Your overall objective will be the following:
Read the assigned cases and visit the Green Mountain Coffee website (or another site dealing with free trade coffee). From there you should have a good idea of the issues involved in a coffee company’s supply chain, including the issues around fair trade. You are to select any coffee company and decide on an improvement opportunity within the supply chain of the company. (There are many supply chain improvements you can select and ideas will be provided in the detail assignment). Below is a diagram of a simple coffee supply chain.
MY SELECTION IS (STARBUCKS’ COFFEE COMPANY)
Note: Thoughts To Assist You In Determining Your Initiative:
Starbucks’ goal to supply the majority of its coffee through the CAFÉ program
If Just Us! decides to compete with Kraft, Nestle, and Starbucks should they be more proactive in marketing the brand?
Should Just Us! establish more cafes? (where, how?)
Should Just Us! enter the office coffee market? Is a University market easier to work with?
Is there anything else Just Us! can do to secure supply lines to accommodate a growing demand for product? How do they support the growers so the big brands don’t bully them?
How can you maintain fair trade’s legitimacy – especially in your company?
How does Green Mountain keep the percentage of coffee pounds shipped in the Specialty Coffee Business Unit that are Fair Trade Certified at at least 28%? (Goal from their website)
Create your own improvement initiative:
Sell a different type of coffee or different product
Sell coffee in a different market (different channel)
Obtain a new supplier
Decreasing inventory of raw material held at retail location
Section 1: Gap Analysis
Your gap analysis will consist of three components:
A. Review the Current State: In order to effectively plan the improvement initiative, you will first need to identify the current state of the company and specifically, the supply chain detail in the area your improvement initiative will take place. At this stage, you will address the question, “Where are we now?” You will need to determine what types of information you need to begin your planning. The following is a sample list, which is by no means complete, but should serve to help spark your thinking.
Make sure to use at least 6 outside resources, resources other than those provided to you, for your analysis.
B. Establish a Clear Vision of the Desired State: At this stage you will address the question, “Where do we want to be?” The next important step in the planning process is to collaborate with your team members and establish a clear vision of what a successful initiative would entail. This involves setting specific goals and identifiable outcomes for each aspect of the improvement initiative. These goals might include quantitative measures such as:
C. Perform a Gap Analysis: At this stage you will address the question, “How do we get from where we are to where we want to be?” Your research will start with your reading of the cases. From there, venture out and research other coffee companies, talk to your local barista and determine best practices, available resources, risk assessments, lessons learned, and insights gained by others. You can then use this research in developing a collaborative, systematic plan to move from the current state of the organization to the desired state. Page 19 of the Just Us! case lists additional websites.
Section 2: Identification of Relevant Stakeholders and Feedback Loops
This week, you will determine the different stakeholders and systems that will need to be considered in your planning process. Be as thorough as possible in identifying the primary groups that will have a stake or an input in the process. Identify the different groups (or systems) that would be impacted by the initiative and to what extent. This could include stockholders, customers, suppliers, employees, as well as transportation and warehousing needs, etc. A supply chain example could be that the initiative is to improve the variety of beverages offered at the retail location, so several systems would be involved such as:
Provide a graphic representation for one of each type of the following systems that will be a part of your improvement initiative:
Section 3: Multiple-Scenario Analysis
This week you will perform a multiple-scenario analysis. Be sure to address the following in your analysis:
Include strategies for balancing and reinforcing loops, planning for unintended consequences, differentiating real needs from perceived needs, and shifting of responsibilities and burdens.
Section 4: Identification of Barriers and Opportunities
Meadows, D. (2008). Thinking in systems. White River Junction, VT: Chelsea Green Publishing.
Senge, P. (2006). The fifth discipline: The art & practice of the learning organization. New York: Doubleday.
Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., & et al.(2001). Defining supply chain management. Journal of Business Logistics, 22(2). Retrieved from the Business Source Complete database
Moon, S., & Kim, D. (2005). Systems thinking ability for supply chain management. Supply Chain Management: An International Journal, 10(5), 394–401.
Retrieved from the Emerald Management Journals database
Green Mountain Coffee Roasters, Inc. (2010). Green Mountain Coffee. Retrieved from http://www.greenmountaincoffee.com/
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