Preview

Starbucks - Supply Chain

Good Essays
Open Document
Open Document
758 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks - Supply Chain
Starbucks

Expectations of Starbucks’ customers in terms of Starbucks’ coffee beverages

The expectations of Starbucks’ customers regarding coffee beverages would be to receive a perfectly made coffee, which is also recognized by the Starbucks’ mission statement. The notion of perfectly made coffee at Starbucks will include freshness and richness of taste, choice (varieties by origin, type and flavor), consistency of taste, image of “premium coffee”, some exotic experience, gourmet beverage, unique blends, same consistent quality and same price at every location and every day. The idea is to help “customers find a beverage that’s right for them from over 19,000 choices, by giving them an opportunity to try new things they didn’t know about and find a new beverage.”

The primary goals of Starbucks’ coffee bean supply chain as being a customer focused organization

The primary goals of the coffee bean supply chain will be to provide total customer satisfaction by ensuring the coffee is available in all varieties, at reasonably affordable prices, and the coffee meets and exceeds customers’ expectations, along with providing the unique experience (as described above), while keeping costs possibly low throughout the whole chain from supplier(s) to end customer(s).

How purchasing helps Starbuck achieve their supply chain goals

Being an integral part and the core activity of the supply chain, purchasing is also a key strategic process of the business. At Starbucks, purchasing is ensuring an interrupted flow of coffee at optimal cost and of consistent quality. This is achieved by 1) searching varieties and sources that would meet SB standards in terms of supreme and sustainable quality, and careful selection of coffee and contracting reliable suppliers (Coffee Sourcing Guidelines, Preferred Supplier Status Program); 2) building long-lasting relationships with coffee growers and exporters, including co-ops and individual

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Coffee has an unfailing and growing economic utility. In other words, the level of pleasure received when people drink coffee has remained high over the years. Additionally, there are more buyers in our economy that are extending the types of beverages they drink with coffee, and the extensive assortment of coffee drinks that are offered. This has supported the increase of coffee’s utility in the marketplace.…

    • 942 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Supply Chain is very important for the economic system. The supply chain is described as complete set of firms and facilities as well for logistics in producing materials, finished products, and distribution. The following paper will map the supply chain of Starbucks, a roaster, marketer, and retailer specialty coffee known worldwide. Starbucks has seen a huge growth over the last years. The supply chain for Starbucks is explained in detail that describes the manufacturer, distribution, and retail.…

    • 756 Words
    • 3 Pages
    Good Essays
  • Better Essays

    ECON 101 - Essay 1

    • 881 Words
    • 3 Pages

    The demand for coffee and specialty coffee products have been steadily increasing. One of the leading factors affecting the demand for coffee beans is an increase in specialty coffee shops, such as Starbucks. Starbucks has become one of the most favorite coffee spots with over 21,160 stores in 63 countries and territories, including the United States, China, Canada, Japan and the United Kingdom (Starbucks Corporation 2013 Fiscal Report). Their locations serve hot and cold infusions, ranging from a regular Americano to Frappuccino’s and a whole array of whole-bean coffee, micro ground instant coffee, full-leaf teas among other goodies. It is no surprise that Starbucks has become a significant success, controlling a high percentage of the coffee supply.…

    • 881 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    When I go to the grocery store or a coffee shop to receive a cup of coffee of my choice, I wonder to myself how much it costs and if it is worth buying versus what the company has to go through to get it. In this writing; I will be explaining the supply chain of a coffee provider and the costs that go into it, with the costs being based upon a guess. The company that will be my example is Dunkin’ Donuts.…

    • 142 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Stock Market and Starbucks

    • 1144 Words
    • 5 Pages

    2) Sourcing System: Starbucks has a diversified source of its coffee beans to offer a greater palette of coffees to its customers while being able to maintain a hedged position. Besides, it maintained a very good relationship with the exporters by working directly with them and providing training to them. Such close relationship enabled Starbucks to be the first to get the best quality coffee beans. Also, since Starbucks is the biggest high quality coffee buyer in the world, it can enjoy the benefit of economies of scale.…

    • 1144 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Starbucks Inventory Paper

    • 471 Words
    • 2 Pages

    Starbucks Coffee Company is a gourmet coffee provider with over 17,000 stores in 55 countries worldwide in fiscal year 2011 (Starbucks Company, 2011, p. 3). Its main focus is to provide gourmet coffees, teas and related beverages in its stores worldwide. To ensure that Starbucks continues to provide superior products and services, it must ensure that it has in its stores enough inventory to service its valued customers, without sacrificing quality and with decreasing the possibility of waste.…

    • 471 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Starbucks practices diversity and equitable treatment to all four areas they engage business with. These four areas are, partners, customers, supplier and communities.…

    • 377 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    1. Supply chain in Costa Coffee starts at their 2 basic inventories; bakery supplies, and coffee supplies. Bakery is catered by Bells of Lazonby at the moment. While their coffee is coming from South America, Africa and the Far East. Then arrives to their many outlets, out bringing best of aromatic coffee and fresh goods to their satisfied customers.…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Thirty years ago Starbucks was a single store in Seattle 's Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with over 7,000 stores in U.S. and outside U.S. Starbucks Co. set out on its current course in the 1980s when the company 's director of marketing came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz persuaded the company 's owner to experiment with the coffeehouse format-and the Starbucks ' experience was born. The basic strategy was to sell the company 's own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company also stressed providing superior customer service. Reasoning that motivated employees provide the best customer service, Starbucks ' executives devoted a lot of attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. (Hill, 2003)…

    • 2423 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    Starbucks’ global supply chain of coffee is divided into 3 main steps: production, packaging, and distribution. These steps were strategically engineered for cost cutting, operational efficiency and profits. Production, or coffee cultivation occurs in countries across the equatorial belt to capitalize on optimal climate condition, while…

    • 3208 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    * Focus upon the relationship with supplier, how they manage to secure deliverance of high quality coffee beans. Communication and contracts with green coffee suppliers…

    • 320 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Nowadays, the biggest challenge for the multinational corporation is that the cost of supply chain expenses extremely increases while the sales decrease. For the Starbucks Corporation, supply chain expenses are a main cost…

    • 3177 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    Value Chain for Nestle

    • 387 Words
    • 2 Pages

    Individual farmers and government agencies are usually the suppliers of the Coffee beans. Intermediaries may be involved in many aspects of the supply chain. They may buy coffee at any stage between coffee cherries and green beans, they may do some of the primary processing, or they may…

    • 387 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    My assignment will focus on Starbucks Coffee Company and their “make or buy” coffee bean strategy. I will also analyze Starbucks coffee bean supplier selection and evaluation system and provide recommendations for improvements and lastly I will provide a purchasing cost analysis on Starbucks.…

    • 1638 Words
    • 6 Pages
    Powerful Essays