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June 12, 2012

Starbucks (?) Saves the Day?

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Is Made in the USA cheaper, quicker, better PR?

“It’s time for companies and businesses to step up and find a balance between profitability and responsibility.”~ Howard Schultz, CEO/founder of Starbucks.

For more on Made in the USA, click here.

From the NY Times:

The effort is not all altruistic. Chinese labor has become more expensive, and Starbucks and other companies are looking at their supply chains more holistically. American Mug can deliver to Starbucks in four days, while Chinese suppliers may take three months.

A Chinese supplier is also likely to require an order in the hundreds of thousands, increasing the risk that Starbucks will get stuck with inventory. And then there is the difference in shipping costs. “No doubt the cost of doing what we’re doing in East Liverpool at least in the initial stage will be more expensive for Starbucks, but the investment we’re making in this is about the conscience of our company and recognition that success has to be shared,” Mr. Schultz said.

…He found American Mug last fall after having heard an interview with Mr. Schultz, in which the Starbucks chief, disgusted with the political standoff in Washington over raising the debt ceiling, called on business leaders to stop making donations to politicians and start doing something themselves to address the country’s woes.

…Her husband, Eric, was out of work for six months before also landing a job at American Mug.

Read the rest at the NY Times.

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