Professional Documents
Culture Documents
SCM of Starbucks
Until the late 2000’s they had to deal with a
struggling supply chain
When the economic downturn set in, forcing
Starbucks to re-engineer its supply chain
In 2010, the company removed more than
$700 million from its supply chain costs, and
used an innovative set of metrics to achieve
remarkable results
At that time sales gone down,
Increase of supply chain cost
At the starting stage –
It lacked a supply chain strategy focused
on delivering enterprise value.
It lacked organization calibration of
benefits.
It lacked focus on the right supply chain
metrics.
It needed to increase investments in
talent enhancement and acquisition.
They transformed its supply chain
strategy to move from a
traditional logistics mindset to an
organization purpose-built to deliver
value, monitoring and adding value to
every step of the production process.
To achieve this the company began to
implement several changes in many
areas of its business model.
Green Logistics
More than 18,000 partners have
enrolled in an online “Greener Apron”
Starbucks committed to build 10,000
Greener Stores by 2025
Introduced Recyclable and
compostable cups in selected cities
worldwide
Eliminate single-use straws worldwide
by 2020
They are phasing out plastic straws
globally by 2020 and launching a
lightweight strawless lid; could
eliminate 1 billion straws per year
They use 10% post-consumer fiber
in our hot cups, as well as recycled
content in our paper shopping bags,
napkins and cup sleeves.