Question
Starbucks is pretty much a household name, but like many of the most successful worldwide brands, the coffee-shop giant has been through its periods of
Starbucks is pretty much a household name, but like many of the most successful worldwide brands, the coffee-shop giant has been through its periods of supply chain pain. In fact, during 2007 and 2008, Starbucks leadership began to have supply its 16,700 outlets. As in most commercial sectors at that time, sales were falling. At the same time, though, supply chain costs rose by more than $75 million. Supply Chain Cost Reduction Challenges: When the supply chain executive team began investigating the rising costs and supply chain performance issues, they found that service was indeed falling short of expectations. Findings included the following problems (a) Fewer than 50% of outlet deliveries were arriving on time. (b) Several poor outsourcing decisions had led to excessive 3PL expenses. (c) The supply chain had, (like those of many global organizations) evolved, rather than grown by design, and had hence become unnecessarily complex. As a consultant, give your suggestion to the company and strategies to overcome the problems/situations.
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