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Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
Starbucks Supply Chain Transformation 2010
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Starbucks Supply Chain Transformation 2010

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  • 1. Starbucks Confidential Page 1 Gregory Javor VP Global Supply Chain Operations Tuesday June 22nd 2010 Starbucks Coffee Company A look inside the Supply Chain transformation journey
  • 2. Starbucks Confidential Page 2 Today’s Talk Starbucks The Starbucks Supply Chain The Supply Chain Transformation Journey
  • 3. Starbucks Confidential Page 3 Where We Began
  • 4. Starbucks Confidential Page 4 From One Little Bean Store • 16,700 retail stores • 120,000 partners • 51 countries • 50M customers per week • Our products: - Coffee and Tea - Handcrafted Beverages - Consumer Products Stores
  • 5. Starbucks Confidential Page 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.
  • 6. Starbucks Confidential Page 6 Starbucks Partners “We’re not in the coffee business serving people. We’re in the people business serving coffee.”
  • 7. Starbucks Confidential Page 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.
  • 8. Starbucks Confidential Page 8 The Starbucks Supply Chain • Plants - Coffee Roasting: 5 - Tea: 1 - Co-Manufacturing: 24 • Distribution - RDCs: 13 - CDCs: 42 - Green Coffee Warehouses: 6 > $4.0B Enterprise Spend > $0.8B Operating Expense > 4.4M Deliveries per year > 1.1M Picks per day
  • 9. Starbucks Confidential Page 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 Chain
  • 10. Starbucks Confidential Page 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.
  • 11. Starbucks Confidential Page 11 US Sales The Case for Change - 2008 Supply Chain Performance Supply Chain Costs $
  • 12. Starbucks Confidential Page 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 values
  • 13. Starbucks Confidential Page 13 The Supply Chain Transformation Journey
  • 14. Starbucks Confidential Page 14 Supply Chain Strategy - Our Purpose
  • 15. Starbucks Confidential Page 15 Our Game Plan - How We Operate Treat people well Get the job done – safety, service, quality & cost Bring new products to market Move to a higher performance level
  • 16. Starbucks Confidential Page 16 Structure - How We Organize Plan – Source – Make – Deliver
  • 17. Starbucks Confidential Page 17 The Golden Rules - How We Lead Highlight Problems We’re paid to know what’s broken, needs to be improved, changed or fixed Sleep Well Don’t lose sleep over things you don’t know how to handle – ask for help Be Transparent Operate with an “open window” so anyone can see what and how you are doing
  • 18. Starbucks Confidential Page 18 Winning - Measuring Success Cumulative Total Enterprise Savings On-Time In-Full (OTIF) Supply Chain Operating Expense MAT Safety Incidents OSHA Recordable Frequency in SCO Manufacturing Network
  • 19. Starbucks Confidential Page 19 Strategic Framework - The Long Term Plan
  • 20. Starbucks Confidential Page 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 advance
  • 21. Starbucks Confidential Page 21

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