Gap Analysis : Starbucks 's Outsourcing Essay

809 Words4 Pages
5.1 Gap analysis Gap analysis, which shows the gaps between customers expectations and the actual performance of the supplier, has been a method in assessing products and services quality in the marketing literature (Boulding et al.; Lee et al.; Teas, cited in Kang 2012 ) . In order to improve the current supply chain system of Starbucks, Gap analysis providing the new sight of improvement plan. Current situation Expectations or best process Ways of improvement Barriers of implementation Starbucks’s outsourcing is too high, 65-70% supply chain cost goes to transportation Reducing the cost of transportation Manage world logistic in one system.1. Planning group simplify the job into basic supply chain functions, reorganized the supply chain by separate it in two parts: coffee and non-coffee. 2. Understand the existed contracts,break down the purchase price by ingredient.3.Build up 'should cost ' models help in negotiate better transport price.4.Operate coffee plants in different areas, in order to reduce the deliver fee. Operating expenses increase because of spread production in a wide rage, leads the cost in transportation, distribution and logistics going up. While different material from different areas get into one global logistic system will combined physical movement of goods and cost a lot. Fail in Australia because of lack of information of Australian 's demands in good coffee Get improvement in Australia market 1.Get to know about Australia coffee culture,

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