Supply Chain Process : STARBUCKS
Head Headquarters: Seattle, Washington, USA,-- Tokoyo, UK
Starbucks is the world’s # 1 specialty coffee retailer.
It was founded in 1971 by three partners who met as students at the
University of San Francisco.
There are 20,891 locations in 62 countries.
In 2012 the reported net income was $ 1.38 billion US
Starbuck’s 1st logo :
Provide a great work environment and treat each other with respect
Embrace diversity as an essential component in the way we do
Apply the highest standards of excellence to purchasing, roasting and
fresh delivery of our coffee
Develop enthusiastically satisfied customers all the time
Contribute positively to our communities and our environment
Recognize that profitability is essential to our future success
Supplier Code Of Conduct
Demonstrating commitment to the welfare, economic
improvement and sustainability of the people and places that
produce our products and services
Adherence to local laws and international standards regarding
human rights, workplace safety, and worker compensation and
Meeting or exceeding national laws and international standards for
environmental protection, and minimizing negative environmental
impacts of suppliers’ operations
Commitment to measuring, monitoring, reporting and verification
of compliance to this code
Pursuing continuous improvement of these social and
Buy and serve high – quality coffee that grown and ethically traded
Farms and mills are evaluated by third party verification organizations
using a comprehensive scorecard of more than 200 indicators
Coffee and farmer Equity (C.A.F.E.) Practices helps to evaluate and
reward producers of high-quality, socially responsible and sustainably
C.A.F.E. Improves coffee production, conserving and restoring
natural habitat, and facilitating farmer access to forest carbon markers
Supplier Diversity Program
Focus on building and prospering communities.
Actively seek a diverse business base to do business with.
Supplier opportunities goes beyond logistics, distribution and co-packing.
Develop and maintain supplier relationship
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Sample 150, 000 cups a year looking for the best arabica coffee
About 3% of the world’s beans makes the selection
18 weeks each year assigned employees visits coffee growers worldwide
Starbucks Supply Chain
GOAL : REDUCE COST AND IMPROVE EFFICIENCIES.
See The Big Picture
Its imperative to understand the total cost of each operation within the
supply chain. In addition, to monitor and control all supply chain
Understand prices of purchase
Analysis the breakdown of all ingredients
Develop various cost models
Transporting the Beans
Huge quantities of coffee beans are selected and shipped to the various
9 regional distribution centers
48 central distributions
6 green coffee warehouses
Distribution Flow Chart
Storage Sifter Assortment
Packaging Palletizing DISCARD
Sustainability is Smart
Energy renewable and conservation
Building greener stores
Recycling and reducing waste
Starbucks Coffee Available at Places:
Airports, Schools, Malls, etc.
“We have no patent on anything we do and anything we do can be copied by
anyone else. But you can’t copy the heart and the soul and the conscience of
“The taste of our coffee has created such a quality experience that we’ve been
able to convince people over 20 yrs that its still a very good value even
though its more expensive than traditional coffee you can find at a diner.”
The Best Coffee
A cup of coffee is the end of a long journey from the land, to the farmer, to the roast, to
your eagerly waiting hands.
Each step is important in defining what that coffee will taste like.