Thank you Starbucks you made me think.
How?
Through the announcement of your new fund: “…that will give long-term loans to farmers, enabling them to produce more coffee, cocoa, bananas and other crops while securing supply for multinational buyers.”
Why’s that so good?
Two reasons.
Reason number one, the supply chain is usually the mega-miserable element of sustainability.
How is the supply chain usually presented? Antiseptic codes, endless audit, negative questions and failure, failure, failure. How many suppliers failed their audit last year? What strict follow-up actions have been taken? And the acme of supply chain excellence: how many contracts have you terminated for non-compliance?
It sounds more gloomy than a wet bank holiday in Skegness.
So full marks to Starbucks for finding and building on something positive in supply chain.
Reason number two, the magic phrase: long-term.
The best companies built long-term, mutually beneficial relations with suppliers. It was not a matter of kiss-me-quick questionnaire filling and on-line RFPs.
No.
Mutual interest. Long-term.
The FT tells us: “Fair trade farmers in Latin America, where the fund will start, say more than half the $500 million they need to cover their financing is for long-term loans.”
Whatever else is true, it looks like through the new fund Starbucks is fulfilling a big need.
Double espressos all round!