Detailed Analysis of Starbucks Supply Chain Management Report

This report provides a comprehensive analysis of Starbucks' supply chain management. It begins with an introduction to Starbucks and its global presence, emphasizing its effective supply chain strategies. The report then audits major components of the supply chain, including information management, physical storage, management techniques, leadership strategies, and integration across various countries. It describes the integration and links within the supply chain, such as material management, inventory control, purchasing, customer analysis, demand and lead time management, integrated supply chain, order fulfillment, and manufacturing assembly. Each link is examined for its contribution to the organization. The report concludes with an overview of the company's strategic supply chain and logistics plan, offering insights into how Starbucks maintains its competitive advantage through a well-managed supply chain. The document is contributed by a student and is available on Desklib, a platform that provides AI-based study tools for students.

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Supply Chain Management
By (Name)
Name of the Course
Title of the Instructor
Institutional Affiliation

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Introduction
Starbucks is an organization that has been able to gain more popularity in various places
that are located around the world. Moreover, the organization is known to be governed by senior
officials who are well trained in their respective areas of work and have been able to come up
with a wide range of strategies to ensure that the organization moves to the required level in the
coming years. It is an American coffee company that has been able to serve different types of
consumer segments that are found both at the internal level together with the external level that
consists of different consumer segments who are known to be having quite a number of
characteristics. To make sure that the products that are attached to the company is capable of
reaching the consumers with minimal efforts so far, Starbucks has been able to fully invest in its
supply chain sectors thus obtaining one of the best conditions that has always allowed the
management to distribute products of different sizes to various customers irrespective of their
distance of separation from the manufacturing position (Birk et al. 2016). Additionally, the
supply chain sector is always one of the most sensitive sectors within an organization since it has
the capability of fully determining the time total time that it takes for a variety of products and
services to be able to reach out to the customers. Coming up with a reliable and convenient
supply chain sector within an organization is something that cannot just be done through a one
step process but instead, it involves a wide analysis of various issues and parameters by also
making sure that different parties are fully involved in the entire process. A reasonable and
reliable supply chain is known to be consisting of different types of major components together
with quite a number of relevant links that are able to provide an appropriate and reliable
guideline in relation to some of the operations and procedures that needs to be done.
Organizations that tend to have a more developed condition of supply chain have been able to
reach out to quite a number of customers within a short time possible and at the same time

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making sure that they are supplied with quality products that are capable of serving their needs
over a certain period without any complaints being raised. Moreover, quite a number of
companies have been able to compete among them (Iglesias 2016). Fortunately, the ones that
have always put much focus on the supply chain to come up with some of the advanced
techniques that can strongly help them to distribute all their products and services, have been
able to emerge as some of the best in terms of this mode of competition since by developing a
reliable mode of supply chain, it will also be much easier to clearly understand some of the
expectations in relation to be type of goods and services that are given to them. Moreover, it is
the duty of the top management personnel to determine what type of supply chain they want to
apply within the organization. This normally depends on the way various customer segments are
distributed across different sectors.
An audit of major components of all the relevant links in the supply chain
This is as sector that is known to be consisting of quite a number of parameters that are fully
attached to Starbucks Company. Some of the major components that are associated with the
relevant links in the supply chain include the following;
 Information- According to what is entailed within the supply chain of the entire
organization, the management team has been able to present one of the most reliable
information associated with the coffee products through the use of quite a number of the
use of quite a number of modern technological aspects (Sheikhtaheri, Sadoughi and
Ghazizadeh 2016). Appropriate and reliable information given to the customers in
relation to the product has been able to scale up the supply chain of the entire
organization since large number of customers are getting attracted to the product as a

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result of the information which in turn leads to a high demand thus increasing the level of
supply chain to various areas.
 Physical storage- The Company has been able to provide the first priority when it comes
to the physical storage of its coffee products. The products are always stored in
containers having the logo of the organization aimed towards giving it a sense of
belonging and also increasing its popularity most so in new market areas. Moreover, the
containers used by the organizations to pack the products are strongly manufactured to
make sure that no or minimal break downs are encountered during the supply of the
coffee products across various customers. As a result of an appropriate physical storage
of the product, the organization has been able to appropriately address its supply chain
appropriately thus making it to come up with one of the best competitive advantages
within a good number of market platforms. At the same time, Starbucks has also been
focused with quite a number of physical storages that are available within the distribution
sections and levels, as a result of this, the organization has been able to provide the
distributors with appropriate storage facilities that are being used that can be used to store
the coffee products for long periods thus providing a sustainable supply chains to all the
customers regardless of the areas where they are situated (Ismail and Ali 2016).
 Management- As far as the supply chain sector for Starbucks is concerned; the
management has been able to come up with quite a number of techniques and strategies
that majorly aims towards increasing the performance of the company through an
increased rate of goods supply within various targeted regions (Krasniqi 2014).
Moreover, its management has been able to operate through quite a number of supply
chain rules that are being followed without making any assumptions and as a result of

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this, the whole organization has been able to highlight the right direction where it should
be moving towards in order to make sure that all its future targeted goals about supply
chain is well addressed (Macdonald, Kleinaltenkamp and Wilson 2016). On the other
hand, appropriate adoption of quite a number of management techniques has increased
the morale across the manufacturing sector thus leading to the production of quality
products that come out depending on the demand of supply chain the is present within the
market (Jelenković and Barjaktarović 2016).
 Leadership- This has been able to play one of the most significant roles in terms of
determining the nature and condition of supply chain of the coffee products in relation to
the entire company. The CEO has been working tirelessly to make sure that quite a
number of leadership strategies are well developed in order to clearly present the entire
picture of the whole organization. The leadership strategies that have even gone further to
strengthen the relationship that exists between the organization and the customers located
at the outside part, has led to the emergence of high levels of supply chain of all the
coffee products who demands whose demands have greatly increased across various
markets. Moreover, the appropriate leadership has led to the emergence of strong positive
bonds existing between the organization and several other distributors situated in
different locations across the world. Furthermore, this has led to an increased rate of
supply chain of all the coffee products that are manufactured and well packaged by the
entire company.
 Movements and up and downstream integration- It is clear beyond any reasonable doubt
that Starbucks coffee has emerged as a giant global company that has been able to
perform different operations at the international level making it to be understood by

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people across all walks of life. Moreover, it has been able to acquire one of the most
advanced forms of amazing supply chain that have been able to span across a total of
nineteen different countries (Olvera 2016). As a result of this mode of global resource
span, it has emerged as one of the greatest ways for Starbucks to fully carry out an
expansion to the company with an intention of reaching out to more countries than ever
before. On the other hand, the executive chairman of Starbucks fully believes that the
entire organization is vertically integrated as far as all its supply chain is concerned
(Sadatrasool, Bozorgi-Amiri and Yousefi-Babadi 2016). It is as a result of the vertical
integration process that has enabled the organization to fully boast about its ownership of
quite a number of value chain assets together with activities that majorly include the
following; quite a number of coffee bean farms that are located in different places,
warehouses together with a wide variety of distribution assets and finally there is the
retail outlets that has provide an easy time to all the customers in relation to the mode of
the supply chain that the company has been able to come up with. In as much as all the
bean farms that are under the ownership of Starbucks are not capable of meeting all the
needs of the full raw materials for the whole organization, there is always s sufficient
supply that is fully assured through a solid and relevant purchase agreements that
normally takes place with different types of growers (Pollack and Algeo 2016). This
clearly indicates how various situations involving vertical integration are not necessarily
attained through the ownership of certain types of assets (Miles, Snow and Pfeffer 2016).
On the other hand, the ownership that is related to the whole value chain clearly indicates
how the organization isn’t depending on any type of external distribution channels, and as
a results of this, high levels of quality channels are fully guaranteed all the way

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throughout the entire supply chain. Additionally, the whole organization has tries as
much as possible to be price competitive simply because it doesn’t rely on the raw
material market in order to carry out various operations.
A description of the integration and links in the supply chain of Starbucks
Integrated
Supply chain
Order
Fulfillme
nt
Custom
er
analysis
Purchasing
Inventory
managemen
t and
control
Demand
and Lead
time
manageme
nt
Materials
management
Manufacturin
g and
remanufactur
ing assembly

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Each and every link in the chain is known to have a benefit to the entire organization. At the
customer analysis level, the supply chain is fully connected to this link which involves the
analysis of various customer segments thus making it much easier to determine the type of
products that needs to be supplied to them through supply chain. The purchasing link is attached
to the integrated supply chain by determining the mode of purchase that will be used to obtain
the products (Judge and Douglas 2016). On the other hand, the inventory management and
control involves the full control of quite a number of parameters to make sure that the supply of
the product is carried out through a reliable inventory control (Rodríguez-Rangel, Sánchez-
Rivero and Sánchez-Martín 2016). The demand and lead time explains the level of demand of
the products that will require a certain level of supply to meet the needs of the consumers. At the
same time, it also explains the total time that the product will take when distributed to the
customer (Kabir 2018). Materials management as a link fully explains how various types of raw
material are appropriately managed to ensure a continuous production of goods that will in turn
enable a more stable supply to the customer segment. At the manufacturing assembly, this
involves the manufacture of the whole product in terms of a high quality product in order to
capture the attention of the customers thus leading to an increased demand in terms of the supply
(Obaji, Senin and Olugu 2016). Finally, we have the order fulfillment as a link attached to
integrated supply chain; it ensures that all the ordered goods are appropriately supplied to the
customers without engaging any delays that are likely to lead towards the emergence of any
unnecessary complaints (Meyer, Tsui and Hinings 2016).

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Strategic and logistic plan for the business and its supply chain partners
Identification of problems and situations within the audit
During the audit, quite a number of problems and situations were able to be noted and most of
them emerged as some of the major barriers that are capable of scaling down the supply chain for
the organization (Ogunyomi and Bruning 2016). One of the major problems is the existence of
counterfeit goods within the market platform. These counterfeit goods normally come on board
with lots of cheap prices thus reducing the supply chain demand for the products attached to the
organization since a good percentage of the customers tend to prefer cheap products. Moreover,
there are high probabilities of encountering unreliable distributors and retailers who will make
the supply chain to become quite difficult since the customers will not be able to obtain a reliable
supply of goods and services from them on behalf of the company.
The organization’s strategic vision capable of forming the basis of developing the strategic plan
The strategic vision of the organization is known is known to be consisting of different types of
positive outcomes that are aiming towards taking the organization to greater heights. The
strategic vision of the entire organization is to emerge as the top most organization in terms of
supplying quality products and services to various customers (Meyer and Peng 2016). This will
further increase its reputation across many nations in the globe (Saputra 2016). Moreover, the
organizations strategic vision is also geared towards offering sustainable services thus making
sure that the needs of this generation is well addressed without compromising the needs of the
future generation is well addressed (Olaiya 2016). The entire strategic vision for the organization
is one of its major pillars that fully contributes and supports any condition that is related to
development.

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An understanding the customer’s requirements and their order winning criteria
The requirements of the customers are known to be a situation that differs from one personality
to another where most of them are normally experienced on the basis of size. According to the
entire audit all the customers have been able to prefer quality services that are being delivered to
them in real time without any delays and once this is done to them, their bond with the
organization is likely to scale up to the next level.
Timeline of the executions of recommendations
The executions of recommendations will require an appropriate and reliable timeline in order to
operate effectively. It will require to total of three months making sure that the executions of
reccemebdations are appropriately handled to provide some reasonable results for the whole
organization.
Question 2
Supply chai theories/Models
Game theory
The game theory in supply chain is among the most fundamentals tools that is used to fully
analyze quite a number of situations most so the ones in which different decisions of multiple
agents are capable of affecting the entire payout that is attached to each and every agent (Sharma
2016).
RBV Theory

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The RBV theory is known to be consisting of quite a number of issues and situations. It is always
a managerial framework that is used in the determination of different types of strategic resources
most so the ones that have the potential of coming up with a competitive advantage to a given
organization.
Population ecology theory
This theory clearly indicates that change takes place right at the population level and normally
takes place as a result of the process of selection and replacement being experienced within an
organization.
Resource dependency theory
This is the study of how various forms of external sources within an organization are capable of
affecting the behavior of the whole organization. Moreover, the procurement associated with the
external sources is essential when it comes to both strategic and tactic management.
Transactional cost theory
Normally relies of a principle that cost is capable of moving up when an individual has been
hired to do something within an organization.
Social network theory
It is a theory that is capable of viewing various forms of social relationships in terms of various
types of nodes and ties that are known to be existing between them.

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Agency theory
This is normally the principle that is used in the explanation and resolving of various issues in
the relationship between a given business principles together with all agents.
Institutional theory
This is a theory is a theory that focuses on the deeper and quite a number of resilient aspects
associated with the entire social structure. At some point it considers the process by which
various structures become established as an authoritative guideline.
Diffusion of innovation theory
It is capable of providing an explanation of how a given product is capable of gaining
momentum in order to fully diffuse through a specific population of even a system within the
organization.