Primary Activities
Inbound logistics. Starbucks supply chain was subjected to a dramatic restructuring in 2010 after the founder of the business Howard Schultz returned to the role of CEO amidst the global economic and financial crisis in 2008. The restructuring initiative of Starbucks inbound logistics involved simplification of supply-chain management and the creation of a single, global logistics system.
Unroasted Arabica coffee beans are brought from Asia, Africa and Latin America to the US and Europe in containers via sea. These are delivered to Starbucks six regional distribution centers ranging from 200,000 to 300,000 square feet in size[1]. Coffees are roasted and packaged and taken to dozens of central distribution centers around the globe. Along with coffees from regional distribution centers, central distribution centers also receive deliveries from vendors for a wide range of products starting from coffee machines to napkins. Central distribution centers make more than 70,000 deliveries per week to Starbucks 10635 stores located in 65 countries.[2]