Global Logistics System Of Starbucks

1045 Words 5 Pages
The induction of a single, global logistics system was essential for Starbucks because of its far-flung supply chain. The company imports coffee beans from different locations such as; Latin America, Asia, and Africa to the United States and Europe in ocean containers. From the harbor of entry, the green beans are freight to six different storage sites, either at a roasting plant or close. Whenever the beans are roasted and packaged, the finished products are freight to regional distribution centers. The company manages five regional distribution centers (RDCs) in the United States; three are operated by third-party logistics companies (3PLs) and the other is company-owned. In addition to the RDCs the company has two distribution centers (DCs) …show more content…
The company has 33 CDCs in the United States, five in Canada, three in Europe, and seven in Asia. Dairy, baked goods and paper items like cups and napkins are held by the CDCs. They consolidate coffee with other products to make periodic deliveries through devoted truck fleets to Starbucks ' retail stores and to retail outlets that market Starbucks-branded products. (James A. Cooke. (2015). Since execution and delivery costs are related and convoluted, the company management is trying to enhance both. The first step of Starbucks ' management is to make up a global map of transportation expenditures because it clarifies the supply chain costs by area and by customer. After analyzing those expenditures Starbucks garbled its transportation carriers and kept with the ones that offer the best services. Also the Starbucks ' supply chain met with its 3PLs and revised productivity and contract …show more content…
As Chopra says, “Complexity can mean reduced efficiency as managers struggle with the day-to-day risks of delays and fluctuations, and it can lead to increased risk of disruption, in which dependencies between products can bring everything to a halt” (2014). One of the essence ways of mitigating transportation disruptions interests the flexibility of transport systems. Acquiring a level of resilience implies a combination of redundancy or resilience. Redundancy adhere a level repetition of assets, which are routes to connect location or additional inventory within supply chains. Flexibility concerns the ability to deal with substitutes such as new roads, or new

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