AS STARBUCKS CORP.’S EXECUTIVE VICE
president, global supply chain operations,
Peter D. Gibbons is responsible for all of the
products that contribute to the “Starbucks
experience”—from the coffee in your cup to
the cup itself and the table it rests on—at
every Starbucks store worldwide.
Gibbons, who joined Starbucks in
February 2007 as senior vice president for
global manufacturing operations, is responsible for the overall business management of
Starbucks’ manufacturing, engineering, procurement, distribution, planning, transportation, inventory management, and worldwide coffee and tea sourcing. This work
includes the operation of Starbucks’ network of roasting
plants in the United States and the Netherlands as well as a
tea blending facility in Portland, Ore.
Gibbons started his career with ICI, a global chemical
company. He next worked for the Scottish Development
Agency’s business development team, supporting its engineering and manufacturing companies. He then rejoined
ICI and spent the next 18 years with the company in a variety of operations, finance, and IT roles.
Peter Gibbons
mented new service metrics and standards.
We finished 2009 with our best-ever service
record and a material reduction in costs.
QWhat do you consider to be the greatest obstacles to supply chain optimization?
A Two things come to mind: talent and coordination across the supply chain.
The logistics field needs more well-educated
logistics professionals with early hands-on
experience who can understand quickly what
needs to change and can implement change without negatively impacting customer service and cost.
On top of that, the ability to manage “total cost to serve”
from product development all the way through to delivery
onto a customer’s shelf is essential. The major change in the
Starbucks food offerings over the last two years is a great
example of balancing improvements to product quality
with a supply chain solution that improved total costs and
margin but allowed cost trade-offs, including better ingredients and quality.
QWhat do you consider to be your greatest accom- plishment in the logistics field?
A In 2008, the Starbucks North American distribution etwork, which included five regional DCs and 35 local
consolidation DCs, was delivering service at levels far short of
standards. In addition, costs had increased faster than sales
had during the previous three years. During the subsequent
18 months, we successfully rebuilt the logistics organization,
restructured key logistics contracts, implanted key logistics
professionals to work alongside 3PL providers, and imple-
QWhat have you gained from your involvement with industry organizations?
A In the Starbucks supply chain, our external connec- tions and roles in industry organizations are essential
to finding and attracting top talent, calibrating our progress
and performance, and supporting the explanation of our
plans with the leadership of the enterprise. Our senior supply chain team is committed to connecting with peer companies, key academics, and industry and professional
organizations. We are using these connections to support
the professional development and training needs of our
supply chain team.
Mark Holifield
MARK HOLIFIELD IS SENIOR VICE PRESident of global supply chain at The Home
Depot. He is responsible for the home
improvement company’s retail logistics,
import and domestic distribution, delivery,
transportation, and inventory planning and
replenishment operations.
Holifield, who joined The Home Depot in
2006, is now in the process of leading the
company through a near four-year remodeling of its supply chain, including the building
of 19 flow-through distribution centers (see “Home Depot’s
supply chain remodel,” August 2009, www.dcvelocity.com,
for more on that initiative).
Holifield’s career has spanned nearly 30 years. Prior to
joining The Home Depot, he was executive
vice president of supply chain management
at Office Depot. He also worked as director
of consulting projects at Dallas Systems
Corp. and as a traffic manager for Frito-Lay.
He holds a Bachelor of Business
Administration degree from the University
of Texas and an M.B.A. from Baylor
University.
QYour academic background is in busi- ness administration. What led you to
the supply chain sector of business management?
A Well, it’s been a long-time interest, and it actually appears to run in my family. I’m told that one of my
