Topic > Starbucks Supply Chain Analysis - 1312

Starbucks is a premium coffee retailer, started in 1971. It has a presence in 70 countries around the world. Starbucks revolutionized the coffee market by selling expensive, high-quality coffee. It marketed itself as a third place between home and work. They select locations so that Starbucks is on the way to work and on the way home from work. Starbucks sources beans from Latin America, Africa and Asia, roasts high-quality whole bean coffees and sells them, along with artisanal coffee, ready-to-drink beverages, tea-based beverages and a variety of fresh food products, through retail retail managed by the company stores. They sell coffee and tea products and license brands through other channels such as authorized retail stores. In addition to the flagship brand Starbucks, the portfolio includes brands such as Tazo Tea, Seattle's Best Coffee. Starbucks' main goal is to make significant changes to its operations. Transformation: Two things were done initially to see how well the supply chain was serving the stores and to find out where costs were involved. It was concluded that less than half of deliveries to stores arrived on time. It was observed that the overspending was due to outsourcing; approximately 70% of Starbucks' supply chain operating expenses were due to outsourcing for transportation, third-party logistics, and contract manufacturing. After much research a three-phase supply chain transformation was decided. According to the plan, the company decided to reorganize its supply chain organization, simplify the structure and define functional roles. The costs of serving its stores and the daily reduction of the supply chain have been planned. The foundation has finally been created to improve supply chain capacity for the future