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Starbucks_Logistic

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by

Xavier Tsang

on 28 November 2012

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Transcript of Starbucks_Logistic

Nearly 18,000 stores (as of July 1,2012)
Located in 60 countries
Opened 899 new stores around the world
Served nearly 60 million customers per week Around the World Starbucks in HK 124 Starbucks coffee stores
Hong Kong Island: 63
New Territories: 24
Kowloon: 37
Starbucks stores mainly located within malls Starbucks Coffee Ko Yiu Kwan 12121707D
Tsang Hing Wa 12028042D
Wong Ka Ho 12076195D
Ling Wai 12075801D
Wong Pak Wai 12073959D
Yau Shing Hin 12076188D General Shipping Logistics Location Consideration Central Business Districts: White-collar workers who mainly work at
High population
Easily accessible Starbucks's Products Wide range of products Drinks (around 40 types)Food ( Dessert, salad, cakes, etc.) Reusable coffee cups Pricing Target on high and middle income group
Strategy: High quality with lower price Starbucks Pacific Coffee Vanilla Latte Greek Salad $32 $34 Comparison of product Tall: $31
Grande: $34
Venti: $37 Tall: $32
Grande: $35
Venti: $38 Marketing Who are the target customer? Adult
College Students * Coffee consumption is increased with education level Marketing Strategy Creating a third place between “home” and “work”Create a community around the brand Brand Image Building Ethical Sourcing Sponsorship Environmental Stewardship Community Involvement Ways to attract customers Logistic Operation Transportation Flow Channel of Distribution Challenging Situation Less than half of store deliveries were arriving on time
65 to 70 percent of Starbucks' supply chain operating expenses were tied to outsourcing agreements for transportation, third-party logistics, and contract manufacturing.
supply chain expand rapidly
significant cost inflation Operational Cost One-world, one logistic system 3-step Plan 1. Reorganize its supply chain organization

2. Reduce its cost to serve stores and improve execution

3. Lay the foundation for future supply chain capability Recognizing 4 basic supply chain functions:
plan, source, make and deliver Simplifying the complex Should cost models
breaking items down by ingredient rather than just purchase price Better negotiation power Cost Cutting Manufacturing in the region where the product sold
Reviewed productivity and contract rate of 3PLs
Weekly scorecards for assessment Purchasing Inventory System Warehousing Distribution Center 24 hours
Located regionally
Efficient information system to support Thank you for your attention Factors affecting purchasing Price of coffee
Stability of coffee supply Starkbucks purchasing Purchasing at outright prices
Building direct relationships with farmers
Signing long-term contracts with suppliers Starbucks Funny Commercial Content Location
Products
Pricing
Marketing
Logistic Operation
Purchasing
Inventory System
Full transcript