Starbucks 's Supply Chain Spans Across Nineteen Different Countries

Firstly, Tim Hortons coffee begins its value chain journey in Central and South America. Coffee beans are extracted from

With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.

Costa Rica now provided raw material for Starbucks which accounted for about 15 percent of the total coffee beans Starbucks needed every year. Costa Rica as one of the raw material suppliers plays an important role in global value chain. Coffee has played a pivotal role in the development of Costa Rica. It has shaped social, cultural and political institutions and is still one of country’s major agricultural exports. (Anywhere, 2016) The global value chain in this coffee industry can be described that Starbucks, the centre in this coffee global value chain, purchasing raw materials (coffee beans) from coffee farms in Costa Rica, reprocessing and reproducing in retail shops, selling the finished products (various kinds of coffee) to customers in the world.

We can understand the relation between commodity and trade development through the study of coffee and it’s origins. Over about 90% of coffee is produced in the South, and consumed in the North. Or a long time Latin America has provided most of the world’s coffee. Coffee comes from a cherry produced by a tree that requires a warm climate without any sudden temperature shifts or frost and it needs plenty of rain. This climate is ideal for coffee between the tropics of Cancer and Capricorn. During the movement of coffee from harvest to export the first step is to separate the coffee bean from the skin and the pulp of the cherry, this results in what is called “green” coffee. Before it is exported the coffee is cleaned and sorted into lots that have different quality attributes, something like the grain elevators. The lots vary as they go from country to country based on the size, the shape shape and the deficiencies it might have or the way it is processed. At this point in the process the coffee still has it’s individual quality and value.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

After coffee is harvested, it must be dried, packaged in sacks, and transported. During this stage, energy is sued for drying, storing, and mechanically hulling the coffee beans. This stage of the value chain also includes transportation of green coffee beans to facilities.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Pars Food Ltd has a vision to grow. Built around the philosophy of “Pars Food, It’s all good”, they strive to stand out within the UK, as well as build a customer base throughout Europe. They provide frozen foods for restaurants involved in fine dining, catering companies and also supermarkets whom avail of their convenience foods such as pizza and ready meals. They are heavily involved in activities such as sourcing, manufacturing, transport and lots more. These processes have to be monitored though quality and supply chain management in order for

The coffee industry has proven there is a never-ending shift of global power through the global economy. Thus, through the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact

For each cup of fresh coffee, coffee beans should be grounded just before brewing. Therefore, for each customer, the coffee is treated as fresh produce. Coffee should not be overexposed to oxygen, light, heat and moisture. In order to save customer from the time of waiting for the clerk to grind their coffee, customers can grind their own coffee beans in the store. Instead of walking in to wait in line, customers can help the process by grinding their own coffee beans before getting in line. The grinder will be pre-set to grind the coffee beans to the perfect texture of fineness.

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

Starbucks inbound logistics comprises of the firm’s quality control specialist in selecting top-quality Arabia coffee beans from suppliers that maintain a sustainable approach. Starbucks supports ethical sourcing by operating “responsible purchasing practices, farmer support…” (Starbucks, 2016) also corporate social responsibility (CSR). Additionally, their tactic is utilizing the “Coffee and Farmer Equity (C.A.F.E.) Practices” (Starbucks, 2016), wherein this approach is the first set of sustainability benchmarks in the coffee industry and is certified by third-party logistics professionals. The C.A.F.E. Practices has assisted Starbucks in relation to generating a “long-term supply of high-quality coffee” (Starbucks, 2016) and influencing the lives of the farmers and their communities. Furthermore, Starbucks utilizes economies of scales in their inbound logistics activities by developing outstanding supply chain procedures by using C.A.F.E. and also includes collaborating internationally with managers discussing strategic alliances through suppliers for their products. Starbucks have recently

To support this statement, I would like to present Starbucks ' supply chain reorganization started in late 2008. The initials first step was to simplify a complex structure in four essential supply chain functions. Every supply chain job fell in plan, source, make, and deliver. If someone involved in production planning or replenishment or new product, was part of the planning department. Sourcing functions split between coffee and "non-coffee" procurement. At that time Starbucks spent in the average US $600 million on coffee a year and total US

Hence, this strict control over the global supply chain is essential for Starbucks’ performance and efficiency, which directly impacts profit.

The question is what exactly goes into the process from cocoa beans in a field to a steaming cup of delicious coffee. Starbucks has created an amazing strategy of Supply Chain Management that spans across almost nineteen countries, that means cocoa beans can come from one country while milk could come from an entirely different nation hundreds of miles away. Through this global resource span Starbucks can expand the company and reach more countries than ever before. Starbucks also makes sure that they supply the best ingredients to their coffee drinkers for a lower price. All raw materials are sent to roasting manufacturing and packaging plants. Starbucks itself has six roasting manufactories, which seems very few for such a big company, but they are using a very effective centralized system.