

In Starbucks, so that employees and Starbucks grow together, so as to establish a trust relationship
with employee firm, and then pass them to customers and build relationships. To provide better
customer experience. Starbucks is a company selling coffee, it is a kind of experience, elements of
good experience is the core of respect for human beings, not only respect the customers is more
respect for employees, this is one of the biggest cheats the success of Starbucks.
But the problem faced by Starbuck is high wage payment.
Suggestion

A survey of employee satisfaction shows that employees are very fond of working for the company
and are satisfied with the leadership of the company. The outside company responsible for the
investigation said Starbuck Corp's findings were "scary" when compared with most other companies.
Can they quantify the correlation between the results of human resources and the overall pay
system? The answer is, "impossible. How can you continue to promote the company's culture and
value system and stay alive while the company is becoming increasingly decentralized, diversified,
and mega? along with

How can you keep the sensitivity of a small company while the company is expanding in size? How
did the successful implementation of the program, such as the "broad bean" program, stay alive?
How do you adapt to business changes and employee needs? The present and future focus of the
human resources and comprehensive compensation system is to find the answers to these questions.
The company's culture and values must be promoted to reflect the idea of "employee first". If the
future is the same as in the past, it will remain exciting and unique.
Reference

1. T. (2016, December). Starbucks' Challenges And How It Can Overcome Them. Retrieved October 4,
2017, from https://www.forbes.com/sites/greatspeculations/2016/12/05/starbucks-challenges-and-
how-it-can-overcome-them/#1af468e54be9

2. H. P. (2017, January 17). Starbucks is facing a huge crisis -- and the CEO refuses to say how he's
going to solve it. Retrieved October 4, 2017, from
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0ah
UKEwiw5t6CuNjWAhVIKo8KHXT6BpgQFghIMAY&url=https%3A%2F%2Fwww.aol.com%2Farticle%2Ff
inance%2F2017%2F01%2F27%2Fstarbucks-is-facing-a-huge-crisis-and-the-ceo-refuses-to-
say%2F21701783%2F&usg=AOvVaw39z1twczPUdJVOoT2dZTIO

3. Taylor, K. (2017, March 9). Starbucks' biggest problem is only getting worse. Retrieved October 4,
2017, from http://nordic.businessinsider.com/starbucks-traffic-declines-in-february-2017-3