Strategies and Challenges in Supply Chain Management: A Case Study of Starbucks Singapore

Running head: SUPPLY CHAIN
STARBUCKS
Supply Chain
7/27/2019

SUPPLY CHAIN 1
Abstract
The intent of this report is to present the strategies and practices adopted by Starbucks
Singapore for the supply chain management to overcome the challenges in the procedure. The
analysis has highlighted that presently, the company is making use of push and pull strategy
for the inventory management, supply chain transformation for reverse logistics, and
distribution center for transportation. However, it has been identified that by adopting these
strategies the company is dealing with different challenges such as increased cost of safety
stock for the retailers, etc. The literature review segment of the report has proposed some of
the available theories that could be adopted by the company to overcome these challenges.
Under the recommendation, the company is asked to adopt the strategy of just in time,
collaboration with retailers, and measuring/benchmarking strategy as it will support the
company in overcoming the challenges and weakness.

SUPPLY CHAIN 2
Table of Contents
Abstract......................................................................................................................................1
Introduction................................................................................................................................3
Supply Chain Management Analysis and Evaluation............................................................3
Overview of Starbucks.......................................................................................................3
Goals of Starbucks.............................................................................................................3
Challenges for Starbucks....................................................................................................4
Key Areas of Supply Chain................................................................................................4
Literature Review...................................................................................................................7
Inventory Management......................................................................................................7
Reverse Logistics...............................................................................................................8
Transportation....................................................................................................................9
Proposed Models..................................................................................................................10
Model for Inventory Management...................................................................................10
Model for Diverse Logistics.............................................................................................10
Model for Transportation.................................................................................................11
Critical Evaluation...............................................................................................................11
Inventory Management....................................................................................................11
Reverse Logistics.............................................................................................................12
Transportation..................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

SUPPLY CHAIN 3
Introduction
Supply chain management is considered to be a major part of every business, whether
it is a large business or small. According to Rebert Handfield supply chain management is
considered as the active management of the activities of the supply chain for increasing the
customer value and attaining the competitive advantage (Sodhi, Son & Tang, 2012). It also
operates with the work of storing the raw material that is required for producing a finished
product, for inventory management, and maintaining the proper track of the final product
from the manufacturing site to the end-user (Stock, Boyer & Harmon, 2010). The intent of
this report is to present the details regarding the supply chain activities and strategies used by
Starbucks Singapore for effective supply of services. In addition to this, the paper is also
highlighting the challenges it deals in managing the supply and application of the
theories/models that can help in overcoming these identified challenges.
Supply Chain Management Analysis and Evaluation
Overview of Starbucks
Singapore is considered as the third international location for Starbucks to operate the
business outsides North America. The company introduced products to its discriminating
consumers who freely embrace their experience of Starbucks. Starbucks operates its business
in the Singapore market is completely licensed. The first store of the company in Singapore
was introduced in 1996 (Starbucks Corporation, 2019).
Goals of Starbucks
The goal of the supply chain management of Starbucks is to efficiently manage
inventory and safe delivery of the products to the retailers. In addition to this, it is focused on