Starbucks is one of the most successful corporations in the world. Today, the company has spread to all corners of the globe, and has become one of the most recognizable brand images in the modern consciousness. The brand has grown exponentially since its inception, and this worldwide popularity has led to an increasing complexity in the structure of the supply chain (Cachon & Lariviere, 2001). Most companies have a vested interest in simplifying their supply chain to minimize problems associated with supply chains on a local, national, and global level (Cachon & Lariviere, 2001).
The distribution system associated with the Starbucks stores is quite complex, as it must be: there are more than 17,000 Starbucks locations worldwide today (Stinson, 2014). Each of these locations operates independently, as well as within the context of the larger global network of stores (Stinson, 2014). The purpose of this research will be to establish the methods by which Starbucks forecasts needs placed on its supply chain: the supply chain for a company as large and as extensive as the Starbucks network requires careful consideration and care (Stinson, 2014).
Starbucks has been experimenting with a new method for supply chain management, which encourages stores to utilize the international supply chain while still acting locally to utilize local resources as well. Because of the international pressure to become an ethical corporation, there have been a number of very significant changes to the Starbucks supply chain operations in recent years. Forecasting the needs of the supply chain is something that must be considered on a local, national, and even international scale. Without careful management, it becomes very easy to lose control over this type of supply chain.
References
Cachon, G. P., & Lariviere, M. A. (2001). Contracting to assure supply: How to share demand forecasts in a supply chain. Management science, 47(5), 629-646.
Stinson, L. (2014). With Stunning New Stores, Starbucks Has a New Design Strategy: Act Local. Wired, January, 8.