Starbucks Supply Chain

Topics: Coffee, Supply chain management, Logistics Pages: 4 (1412 words) Published: April 27, 2012

Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,435 stores in 58 countries, including 12,781 in the United States, 1,241 in Canada, 1,062 in Japan, 976 in Great Britain and 645 in China. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in later forms in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced 300 store closures in the United States since 2008. Buoyed by unprecedented success and focused on rapid expansion in the early 2000s, an efficient supply chain was not a top priority for the world-renowned coffee retailer Starbucks. But then the economic downturn set in, forcing Starbucks to re-engineer its supply chain. In 2010, the company removed more than $700 million (£428m) from its supply chain costs, and used an innovative set of metrics to achieve remarkable results. Gartner research vice president, Kevin Sterneckert, discovered how it moved from a struggling supply chain to one of the best supply chains in the world. Starbucks began to examine every detail of its supply chain, and...
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