Starbucks s Supply Chain Management Essay - 1904 Words

Many complex and more diverse decisions confront supply chain managers on a regular basis: what would be more efficient to manufacture in-house or to outsource; what new channels to implement that it would benefit their customers and suppliers, or how all new technologies, platforms, and practices have to be aligned to enable real-time supply chains. Current information technology reduced outsourcing transaction costs drastically, enabled companies to an increased supervision and control over offsite work, and outsourcing services can deliver faster and more convenient, but technology alone is not the solution. If a company decides to embrace changes in business processes and business culture, those changes can support a long way toward delivering a better product for less money. Complex sphere of activities in many countries is not relevant anymore because a massive number of activities outsourced became commonplace, a new normal. To support this statement, I would like to present Starbucks supply chain reorganization started in late 2008. The initials first step was to simplify a complex structure in four essential supply chain functions. Every supply chain job fell in plan, source, make, and deliver. If someone involved in production planning or replenishment or new product, was part of the planning department. Sourcing functions split between coffee and non-coffee procurement. At that time Starbucks spent in the average US $600 million on coffee a year and total USShow MoreRelatedStarbucks s Supply Chain Spans Across Nineteen Different Countries1118 Words   |  5 PagesStarbucks 3 Starbucks’ supply chain spans across nineteen different countries. This allows them to have quality raw materials, which are then shipped to one of six roasting, manufacturing, and packaging plants. This centralized system allows Starbucks to run a very effective supply chain and have direct input on their productsRead MoreSupply Chain Management1730 Words   |  7 PagesSTARBUCKS IT SUPPLY CHAIN MANAGEMENT This is a case that illustrates several facets at once: Globalization Rapid Expansion, Supply Chain Management, ERP Implementation, and IT Infrastructure. This case takes place in 1997. Introduction You have to admire the enthusiasm of Starbucks employees. Store managers have been known to stuff sacks of coffee beans into their cars and race over to help out other stores running low. Exceptional customer service, but certainly no way to run a businessRead MoreSupply Chain Management at Starbucks Coffee1854 Words   |  7 PagesSupply Chain Management at Starbucks Coffee: Grinding Away at the Logistics Problems Brewing Company Issues and Concerns With a supply and distribution network that is truly global in scope at both ends deriving raw materials (i.e. coffee beans and other basic materials) globally and with a vast international retail empire supply chain management is without question an area of major concern for Starbucks. Clearly the company has been successful in its management thus far, having grown enormouslyRead MoreThe Strategic Management of Starbucks962 Words   |  4 PagesStarbucks Strategic Management How Globalization and Technology Changes Impact Starbucks Globalization and the rapid evolution of technologies are making the Starbucks value chain more demand-driven and customer-focused than it has ever been. Starbucks is unique in that its new product development pipeline is perpetual; it continues between northern and southern hemispheres continually, fuelling new drinks and food products (Starbucks Investor Relations, 2012). Globalization continues to beRead MoreStarbucks Supply Chain1400 Words   |  6 PagesStarbucks Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,435 stores in 58 countries, including 12,781 in the United States, 1,241 in Canada, 1,062 in Japan, 976 in Great Britain and 645 in China. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and itemsRead MoreInformation Management Systems ( Ims ) Essay996 Words   |  4 PagesInformation Management System (IMS) refers to a database that integrates financial and other information in organizations from different levels of management and produces regular reports. Starbucks is one of the firms that have implemented IMS. This paper describes IMS for Starbucks, its impact on competitive edge and how it helps to coordinate supply chain partners and to monitor inventory levels. The paper also explains why managing information is better than moving products. Starbuck s IMS StarbucksRead MoreGap Analysis : Starbucks s Outsourcing Essay809 Words   |  4 Pagesorder to improve the current supply chain system of Starbucks, Gap analysis providing the new sight of improvement plan. Current situation Expectations or best process Ways of improvement Barriers of implementation Starbucks’s outsourcing is too high, 65-70% supply chain cost goes to transportation Reducing the cost of transportation Manage world logistic in one system.1. Planning group simplify the job into basic supply chain functions, reorganized the supply chain by separate it in two parts:Read MoreStarbucks Srategy913 Words   |  4 Pages1) Starbucks used mostly a differentiation strategy, however it had also used a cost leadership strategy. Its differentiation strategy was exemplified by their stores providing an experience, offering interesting coffee-related drinks in a theatrical kind of atmosphere, their unique Coffee blending and roasting process which enabled them to create an extensive product variety, their employees received great deal of training to become very knowledgeable about coffee in order to provide an exceptionalRead MoreSwot Analysis : The Matrix1371 Words   |  6 Pagesexternal opportunities and threats facing a company and matches them up to the internal strengths and weaknesses, to give the company four possible strategic alternatives (Hunger, Wheelen, 2011, p. 77). As discussed previously, a major concern for Starbucks is their need for growth in foreign markets, and their education of the foreign markets, needs wants and expectations. According to the TOWS matrix, an alternative Strength Opportunity (SO) Strategy is to utilize the company’s ethical values andRead MoreStrategic Management : Mission And Objectives1176 Words   |  5 Pagesremain diligent in their strategic management. Review of Mission and Objectives According to all three summary analysis tools that have been utilized, the EFAs, IFAS, and the SFAS, these tools indicate that Starbucks understand what their mission, vision and goals are. They also understand that they need to continually assess where their current strategic plan is placing them in their market and what weaknesses and threats continuously remain for them. Starbucks understands that with corporate