12.3.1 Illys Quality Management and Knowledge/know-how Diffusion along the Supply Chain

As highlighted in the first part of the chapter, many researchers have already proven how the overall integration of quality management practices along the supply chain has a positive effect on the quality of products and services. This topic is central in the food industry and particularly in the espresso coffee market. Consequently, it is necessary to implement quality management practices at every link in the supply chain from the producer (in our case, the green coffee grower) to the consumer. However, to manage quality efficiently and effectively, it is necessary to control and coordinate the entire supply chain.

Small- to medium-sized enterprises encounter significant challenges in obtaining this type of control because of the practical unfeasibility of vertical integration. Moreover, in the coffee sector, this dynamic is heightened by geographical distances, the great number of potential suppliers and the barriers created by international traders. The illy case study shows how a small- to medium-sized enterprise can overcome all of the issues above by becoming a supply chain coordinator (SCC) and control quality at every link through the adoption of quality management practices and the systematic application of knowledge to the whole supply chain.

1. What are the main knowledge/know-how practices implemented by illy?