Supply Chain Process : STARBUCKS

Natasha Barrett

Global Organization

Head Headquarters: Seattle, Washington, USA,-- Tokoyo, UK

Starbucks is the world’s # 1 specialty coffee retailer.It was founded in 1971 by three partners who met as students at the University of San Francisco. There are 20,891 locations in 62 countries.In 2012 the reported net income was $ 1.38 billion US

About Starbucks

Starbuck’s 1st logo :

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

Philosophy

Demonstrating commitment to the welfare, 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, workplace safety, and worker compensation and treatment

Meeting or exceeding national laws and international standards for environmental protection, and minimizing negative environmental impacts of suppliers’ operations

Commitment to measuring, monitoring, reporting and verification of compliance to this code

Pursuing continuous improvement of these social and environmental principles

Supplier Code Of Conduct

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.A.F.E.) Practices helps to evaluate and reward producers of high-quality, socially responsible and sustainably grown coffee

C.A.F.E. Improves coffee production, conserving and restoring natural habitat, and facilitating farmer access to forest carbon markers

Focus on building and prospering communities. Actively seek a diverse business base to do business with. Supplier opportunities goes beyond logistics, distribution and

co-packing. Develop and maintain supplier relationship

To learn more visit: www.starbucks.com/responsibilty/diversity/supplier.

Supplier Diversity Program

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

Plan

Source

Make

Deliver

GOAL : REDUCE COST AND IMPROVE EFFICIENCIES.

Starbucks Supply Chain

Its imperative to understand the total cost of each operation within the supply chain. In addition, to monitor and control all supply chain activities.

Understand prices of purchase Analysis the breakdown of all ingredients Develop various cost models

See The Big Picture

Coffee Suppliers

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

Transporting the Beans

Distribution Flow Chart

Receiving coffee beans

ORDER FULILMENT

Storage Sifter Assortment

Blending CoolingQuality Tasting

Roasting

Final Testing

FAILED / DISCARD

FAILED / DISCARDPackaging Palletizing

Finished Goods

Energy renewable and conservation

Building greener stores

Recycling and reducing waste

Sustainability is Smart Business

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

“We have no patent on anything we do and anything we do can be copied by anyone else. But you can’t copy the heart and the soul and the conscience of the company.”“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.” Howard Schultz

The Best Coffee

A cup of coffee is the end of a long journey from the land, to the farmer, to the roast, to your eagerly waiting hands.

Each step is important in defining what that coffee will taste like.