Starbucks Supply Chain

2033 WordsApr 9, 20119 Pages
All of these pieces — manufacturing, planning, inventory management, etc. — report in to my office. The first area involved in our supply chain operations is our retail business organization, which runs all of our retail stores; we currently own some 1,200 stores. Our retail business operation also supports, through supply chain operations, our international businesses. The second area of our supply chain operation is our support of specialty sales and marketing. In this function we support major restaurants, United Airlines, Nordstrom’s, etc. These are the specialty accounts that don’t fall under our retail business unit operations. The third area of our supply chain operations is our direct response. The functions handled here…show more content…
Our ventures with Dreyers (coffee-flavored ice cream) and PepsiCo (Frappucino) are also set up with similar linkages to feed us information on a daily or weekly basis to assure that we are clearing the hurdles. The next piece we are working on is control of the entire shop floor, and then we’ll focus on the DRP (distribution resource planning) and TRP (transportation requirement planning) pieces. All of these pieces will be implemented during the 1998 fiscal year, which begins in October 1997. What led you to choose finite scheduling software? Given the complexity of the businesses we support, we cannot get away with weekly gross planning due to our short shelf life — 26 weeks on the outside with our coffee. As a result, we have to run our products often. We carry only about three weeks of finished goods inventory. And it beCAMe very important, with our high-technology manufacturing facilities, to be able to schedule them correctly. Thus, there is a need for finite capacity scheduling versus bigger picture scheduling packages. It has been said that the sharing of information and supply chain opportunities is key to a successful partnership. Expand on this by describing how you move information to your supply chain partners and what type of opportunities you make available to them? I have monthly meetings with my peers in the business units. We measure inventory accuracy, we adjust inventories where necessary if we know
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