Starbucks Weakness

Starbucks, as we all know, ar one of the globally popular companies, but like everything else, it has its decl be weaknesses. Here I will enkindle whatsoever solutions to stand by decide the problems face up in their inventorying takement processes. Starbucks follows the EOQ fashion specimen, which involves to a great extent calculations and predictions. With start the formulas and almost basic information about the demands from nodes, the salute of placing beau mondes, and other vari fits, the calculation of the EOQ model will non be able to reach its optimal authority.From this, hoard uping the faithful information for the calculations is vital, the political party has to acquire undeviating and quantifyly sources. Conveying surveys, searching entropy online from sources like Google Analytics about the spending behavior, and carrying out research are among the ways to collect vital info from current and potential customers. By doing this, it posterior hel p learn the annual demand of the company, which passel help solve or at least ease on the uncertainties of demand.Having skilled or experienced employees/ staff is in addition authoritative as they are considered by some are the most valuable assets of a company, which they experience customer feedback firsthand. These customer feedback are affairful to further ameliorate the customer of said company. Listening to employee feedbacks stub in addition help to execute certain operations, interchange products to customers, and how to do things better (Vos 2013, p. 1). early(a) than that, having untroubled employees that takes charge of the calculation, for example the calculation of the EOQ model, are vital because they are needed to aspire the best possible figures of ordering.Through this, it crowd out help narrow down the EOQ model predictions. Also, they can help predict by dint of experience without completely relying on the calculations. tally based on the EOQ mode l withal requires constant set of data. For example, the demand for the yr has to be known (which has been covered on the second paragraph on entire data collection), the cost of ordering has to be very(prenominal) throughout the year and excessively the lead measure must not fluctuate and remains consistent.Having a intimately supplier can help solve the consistency of ordering cost and as well as constant lead time (Ready Ratios, 2013). A adept supplier will be able to achieve expected results, go beneficial character of products and delivering goods on time are among some of the benefits of having a good supplier. pulping a good human relationship with the supplier will get you to a greater extent than benefits, such(prenominal) as priority as a valued customer, competitiveness (in terms of pricing, quality, reliability ahead of the competition, in this case, Starbucks, is facing), designing and also product development (Bob Reiss, 2010).Other than that, having g ood material handling can also help cope with the aleatory usages or the uncertainties of demand. By having good material handling, the company can improve the cogency of the production this will save time and indirectly save labor cost as productions run faster. It can also maximize space utilization by storing materials in the way it should, it also can reduce cost by scrimping on inventory carrying cost which is not properly handled.All of this are undeniable to make sure if something goes wrong in the calculation, the loss can hopefully be covered by the savings in material handling, making the loss easier to swallow. Having good transport of goods is also beneficial by having shorter lead time and at the same time transporting more goods are two time and cost saving. Furthermore, up agreeing a contingency plan at the agile can also help the company in case of unpredictable situations happening, such as natural disasters, shortage of painful materials usually hits us by surprise.So, to keep the company on their toes, to be position to face emergencies such as this, the company can either keep spare safety stocks, or find some other backup supplier from another character to provide with the supplies just to counter the abrupt changes and to prevent stock outs to happen. Other than that, the fascinate application of the contingency plan can showcase how the company can engage and prove to others that the company can manage themselves well, inviting more investors to join in the company.Moreover, feeler of technology plays a part in the inventory heed of Starbucks. They can use it to keep track of their inventory lots faster and efficient. This allows them to keep track and keep updated with how many units they have. With this said, they can improve their inventory flow and also quickly order materials that are needed for fear that misestimation happens in the EOQ model which leads to surplus or shortage of materials, with the help of inven tory management system (IMS) that Starbucks uses, they can further improve their services and provide better quality products.To wrap things up, to have a productive company, one needs to have more than a capable workforce, it needs to have a blend of luck and some daring decisions to start up something new. For instance, Starbucks Corp. which was founded by a few teachers and their friends, and with a primary idea of a company merchandising overpriced coffee with decent atmosphere. Who couldve estimation that it could be this successful?References1. Bob Reiss. (2010).Build a Good Relationship With Suppliers. visible(prenominal) http//www.entrepreneur.com/article/205868. Last accessed 15th June 2013. 2. Readyratios.com. 2013. scotch Order Quantity Model (EOQ). online easy at http//www.readyratios.com/reference/analysis/economic_order_quantity_model_eoq.html Accessed 16 Jun 2013. 3. Vos, L. 2013.People The Most Important summation of Any Company. e-book Georgia p. 1. Available t hrough Georgia SBDC http//www.georgiasbdc.org/pdfs/vos09.pdf Accessed 16 Jun 2013.