Coffee Supply Chain : Part B

1522 WordsNov 23, 20157 Pages
Coffee Supply Chain: Part B Introduction In the United States, there are over 24,000 coffee shops that are determined to provide a coffee experience that keeps customers coming back for more (Espresso Business Solutions, 2015.) With this growing statistic in mind, one can witness the need for coffee products to reach their destination and be served to these business’s loyal customers. In this paper we have conducted greater research on the coffee supply chain network. We will discuss the risks and the best practices that will offset these risks; conduct a financial analysis of Starbucks; evaluate a specific evaluation of Brazil and transportation followed by an evaluation of performance improvements of the coffee supply chain. Risks and…show more content…
Another risk that may occur is if the transportation operator has an unexpected event occur that may cause a delay in production. A final risk that may occur with the transportation operations is, if there is a delay to weather. Any of these three risks may occur in regards to transportation operations. These risks are unforeseen circumstances that can cause a delay in getting the coffee products to the supplier. Therefore causing a delay to get to the consumers and could possibly cause a decrease in revenue. Best Practice: To offset the above risks a best practice to be in place to mitigate these risks are to get redundant suppliers (Chopra & Meindl, 2016.) The supplier is not relying on just one brand supplier to get there, instead they are splitting up their funds and can count on at least one supplier to get there on time. Project: In order to eliminate this risk altogether, if the best practice of setting up contracts with redundant suppliers is implemented. The project would consist of the coffee brand suppliers conducting research on the many suppliers that use their brands and which ones experience a transportation delay repetitively and which ones do not. The brand supplier would then investigate what the trend is: Is it always the operator? If so, do we need to hire a new driver? If it’s not the operator is it the transportation device itself? Do we need to use a new method or new company
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