Starbucks’ Use of Technology for a Superior Value Network.

Being a part of a group discussing the coffee giant’s international supply chain, my research focused on the company’s use of data and how it translates to a more streamlined service.

Starbucks’ big advantage in using customer data starts with its already established brand. They garner social media interactions like no one else, and more importantly, they hold the largest membership numbers on their mobile app (17 million), more than any other business in the food and beverage industry.

Using this data, Starbucks leverages their strengths to improve relations with its customers as well as its suppliers. Their proprietary AI, “Deep Brew,” is used to take in every amount of consumer data (mobile and local POS systems congregated in a cloud data storage) and make real-time decisions on the following:

• Altering inventory orders to reduce waste

• Promoting certain products based on weather, local events, and national events

• Organized staffing schedules

• PPE maintenance tracking

• Personalized deals and product suggestions for mobile users

What has made this strategy stand out is not so much a monumental advancement in their use of technology or AI. Rather, their methods of how to use this real-time data deliberately.