Barilla Case Study Report
Barilla SpA (A) Case
Table of Contents
Executive Summary 3
Issue Identification and Root Case Analysis 4
Alternatives and Options 7
Recommendations and Implementation 8
Monitor and Control 9
Exhibits 10
Executive Summary
The tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors and the extreme demand variability seriously strained Barilla’s manufacturing and logistics operations. Barilla’s highly automated manufacturing system was not designed to accommodate large fluctuations in demand nor, was it designed to accommodate sudden changes in demand or product. Brando Vitali, Barilla’s director of logistics, proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional practice of delivering products to their distributors. The problem is increased by the fact that the customers are not willing to cooperate and they are not willing to provide a detailed sales data to ease the delivery decision by Barilla.
In spite of the reluctant reaction from distributors, as a decision maker, Giorgio Maggiali, I should promote the JITD initiative and change their attitude to this program. I should convince the sales organization to view JITD as a selling tool, and not a threat to sales. The JITD program offered additional service to the customer at no extra cost. It also would improve Barilla's visibility with trade and
Table of Contents
Executive Summary 3
Issue Identification and Root Case Analysis 4
Alternatives and Options 7
Recommendations and Implementation 8
Monitor and Control 9
Exhibits 10
Executive Summary
The tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors and the extreme demand variability seriously strained Barilla’s manufacturing and logistics operations. Barilla’s highly automated manufacturing system was not designed to accommodate large fluctuations in demand nor, was it designed to accommodate sudden changes in demand or product. Brando Vitali, Barilla’s director of logistics, proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional practice of delivering products to their distributors. The problem is increased by the fact that the customers are not willing to cooperate and they are not willing to provide a detailed sales data to ease the delivery decision by Barilla.
In spite of the reluctant reaction from distributors, as a decision maker, Giorgio Maggiali, I should promote the JITD initiative and change their attitude to this program. I should convince the sales organization to view JITD as a selling tool, and not a threat to sales. The JITD program offered additional service to the customer at no extra cost. It also would improve Barilla's visibility with trade and