starbucks commodity chain

Starbucks Commodity

ChainBy:

Tyler Bradford&

Danielle Pagano

Where did it all start? In 1971 the first Starbucks store opened

in Seattle Washington

Where does the coffee come from?

Starbucks buys green coffee beans straight from the growers and primarily from three main regions:

Latin America Asia Africa

The green beans are transported by ship to the roasting plants.

Issues surrounding coffee suppliers

Working conditions for coffee plantation workers are sometimes overlooked in the process from bean to cup.

Workers are normally paid very low wages and endure extreme working conditions.

When buying form foreign countries there are sometimes the risk of receiving a contaminated batch of beans. For example Starbucks purchased beans from

Columbia and they were contaminated with a fungus. Starbucks uses a system called C.A.F.E. to regulate

this issue.

C.A.F.E. (Coffee and Farmer Equity) C.A.F.E. was collaborated with

Conservation international and SCS global services.

C.A.F.E. is a set of criteria that regulates high quality coffee beans and equal relationships with coffee suppliers.

They reward suppliers of consistent high quality coffee beans.

Roasting Plants & Warehouses

Warehouse & Roasting Plant locations Gaston, South Carolina York, Pennsylvania

Starbuck’s largest distribution center. Kent, Washington Minden, Nevada San Francisco, California Oregon

Main loose leaf tea distributer Amsterdam

Roasting Plants & Warehouses cont’d

At every roasting plant the beans are taken through various processes including the roasting, and packaging

They use automated boxing and store the beans on pallets.

Now the beans are ready to be shipped from the warehouses all over the world.

Environmental Issues with Coffee Plants

While the beans are going through the roasting process there is a liquid waste product that is produced.

Plants disperse of the waste by dumping it in waterways such as rivers.

Consequences of this are aquatic wildlife is being harmed along with aquatic plant life.

Transportation of beans to distribution centers Transportation of beans to the United

States from foreign countries is done by ship.

Transportation from roasting plants and warehouses is done on land by semi truck.

Environmental Issues with Transportation.

Pollution is always a main concern when it comes to the environment.

When the semis are used to deliver products for Starbucks stores there is a lot of diesel fuel being distributed into the air.

Air pollution is one of the main causes of global warming and is a leading environmental issue.

Distribution Centers There are nine regional distribution centers

that contain strictly coffee 5 in the United States 2 in Europe 2 in Asia

There are 48 other distribution centers that contain a lot of the dairy, paper, and baked good products for Starbucks stores. 33 in the United States 7 in Asia 5 in Canada 3 in Europe

Issues for Distribution Centers Starbuck’s has tried to find ways to cut

cost when it comes to distribution of the coffee beans to stores and the location of where the beans are stored.

They used calculations to decrease the amount of unused space within each distribution center.

Less cost = more profit!

Starbucks Stores Starbucks stores are located all over the world.

Regions include: Africa Asia North America Oceania Europe South America

There are 20,500 stores in 64 different countries and territories.

There are 10,000 stores just in the United States.

Issues for Starbucks Stores Recycling is large issue for companies all

over the world. Starbucks has started making cups that are

onlymade out of recyclable material. Also they have added recycling bins outside of their store locations to make it more accessible for consumers to help save the environment.

Starbucks uses a system called C.A.F.E. to control some of these issues.

Starbucks Products Even though Starbucks is known for its

coffee it has expanded its offerings to baked goods, tea, coffee accessories, ice-cream.

Starbucks not only accommodates adults but also offers kids drinks including hot chocolate and apple cider.

Consumers Data shows that Starbucks targets men

and women ages 18-40. Also higher and more average income

families are more drawn to Starbucks products.

Prices An average price for a standard cup of Starbucks

coffee is $2.00. Starbucks offers a lot of signature drinks which can

range from $3.00-$5.00. Average price for a standard tea is about $2.00. Starbucks has always been known for higher priced

products since they offer high quality Arabica beans. Some years Starbucks has had issues with their coffee

suppliers due to weather and economic issues which causes the price to increase even more for consumers.

MAP LINK! https://mapsengine.google.com/map/

edit?mid=z3-jkk0HGJqw.ka1i19-ggUKw

WORKS CITED: Cooke, James A. "From Bean to Cup: How Starbucks

Transformed Its Supply Chain." – Procurement – CSCMP's Supply Chain Quarterly. N.p., 2010. Web. 22 Apr. 2014.

"Manufacturing and Distribution." Starbucks Coffee Company. Starbucks Corporation, n.d. Web. 22 Apr. 2014.

Boyer, Ken. "Behind the Scenes at Starbucks Supply Chain Operations it’s Plan, Source, Make & Deliver." - Supply Chain 24/7. Supply Chain 247, 20 Sept. 2013. Web. 22 Apr. 2014. <http://www.supplychain247.com/article/behind_the_scenes_at_starbucks_supply_chain_operations/green>.

Providing third-party environmental and sustainability certification, auditing, testing, and standards development.." Starbucks C.A.F.E. Practices. SCS global services, n.d. Web. 22 Apr. 2014. <http://www.scsglobalservices.com/starbucks-cafe-practices>.

Picture Links: http://kenwhacksit.blogspot.com/2010/11/el-centro-

beautiful.html http://blogs.kqed.org/bayareabites/2010/07/29/3rd-wa

ve-coffee-roasting-in-the-bay-area/

http://www.sfgate.com/health/article/Caffeine-dependence-tied-to-physical-emotional-5288887.php

http://starbuckscoffeemasterclasshms.blogspot.com/2013/06/the-philosophy-of-roast.html

http://www.businesswire.com/news/home/20130219007212/en/SKECHERS-Distribution-Center-Certified-Largest-LEED-Gold#.U1a9hsY3dfM

http://www.outsidethebeltway.com/starbucks-to-expand-alcohol-sales/

https://www.bespokeoffers.co.uk/consumer/offers/buy-a-10-starbucks-card-egift-for-5-from-bespoke-offers