1. Starbucks Coffee Company
A look inside the Supply Chain transformation journey
Gregory Javor
VP Global Supply Chain Operations
Tuesday June 22nd 2010
Starbucks Confidential Page 1

2. Today’s Talk
Starbucks The Starbucks The Supply Chain
Supply Chain Transformation
Journey
Starbucks Confidential Page 2

3. Where We Began
Starbucks Confidential Page 3

4. From One Little Bean Store
Stores
• 16,700 retail stores
• Our products:
• 120,000 partners
- Coffee and Tea
• 51 countries - Handcrafted Beverages
• 50M customers per week - Consumer Products
Starbucks Confidential Page 4

5. More Than a Cup of Coffee
Our mission is to
inspire and nurture
the human spirit –
one person, one
cup, and one
neighborhood
at a time.
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6. Starbucks Partners
“We’re not in the coffee
business serving people.
We’re in the people
business serving
coffee.”
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7. The Starbucks Supply Chain
...is responsible for the supply
of all products
that contribute to
the 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.
Starbucks Confidential Page 7

8. The Starbucks Supply Chain
• Plants
> $4.0B Enterprise Spend - Coffee Roasting: 5
- Tea: 1
> $0.8B Operating Expense - Co-Manufacturing: 24
> 4.4M Deliveries per year • Distribution
- RDCs: 13
> 1.1M Picks per day - CDCs: 42
- Green Coffee Warehouses: 6
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9. The Starbucks Supply Chain
“Get goods into customer hands”
Provide information that completely answers the
customer’s question in a manner that builds confidence
in the Supply Chain
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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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11. The Case for Change - 2008
$
US Sales Supply Chain Costs
Supply Chain Performance
Starbucks Confidential Page 11

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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13. The Supply Chain
Transformation Journey
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14. Supply Chain Strategy - Our Purpose
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15. Our Game Plan - How We Operate
Treat people Get the job done Bring new Move
well – safety, service, products to to a higher
quality & cost market performance
level
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16. Structure - How We Organize
Plan – Source – Make – Deliver
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17. The Golden Rules - How We Lead
Highlight Problems Be Transparent Sleep Well
We’re paid to know Operate with an Don’t lose sleep over
what’s broken, needs “open window” so things you don’t know
to be improved, anyone can see what how to handle –
changed or fixed and how you are ask for help
doing
Starbucks Confidential Page 17

18. Winning - Measuring Success
Safety Incidents Cumulative Total Enterprise Savings
OSHA Recordable Frequency in SCO Manufacturing Network
On-Time In-Full (OTIF) Supply Chain Operating Expense MAT
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19. Strategic Framework - The Long Term Plan
Starbucks Confidential Page 19

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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21. Starbucks Confidential Page 21