Page 1

SOURCING SUCCE SS Project Partners

SOURCING THE RIGHT BLEND IN PROCUREMENT Written by James Henderson Produced by Richard Durrant




iven its obvious presence on the high streets of Europe, Middle East and Africa (EMEA), it is difficult to believe that the first Starbucks in the region opened just 20 years ago in London. The brand has exploded in popularity in the intermittent years, and there are now thousands of outlets across the territory. The scale of the Starbucks’ footprint brings inevitable challenges in terms of its supply chain, sourcing and procurement operations, especially when you consider the wide spread of its stores across the geography, and that around 85% its sites are not company-run, instead being run as a licensed operation. Up until three years ago, the sourcing and procurement approach of sourcing partners was to a certain extent fragmented, from time to time


“I would say expanding our relationships with our key suppliers is very important, getting a better and better view on who are the right suppliers to work with and developing the supply model with them” EELCO VAN DER ZANDE Director Strategic Sourcing for EMEA, Starbucks leading to an inconsistent execution. Enter Eelco van der Zande, the company’s director of strategic sourcing for EMEA who today leads the team for direct and

w w w. s t a r b u c k s . c o m


We’re proud to be the market leader in plant-based food and drink.

Alpro’s sustainability story

We supply the food service industry with plant-based products that not only deliver on taste and performance, Proudly brought to you by but also on sustainability too. We’re lucky to work with ingredients that inherently require fewer resources than animal-based ones. But our journey doesn’t stop there. We work tirelessly to ensure that we minimise our impact on the environment at every stage of our production process – from plant to pack. So we’re proud to deliver our partners quality products that help them offer greener choices without compromise. Here are some of the steps we take to sustain our planet.

GMO GMO? No thanks

We never have and never will use genetically modified ingredients. The whole flow, from crop to pack, is certified GMO-free according to the ProTerra standards. We ask all our suppliers to sign up to our ethical charter and we can trace the source of all our ingredients.

Deforestation? Definitely not

Knowing where every ingredient comes from and keeping track of our suppliers means that we guarantee our ingredients never come from deforested areas.

Sourcing? Only the best

We always start by carefully selecting the highest quality nuts, oats, rice, coconuts and soya beans. We work in close collaboration with farmers and build long-term, mutually beneficial partnerships with them.

Ecologically and socially sustainable

All our soya beans are ProTerra certified, which not only guarantees GMO-free beans, but also means that good working conditions for the farmers and good agricultural practices are followed throughout. For example, our almonds come from the Mediterranean, where the orchards are small and traditional. 90% of the orchards are “fed” by rain and don’t need extra irrigation.

Local? As much as possible

We source our grains, beans and nuts as locally as possible. All our almonds come from the Mediterranean and more than half of our soya beans come from European countries, such as France, Italy, and Austria. The rest come from Canada.

Transport? Keep it light

We go to great lengths to keep our transport footprint as light as possible. Sometimes, that means floating our goods to the factory down a river or a canal. After all, fewer air and land miles mean less fuel and cleaner air.

A sustainable journey in our factories too We’re fanatical about monitoring our energy efficiency, reducing carbon emissions and limiting water usage everywhere we can. And we’ve started putting waste heat and renewable energy sources to good use too.

Sustainable packs

Our Tetra Paks are fully recyclable and designed to impose minimum impact on the environment.

indirect spending for Starbucks EMEA, covering all COGS, operational and capital spend to support a business that generates over $1bn in revenue annually. The Dutch native came to Starbucks with logistics and sourcing experience in Europe and Asia and quickly recognised the challenge. “It was important that we brought together how all of our partners were sourcing; there was a lot of good work being done, but we felt that there was a lack of consistency and that perhaps the right tools were not being used consistently. The various partners were also reporting into a number of different managers so we perhaps were not maximising our output as a team,” comments Van der Zande from the company’s hub in Amsterdam. “We thought about how we could benefit from using standard systems and processes and really look to professionalise the sourcing function. A large part of that was to free up our senior people from admin as there was evidence that it was very time consuming for a lot of them. Another important piece of work was the

SOURCING SUCCESS A great deal of the success of the sourcing team is down to its talent and diversity, according to Van der Zande. “Having a lot of good people, good talents with the right mindset is absolutely critical. I believe the sourcing function really will change through the years from much more internally focused and looking at cost towards more of an ‘outside-in’ and relationship management focus. “I think with that it brings a different mindset, and also a different skillset that is required. It means having the right people that embrace change is just crucial to the success of sourcing teams. On top of that, in my view another enabler to team success is having real diversity in the team. I would describe diversity in different ways – it’s either about cultural backgrounds, but it’s also about gender, it’s about age, and I think by looking at the right balance in your team from a diversity perspective, you get better sourcing teams.” w w w. s t a r b u c k s . c o m


“There is a lot of focus on creating endto-end visibility in our supply chain and that will allow us to better understand demand and supply patterns� EELCO VAN DER ZANDE, Director Strategic Sourcing for EMEA, Starbucks


conversation with our cross-functional peers about how to create value in a defined way. So that was an open talk about costs, innovation, risk and quality, which – amongst other outcomes – led to us changing the team structure so that we are much more focused on licensees and franchises and how they are organised from a sourcing perspective.” This approach has fostered a closer working relationship with the company’s licensees as strategic partners, with very regular communication between licensee groups and Starbucks. “I would say the most important thing for our business to keep in mind is that although the licensees operate our brand, and they have the rights to operate our brand, we almost need to deserve the right to work with them in terms of investing in their business and spending their money. So, the acknowledgement that the licensee is actually the investor and the entrepreneur and it’s their money that we eventually are able to spend, that recognition is just super crucial




Goglio North Europe offers solutions for packaging materials that must excel in run-ability on packaging lines and must be spot on with expectations on design. Of course needless to say that our offers must match clients expectations on shelf-life to have the final consumers enjoy a fresh coffee, even if it has been packed 6 months ago. Goglio offers total partnership on logistics and forecasting to have demands on-time and in-full. Fres-co System International offers solutions to pack coffee on an automatic packaging machine and maintain it in the best possible ways. We team-up with our clients to determine the best machine that can do their bags at the requested speed and corresponding with all quality aspects you can think of. Last but not least we gladly share our experiences using Industry 4.0 standards that measures variables in order to identify a potential problem before it really happens. Provincialeweg 200, 506MG Zaandam, The Netherlands +31 (0)75-6518000 Arthur van Dijk | Sales Director Northern Europe +31 6 1508 1975 |





BUILT IN POLAND WITH WORLDWIDE APPEAL LBP Manufacturing combines innovation and performance to develop consumer-preferred, sustainable, off-premise packaging. LBP harnesses innovation in material science, state-of-the-art equipment and converting technology to meet the varying demands of consumer packages for beloved brands.






©2018 LBP Manufacturing LLC

in my view,” says Van der Zande. “It’s a very close collaboration with our licensees that we require, and it’s exciting, because creating a ‘demand driven value chain’ gives a very entrepreneurial spirit to how we work.” Within the business itself, Van der Zande says that one of his main goals was to make sourcing be seen as a real value creator and ally. “It was important that with the programme of work that we were doing we were not considered the disruptor,” he comments. “We didn’t want to take exciting work away from people, rather

we became a sustainable supporter of driving business. That meant being clear to other departments that we are not cost-cutters or savings chasers, but rather a team to help improving margins and ensuring the top and bottom lines align. “And in our company, as we are so brand and product focused, by definition product related spend gets a lot of attention. So we worked hard to also focus on improvements in nonproduct spend categories, which I think was a really valuable thing to do.” The team has also been driven

Video: Starbucks Year of Good

w w w. s t a r b u c k s . c o m


“At the moment we have about 9mn mobile paying customers, and in the US at the moment already one out of three customers are actually using mobile order and pay” EELCO VAN DER ZANDE, Director Strategic Sourcing for EMEA, Starbucks


by a recognition of the importance of indirect spending. “There will always be more of focus on direct, but indirect can and does play absolutely a pivotal role. Take, for example, what marketing services can do to us or the wider benefits of procuring 100% green energy to drive our corporate sustainability agenda. These are really important things for us and it gives the opportunity to actually talk a little bit more to our consumers about what we buy and how we buy.�





Good for your wallet, good for the planet

Tork Xpressnap is the ideal napkin system for food service restaurants that seek operational efficiency. The true one-at-a-time napkin dispensing feature reduces consumption by at least 25%, guaranteed*. That means fewer refills and lower labor costs – and a smaller footprint for the environment. Showcase your commitment to sustainability with Tork XpressnapŽ Natural Napkins made from 100% recycled fibres.


Learn more at * When compared to conventional dispenser napkins


Foodservice solutions that appeal to every sense. At ADM, we know that creating foods and beverages people love means appealing to their every sense. Our marketing, flavor creation and beverage development teams work for you, helping you to stay ahead of trends and deliver exceptional taste experiences. With our ever-expanding range of sauces and syrups, juice blends and much more, we’re ready to support you every step of the way. We are a partner to foodservice companies – from product development to delivery of the final product in convenient packaging solutions. Learn more at and

© 2018 Archer Daniels Midland Company

By Van der Zande’s own admission, Starbucks has perhaps been guilty of taking quite a conservative approach when it comes to technology adoption in the supply chain in past years. But, he says, its efforts have been accelerated in the last two years, as the company has embraced what technology can offer, to the extent that Starbucks considers digitisation

one of its three key pillars of growth. “It is and will be a major driver of our business,” Van der Zande says. “We expect and have already achieved a lot with what we call ‘Mobile order & Pay’, and its functionality. At the moment we have about 9mn mobile paying customers, and in the US at the moment already one out of three customers are actually using mobile

w w w. s t a r b u c k s . c o m


Eating is something we do every day. Our mission is to make those moments better and more special.

The Convenient Kitchen stands for kitchen made food, free from trouble and available at every moment.


Nourishing By Nature FrieslandCampina Global Accounts Division, your Global dairy partner for high quality, sustainable and added value dairy solutions. We focus on operational excellence, integrated supply chain approach, CSR and innovation.

12.1 billion euro revenue 23,675 employees facilities in



order and pay. That’s quite impressive and our challenge now is to actually expand that platform globally. Each customer coming into Starbucks, whether it’s a company-owned store or a licenced store, should be able to order online, or through its mobile app. Through that platform we can actually engage much closer with the customer and actually further grow our business. Then, back to the adoption of technology in the supply chain:



w w w. s t a r b u c k s . c o m


“There is still significant work to do on the supply chain and sourcing side, but we are making progress and digitisation is absolutely key to our supply chain strategy. In the two years since Starbucks brought in new, strong supply chain leaders in both global and regional teams, there has been a lot of focus on creating end-to-end visibility in our supply chain and that will allow us to better understand demand and supply


patterns. We’re working on supply and demand maps, and by doing so that gives us a lot of information in order to further optimise supply chains, specifically our source to pay function.” Clearly, great strides have been made by Van der Zande and his sourcing team supporting Starbucks’ presence across Europe, Middle East and Africa; that 100% of its supplier base comes from ethical sources is something he is, rightly, very proud of. But there

is clearly still an ambition to iterate and continue to refine the function. “We certainly want to continue to grow with our licensees and strengthening our sourcing collaboration with them is something I am very passionate about investing in,” he says. “I would say expanding our relationships with our key suppliers is very important, getting a better and better view on who are the

right suppliers to work with and developing the supply model with them. By doing that I think we get to a better supplier development and recognition programme, which will set us up for further success and future growth: Our licensees, our suppliers and Starbucks.”

w w w. s t a r b u c k s . c o m


Profile for Supply Chain Digital

Starbucks Brochure — May 2018  

Starbucks Brochure — May 2018  

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded