In $2008,$ Starbucks, driven by a commitment to sustainability, embarked on a supply chain transformstion journey. The company, led by Peter Gibbons, the new supply chain manager, identified aress of improvement and found excessive costs tied to outsourcing agreements. In rasponse, Gibbons and his team devised a three$-$step transformation plan: reorganise the supply chain, reduce costs, and improve day$-$to$-$day execution. The first step simplified the structure into four basic functions: plan, source, make, and deliver. This reorganisation improved efficiency and allowed Starbucks to manage costs better. However, Starbucks' global supply chain transformation didn't stop with operational efficiency; the company also prioritised sustainability. Starbucks operates Farmer Support Centres in coffee$-$growing regions to improve farming techniques and has launched sustainability initiatives like the reusable cup program, making a significant positive impact on the environment.

There are several reasons why organisations choose to outsource, one of the major ones being to improve their competitiveness while reducing costs. One activity that Starbucks has outsourced is the production and distribution of its branded packaged coffee and tea products. Starbucks partnered with Nestl$,$ a global food and beverage company, to handle the manufacturing, packaging, and distribution of these products. This agreement gave Nestle the rights to market, sell, and distribute Starbucks' packaged coffee and tea products worldwide. The partnership aimed to leverage Nestl$\text{'}$s distribution network and expertise to increase Starbucks' retail presence in grocery stores and other retail channels. This partnership allowed Starbucks to focus on store operations and customer experience while maintaining a reliable supply of quality coffee through sustainable practices. Through these efforts, Starbucks cut costs, improved its supply chain, and reinforced its social and environmental responsibility commitment.