In a supply chain, distribution refers to the steps necessary to move and store a product from the supplier stage to the customer stage. This is an important factor for a company's overall profitability because it directly affects both supply chain cost and customer experience. (Chopra and Meindl, 2010, p68) A typical distribution network of a coffee distribution system looks like this (Starbucks Coffee Company, p22): In order to enforce its rigorous coffee standards, Starbucks does its best to control the entire supply chain. The company works with producers in various countries to purchase green coffee beans, oversees the custom roasting process for the company's various blends and single origin coffees, and controls distribution to retail stores in the United States and in the world. Starbucks engages in a wide range of distribution services, including partnerships, its company-owned stores and its licensed products. Since Starbucks is a well-known brand, they use third-party relationships to attract other businesses and grow their business. Although the share of licensed products does not represent a significant portion of the company's revenue (4% in 2008), these items are integral to familiarizing customers with the Starbucks name and building brand loyalty. (Crowe Remle, 2010) Starbucks not only sells coffee and simple foods to consumers, it also sells beans and ground coffee to companies such as airlines, supermarkets, department stores, and ice cream parlors. In a complex distribution network, information technology is of great help. Starbucks successfully integrates all sources of demand and matches them with supply using Oracle's Automated Manufacturing Information System (GEMMS). The GEMMS system manages distribution planning, manufacturing schedules...... middle of paper ...... rbucks sites in 14 markets, including Thailand, Korea, Beijing, Shanghai and Hong Kong. (Starbucks China entry, p12). Starbucks has also partnered with the Chinese government and local universities to grow coffee in Yunnan province. (Starbucks entry into China, p13) Starbucks is also making its first entry into the European coffee market. Starbucks has a partnership with Arla Foods as an authorized partner to manufacture, distribute and market premium iced coffee products to supermarkets, convenience stores as well as Starbucks cafes in Europe. Arla Food is one of the largest dairy companies in Europe and offers a highly developed distribution network of ready-to-drink products in key markets for Starbucks in Europe. As we see, Starbucks is expanding its distribution network by establishing partnership relationships with other organizations abroad..