Starbucks Case Study Analysis
Description of the information management system
Starbuck’s MIS objective is to provide all departments with information. Various departments within Starbucks need to be provided with information for decision-making that eventually translates to organization success. The company has come up with a web portal to ensure smooth availability of information to all departments. Their portals can be accessed in two ways that are store portal and partner portal. Store portal serves employees working within the company while the partner portal assists employees working outside the company in fields or corporate offices. The system, therefore, assists employees to get timely information about what is going on within the company. Starbucks also uses an organized transaction processing system for collecting and storing data. The adopted MIS makes it possible for Starbucks to gain an advantage against its competitors. The management through MIS can perform their duties effectively by identifying areas that require improvements. It is through strategic planning smooth daily running of the company that ensures Starbucks remains at the top of its game
Recommendation for improvements
The current Starbucks’ information system apply business intelligence to collect data on customer purchasing behavior. The future of business will see increased competitions within the market. Starbucks, therefore, needs to make improvements on how they utilize the information they collect using its established MIS. The strategic management team of Starbucks should, therefore, come up with unique product experience to its existing and new customers for them to remain competitive. Another recommendation is for Starbucks to utilize extranets with its coffee beans suppliers since internet costs are expected to reduce in the future. It is through extranets with its farmers that will ensure the Starbucks remain competitive through increased efficiency. The current information system is web-based only. Starbucks should also a proper physical record system to help in cases when there are breakdowns.
How IMS helps coordinate between supply chain partners
Information system of Starbucks assists the company in improvements to its reporting system. The production process through IMS is improved, therefore ensuring improved and enhanced supply chain management. The company can source for its raw materials efficiently to Starbucks production unit. The production unit then distributes to its branches all over the world a process that relies on data for easy coordination. The supplies used by Starbucks for its products are sourced based on what customers prefer. Customer preference can only be determined through data collected by the company information system (Chopra, 2019). Supply chain partners both within and outside Starbucks, make its decisions using available data from its IMS. Accurate data from Starbucks’ IMS allows their supply chain managers to improve their performance through the identification of areas that requires improvements.
How IMS helps to monitor orders and inventory
Starbucks uses the SharePoint server by Microsoft to coordinate its functions. Workflow functionality of Starbucks is improved since employees tasked with monitoring orders and inventory can centrally access key information of orders and inventory through web links of various certified Starbucks vendors. Advance search options make it possible for different department employees to access different documents about different orders and inventory. The company handles large inventory data and it through advance search that has made it simple and fast to monitor orders. According to (Fitzgerald, 2013) Starbucks utilizes computerized methods, such as bar code scanning and automatic data capture. These techniques assist employees, customers, and suppliers in getting a real-time window into inventory and place of orders.
Why managing information is equally or more important to the company than moving products
Supply chain management of Starbucks is driven information collected by the IMS and therefore make it as useful for moving products. Moving products is important role when managing supplies, but it is through information gathered by IMS that plays a central part. The information ensures that there is open communication between Starbucks’ business partners, customers, and its branches all over the world. Starbucks relies on information in problem-solving and acts as a cushion to provide its decision-making team with a platform to obtain a business solution. Moving products are part of managing information; therefore, information obtained from moving products assist in forecasting financial performance. The information also assists in improving logistics in transporting Starbucks’ products from the farm, warehouse, and production unit. Information also provides an insight into what customers like; it is, therefore, true to say that information is a critical link between supply chain management and moving of products.
A successful business easily moves its products, which translates, to happy customers. Starbucks ensures that they continually satisfy their customers through regular updates of its IMS. Starbucks is in a competitive business that relies on quality to remain on top. Information on customers’ preferences is made possible through well-documented data. Customers would move to other places if Starbucks fails to provide them with their preferred products. Sales are made possible if the company employees have a clear understanding of their inventory. IMS assist employees in ensuring that they always have all products for all its varied customers.
References
Chopra, S. (2019). Supply chain management: Strategy, planning, and operation (7th ed) Boston, MA: Pearson.
Fitzgerald, M. (2013). How starbucks has gone digital. MIT Sloan Management Review, 54(4), 1-8. Retrieved from https://search.proquest.com/docview/1399095649?accountid=45049
