Starbucks Corporation

| January 23, 2015

In the past five weeks, you have studied and analyzed a company and its supply chain, logistics, and transportation functions and operations. This week, you will resume the role of consultant or supply chain analyst for the company you selected (Starbucks Corporation) in Week 3. (See attached)

Task 1 – Distribution Network

Create a diagram of the distribution network of the company, depicting locations of:


Distribution centers

Large customers

Explain whether the company owns the entire network or uses public warehouses and distribution centers.

Determine whether the company is in an optimal location to support its customer base. You can use the link Chicago Consulting

Find the optimal solution for the company and provide your recommendations on the basis of your studies to date.

Task 2 – Sustainability

The latest trend in most corporations is the movement to go green. This movement is driven by the desire to reduce the impacts of a company’s operations on the environment. In the logistics and supply chain arena, the green sustainability movement can have significant impacts on costs. A company must pass on supply chain costs to consumers to remain profitable.

Describe the green sustainability efforts your company participates in and how those efforts impact supply chain operations. If your company does not participate in sustainability efforts, provide a plan to introduce appropriate sustainability measures.

Discuss the advantages and disadvantages associated with “greening” the supply chain.

Task 3 – Transportation Operations

Review your selected company’s transportation network and prepare a report. In the report:

Discuss and outline the company’s transportation network.

Outline the transportation methods used to deliver products to customers and to get products back to the company.

Discuss whether the company owns the transportation assets or whether it uses a third-party logistics (3PL) provider to move its products. If the company uses a 3PL provider, explain whether the company is a truckload (TL) company or a less-than-truckload (LTL) company. Describe whether this arrangement provides the company with a competitive advantage.

Task 4

After the terrorist attacks of September 11, 2001, a plethora of new regulations have had a major impact on transportation costs and speeds. Increased security has led to slowdowns at airports and seaports. An additional Transportation Security Administration (TSA) fee is now added to airfares. In addition, the need for increased security has led to the creation of the Customs-Trade Partnership Against Terrorism (C-TPAT).

Describe the requirements for your company to participate in C-TPAT and how the program affects your supply chain.

Task 5

Describe the metrics used by your selected company. What do these measure and why?

Task 6

Provide suggestions for your company to reduce their supply chain costs as a way of making more profit.

Create a 10 page report in a Microsoft Word document.

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