Coffee from the customers and communities under a coffee-buying program called Coffee and Farmer Equity (C. E) Practices (Starbucks Coffee Company n. Under this program they ensure they buy high-quality coffee and promote social, economic and environmental standards. For instance, they give loans to farmers and encourage green, sustainable farming. Diverse groups certified by third party agencies such as the National Minority Supplier Development Council, National Women Business Owners Corporation, and US Business Leadership Network are suppliers for Starbucks. In using the strategic sourcing process, the firm is able to save cost, improve its acquisition process, measure supplier performance and minimize risk.
To achieve this, they follow the strategic sourcing process as outlined by Gottfredson, Puryear, and Phillips 2005). They first profile the supplier category by understanding and documenting the category and commodities such as current demand, users, location and processes involved in their supply chain. They then select a sourcing strategy by carrying out a market and cost analysis as well as market risks and opportunities. After this, a supplier portfolio is generated to identify risk and cost minimization.
The next step is the selection of sourcing process involving soliciting bids by stating product or service specifications, delivery and service requirements, and other terms and conditions. The company then starts negotiation with successful bidders to provide further clarifications and more details where needed. If selected, the suppliers are notified and integrated into the supplier program of the firm. Finally, benchmarking and tracking of the commodity results are done to ensure the realization of the full value. In Starbucks, the suppliers who fail to meet the required quality standards are removed, and a new process of sourcing is started again.
According to Lam, Shankar, Erramilli, and Murthy 2004), the dimensions of customer service include focusing on convenience and accessibility, product and service availability, speed and responsiveness, self-help tools and support, competence and expertise, and the environment. All these dimensions aim to achieve customer satisfaction. At Starbucks, the goal is to ensure that their customers are satisfied and happy with the provision of high-quality coffee and other services as well as ensuring their availability by maintaining distribution to the regional distribution centers and retail
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