Professional Documents
Culture Documents
Starbucks Supply Chain
Starbucks Supply Chain
Geoffrey Ho
Rujuta Narweker
Mamta Patel
Christina Ratusznik
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:
– Dreyer’s 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.
Vendors
Coffee Growers Distribution Center
– Storage facilities
• Information Technology:
– GPS tracking devices Ship
Vendors
• Operations:
– 40,000 suppliers Vendors
– Commodities products
• Inventory:
– Sends to Distribution Distribution Center
Center by truck
Truck
Roasting Plants & Warehouses
• Operations
– 3 in US, 1 in Amsterdam
Roasting Plants
– Roast, de-stone, taste profile
– Packaging:
•Automated boxing
•Palletizing systems Warehouses
• Inventory:
– Store palletized café in warehouse
Truck
Distribution Centers
• Operations:
Distribution Center
– Located regionally
– 24 hours / 5.5 days a week
– Outsources distribution to 3PL
• Inventory:
– Push/Pull boundary Warehouses
– Order supplies from vendors
– Hold packaged products and merchandise
• Information Technology
Retailers
– HighJump Software's Supply Chain Execution
Solution to
• Streamline Product Distribution
• Prepare for Future Growth Truck
Retailers
• Operations
– 10,500 Stores located globally
– Company owned and licensed Retailers
– Standardized regulations
– Relationship Management
• Inventory Truck
– Periodic Review
• Coffee, milk and paper products: Once per week
• Food products: Four times a week
• Information Technology
– Computers information systems
Responsive or Efficient?
Efficient!
Procurement: Quality
• Focus on high quality and service
• Pays premium prices
• Preferred customer
Procurement: Relationships
• Long-term relationships
• Mutually beneficial
• Relationship management