Starbucks Supply Chain

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The distinguished “Starbuck’s experience” is enjoyed by its customers in the latest function of its Supply Chain through the interaction of retail and customers. After redesigning its supply chain, Starbucks calls this function “Deliver”. Starbucks had four different channels to get its high-end product to the final consumer. The company sells its products through a combination of operated stores, licensed stores, other channel development (CPG), and e-commerce.
Company Operated Stores
As of Year End 2014, Starbucks® had 10,713 company operated stores in US, Canada and the rest of the world which accounts for approximately 50.14% of its operations and 78.9% of its revenues (Appendix X & Y). These stores are located in high visible, highly traffic
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After ending an agreement with Kraft Foods (that resulted in litigation), Starbucks has been selling its products directly through Channel Development since in 2010. These products are mostly sold to consumers through institutional food service companies that serve industries such as airlines, hotels, restaurants and grocery stores in approximately 20 countries, in addition to national distribution networks such as Sysco Corp and US Foodservice. Another important aspect on this category is the cross-channel created between retail/CPG through “My Starbucks Reward” loyalty …show more content…
Starbucks is continuously analyzing consumer’s trend in order to bring its innovative products to the shelves, since research shows that most of the coffee is still consumed at home. Michal Conway, president of Starbucks Global Channel development said in April 21, 2015 “Some of our grocery spaces pull through design elements from Starbucks stores… It’s like a mini store with design features like a pendant light, tile backsplash, a counter that mimics the hand-off plane – signal a unique experience.” Furthermore, Starbucks has also been working with retailer such as Wholefoods to add its Evolution Fresh and La Boulange bakery lines (that was initially acquired to supply its own stores) to the supermarket’s shelves.
My Starbucks Reward loyalty program is an ingenious form to link the channel development-customer – retail function of the supply chain. Through this program, “customers earn Starbucks stars – redeemable for free beverages and food at Starbucks retail stores – when they purchase Starbucks-branded products in CPG channels”. This is another element that Starbucks has implemented in order to increase and maintain customer’s

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