From Farm to Cup: Upstream–Downstream Integration and Supply Chain Performance in Indonesia’s Coffee Industry

Abstract

This study examines the supply chain management (SCM) of ‘KA’, one of Indonesia’s leading national coffee brands, in the context of increasing competition and the need for consistent quality, reliable sourcing, and responsive distribution systems. The research aims to analyze the integration of upstream and downstream activities, including raw material sourcing, production processes, blending strategies, logistics, and distribution channels. A descriptive qualitative approach with a single case study design was employed, using data collected from semi-structured interviews, company documentation, and relevant academic literature. The analysis is guided by the SCOR (Plan–Source–Make–Deliver–Return) framework to evaluate supply chain performance across key dimensions. The findings reveal that ‘KA’ demonstrates strong capabilities in maintaining supply stability through multi-regional sourcing, achieving production efficiency through standardized roasting and blending processes, and expanding market reach via hybrid distribution channels that combine traditional and digital platforms. However, several challenges persist, including limited upstream traceability, variability in raw material quality, and suboptimal demand forecasting, particularly in digital markets. These limitations indicate gaps in coordination and data integration across the supply chain. The study concludes that strengthening upstream–downstream integration is essential to enhance long-term competitiveness. Strategic improvements should focus on digital traceability systems, stronger partnerships with farmer cooperatives, improved forecasting mechanisms, and enhanced logistics infrastructure. These efforts are expected to support more sustainable, efficient, and resilient supply chain performance within Indonesia’s coffee industry.