Starbucks Supply Chain Analysis

Starbucks is a premium coffee retailer, which started in 1971. It is established in 70 countries all over the world. Starbucks has revolutionized the coffee market by selling expensive and high quality coffee. It has marketed itself as a third place between home and work. They select the locations in such a way that Starbucks is on their way to work and while coming back home from work. Starbucks purchases beans from Latin America, Africa, and Asia and roasts high-quality whole bean coffees and sells them, along with handcrafted coffee, ready-to-drink beverages, tea beverages and a variety of fresh food items, through company-operated retail stores. They sell coffee and tea products and license trademarks through other channels such as licensed retail stores. In addition to the flagship Starbucks brand, the portfolio includes brands such as Tazo Tea, Seattle’s Best Coffee. The main objective of Starbucks is to

Starbucks would have to make significant changes to its operations.

Transformation:

Initially two things were done to see how well the supply chain was serving stores, and find out where costs were involved. It was concluded that less than half of store deliveries were arriving on time. It was observed that excessive outlays were due to outsourcing; around 70 % percent of Starbucks ' supply chain operating expenses were due to outsourcing for transportation, third-party logistics, and contract manufacturing.

After a lot of research a three step supply chain transformation was decided. According to the plan, the company decided to reorganize its supply chain organization, simplify the structure and define functional roles. Cost to serve its stores along with day to day supply chain reduction was planed. Finally foundation for improved supply chain capability for the future was