In a supply chain, distribution refers to the steps required to move and store a product from the supplier stage to the customer stage. It is an important factor in a company's overall profitability because it directly impacts both supply chain costs and customer experience. (Chopra and Meindl, 2010, p68) A typical coffee distribution system distribution network looks like this (Starbucks Coffee Company, p22): In order to enforce its rigorous coffee standards, Starbucks does its best to control the entire supply chain. The company partners with farmers in various countries to purchase green coffee beans, oversees the custom roasting process for the company's various blends and single-origin coffees, and controls distribution to retail stores in the United States and around the world. Starbucks engages in a broad range of distribution services, including partnerships, company-owned stores, and licensed products. Since Starbucks is a well-known brand, they use relationships with third parties to attract other companies and expand their business. Although the portion of licensed products does not represent a large portion of the company's revenues (4% in 2008), these items are integral to customers' familiarity with the Starbucks name and developing brand loyalty. (Crowe Remle, 2010) Starbucks not only sells coffee and some simple foods to consumers, but also sells coffee beans and ground coffee to companies such as airlines, supermarkets, department stores, and ice cream shops. In a complex distribution network, information technology helps a lot. Starbucks successfully integrates all sources of demand and matches it with supply using Oracle's Automated Manufacturing Information System (GEMMS). The GEMMS system manages distribution planning, manufacturing schedules... middle of the paper... dollar-for-dollar locations in 14 markets including Thailand, Korea, Beijing, Shanghai and Hong Kong. (Starbucks' entry into China, p12). Starbucks also has a partnership with the Chinese government and local universities to grow coffee in Yunnan province. (Starbucks' entry into China, p13) Starbucks also makes its first entry into the European coffee market. Starbucks has a partnership with Arla Foods as an authorized partner to produce, distribute and market premium iced coffee products for supermarkets, convenience stores and Starbucks coffee shops in Europe. Arla Food is one of the largest dairy companies in Europe and provides a highly developed distribution network for ready-to-drink products in key markets for Starbucks in Europe. As we see, Starbucks expands its distribution network by building partner relationships with other organizations abroad.