Greg Javor from Starbucks; The Boardroom Agenda: Value-Chain Leadership for Post-Recession Success
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Transcript of Greg Javor from Starbucks; The Boardroom Agenda: Value-Chain Leadership for Post-Recession Success
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Starbucks Confidential Page 1
Gregory JavorVP Global Supply Chain Operations
Tuesday June 22nd 2010
Starbucks Coffee CompanyA look inside the Supply Chain transformation journey
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Starbucks Confidential Page 2
Today’s Talk
Starbucks The Starbucks Supply Chain
The Supply Chain Transformation
Journey
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Starbucks Confidential Page 3
Where We Began
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Starbucks Confidential Page 4
From One Little Bean Store
• 16,700 retail stores
• 120,000 partners
• 51 countries
• 50M customers per week
• Our products:- Coffee and Tea- Handcrafted Beverages- Consumer Products
Stores
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Starbucks Confidential Page 5
More Than a Cup of Coffee
Our mission is to inspire and nurturethe human spirit –one person, one
cup, and one neighborhood
at a time.
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Starbucks Confidential Page 6
Starbucks Partners
“We’re not in the coffee business serving people.
We’re in the people business serving
coffee.”
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Starbucks Confidential Page 7
The Starbucks Supply Chain
...is responsible for the supply of all products
that contribute tothe Starbucks experience…from the coffee in your cup, to the cup itself and
the table it rests on –at every Starbucks
store around the world.
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Starbucks Confidential Page 8
The Starbucks Supply Chain
• Plants- Coffee Roasting: 5- Tea: 1- Co-Manufacturing: 24
• Distribution- RDCs: 13- CDCs: 42- Green Coffee Warehouses: 6
> $4.0B Enterprise Spend> $0.8B Operating Expense > 4.4M Deliveries per year> 1.1M Picks per day
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Starbucks Confidential Page 9
The Starbucks Supply Chain
“Get goods into customer hands”Provide information that completely answers the
customer’s question in a manner that builds confidencein the Supply Chain
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Starbucks Confidential Page 10
The Starbucks Supply Chain
At the heart of what we do are products sourced ethically, made with the highest quality,
and freshly delivered to our customers.
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Starbucks Confidential Page 11
US Sales
The Case for Change - 2008
Supply Chain PerformanceSupply Chain Costs
$
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Starbucks Confidential Page 12
The Case for Change - 5 Theatres
1. Admission of Guilt of self induced mistakes by the SLT
2. Global Financial Crisis
3. Competition
4. The Web
5. Foundation - preserve and enhance our culture and values
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Starbucks Confidential Page 13
The Supply Chain Transformation Journey
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Starbucks Confidential Page 14
Supply Chain Strategy - Our Purpose
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Starbucks Confidential Page 15
Our Game Plan - How We Operate
Treat people well
Get the job done – safety, service,
quality & cost
Bring new products to
market
Move to a higher
performance level
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Starbucks Confidential Page 16
Structure - How We Organize
Plan – Source – Make – Deliver
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Starbucks Confidential Page 17
The Golden Rules - How We Lead
Highlight ProblemsWe’re paid to know what’s broken, needs to be improved, changed or fixed
Sleep WellDon’t lose sleep over things you don’t know how to handle –ask for help
Be TransparentOperate with an “open window” so anyone can see what and how you are doing
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Starbucks Confidential Page 18
Winning - Measuring SuccessCumulative Total Enterprise Savings
On-Time In-Full (OTIF) Supply Chain Operating Expense MAT
Safety IncidentsOSHA Recordable Frequency in SCO Manufacturing Network
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Starbucks Confidential Page 19
Strategic Framework - The Long Term Plan
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Starbucks Confidential Page 20
People - Develop Partners and Talent
• Develop partners and attract talent to build world-class capability
• Foster a workplace where partners are:- Entitled to training- Mentored for success- Inspired to advance
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Starbucks Confidential Page 21