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Starbuck in China

Essay by   •  July 4, 2018  •  Case Study  •  396 Words (2 Pages)  •  103 Views

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Improve supply chain efficient and sustainable is the main task for the Starbuck China to improve the procurement processing.

In 1999, 1st Starbuck enter to China. More and more outlets has opened up. Coffee bean were shipped from US. The transportation, distribution, and logistics caused the Starbucks’ operation expense was high. 1The coffee beans were shipped from Colombia to the port of Tianjin. It’s getting them form the port in Tian jin to the store in Beijing that’s expensive. China invested billions of dollars over the years to improve its port and transportation infrastructure, but the combination of taxes, fees, and middle men add to logistics cost. They would like to developed a more efficient model for delivering coffee beans from the coffee plans to the coffee shop. They launch the bean growing operation as a comprehensive strategic commitment to doing business in China.

Yunnan Coffee bean plant:

Coffee was planted in Yunnan since 1892 when a French missionary brought the crop to the region. However, it is only has been grown on a large scale as a commodity since 2008. In the past ten years. the production volume has increased steadily.

Yunnan has a water scarcity and has suffered from droughts in recents years. Coffee is a very water intensive crop. In turn, demand for

2Yunnan coffee is already known as some of the best in Asia, owing to the southern province’s fertile soil, weather and water. Starbucks is working with Yunnan’s provincial government to share the coffee knowledge, to help Yunnan continue to develop into top quality coffee growing region and bring the distinctive Yunnan coffee taste to customers around the world. The chain will help develop and operate a farm and processing facilities in Yunnan. They will also work with area framers to boost their crop’s yield and quality.

Seattle-based Starbucks said it would hire coffee growers in the southwestern province of Yunnan to plant Arabica seeds in the first quarter of next year for harvest by 2014. he hoped the quality and quantity of the Yunnan-grown coffee would be high enough to sell in China and around the world, as a single-origin coffee that did not need to be blended with beans from elsewhere.

4In June 2018, Starbucks opened its first



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