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Supply Chain Process : STARBUCKS

Natasha Barrett

USA.Global Organization  Head Headquarters: Seattle. Washington.Tokoyo.-. UK .

38 billion US Starbuck’s 1st logo : . There are 20. In 2012 the reported net income was $ 1. It was founded in 1971 by three partners who met as students at the University of San Francisco.891 locations in 62 countries.About Starbucks  Starbucks is the world’s # 1 specialty coffee retailer.

Philosophy   Provide a great work environment and treat each other with respect and dignity  Embrace diversity as an essential component in the way we do business  Apply the highest standards of excellence to purchasing. roasting and fresh delivery of our coffee  Develop enthusiastically satisfied customers all the time  Contribute positively to our communities and our environment  Recognize that profitability is essential to our future success .

and worker compensation and treatment  Meeting or exceeding national laws and international standards for environmental protection.Supplier Code Of Conduct   Demonstrating commitment to the welfare. monitoring. workplace safety. reporting and verification of compliance to this code  Pursuing continuous improvement of these social and environmental principles . economic improvement and sustainability of the people and places that produce our products and services  Adherence to local laws and international standards regarding human rights. and minimizing negative environmental impacts of suppliers’ operations  Commitment to measuring.

socially responsible and sustainably grown coffee  C. Improves coffee production. conserving and restoring natural habitat.E.A.F.F.A.E.Ethical Sourcing   Buy and serve high – quality coffee that grown and ethically traded  Farms and mills are evaluated by third party verification organizations using a comprehensive scorecard of more than 200 indicators  Coffee and farmer Equity (C. and facilitating farmer access to forest carbon markers .) Practices helps to evaluate and reward producers of high-quality.

starbucks. .  Supplier opportunities goes beyond logistics.com/responsibilty/diversity/suppli er .Supplier Diversity Program   Focus on building and prospering communities.  Develop and maintain supplier relationship To learn more visit: www.  Actively seek a diverse business base to do business with. distribution and co-packing.

Coffee  Sample 150. 000 cups a year looking for the best arabica coffee About 3% of the world’s beans makes the selection 18 weeks each year assigned employees visits coffee growers worldwide .

.Starbucks Supply Chain   Plan  Source  Make  Deliver GOAL : REDUCE COST AND IMPROVE EFFICIENCIES.

 Understand prices of purchase  Analysis the breakdown of all ingredients  Develop various cost models .See The Big Picture  Its imperative to understand the total cost of each operation within the supply chain. to monitor and control all supply chain activities. In addition.

Coffee Suppliers  .

Transporting the Beans  Huge quantities of coffee beans are selected and shipped to the various distribution centers.  9 regional distribution centers  48 central distributions  6 green coffee warehouses .

Receiving coffee beans Distribution Flow Chart  Storage Final Testing FAILED / DISCARD Packaging Sifter Blending Palletizing Assortment Cooling Finished Goods Roasting Quality Tasting FAILED / DISCARD ORDER FULILMENT .

Sustainability is Smart Business   Energy renewable and conservation  Building greener stores  Recycling and reducing waste .

Starbucks Coffee Available at Places: Airports. etc.  . Schools. Malls.

 “We have no patent on anything we do and anything we do can be copied by anyone else.” “The taste of our coffee has created such a quality experience that we’ve been able to convince people over 20 yrs that its still a very good value even though its more expensive than traditional coffee you can find at a diner.” . But you can’t copy the heart and the soul and the conscience of the company.

to your eagerly waiting hands. to the roast. to the farmer.The Best Coffee  A cup of coffee is the end of a long journey from the land. Each step is important in defining what that coffee will taste like. .