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Serving Up An Experience

The next generation of supply chains will be tasked with delivering an experience as well as a product.

By ·

Would you pay $15 for a cup of coffee? Now, before you answer, imagine that this is no ordinary cup of Joe. The coffee is produced using the siphon method, a nearly 200 year old slow-brew process renowned for its ability to deliver a delicate, clear and tasty cup of coffee. What’s more, while the barista is making your cup, you’ll be able to see how coffee cherries are converted into roasted and ground coffee beans.

Starbucks is betting that just as wine lovers are willing to pay for the experience of tasting wines at the winery, surrounded by vineyards and wine making equipment, coffee lovers will pay $15 to experience coffee in a new way at its Reserve Roastery and Tasting Room. The similarity doesn’t stop there. Just as winery customers can sample unique wines that aren’t in the stores, Starbucks’ customers will be able to sample new blends and drinks before they get released to the public—drinks like Nitro Cold Brew, the Smoked Butterscotch Latte and the Cascara Latte. Now, knowing all that, would you pay $15 for a cup of coffee? If you answered yes, welcome to the experiential supply chain, one in which supply chains are tasked with delivering more than just a product, even if that is a custom product.

Supply chain management is undergoing a transformation. Today, the supply chain is becoming a strategic tool that enables a business’s go-to-market strategy; and in response, it is developing new forms. These new types of supply chains have a lot to teach managers and researchers about the future of supply chain management.

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By ·

Would you pay $15 for a cup of coffee? Now, before you answer, imagine that this is no ordinary cup of Joe. The coffee is produced using the siphon method, a nearly 200 year old slow-brew process renowned for its ability to deliver a delicate, clear and tasty cup of coffee. What’s more, while the barista is making your cup, you’ll be able to see how coffee cherries are converted into roasted and ground coffee beans.

Starbucks is betting that just as wine lovers are willing to pay for the experience of tasting wines at the winery, surrounded by vineyards and wine making equipment, coffee lovers will pay $15 to experience coffee in a new way at its Reserve Roastery and Tasting Room. The similarity doesn’t stop there. Just as winery customers can sample unique wines that aren’t in the stores, Starbucks’ customers will be able to sample new blends and drinks before they get released to the public—drinks like Nitro Cold Brew, the Smoked Butterscotch Latte and the Cascara Latte. Now, knowing all that, would you pay $15 for a cup of coffee? If you answered yes, welcome to the experiential supply chain, one in which supply chains are tasked with delivering more than just a product, even if that is a custom product.

Supply chain management is undergoing a transformation. Today, the supply chain is becoming a strategic tool that enables a business’s go-to-market strategy; and in response, it is developing new forms. These new types of supply chains have a lot to teach managers and researchers about the future of supply chain management.

 


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From the September-October 2018
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