GREEN LOGISTICS AND

SUPPLY CHAIN
MANAGEMENT
STARBUCKS
• Starbucks Corporation (Starbucks), incorporated on November 4, 1985, is a roaster, marketer and retailer of
coffee.

• The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other
beverages and a range of fresh food items, including snack offerings, through Company-operated stores.

• The Company also sells a range of coffee and tea products and licenses its trademarks through other
channels, such as licensed stores, grocery and foodservice accounts.

• MISSION: To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

• VISION: To treat people like family, and they will be loyal and give their all
• LOGO

Their logo is inspired by the sea – featuring a twin-tailed siren from Greek mythology.
GREEN LOGISTICS OF STARBUCKS
GREEN PACKAGING
• Cup Innovation
• Starbucks has continually worked to reduce the environmental impact of cups
and lids.
• In 1997, introduced a hot cup sleeve to eliminate the popular practice of double-
cupping.
• In 2006, Starbucks developed paper cups manufactured with 10 percent post-
consumer recycled fiber, the first cup of its kind in the food packaging industry to
be approved by the U.S. Food and Drug Administration in 2006.
• Also introduced a more recyclable cup lid in 2016 which allowed the cup to be
more widely accepted.
• In 2018, Starbucks, in partnership with Closed Loop Partners, launched a global
effort to bring together entrepreneurs, industry leaders, and recyclers to identify
and commercialize the next generation of recyclable and/or compostable cup
solutions via the NextGen Cup Consortium and Challenge
• And, have also committed to phasing out plastic straws from our 29,000 stores
worldwide by 2020, eliminating more than 1 billion straws a year. Plastic straws
will be replaced with a lightweight, recyclable strawless lid, with paper or
alternative material straws available for blended beverages, and plastic straws
upon request for Starbucks customers who need or request one.
• Recycling
• Starbucks has been a leading national retailer in advocating for increased access to
recycling programs throughout the country.
• Customers’ ability to recycle cups, whether at home, at work, in public spaces or in our
stores, is dependent upon multiple factors, including local government policies and access
to recycling markets such as paper mills and plastic processors.
• The current patchwork approach with varying regulations city by city makes it challenging
and confusing for customers to know where and when to recycle or compost their cup.
• As part of Starbucks involvement, advocate for model legislation and best practices. In
conjunction with the National League of Cities to make access more widely available,
ensuring consistency and reducing confusion about what materials are recyclable or
compostable.
• In addition, working with companies and organizations along the supply chain as a
member of the Food Packaging Institute’s Paper Recovery Alliance and Plastics Recovery
Group. Ultimately, want packaging to be recyclable in both material and practice, so that
customers have access to recycling services wherever they choose to dispose of their
waste.
• Reusability
• Reusable cups are also an important component of our overall waste reduction
strategy. Since 1985 rewarded customers with a discount when they bring in
personal cups or tumblers, or use for-here serveware available in our stores.
• In 2013 launched a $2 reusable cup in the U.S. and Canada, and a £1cup in the
United Kingdom.
• GREEN WAREHOUSING
• Green Stores
• Joined the U.S. Green Building Council in 2001 and collaborated with them to
develop the LEED for Retail program, an effort to adapt LEED (Leadership in
Energy and Environmental Design).
• Opened first LEED certified store in 2005 in Hillsboro, Oregon.
• Partnering with experts including SCS Global Services and World Wildlife Fund, to
develop a new, open-sourced Starbucks Greener Stores operations framework.
• Through this program we will ensure Starbucks stores continue to minimize their
environmental footprint and contribute to a sustainable future.
• With performance-based standards that incorporate design and extend
throughout the life of a store, “Starbucks Greener Stores” will focus on:
• ENERGY EFFICIENCY & WATER STEWARDSHIP: Deploying technologies and
practices that ultimately deliver 30 percent water savings and 25 percent avoided
energy over historic store design practices.
• RENEWABLE ENERGY: Powering stores by 100 percent renewable energy through
investments in country-specific solar and wind projects.
• HEALTHY ENVIRONMENT: Designing and operating stores to create a comfortable
experience that promotes wellness for partners and customers, including lighting,
noise, air quality and temperature.
• RESPONSIBLE MATERIALS: Ensuring materials and products for stores are
responsibly and sustainably sourced.
• WASTE DIVERSION: Designing and operating stores to reduce waste.
• ENGAGEMENT: Inspiring a culture of sustainability and empowering partners to
take action, be informed, and engage in sustainability issues and practices.
• Climate Strategy
• Starbucks has been implementing a climate change strategy since 2004,
focusing on renewable energy, energy conservation, climate adaptation and
mitigation efforts.
• Stores, have focused on building to LEED standards while also becoming
one of the largest purchasers of renewable energy in our sector. To build
upon this work, we announced in 2018 a commitment to not only design,
build and renovate, but also operate 10,000 greener stores globally.
• At the farm level, worked with Conservation International to include
climate-smart agricultural practices as part of Coffee and Farmer Equity
(C.A.F.E.) Practices, our ethical coffee buying guidelines.
• Signatory to RE100, the global corporate commitment to purchasing 100%
renewable energy, as well as the Corporate Renewable Energy Buyer’s
Principles.
• GREENHOUSE GAS EMISSIONS
• The 2017 inventory found our Scope 1, Scope 2 and Scope 3 emissions were
16,581,000 metric tons of carbon dioxide equivalent.
• According to the Protocol, Scope 1 includes direct GHG emissions from
sources that are owned or controlled by the company. For Starbucks these
include manufacturing plants, store operations, and company-owned
vehicles and aircraft.
• Scope 2 includes market-based electricity emissions from the generation of
purchased electricity consumed by the company. Through the purchase of
Renewable Energy Credits (RECs) we are able to offset 62% of our store
emissions globally.
• Scope 3 emissions is the largest component to footprint. It includes
purchased goods and services, as well as, emissions from our licensees and
partnerships. The leading contributors for Starbucks are food, dairy, coffee
and packaging.
SUPPLY CHAIN MANAGEMENT
 SCM PROCESS
• PLAN(environmental sustainable ,water consumption by 25%)
• SOURCE(Preferred Supplier Program to fit company's quality coffee
beans, preferred supplier status(quality criteria, quality varieties,
flavor characteristics)
• MAKE(Raw materials shipped to one of six facilities in US ,ensure that
beans are manufactured and packaged)
• DELIVER(3PL based on score 1 and 0)
• 0-deliver correctly
• 1-deliver incorrectly
 SCM Cont…
• Centralized logistics system
• Binary score card system to assess supply chain activities.
• Digital technology
• Automated Information system to monitor demand, inventory,
capacity and scheduling in real time.
• No intermediaries to carry out supply chain operations.