Starbucks Procurement and Supply Chain Strategy

SUPPLY CHAIN
MANAGEMENT

Table of Contents
PROJECT A.....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Application of the key supply chain concepts, principles and processes....................................3
Critical evaluation of SCM concepts...........................................................................................4
Evaluation of the importance of SCM perspectives....................................................................4
Critical evaluation of the importance of the physical, information and financial
management250...........................................................................................................................5
Cross functional and integrated approach of SCM......................................................................6
Interrelationships between SCM and other functional areas.......................................................6
Critical Evaluation of the supply chain interrelationship with other functional units.................7
CONCLUSION................................................................................................................................7
Project 2...........................................................................................................................................7
INTRODUCTION...........................................................................................................................7
Evaluation of Starbucks procurement and supply chain strategy................................................8
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

PROJECT A
INTRODUCTION
Supply Chain Management is a comprehensive part of the overall functioning of the
organisations and facilitates in the revenue generation and production department (Hugos, 2018).
Starbucks is a global brand that operates successfully through a number of supply chains spread
all through the world. The current report will identify the theoretical concepts that are associated
with SCM and then evaluate the practical application on Starbucks.
MAIN BODY
Application of the key supply chain concepts, principles and processes
The key concept of the Supply chain management basically includes the monitoring of the
different aspects that are associated with the overall management and integration of the different
aspects that are associated with the procreant of the raw materials and till the last stage of
delivering the final product to the consumers ultimately. Some of the key concepts that are
implemented in Starbucks throughout the different stages can be analysed in following manner:
Resourcing: The resourcing involves the sustainable procurement of the necessary raw materials
that are required and then managing them accordingly (Christopher, 2016). In Starbucks, the
stage is intricately implemented where the most of the resources are acquired from the local
producers so that the overall development can be encouraged and the cumulative growth can be
achieved.
Product designing and development: In this stage, the overall designing of the product is done
where the key is to use the most appropriate strategy where the technology and its use is well
integrated with the overall efficiency of the supply chain. In Starbucks the overall integration of
the product designing is closely linked to the technology required at the manufacturing houses
where the quality and efficiency of the manufacturers is not compromised with.
Logistics and distribution: This is effectively the last aspect in the overall process of Supply
chain management as well where the focus lies on the collective storing and the distribution of
the different aspects that are associated with the process (Meredith and Shafer, 2019). In
Starbucks, the warehousing is closely integrated with the manufacturing units and the outlets are
mainly in the form of wholly owned units of Starbucks or either through different licensed and
franchised stores that are located and distributed all over the world.

Critical evaluation of SCM concepts
The different SCM concepts that have been discussed indicates that the overall integration
of the supply chain in Starbucks is comprehensive and exhaustive. The different aspects show
that although the different aspects of the Starbucks are very closely linked to the main activities
and also the availability of the products and the quality of them is the reason that Starbucks has
expanded globally today. However, it can be said that since the availability and distribution of
the brand is global and this is the major reason that the overall management and integration gets
extremely complex. The sustainability aspect of the company has also been affected due to the
operation in the multiple countries (Kshetri, 2018). The successful integration of the brand on
international platforms and then its implementation accordingly can increase the irregularities
and negative aspects that might arise for Starbucks. Overall it can be said that although the
practices of procurement, manufacturing, warehousing etc. help in increasing the overall revenue
generation and returns for the company but yet these are also a limiting factor as the
sustainability aspect regulates the overall implementation of the different components of supply
chain.
Evaluation of the importance of SCM perspectives
The overall supply chain management is a comprehensive process and affects as well as is
affected by a number of parties that help in overall improvement in the effectiveness of the entire
process. The different relevant perspectives are:
Customers: The customers are the necessary parties for every company and these are the ones
that need to be ultimately satisfied in order to increase the overall contribution in the
effectiveness. The customers affect the quickness in the overall delivery process, the integration
of sustainability aspect and the overall integration of the hazardous technology.
Suppliers: Suppliers help in increasing the flexibility and the availability of the raw materials
that are necessary for the completion and finishing of the entire supply chain in the organisation
(Mangan and Lalwani, 2016). These are necessary in ensuring the continuance of the overall
supply chain and the availability of the products as well.
Distributors: The distributors are another effective party where the sales channel and the entire
profitability and availability of the final product is affected by the integration of such
distributors. They are the ones who facilitate and maintain the overall flow of the products in the
market.