SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

1-4 Element of supply chain Management,, namely Purchasing, Operations, Distribution and Integration.

a-How do each of these elements apply to Starbuck. Explain carefully.

Purchasing:

In order for the client received a good cup of coffee supply chain in a company should work perfectly, the random process that turns coffee bean in a cup of coffee is considered to be so complicated. Coffee beans and other raw materials must be imported from various points of the globe and optimally delivered to the 16,700 network points Starbucks, weekly serving 50 million customers in 51 countries.

Operations:

Starbucks eliminated redundancies and maximizing the efficiency of operations relating to the supply chain, achieving lower costs. Operations of the supply chain process provided a very accurate forecast of demand, a high turnover of inventories and a manufacturing and distribution process fully integrated protected the coffee beans from oxygen. Starbucks developed these skills and benefits for practicing benchmarking the practices of its competitors, hired experts and believed in the concept of integrated supply chain.

Distribution:

Many people wrongly assume that Starbucks is a franchise because of its rapid growth in different markets, but the company prefers to train staff and keep control in all its stores through licensing to companies recognized. The big difference between granting a franchise and a license, is that giving an allowance of not only spread the brand and rights, such as licensing, but also the know-how or know-how of the business, or is the same as saying Sist. Operation. Its main distribution channels are the cafes, specialty coffee sales, wholesale channels, the direct sales business and supermarkets, Established strategic alliances with hotels, airlines.

Integration:

Strong vertical and horizontal integration among management and staff is accompanied by solid management. Starbucks operates 5 local distribution centers in the America, 2 of which is owned and operated, and the other 3 are managed by third-party logistics companies (3PLs - «third-party logistics» - an approach in which the full range of services from delivery and address storage to order management and tracking the movement of goods is transferred to the side of the transport and logistics organization.). At Starbucks also have two distribution centers in Europe and 2 in Asia, all of which are operated by 3PL companies.

2-Name some types of failures in each of these 4 elements which would cause difficulties for supply chain.

Purchasing, Distribution, Integration & Operations:

Despite the fact that production had been distributed over a vast area, the costs of transportation, distribution of goods, and logistics made up the bulk of operating costs Starbucks, because the company shipped large list of different products worldwide.

At Starbucks there are a number of quantitative indicators required to evaluate the performance of the supply chain. However, to create a coherent and balanced work of the logistics team of the company as a whole, focuses on four key criteria of high quality: security activities, the level of service, timeliness of performance measured by deliveries and the percentage of orders, the total cost of the supply chain, and cost savings the ...