1990 : Barilla Spa had become largest Pasta manufacturer.
35% Pasta sold in Italy
22% sold in Europe.
A) Plant Network
Barilla owned and operated an extensive network of plants located throughout Italy. B) Barilla Divided its entire product line into two general categories . Fresh Products ( Shelf Life 21 days ) and Dry Products ( Shelf Life 18-24 Products)
C) Distribution Centres
South CDC(Central Distribution Centres)
North CDC(Central Distribution Centres)
Most Barilla products were shipped from the plants in which they were made to one of the two Barilla
DO for indenependt supermarket
GD for Chain of Supermarket Chain
Barilla Maintained separate distribution systems for its fresh products and dry products. Dry products were shipped to first one of the vanilla CDC , where they were purchased by the distributors .
The distributors in turn shipped the product to super markets . JITD proposal was focused solely for dry products.
Small Independent Shops : They typically held over two weeks of inventory . They purchased the product through brokers who dealt with purchasing and distribution personnal. Supermarkets : 70% to supermarket chains and 30% to independent supermarkets : They typically kept 10-12 days of inventory.
Important : Dry products destined for a supermarket chain were distributed through chain’s own distribution organistion GD
And those destined for indepenedent super market were destinsed through DO
E) Sales And Marketing
Advertising : Barilla Brands were heavily advertised. Positining in quality Trade promotions
Haevy Discounting. Volume Discounts
F) Distributor Ordering procedure
Most Distributors used simple periodic review inventory systems.
G) Issues in Deamand Variability
Extreme Demand Variabilty affected manufacturing and logistics operations.
H) Just In Time Distribution to minimize the product variability...