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Untitled Prezi

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Qiaoyuu Ong

on 23 June 2013

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STARBUCKS
COMPANY PROFILE
ERP
Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business.

The common database allows every department of a business to store and retrieve information in real-time.
BUSINESS PROCESS (I)
ROLES OF DEPARTMENTS
In order to execute these processes, teamwork in all functional areas is needed as they are independent with each other to obtain data and relevant information. The departments involved are sales and marketing, finance, supply chain management, and human resources.
PROBLEMS OF AN UN-INTEGRATED SYSTEM
In a company of an un-intergrated system, data is maintained at the individual departments and departments do not have access to data of other departments.
STARBUCKS
Starbucks began in 1971 with a single store in Seattle’s Pike Place Market.
Back then they were just a roaster and retailer of whole bean and ground coffee, tea and spices.
The first Starbucks store opened on 14 December 1996 along Orchard Road shopping belt.
Starbucks offer fresh, rich-brewed coffees, premium teas, and handcrafted beverages like Frappuccino to a variety of food items, and beverage-related accessories and equipment.
Starbucks targets on everyone providing them with a cosy and intimate atmosphere with the combination of different furniture ensuring that there is something for everyone.

Starbucks customer service business process in making a successful sale to a customer. It shows the traditional method of upfront payment and its process in details.
Customer enters Starbucks
Cashier takes order
Customer
Cashier enter order into cash register
Order sent to barista
Cashier
Barista
Charge customer
Makes drink
Receives the drink
Hands drink to customer
Customer enters Starbucks
Cashier takes order
Cashier enter order into cash register
Order sent to barista
Cashier
Barista
Charge customer
Makes drink
Receives the drink
Hands drink to customer
Customers have to approach the cashier to make a sales order.
Cashier takes the order of the customer. Asking the customer's preference on the size of the drink or toppings.
Customer
cashier then key the customer's order into the POS system.
Order is being sent to the barista
Cashier charge the customer and issues a receipt for their order while the barista is making the order
Barista receives the order and starts preparing
Barista hands the drink to the customer after it is done
The customer receives the drink
BUSINESS PROCESS (II)
The buying and attainment of the E-cards online. In the Starbucks website, this is a 4 step process for customers. Starbucks allows customization of cards and different top up values for convenience.
Customer is allowed to choose their favourite design online before adding to cart.
They will have to enter their personal particulars. Customers can then choose whether to check out normally entering their own card details or by their PayPal account.
Customer can decide how urgently he/she needs the card and if they are willing to pay more for faster delivery through USPS or FedEx.
Customer receives the card and is able to make purchases with it.
Sales & MArketing
Finance
Supply chain Management
Human Resource
Marketing department is important as they need to maintain the loyalty programme with Starbucks regular customers. Their role is to gather feedback to improve on their rewards and promotion plans. They have to ensure that their sales strategies and product pricing are appropriate and relatable to Starbucks customers.
Finance department has to regularly keep track of the company’s transaction history in the books of accounts to prepare reports on the financial position and profitability of Starbucks. It has to go through all the sales orders and make sure they tally with the amount of coffee/food sold and ensure that there are minimal discrepancies. They have to provide this information to the marketing and sales department for them to evaluate the customer’s credit status.
Supply chain management is in charge of gathering raw materials to resupply inventory such as cups, mugs, merchandise, coffee machine, napkins. They have to follow an allocated budget and get the goods delivered on time. Besides maintaining inventory levels, they have to follow up with any new additional resources required by the marketing department and liaise with suppliers.
The human resource department has to ensure that there is sufficient staff in all areas to maintain efficiency and effectiveness. They have to ensure that they hire the right people and provide them training in order to provide good service to Starbucks customers. Their main role is to recruit, train, promoting, and terminating employees who are unsuitable. As Starbucks is in the food and beverage sector, soft skills for most employees are important to ensure a smooth business process with customers.
Problems:
• Numerous disparate information systems are developed individually over time and are difficult to maintain
• Integrating the data is time & money consuming
• Inconsistencies and Duplication of data
• Lack of timely information leads to customer dissatisfaction, loss of revenue and repute
• High inventory , material and human resource cost

EXAMPLES
A customer approaches Starbucks sales team for a product on a urgent basis. However the sales departments do not have immediate information access to the product’s inventory, causing them the need to approach the inventory department to check on the availability of the product. This process is very time consuming and the customer may switch to other vendors, leading to customer dissatisfaction and loss in revenue.
When a product is out of stock and the sales team approaches the production planning team to manufacture the product for future use, the production planning team have to check the availability of the raw materials required. However, information on the raw materials are separately stored by the production planning department and the inventory department, causing data maintenance cost to rise.
A particular coffee beans product of starbucks is available in the inventory but according to the database of the production planning team, it is out of stock (Database are out of Synch), so they go ahead and buy the coffee beans needed for production. Thus inventory cost increases.
BENEFITS OF ERP IN STARBUCKS
With the use of ERP it will help to:

• Eliminates the duplication, discontinuity and redundancy in data across departments.

• Provides information across departments in real time, it allows staff from different department to access easily. For example, marketing accessing store sales.

• Provides control over various business processes

• Increases productivity, better inventory management, promotes quality, reduced material cost, effective human resources management, reduced overheads boosts profits

• Better Customer interaction, increased throughput. Improves Customer Service. For example the use of Starbucks app and card bringing Starbucks closer to consumers.

http://www.businessinsider.com/starbucks-rewards-program-changes-2012-9
http://www.starbucks.com/blog/bringing-you-rewards-faster-and-tastier-/1231
https://www.starbucks.com/shop/cart
http://www.starbucks.com/coffeehouse/mobile-apps/mystarbucks#!prettyPhoto
http://starbucks.com.sg

MEMBERS
MITCHEL
QIAOYU
BRIDGET
BILIAN
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