The above supply chain map shows the process of how a company such as Tim Horton’s or Starbucks is able to bring coffee to their customers. A place such as Mexico is one of the largest coffee producing countries in the world. The retail company would have to outsource the coffee bean but would not only have to ensure they establish a farm in which they could extract the raw material from but there would need to be a processing plant (either built or partnered with) to cure and grade the beans in a place such as Mexico. If they are planning on putting their own operation in that country they would need to be financed by a bank. Once the beans were transported to North America, they would need to be roasted and then sent to a distributor. The distributor would then send the product to the retail chain or grocery store which would then be bought by the consumer. Each arrow would indicate a transport method being used. In a country like Mexico, it would be very difficult to not encounter theft or robberies along the way so it would be a little dangerous for the transportation of goods. Environmental factors could cause issues as well. If there is a drought or disaster, they may need to use air transportation instead of land or sea which would increase costs.
Another issue that might become prevalent is the extent of social responsibility the retail chain would incur. Countries outside of North America do not have the same labor laws and there may be numerous ethical decisions that will have to be made. Does the retail chain care about the people and the planet throughout the supply chain process or just about the profit.
Technology has helped evolve the industry in a number of ways. The first would be due to automation. Machinery can create output much faster and more efficient than what humans can do. This lowers labor costs, increases production as well as profit. Technology has also made the world into a global village. It is so much easier to communicate and share information in a timely manner because everything is a fingertip away. This would make outsourcing much easier if you don’t have to physically travel all over the world to ensure things are running smoothly.