Greg Javor from Starbucks; The Boardroom Agenda: Value-Chain Leadership for Post-Recession Success

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Greg Javor from Starbucks; The Boardroom Agenda: Value-Chain Leadership for Post-Recession Success

  1. 1. Starbucks Coffee Company A look inside the Supply Chain transformation journey Gregory Javor VP Global Supply Chain Operations Tuesday June 22nd 2010Starbucks Confidential Page 1
  2. 2. Today’s TalkStarbucks The Starbucks The Supply Chain Supply Chain Transformation Journey Starbucks Confidential Page 2
  3. 3. Where We BeganStarbucks Confidential Page 3
  4. 4. From One Little Bean Store Stores • 16,700 retail stores • Our products: • 120,000 partners - Coffee and Tea • 51 countries - Handcrafted Beverages • 50M customers per week - Consumer ProductsStarbucks Confidential Page 4
  5. 5. More Than a Cup of Coffee Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.Starbucks Confidential Page 5
  6. 6. Starbucks Partners “We’re not in the coffee business serving people. We’re in the people business serving coffee.”Starbucks Confidential Page 6
  7. 7. The Starbucks Supply Chain ...is responsible for the supply of all products that contribute to the Starbucks experience …from the coffee in your cup, to the cup itself and the table it rests on – at every Starbucks store around the world.Starbucks Confidential Page 7
  8. 8. The Starbucks Supply Chain • Plants > $4.0B Enterprise Spend - Coffee Roasting: 5 - Tea: 1 > $0.8B Operating Expense - Co-Manufacturing: 24 > 4.4M Deliveries per year • Distribution - RDCs: 13 > 1.1M Picks per day - CDCs: 42 - Green Coffee Warehouses: 6Starbucks Confidential Page 8
  9. 9. The Starbucks Supply Chain “Get goods into customer hands” Provide information that completely answers the customer’s question in a manner that builds confidence in the Supply ChainStarbucks Confidential Page 9
  10. 10. The Starbucks Supply Chain At the heart of what we do are products sourced ethically, made with the highest quality, and freshly delivered to our customers.Starbucks Confidential Page 10
  11. 11. The Case for Change - 2008 $ US Sales Supply Chain Costs Supply Chain PerformanceStarbucks Confidential Page 11
  12. 12. The Case for Change - 5 Theatres 1. Admission of Guilt of self induced mistakes by the SLT 2. Global Financial Crisis 3. Competition 4. The Web 5. Foundation - preserve and enhance our culture and valuesStarbucks Confidential Page 12
  13. 13. The Supply Chain Transformation JourneyStarbucks Confidential Page 13
  14. 14. Supply Chain Strategy - Our PurposeStarbucks Confidential Page 14
  15. 15. Our Game Plan - How We OperateTreat people Get the job done Bring new Move well – safety, service, products to to a higher quality & cost market performance levelStarbucks Confidential Page 15
  16. 16. Structure - How We OrganizePlan – Source – Make – DeliverStarbucks Confidential Page 16
  17. 17. The Golden Rules - How We Lead Highlight Problems Be Transparent Sleep Well We’re paid to know Operate with an Don’t lose sleep over what’s broken, needs “open window” so things you don’t know to be improved, anyone can see what how to handle – changed or fixed and how you are ask for help doingStarbucks Confidential Page 17
  18. 18. Winning - Measuring Success Safety Incidents Cumulative Total Enterprise Savings OSHA Recordable Frequency in SCO Manufacturing Network On-Time In-Full (OTIF) Supply Chain Operating Expense MATStarbucks Confidential Page 18
  19. 19. Strategic Framework - The Long Term Plan Starbucks Confidential Page 19
  20. 20. People - Develop Partners and Talent • Develop partners and attract talent to build world-class capability • Foster a workplace where partners are: - Entitled to training - Mentored for success - Inspired to advanceStarbucks Confidential Page 20
  21. 21. Starbucks Confidential Page 21

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