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STARBUCKS COFFEE SUPPLY CHAIN

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on 30 April 2015

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Transcript of STARBUCKS COFFEE SUPPLY CHAIN

Starbucks Coffee
Started: 1971 in Seattle, Washington
Products: coffee, tea, handcrafted beverages, fresh food and merchandise
Market: over 21,000 stores in 60+ countries
Mission: "To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time."

- R.F.I.D.

- J.I.T. Inventory

- Kaizen
Recommendation
Customers
Recommendation:
Wait Times
Suppliers
Relationships

Evaluation and Certification Process

Development and Awards

STARBUCKS COFFEE SUPPLY CHAIN
Andrew Welch, Aaron Wiggins, Swar Amin & John Hendrix
Recommendation
Recommendation: Farmer Support Center in India
Recommendation:
Supplier Award Program
Recommendation:
Service Guarantee/Customer Satisfaction
Supply Chain Characteristics and Employee Involvement
Recommendation:
Employee Engagement
Recommendation
Starbucks currently operates six Farmer Support Centers in Asia, Africa, the Caribbean and South America.
The Centers connect local farmers with agronomists to improve coffee quality, decrease cost of production and ensure environmentally-friendly and sustainable farming practices.
Given the rising popularity of tea in the United States and its acquisition of Teavana, Starbucks should use the same model to establish a seventh center in India to support tea farmers.
Starbucks suppliers have to undergo a rigorous selection process and must uphold stringent quality criteria.
Starbucks provides considerable assistance to their suppliers but supplier recognition is not widely publicized.
Being recognized and awarded formally as a supplier for such a popular chain would give the suppliers a considerable level of prestige.
It would also serve as additional motivation for local growers to seek out innovate ways to boost quality and sustainability.
CRM System

Wait Times

Service Guarantee
Created
Pre-Order/Pay Mobile Application

in Portland Oregon (
20%
business on Pay App.)
Goal: Reduce wait times/easy customize complex order
Not sure how to sync wait time with service time
Prints receipt when ordered

1. Queue system with pick-up time/service time/wait time
2. Vending Machines/Self Service
-Three separate lines with decrease wait time and increase service time
-Extensive training on technical skills and customer service
-Built brand on experience and service
-Won dozens of customer service awards
-Systems for every order
-Now Declining Service Index, b/c growth/# of items

Create a service rating system for Mobile pay app. Increase service system and satisfaction

-Measure and track performance (provide award or training)
-Hear voice of customer
Vertical Integration

Green Supply Chain

Employee Engagement
Starbucks currently uses a passive RFID system to monitor inventories, deliveries, and supplies.
The quality of perishables can me tracked and managed using RFID.
Active RFID
Readers, Room/Rack Locators

Starbucks currently uses J-I-T inventory management to ensure highest qualities. The next step is to eliminate human error within the process.
Quality
Install a self ordering system
Employees can refocus efforts on becoming barista experts
Customer engagement will increase as baristas have more time to interact with each customer.
Employees feel empowered to talk to customers
Change C.A.F.E. certification
Use the Rainforest Alliance Certification
Find local bean roasters and packaging
In store reusable ceramic cups
Question:
How important are Starbucks' corporate social responsibility and green sourcing initiatives to you as actual (or potential) customers?
Green
Full transcript