Starbucks' Coffee Supply Chain: An Analysis

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Starbucks' Coffee supply chain takes on added responsibility due to their social and political stances inherent within this organization's corporate strategy. This concept makes Starbucks' supply chain management that much more difficult, even if this restriction is self imposed. Recent changes in 2008 have transformed how this company now runs their complicated supply chains but the results have been magnificent and things have improved. Cooke (2008) explained how this transformation has also transformed supply chain management. He wrote " since Starbucks began its supply chain transformation effort, it has curtailed costs worldwide without compromising service delivery. 'As a company,' Gibbons says, 'we have talked publicly of over $500 million of savings in the last two years, and the supply chain has been a major contributor to that.'" The company operates 60 distribution centers that make more than 2.7 million deliveries to store and partner locations each year. The supply chain operation is responsible for everything that goes into Starbucks stores ,from coffee and cups to display cases, chairs, and tables. The company also developed a two directional plan, one, outward facing to help the company continue to grow and the other, inward facing to build a world-class supply chain. Starbucks envisioned that world-class supply chain as focusing on three things, and three things only: service, cost, and talent. Starbucks supply chain management can benefit from capacity

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