year drophed by 10 percens duting to operations, As a fosuth fising very steeply. To hold those expenses in theck and achieve a balance betusen well and werlorranca. Sircuas ioch. have to make significant changes to its operations. Here is a look at he vept Gikenc acd his cellegg. fook and the results they achieved The first step of the transformation blan, reogganung Sianuces suply chain oganinelo, und way in late 2006. Acoording to Obbons, that involied taing a camplex stucture and smpilyng twe was placed in the planing group. Sourcing activiles were growed inlo two anteas. culse ard 'ron assigned to the "deiver group. After the supply chain functions wera reorganzed, the varous departnerts urred their atericon to the second objective of the upply chan transtomation. reducing cous and inpooving effocencis as sat of that effort, the sourcing group worked on identiling the cost divers fhat wese puatirg us pross. Whs went out to understand the contracts we had, fhe prices we were payng, and the thicping costs, and we began breaking tems down by ingredient rather than just purctave price. " Ctcons sans. We buit nore eflective 'should cost models, including benchmarking ingredents and peocesses, which shomed tat os could negolate better prices." Meanwhile, the manulacturing group developed a more effoient model for delverng costee beiss bi is processing plants, with the goal of manufacturng in the region where the prodad is soll. Stabudis aiready owned three coflee plants in the United Slates, in Kent, Washinglon, Minden, Newada, and Yong Pennsyvania. In 2009, the company added a tourth U.S. plant in Columbia, South Caroina. The berefis of that approach were quickly apparent, regionaling is colfee producton allowed Startuds to sevice its transportation costs and had times. says Gicbons. Moreover, once the new tacily aar up and running, all of the U.S. colfee plants were able to switch from sevenday operaboss to five days. Even though it spread production across a wide terrilory, transportation, dierbution, and bgists made up the buik of Slarbucks' operating expenses because the company shipes 90 many diterent procucts around the world. Getting that under control presented a daunting challenge for the supply chan group. Whether coffee from Africa of merchandise from China, our task was to intograte nat ogether ints one Global logistics system, the combined physical movement of atl ircoming and oulgoing goodt. Source. tyansiomed-its supeily ehain Answer ALL the questions in this section. Question 1 disinbutian. Each of these foundations reless on y