Supply Chain is very important for the economic system. The supply chain is described as complete set of firms and facilities as well for logistics in producing materials, finished products, and distribution. The following paper will map the supply chain of Starbucks, a roaster, marketer, and retailer specialty coffee known worldwide. Starbucks has seen a huge growth over the last years. The supply chain for Starbucks is explained in detail that describes the manufacturer, distribution, and retail. Manufacturer
Starbucks manufacturing goods are important for the company. The merchandise on the shelves, their furniture, employee’s uniforms, and how the products are made. Starbucks is committed to sell the finest coffees and coffee beverages. For Starbucks, it is important that they purchase green coffee beans from various regions and custom roast them to their standards. Starbucks manufacturing goods also consist of dairy products that support the needs of the company. In addition, Starbucks also works with sources that manufactures food products such as pastries, sandwiches that are sources from national, regional, and local. Not to mention also a broad range of products such as cups and cutlery from manufactures that meet the company’s manufacturing and distribution operational needs. Under the direction of Starbucks operations, the supply chain for their manufacturing may include. Planning product mix and materials
Ensure they meet compliance to their coffee standards
Sources raw material from coffee-producing regions
Create branding to their custom roast standards
Ships to distributor
Starbucks manufacturing sources are carefully hand selected with the partnership with Conservation International and Coffee and Farmer Equity (C.A.F.E.) promoting social, environmental, and economic standards. Distributor
Another important factor for Starbucks is the distributor. The products are important for Starbucks. Therefore, Starbucks has extensive logistical efforts in order to transport the products across the nation. Starbucks count with regional distribution centers, central distribution centers, and green coffee warehouses. In order to fulfill Starbucks distribution, it is important to look at the distribution of the flow of products. Receiving coffee beans
Starbucks distributors ensure that all products are facilitated properly. Logistics of the products are important and Starbucks must look at all strategic assets to deliver to all locations. Retailer or Contractor
Last, Starbucks is a retailer or a contractor. Some of Starbucks coffee end up in their stores or at commercial stores where they can be sold to consumers. People can find Starbucks coffee in airports, schools, malls, supermarket stores, etc. Starbucks coffee is offered in their own stores, but also through contractors who can sell their products in their own businesses. Starbucks retailer or contractor are mapped as such.
Provide location to shop for the product
Decides on the product selection
Deals with customer service
Handles returns and exchanges
Provides advertising and marketing
Offers advice and consulting on their products
In conclusion, it is important for marketing to be aware of the stages that the supply chain is needed in order to become successful as a company. Each company has special roles to follow that are essential in order to have a healthy business in the industry. Importantly, it is vital for a company to focus on the supply chain in the promotion and advertising campaigns. Starbucks is a global business. Therefore, it is important to have effective operations within their supply chain to have a long term success. Most importantly, it is vital that all sources in the supply chain work together in order to meet all standards of the company but also the needs of the customer.
It is also important to note that Starbucks works with the finest sources to deliver the best coffee in the industry. They hand select the best sources in order to provide a good product to not only their stores but also to their contractors selling their products. This makes the supply chain efficient and effective by creating a competitive advantage from other suppliers that serve the same market. Starbucks not only offer coffee but they also have the competitive edge by offering sandwiches and other Danish products. Therefore, the supply chain makes Starbucks, a roaster, marketer, and retailer specialty coffee known worldwide.
Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill Irwin. Starbucks (2014). Starbucks Manufacturing Goods. Retrieved from http://www.starbucks.com/responsibility/sourcing/store-products