Examining Supply Chain Profitability (Essay Sample)

Examining Supply Chain Profitability
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Examining Supply Chain Profitability
Starbucks is one of the leading fast food restaurants in the world. The company has been able to maintain a good reputation in the market due to its unique and efficient services in the fast food restaurant market. Similarly, Starbucks is one of the most profitable companies in this market segment. One of the products that have propelled Starbucks to success is its coffee. In order to make Starbucks' coffee ingredients such as coffee and cocoa beans are needed in plenty. Additionally, other ingredients such as milk and sugar are also important in making coffee. Therefore, to ensure smooth operations the company has established a powerful supply chain that ensures a smooth flow of raw materials and products from suppliers to consumers and retailers in the market.
The company has a powerful supply chain that stretches across different continents in the world. For instance, its coffee beans come from Africa and Brazil; cocoa beans come from Africa and milk is mainly from Europe and Asia. In addition, the sugar used at Starbucks comes from different parts of the world. Supply chain management has been important in ensuring that retailers and consumers get the right product at the right time. Furthermore, supply chain management at Starbucks ensures that the company adheres to globally accepted sustainable production standards (Gattorna, 2008). Supply chain management is also used to set up social and economic objectives that have seen the company rise to be a global leader.
Supply chain management has proved profitable to Starbucks in many ways. Through supply chain management, Starbucks management has been able to balance between the aspects of cost reduction and social responsibility (Sople, 2012). Supply chain management has also ensured that farmers produce quality cocoa and coffee beans that have attracted a number of...