Supply Chain Management Analysis for Starbucks

Running Head: SUPPLY CHAIN MANAGEMENT 1
Supply Chain Management
Name:
Institution

SUPPLY CHAIN MANAGEMENT 2
Table of Contents
Executive summary.....................................................................................................................................3
Vision, mission and strategic goals..............................................................................................................4
Findings of supply analysis..........................................................................................................................4
Findings of operation analysis.....................................................................................................................5
Findings of information analysis..................................................................................................................6
Findings of integration analysis...................................................................................................................7
Findings on sustainability analysis...............................................................................................................8
Starbucks procurement and supply chain analysis......................................................................................9
Discussion of improvement programs.......................................................................................................11
Correlating improvement programs to vision. Mission and strategic goals...............................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Appendices 1.............................................................................................................................................16
Appendices 2.............................................................................................................................................17

SUPPLY CHAIN MANAGEMENT 3
Executive summary
Starbucks is a multinational American coffee company established in 1971. It has its headquarters
in Seattle, Washington. Starbucks operates more than 26, 000 coffee stores across the world. Starbucks
uses vertical integration in its supply chain process. This implies that Starbucks is actively involved in
each step of the supply chain process. Starbucks connects directly with over 300, 000 coffee farmers
located in Asia, Africa, and Latin America. This is because the company is critical on the quality of its
coffee and ensures that it acquires the best quality coffee in line with its common Starbucks experience.
Starbucks ensures sustainability through its Coffee and Farmer Equity campaign (CAFE) that
promotes ethical sourcing and fair trade in the coffee market. Additionally, Starbucks promotes its own
code of conduct that is stipulated in the Coffee Sourcing Guidelines (CSG) that requires all its suppliers to
maintain high level of operation ethics, good quality standards, and sustainability. The company evaluates
and vet the suppliers based on this standards. The CAFÉ program and the direct interaction between
Starbucks and its suppliers develop a mutual beneficial relationship that makes the suppliers feel critical
in the supply chain activity of the company.
The supply chain process of Starbucks is high integrated through digitization and constant
monitoring. The company makes use of inventory software like the Inventory management Systems,
Periodic review System and Economic order quantity. This system facilitate the supply chain process by
linking the stores to major distributors such as the Brittle Deliveries. This system facilitate Starbucks to
make over 70,000 weekly deliveries.

SUPPLY CHAIN MANAGEMENT 4
Vision, mission and strategic goals
Mission- to inspire and nurture the human spirit one person, one cup and one
neighborhood at a time.
Vision-to establish Starbucks as the premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles while we grow
The strategic goals of the company include standing as a recognized and acceptable brand
across the world. This is to be achieved through ethical sourcing, sustainability practices, and
environmental stewardship ("Starbucks", 2019). The goal of Starbucks is becoming the leading
retailer of coffee and its products in every market that the company expands to..
Findings of supply analysis
The department of procurement in Starbucks is involved in the sourcing of the raw
materials that can be used to develop the final product. The key product in the supply chain of
Starbucks is coffee beans sourced from Africa, Asia, and Latin America. The procurement agent
travel to these countries to source for the finest quality of the coffee. Additionally, the
procurement team handles dairy products such as cream and coffee mixes and flavors. The
suppliers of Starbucks are mostly coffee farmers located in Africa, Asia, and Latin America.
Other products such as furniture and dairy products are delivered by 3pls companies (Fahimnia,
Sarkis & Davarzani, 2015). The green and unroasted coffee beans are procured directly from the
farms. They are transported by large ocean liners to 48 regional distribution centers and 8 central
distribution centers. Starbucks uses less storage centers to promote quality of the final coffee by
closely monitoring the roasting and packing activities at the distribution centers. Starbucks does
not outsource its procurement of the coffee beans but rather it engages directly with the farmers
("Starbucks", 2019). However, it uses outsourcing in other product such as dairy products, coffee