Inbound logistics: include activities associated with bringing and storing of all external materials. For Illy company situated in Trieste, this comprises harvesting, quality control and purchasing within countries where the coffee beans are grown (Africa ecc.). There are expenses associated with inbound logistics account for significant amount due to the large distance between Trieste and Africa, Asia and Latin America continents and this is one of the major factors causing the levels of overall costs to increase.
Operations: activities relating to blending, roasting and packaging coffee beans in company plant in Trieste. Basically, internal operations consist of a set of consequent processes as a result of which coffee beans in bags are turned into packaged products in paper packages or metal cans depending on the nature of each individual product.
Outbound logistics: includes all activities involved in sending products to consumers. Illy products are serviced in more than 100,000 establishments in the different countries around the world. Illy products are sold through different channel: 1) cafes, restaurants 2) retail outlets; 3) vending machines. Outbound logistics for each channel has a specific characteristics.
Marketing and sales: activities regard communication of value promise to the target customer segment. The nature and level of utilization of marketing strategy by Illy in general and Lily’s and Boos Cupcakery in Bristol in particular involves combination of various elements of marketing communication mix.
Service activities include a wide range of activities that relate to the maintenance of product performance after the sale.
2) Estimate the relative costs and/or assets associated with these activities
The company's costs depend to a large extent on imports of coffee beans from countries where they are produced and the costs due to the