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The close relationship and frequent communication between Starbucks and its suppliers, therefore, make the company’s supply chain less susceptible to major disruptions, such as overplanting or worker shortages.Dunkin’ Donuts also franchises its manufacturing locations, as well as nearly all of its retail spaces. Starbucks’ direct interaction with growers, along with their sourcing and social responsibility standards, make suppliers feel like they are integral parts of Starbucks’ corporation. Starbucks also uses few to no intermediaries to carry out its supply chain operations.The company’s close control over the roasting process also ensures that Starbucks’ coffee tastes the same in all of its retail locations. Manufacturing and Distribution. Therefore, Starbucks can quickly adjust its plans and operations as needed. All rights reserved. As we have already mentioned, Starbucks stores are spread over six continents, so the company has six central storage facilities that make it possible to streamline the logistics across 25,000 stores in 69 countries. With responsibilities that include more than 70,000 outbound deliveries a week to Starbucks retail stores, distribution channels and outlets worldwide, keeping Starbucks products flowing from suppliers to customers is, needless to say, a complex exercise. In fact, Starbucks, which is already larger than Dunkin’ Donuts both domestically and abroad, plans to open more new retail spaces than its competitor over the next five years.Therefore, one question remains for coffee drinkers and market analysts: Does America actually run on Dunkin’? Starbucks’ active participation in the supply chain also ensures that the distribution centers receive the products they need so they can fulfill orders and make their roughly 70,000 weekly deliveries on time.Starbucks also works directly with growers because the company is committed to only selling ethically sourced, Fair Trade coffee. Starbucks uses a vertically integrated supply chain, which means that the company is involved in every step of its supply chain process, all the way from the coffee bean to the cup of coffee sold to consumers. Suppliers also must adhere to minimum-wage requirements and commit to not using child or forced labor. In 2016, Starbucks generated $16.8 billion dollars in revenue, while Dunkin’ Brands earned only $828.9 million. By only using a handful of storage facilities, Starbucks can closely manage the sites’ operations and guarantee that all beans are roasted and packaged in the exact same way.Not only do the C.A.F.E. They import and process coffee and then sell it under their own brand name in their own stores. The guidelines protect workers’ rights and ensure that all growers have safe and humane working conditions. The company believes that interacting directly with farmers ensures that all of its coffee beans will achieve the same quality and flavor standards.First, he grouped all supply chain jobs into four categories: plan, source, make, and deliver. Free drink redeemed as 150 Stars, valid for one standard-menu size handcrafted beverage (excluding alcohol and multi-serve items). Starbucks’ simple structure and management tools, as well as its use of digital technology, allow the company to achieve a high level of efficiency and agility, both of which are key to organizational success.After the growers pick and package the coffee beans, truckers drive the unroasted beans to ocean liners that ship the beans to six storage sites in the U.S. and Europe. In 2008, however, Peter Gibbons, the Executive Vice President of Global Supply Chain Operations, overhauled the company’s expensive, ever-growing supply chain into a streamlined, cost-effective process that relies on simple operational structures and metrics.While Starbucks’ critics may try to argue that the company’s supply chain model and social responsibility efforts are not true differentiators, the statistics tell a different story.The international coffee giant has widely studied and acclaimed supply chain management practices, which, according to some, make Starbucks’ coffee and customer experience superior to those of its competitors.Starbucks uses a vertically integrated supply chain, which means that the company is involved in every step of its supply chain process, all the way from the coffee bean to the cup of coffee sold to consumers. The amount of man-power and vehicles needed for worldwide distribution makes this an almost impossible task. The use of a vertically integrated system means that Starbucks works directly with its nearly 300,000 worldwide coffee growers.