Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the largest coffeehouse company in the world. Starbucks was founded in 1971 and has expanded globally, with over 28,000 locations around the world. Starbucks aims to establish itself as the premier purveyor of the finest coffee in the world while maintaining its principles as it grows. It uses a centralized global supply chain and logistics system to efficiently source, produce, and distribute products worldwide.

1. Starbucks
Corporation
Coffeehouse company

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About Us
Coffee House company
Starbucks
• Starbucks Corporation is an American
multinational chain of coffeehouses and roastery
reserves headquartered in Seattle, Washington. As
the largest coffeehouse in the world, Starbucks is seen
to be the main representation of the United
States' second wave of coffee culture
• The company was founded in 1971 by Jerry
Baldwin, Zev Siegl, and Gordon Bowker in the Pike
Place Market
• The first Starbucks location outside North America
opened in Tokyo, Japan, in 1996
• On December 4, 1997, the Philippines became the
third market to open outside North America
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Vision
Coffee House company
• Starbucks Coffee’s corporate vision is “to
establish Starbucks as the premier
purveyor of the finest coffee in the world
while maintaining our uncompromising
principles while we grow.”
• Starbucks Coffee’s vision statement is
concise, clear, and inspiring, especially in
terms of achieving and maintaining the
premier status in the coffeehouse and
coffee industry
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Starbucks Vision Component:-
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• As manifested in the
continuing global
expansion of the business
through new Starbucks
locations.
• The company now has
more than 28,000
locations around the
world.
• However, it is not yet
clear if Starbucks
effectively addresses the
“finest coffee in the
world” component of its
corporate vision
• . Analysts and critics point
out that coffee from
McDonald’s or Dunkin’
Donuts may be better
than Starbucks coffee in
some aspects
• These principles include
ethical conduct and a
warm culture.
• The company maintains
these principles,
especially during Howard
Schultz’s leadership as
CEO
Premier
purveyance
Growth Finest coffee in the
world
Uncompromising
principles
• Aiming to be the premier
purveyor means that
Starbucks Coffee wants to
achieve leadership in
providing its products,
especially coffee of the
best quality.

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MISSION:-
To inspire and
nurture the human
spirit – one person,
one cup and one
neighbourhood at a
time.
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Starbucks Mission:-
• Creating a culture of warmth and belonging, where
everyone is welcome.
• Being present, connecting with transparency, dignity
and respect.
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• Acting with courage, challenging the status quo and
finding new ways to grow our company and each other.
• Delivering our very best in all we do, holding ourselves
accountable for results.
OUR VALUES
With our partners, our coffee and our customers at our core, we live these values:

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Starbucks Supply Chain:-
Plan
Source
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In the latter stages of 2008, the company took an important step to simplify and centralize its
previously fragmented supply chain. The team reorganized it so that every role fell into one of four
basic functional groups.
Make
Deliver
• Production planning, replenishment, or new product
launches—placed in the planning group
• Sourcing activities were grouped into two areas:
coffee and "non-coffee" procurement. (Starbucks
spends US $600 million on coffee each year.
Purchases of other items, such as dairy products,
baked goods, store furniture, and paper goods, total
US $2.5 billion annually.)
• All manufacturing, whether done in-house or by contract
manufacturers, was assigned to the "make" functional
unit
• All personnel working in transportation, distribution,
and customer service were assigned to the "deliver"
group

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SUPPLY CHAIN CENTRALIZATION:-
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• A “scorecard system” is used to gauge its
supply chain efficiency.
• Four categories in particular are assessed:
1. Safety in operations
2. On-time delivery and order fill rates
3. Total end-to-end supply chain costs
4. Enterprise savings
**The last criteria looks at cost savings from
areas outside of logistics, such as R & D,
procurement or marketing
• Starbucks stores can be found across six continents.
Only by centralizing critical supply chain management
functions has the company been able to succeed
across so much distance. There is too much potential
for inefficiency and procurement waste for Starbucks
to do otherwise

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Starbucks Main Competitors:-
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Competitive Advantages:-
• Starbucks has got a strong brand image which
is also a source of sustainable competitive
advantage for the brand
• High level customer satisfaction is a sign of
strong brand equity.
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• Starbuck is a premium coffee brand
• Most customers are willing to pay the
premium prices it charges because of its focus
on quality and customer service
1.Brand Equity 2.Pricing strategy
The company has built some strong sources of competitive advantage. Its global network, premium quality and
strong brand image are its major strengths.
Take a look at the main strengths which are a source of competitive advantage for the company.

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• A large product range is also a key strength of
Starbucks. It keeps experimenting with flavors to
add to its range of coffee products.
• Higher variety has led to higher popularity.
• A large and differentiated product range is also a
source of strong competitive advantage
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• Starbucks also enjoys very high level of customer
loyalty
• It has managed every aspect of the Starbucks
experience to offer each customer a fulfilling
experience
• High level customer loyalty means higher
profitability and revenue
3.Large product range: 4.Customer loyalty
5.Customer service:
• Customer service is a source of competitive advantage.
• Right since its foundation, the company has retained exclusive
focus on customer service. It is also a driver of customer loyalty.
• In the recent years, it has started spending on advertising.
However, its marketing budget is limited. It focuses instead on
quality in other aspects of business including products, customer
service and supply chain.

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Starbucks Corporation Warehousing :-
• The warehouse ownership arrangements used by
Starbucks Corporation is private warehouses.
• The corporation owns and manages these warehouses
to store exclusively their owned stock of products and
materials
• Starbucks’s warehouses have advanced material
handling systems
• The system functions by automatically locating and
delivering the required inventory to a conveyor system
thus reducing the labor required, inventory level and
floor space
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Warehousing Practices Used by Starbucks Corporation:-
• The warehouses receive products and
materials from the various roasting plants and
combine them for a particular distribution
center.
• The products and materials would be on a
single transportation shipment
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• The warehousing strategy will help to reduce
congestion at the receiving docks since fewer
shipments are involved in the process
• Reduced congestion at the receiving dock, the
organization will save time and eliminate
other logistic expenses
First, the organization benefits from the
reduced logistic costs
Second, the warehousing strategy will help
to reduce congestion at the receiving docks
The type of warehouse arrangement that Starbucks uses provide the following economic benefits to the
organization.

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Starbucks Logistics:-
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Starbucks Logistics:-
• Starbucks refers to selecting the finest quality
of coffee beans
• Company appointed coffee buyers from coffee
producers in Latin America, Africa and Asia
• The green or unroasted beans are procured
directly from the farms by the Starbucks
buyers
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• No presence of intermediaries in product
selling
• Products are sold in their own or licensed
stores only
Inbound Logistics Outbound Logistics

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One world, one logistics system
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Suggestions For
Improvement
Starbucks Coffee Company
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18. Thank You
+1 23 987 6554
kalle@email.com
www.fabrikam.com
Starbucks Coffee Company