starbucks supply chain
DESCRIPTION
Starbucks supply chainTRANSCRIPT
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
Markets
• Strong global presence. • Locations: North America, Latin America,
Europe, the Middle East, India and the Pacific Rim.
Country # StoresUnited States 7,353Japan 572China 209
Number of Stores in Main Regions
From Arabica to LatteRoasting PlantsWashington, Nevada, Pennsylvania
Distribution Centers (DC)
Approx. 9000 storesCompany Owned & licensed
Warehouses are near roasting plants
Everywhere in the US!
Individual Retail Stores
Supply Chain Revisited
Coffee Growers
Roasting PlantsStorage Facilities
Warehouses
Distribution Center
Retailers RetailersRetailers
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 café 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
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, Starbuck’s 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