José Luis Salazar Correa 28/08/18

Logistic and Supply Chain 15100434

Homework #4
TYPES OF SUPPLY CHAINS

Direct supply chain

Consists of a company, a supplier, and a customer involved in the upstream and/or
downstream flows of products, services, finances, and/or information. This might
be either very big vertically integrated corporation that doesn’t have important
second tier suppliers or small one without resources or need to monitor second tier
suppliers.

Traditional supply chain

It is mainly used by small businesses or businesses that do not require a complex
operation or greater control of production, as decisions are made independently
by the people involved in the manufacturing process. This type of chain can cause
a lack of control in the decisions and malfunction leading production processes.
That is why it only works for companies that should not deal with large quantities
or raw materials or finished product, and have a traditional manufacturing process
in which a continuous flow of information is needed.
Chain shared supply
In this type of chains decisions are shared as people involved in making the
product also make decisions individually, but have a defined database in which you
can share information, allowing it access to decisions to be taken during the
process.

Extended supply chain

It includes suppliers of immediate suppliers and immediate customers, all involved
in the flows related products, services, finance and information. That is, there
must be collaboration between the links involved in this goal. Suppliers,
producers, distributors and outlets should establish proper communication and
collaborative efforts to synchronize supply and demand.

Synchronized supply chain

In this chain are all phases of product manufacturing synchronized, ie, is tracked
from the entry of raw materials to product arrival to the warehouse as finished and
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Logistic and Supply Chain 15100434
Homework #4
ready for shipment or sale product.

It is worth mentioning that this type of chain must have a development of detailed
technology and incorporate information systems to allow the creation of a logistics
network where anyone can access changes that have been incorporated by each
party responsible for manufacturing of a product.

Complex supply chain

Includes all organizations involved in all interactions both products, services,
finance and information from the last supplier to the last customer.

Importance of Supply Chain

The importance of the supply chain is the commitment that organizations have
with each other, this commitment is to do your job dela most optimal way to
reduce all possible costs and at each stage of the process added value is
provided to product, resulting in a highly competitive product. This commitment
provides security to adapt to the demands of the changing world. In recent years,
manufacturers were the drivers supply chain -Manage the rate at which the
products were manufactured and distributed. Today, customers are the last word,
and manufacturers strive to meet customer demands for options / styles / features
quick compliance orders and fast delivery.

Chain shared supply

In this type of chains decisions are shared as people involved in making the
product also make decisions individually, but have a defined database in which you
can share information, allowing it access to decisions to be taken during the
process.

Example Supply Chain

The inbound logistics for Starbucks refer to company-appointed coffee buyers
selecting the finest quality coffee beans from producers in Latin America, Africa
and Asia. In the case of Starbucks, the green or unroasted beans are procured
directly from the farms by the Starbucks buyers. These are transported to the
storage sites, after which the beans are roasted and packaged. They are then sent
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Logistic and Supply Chain 15100434
Homework #4
to distribution centers, a few of which are company owned and some of which are
operated by other logistic companies. The company does not outsource
its procurement, ensuring high quality standards right from the point of selection of
coffee beans.
Operations
Starbucks operates in 65 countries, either in the form of direct company-owned
stores or licensees. Starbucks has more than 21,000 stores internationally,
including Starbucks Coffee, Teavana, Seattle’s Best Coffee and Evolution Fresh
retail locations. According to its annual report, the company generated 79% of its
total net revenue during fiscal year 2017 from its company operated stores while
the licensed stores accounted for 10.5%.

Outbound Logistics
There is very little or no presence of intermediaries in product selling. The majority
of the products are sold in their own or in licensed stores only. As a new venture,
the company has launched a range of single-origin coffees, which will be sold
through some leading retailers in the U.S.; these are Guatemala Laguna de
Ayarza, Rwanda Rift Valley and Timor Mount Ramelau.

Marketing and Sales

Starbucks invests more in superior quality products and high level of customer
service than in aggressive marketing. However, need-based marketing activities
are carried out by the company during new products launches in the form of
sampling in areas around the stores.
Service
Starbucks aims at building customer loyalty through its stores' customer service.
The retail objective of Starbucks is, as it says in its annual report, “to be the leading
retailer and brand of coffee in each of our target markets by selling the finest
quality coffee and related products, and by providing each customer a
unique Starbucks Experience.”
José Luis Salazar Correa 28/08/18
Logistic and Supply Chain 15100434
Homework #4
Infrastructure
This includes departments like management, finance, legal, etc., which are
required to keep the company’s stores operational. Starbucks' well-designed and
pleasing stores are complemented with good customer service provided by the
dedicated team of employees in green aprons.
Human Resource Management
The committed workforce is considered a key attribute in the company’s success
and growth over the years. Starbucks employees are motivated through generous
benefits and incentives. The company is known for taking care of its workforce, a
key reason for a low turnover of employees, which indicates great human
resource management. There are many training programs conducted for
employees in a setting of a work culture which keeps its staff motivated and
efficient.
Technology Development
Starbucks is very well-known for use of technology, not only for coffee-related
processes (to ensure consistency in taste and quality along with cost savings) but
to connect to its customers. Many customers use Starbucks stores as makeshift
office or meeting place because of the free and unlimited WiFi. Back in 2008, the
company launched a platform where customers could ask questions, give
suggestions and openly express opinions and share experiences; the company
has implemented some of the suggestions, including for its rewards program, from
this forum. Starbucks also uses Apple’s iBeacon system, wherein customers can
order a drink through the Starbucks phone app and get a notification of its
readiness when they walk in the store.
The Bottom Line
The concept of value chain helps to understand and segregate the useful (which
help in gaining a completive edge) and wasteful activities (which hamper market
lead) accompanying each step during the product development process. It also
explains that if value is added during each step, the overall value of the product
gets enhanced thus helping in achieving greater profit margins.
 José Luis Salazar Correa 28/08/18
Logistic and Supply Chain 15100434
Homework #4

ENTRAD PROCES SALIDA

A O Entrada
José Luis Salazar Correa 28/08/18
Logistic and Supply Chain 15100434
Homework #4
BIBLIOGRAPHIC SOURCES
A VALUE CHAIN ANALYSIS USING STARBUCKS. (2014). Consult in:
https://www.investopedia.com/articles/investing/103114/starbucks-example-
value-chain-model.asp#ixzz5PX6Eyu7x

Prableen Bajpai. (2015). Consult In:

http://www.supplychain247.com/article/starbucks_as_an_example_of_the_v
alue_chain_model

Evaluando Software.(2017). Consult in:

http://www.evaluandosoftware.com/tipos-de-cadenas-de-suministro/

Nagy Judith. Types of Supply Chains and Tools for Management (2014) Consult in:
http://phd.lib.uni-corvinus.hu/593/2/NagyJudit_disszertacio_ENG.pdf

Management Study. (2016). Consult In:

https://www.managementstudyhq.com/types-and-benefits-of-scm.html