Procurement applied to a PM organization Assignment

Procurement applied to a PM organization - Assignment Example The organization implemented effective system that controls delivery of dairy, sugar, cocoa and cup materials. They have implemented environmental measures in procurement policies (Fleming, 2003). Starbucks is one of the leader level coffee beverage producers in the world. The key aim of procurement system policy of Starbucks is to increase feasibility to collect raw materials from various countries. Starbucks Coffee procurement policy collects cocoa beans from some selected countries. Roasting coffee beans will improve the taste. Manufacturing of coffee cups will increase recyclable policies. Starbucks plants will use milk from set up countries and coffee beans from some selective countries (Fullalove, 2007). Operational policies of Starbucks develop certain policies to convert coffee beans and prepare beverage for serving in cup. Operational policy of Starbucks is a complicated process. Coffee beans are collected from all around world. Starbucks is having more than 17000 beverage retail outlets around the world. Starbucks is having more than 55 million customers around the world. The organization is having their presence in nearly 59 countries. Procurement policy of Starbucks in the global region is developed with the help of co-manufacturers. Starbucks is adopting strategies for different regions. European, Asian, and Latin American markets are targeted by Starbucks in terms of increasing the profitability (Giacchetta & Marchetti, 2013). Starbucks developed procurement planning policy with the help of some documents. Financial report related documents will identify change in the material cost, whereas, variable costs of Starbucks will be affecting the earning potentials. During the fiscal year of 2011-2013 the organization was able to increase the EPS from $1.33 to $1.47 (Starbucks Coffee Company, 2015). Starbucks is adopting various policies regarding the use of different types of materials and cups. Both the options are having certain advantages