The Role of Supplier Relationships in the U.S. Economy
What do supplier relationships connect businesses to?
Producers of raw materials, components, and finished goods
What helps build trust between companies and suppliers?
Clear communication, honoring contracts, and paying on time.
Why are strong supplier relationships especially important during crises?
They help businesses adapt and recover faster.
What digital tools help companies track performance and manage risk?
AI, data analytics, and digital tracking systems.
How does Starbucks use direct sourcing to strengthen supplier relationships?
By buying beans directly from farmers to ensure quality and trust.
Name two reasons why strong supplier relationships help companies run smoothly.
They reduce delays, control costs, ensure quality, and increase reliability.
Why do leading U.S. companies hold regular meetings with suppliers?
To align expectations, review performance, and prevent misunderstandings.
During COVID-19, how did companies with strong supplier relationships respond to shortages?
They adjusted production, found alternative suppliers, and prioritized
What do U.S. consumers and regulators demand regarding sustainability?
Ethical sourcing and environmental responsibility.
What is the purpose of Starbucks’ C.A.F.E. Practices program?
Daily Double
To set standards for ethical sourcing, quality, and sustainability.
What type of partnership creates long-term value beyond one-time transactions?
Long-term supplier partnerships
What advantage comes from sharing demand forecasts and compliance standards?
Better planning and increased transparency.
What product did Ford shift production to during early COVID-19?
Ventilators.
What is supplier diversity?
Partnering with minority-, women-, and veteran-owned businesses.
What do Starbucks Farmer Support Centers provide?
Free agronomist support to improve crop quality and productivity.
How can supply chain disruptions affect entire U.S. industries?
They can halt production across multiple sectors.
Give two examples of shared goals companies work on with suppliers.
Cost reduction, quality improvement, and sustainability goals.
What happened during the 2021 Texas winter storm that disrupted supply chains?
Energy and chemical plant shutdowns caused material shortages.
Why are companies shortening supply chains and sourcing more domestically?
To build resilience and reduce global disruption risks.
What is Hacienda Alsacia?
A Starbucks research and development coffee farm in Costa Rica.
What is one major disruption that impacted the automotive and electronics sectors?
Semiconductor chip shortages.
What is a supplier development program?
A program that helps suppliers improve through training or technology upgrades.
Why do companies like Microsoft invest in cybersecurity standards for suppliers?
To prevent breaches that could halt operations or expose data.
How does involving suppliers in product design help?
It improves innovation, quality, and efficiency.
What is Starbucks’ goal for diverse supplier investment by 2030?
Invest $1.5 billion in diverse suppliers.