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STARBUCKS ERP

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sarah vandersluis

on 16 March 2014

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Transcript of STARBUCKS ERP

Introduction
-American global coffee company and coffeehouse chain

-Started in Seattle in 1971

-Grown to the largest coffeehouse in the world

-20,891 stores in 62 countries

Operations
Operations and Supply Chain
-The operation system is very complex

-70,000 outbound deliveries per week

-Worldwide distribution channels and outlets

-6 Roasting Centres worldwide

-Beans must be prepared, manufactured and packaged
in the same way and quickly


Final Analysis
Effective?
1. Recognized $500 million savings in the 2 years after the implementation

2.Reduced Paperwork

3. Better forecasting Results

4. Reduces operating and supply chain costs

5. Enhanced ease-of-use for entire organization
Constraints
Suggestions
-Ensure each software system is fully integrated

-Maintain a healthy and collective relationship with vendors

-Increase communication on a timely and periodic basis

Conclusion
Summary
What is ERP?
“…framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.”
Change in Operations after ERP
- Successful expansion into Australia
Problems that led to implementation
Over half of
Deliveries Late
Technical
-Increased time and Cost when expanding or new implementation
-Due to "Best of Breed" implementation: different software operating within the ERP system, possible risk of one not effectively becoming integrated with the main system
Behavioural
-Risk involved if problem with pre-existing vendor- relationship is ruined
-Process of re-picking, retraining, and implementing the new software
The Need For ERP
The Secret of Starbucks...ERP
Marc Bazerghi - 250579892
Yanjun Chen-250657191
Cameron Cooke - 250634399
Hui Li - 250647876
Sarah Vandersluis-250653387
References
http://www.starbucks.ca/about-us/our-heritage
http://www.supplychain247.com/article/behind_the_scenes_at_starbucks_supply_chain_operations/green

http://www.supplychainquarterly.com/topics/Procurement/scq201004starbucks/

http://www.pa.com.au/customer-stories/starbucks-australia/

http://www.esker.es/soluciones_deliveryware/data/PDF/Esker_DeliveryWare-Testimonio-Starbucks_Coffee.pdf

http://mauriziostorani.wordpress.com/2008/12/06/enterprise-resource-planning-erp-concepts-methods-and-frameworks/

http://www.theaustralian.com.au/archive/news/coffee-debt-stir-starbucks-troubles/story-e6frg6no-1111117065025

http://en.wikipedia.org/wiki/List_of_ERP_software_packages

http://www.esker.es/soluciones_deliveryware/data/PDF/Esker_DeliveryWare-Testimonio-Starbucks_Coffee.pdf

http://www.statisticbrain.com/starbucks-company-statistics/

ERP In Today's Business World
- Great tool for large, globalized organizations
- Still very useful for small to medium size companies
- Over 50 different ERP systems on the market!
High
Outsourcing Costs
Needed to address inefficiencies in
Supply Chain Management in order
to make expansion possible
2 Main Issues with Supply Chain:
- "Boost in productivity and morale"
- Aram Dayeian
- Fixed supply chain issues across all operations
- Facilitated growth of overall company over 10 year period
The coolest thing in our findings/presentation
successful?
problem?
...?
"There's a lot of confidence that
we now are focused on service
and quality to provide what our
stores need and what our other
business customers need."

-Gibbons (Global VP Operations)
Full transcript