Thursday, February 21, 2008

Starbucks and OR

Here is something that most people can relay to: Starbucks.
Being one of the largest and most well known brands in the world in the food and beverage industry, Starbucks relies heavily on operations research as well. Here is quoting from an article I found online:

Retiring executive vice president Ted Garcia joined Starbucks in 1995 as senior vice president, Logistics & Manufacturing. Through his prior experience developing manufacturing and logistics networks, as well as information systems and technology platforms, he was able to establish programs for Starbucks that have delivered savings totaling more than $250 million. These savings were achieved through consolidated global purchasing leverage, conversion cost reductions, reduced logistics costs and lower inventory levels. Additionally, Garcia was responsible for the development of three new roasting plants in York, Pa., Carson Valley, Nev. and Amsterdam, The Netherlands. Under Garcia's leadership, Starbucks became known as an established leader in supply chain activities.

Here is a little profile of Dorothy Kim - Starbucks Executive Vice President of Supply Chain Operations:

She is responsible for the day-to-day activities of SCCO, which include the global strategic business management of manufacturing, engineering, purchasing, distribution, planning and transportation; supply chain integrated systems; inventory management and worldwide sourcing of coffee. She will report to Jim Donald, ceo designate.

Kim joined Starbucks in 1995, where she gained four years of retail planning and operations experience prior to transitioning to SCCO. She held the positions of vice president, SCCO Logistics, and vice president, SCCO Finance & Systems, before her promotion to senior vice president, Global Logistics & Procurement. Kim was instrumental in leading the development of Starbucks SCCO Systems Vision and Master Project Plan.

Info from

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