SHAH WARIS

42090
SUPPLY CHAIN MANAGEMENT

There are four major decision areas in supply chain management

1) Location
2) Production
3) Inventory
4) Transportation (Distribution)
STARBUCKS SUPPLY CHAIN
To transform its supply chain, the coffee retailer established three key objectives:

1. Reorganize its supply chain organization

2. Reduce its cost to serve stores and improve execution
3. Lay the foundation for future supply chain capability

In this report we will be discussing and mentioning decisions that are made by Starbucks from 2000

Reorganize

In the final stages of 2008, the company took the important step of simplifying and including its pre-
segmented acquisition. The team reorganized so that the entire role fell into one of the basic
functional groups: planning, source, execution, and presentation.

After the supply chain functions were reorganized, the various departments turned their attention to
the second objective of the supply chain transformation: reducing costs and improving efficiencies. 

Cut Cost and Improve Service

With the reorganization carried out, each working group was given the task of finding improvement. The
information group, for example, has worked to identify factors that cause inflation. Through research, it
was better understood which products to charge, and as a result, could negotiate better deals. For its part,
the production team has decided to reduce the cost and delivery time by opening the fifth U.S. frying
plant. Another important aspect of the transformation was the introduction of weekly scorecards with very
clear services, costs, and production metrics. This approach has allowed the expansion offer to have the
same reference framework, with goals aligned to the overall business success. One of the most important
aspects of asset management was the acceptance of the order “Full-Time.”
Future Capabilities
With the acquisition of procurement plans now and in the near future, the company has embarked on a
process of specializing in hiring only the best talent available to complete its acquisition, a leadership
team. The company has also committed to training existing passengers.
The results of the change were commendable. In each of the next two years, it has reduced
purchasing costs by $ 1 billion. In the years that followed, Starbucks continued to make strides,
securing 100 percent Fair Trade coffee, pursuing sustainable goals, and establishing its own Coffee
and Farmer Equality program (C.A.F.Eu.) with coffee growers. It also continues to embrace
technologies visually to enhance customer experience, such as online ordering, and to support other
digital technologies in its new megastores.
When the Starbucks chain transformation took effect in 2008, the company brought in foreign experts to
fund its reconstruction program. The first phase of the recruitment process will focus on building a U.S.
corporation, following a similar process for international recruitment. Thereafter, Starbucks will focus
on developing a vocational training program aimed at hiring undergraduates who are interested in the
company's job offer.
Throughout the fall of 2010, Starbucks executives visited six universities to interview graduate
and graduate students with a degree in asset research, engineering and performance. In this process
will emerge a select group of young talents, which will start in July 2011 and continue indefinitely,
will be hired and trained to lead the acquisition of Starbucks companies for perhaps the next two
decades.
The company will only look at the top 10 percent in the graduate class of its affiliated schools.
Candidates will be open to Fortune 500 organizations either through previous work experience or
through training. In addition, they should show previous leadership experience and be willing to
exchange between domestic and foreign positions.
To help improve staff skills and knowledge, the company has developed programs that include 30
procurement skills, as well as training manuals for new employees, Gibbons said. "The point is to
ensure that development programs include capacity building and personal development,"
If successful, the strategy will bring many benefits, according to Gibbons and his team. It will mark
the Starbucks as a bona fide chain chain for both academics and industry. It will ensure the smooth
transition of staff over time as Gibbons and his team approach retirement. And the company will
reap the psychological disruption of high-level ideas that students take from school to work.
Gibbons says Starbucks expects to learn more about its new hire as it will learn from the company.