U3 – Strategic Supply Chain and Logistics Supply Chain Optimization and Purchasing Strategy for Starbucks

Question: -Total Marks-25

Case: Starbucks (the coffee shop giant), one of the most successful worldwide brands, has been through its periods of supply chain pain. In fact, during 2007 and 2008, Starbucks leadership began to have severe doubts about the company’s ability to 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. On analysis, it was found that service was indeed falling short of expectations. Findings included problems such as fewer than 50% of outlet deliveries were arriving on time and several poor outsourcing decisions had led to excessive expenses.

Note: You can use the company data that is available on the web for public viewing.

1. Identify the types of distribution channels and mode of transportations used by Starbucks. Which of these as per your analysis will reduce the expense to the minimum, without compromising on the requirements. (10 marks, Min 500 words)

2. Create a Kraljic Matrix for Starbucks and as per your analysis and suggest a long-term purchase strategy which will result in reducing excessive expenses. (10 marks, Min 500 words)

3. As per you, what are the types of cargo insurances and Incoterms that needs to be clearly defined and taken mandatorily to avoid loss in transit? (5 marks, Min 200 words)

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