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Therefore, Starbucks’ clientele is willing to pay more for coffee that they perceive to be made from higher-quality, socially responsible sources. Built in 1992, Kent is the oldest plant in the company and just 13 miles away from the Starbucks Support Center. It has made strides all along its supply chain, from farms and its distribution network to its retail outlets.

In 2016, Starbucks generated $16.8 billion dollars in revenue, while Dunkin’ Brands earned only $828.9 million. They currently have 6 Central Distribution Centres where their coffee is roasted, prepared and packaged (Boyer, 2013) .

The Kent Flexible Plant is the only plant with three ongoing manufacturing processes, roasting the Starbucks and Seattle's Best Coffee brands, blending Teavana TM/MC tea and a flexible soluble line for Starbucks VIA® Instant.

Starbucks’ direct interaction with growers, along with their sourcing and social responsibility standards, make suppliers feel like they are integral parts of Starbucks’ corporation. The company believes that interacting directly with farmers ensures that all of its coffee beans will ac… It believes that customers and employees alike will resonate with their values and support it. Starbucks uses a stringent vetting process to ensure its growers meet and adhere to these guidelines.So, what exactly is Starbucks doing differently than other international coffee retailers?
Or is Starbucks’ coffee really the fuel running our caffeine-crazed country (and world)?The size and scale of Starbucks’ operations should make its supply chain inherently complex. Together with our more than 330,000 partners and organizations like Conservation International and Feeding America, we can use our scale for good.© 2020 Starbucks Coffee Company. Starbucks also primarily markets to higher-income customers looking for a premium coffee experience, while Dunkin’ Donuts has traditionally retailed to more blue-collar consumers who want coffee on the go. The guidelines protect workers’ rights and ensure that all growers have safe and humane working conditions.

Starbucks has found a healthy mix of sustainability aspirations and profitability. The use of a vertically integrated system means that Starbucks works directly with its nearly 300,000 worldwide coffee growers. The company uses an automated information system that allows it to monitor demand, inventory, capacity, and scheduling in real time. 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. Distribution is the one aspect of business that Starbucks has yet to address the impact that their emissions have on the environment.

Lastly, he implemented a binary, 0 or 1 “scorecard system” to assess all supply chain activities on four metrics: safety in operations; service measured by on-time delivery and order-fill rates; total supply chain costs; and enterprise savings.Along with the simple tools and processes that Gibbons created, Starbucks also relies heavily on digital technology to manage its supply chain. Next, he developed a highly centralized logistics system that allows the company to better manage and coordinate its global network. All rights reserved. practices and CSG benefit Starbucks, they also provide advantages for suppliers. Thus, Starbucks is less susceptible than Dunkin’ Donuts to major fluctuations in revenues that could result from negative macroeconomic swings.Starbucks was founded roughly twenty years after Dunkin’ Donuts, but the company is already much larger than its rival. Must pay with your registered Starbucks Card (or your registered Card in the app). Because Starbucks’ patrons generally have higher disposable incomes than those of Dunkin’ Donuts’ customers, they are less likely to adjust their consumption patterns during economic downturns. 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.

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. Is its coffee truly better?While Dunkin’ Donuts loyalists, particularly those in New England, may never accept the merits of Starbucks coffee, majority opinion argues that Starbucks offers higher-quality beverages and better customer experiences. Starbucks uses one centralised system to manage its supply chain and logistics network across six continents.

Starbucks also has a larger global presence, with nearly 26,000 retail stores in 75 countries, compared to Dunkin’s 11,500 locations in 60 countries.Lastly, as a part of its C.A.F.E. Manufacturing and Distribution. Firstly Starbucks sells its products through a direct retail system in company-owned stores. The use of a vertically integrated system means that Starbucks works directly with its nearly 300,000 worldwide coffee growers.