Supply Chain
http://www.slideshare.net/himadrisingha/barilla-spa-a-case-on-supply-chain-integration http://www.scribd.com/doc/22320494/Barilla-SpA http://www2.newpaltz.edu/~liush/MOIT/Barilla%20Case%20Study.pdf http://www.scribd.com/doc/7325445/Barilla-SpA-Case-Solution http://www.youtube.com/watch?v=PQgBY5wn0aE
The Barilla SpA
(Harvard Case)
Qian Wang
Tsai-Lan Huang
Xiaoqing Ge
February 2, 2000
Summary
The JITD initiative at Barrila drew a lot of internal and external objections which made it unsuccessful in terms of implementation. An in-depth analysis of the Barrila’s case reveals the various sources of objections. As an attempt to solve the traditional problems within the uncertainties-affected supply chain, the JITD idea is commendable. But the problem lies in its lack of tactics to win the stake-holders’ support. But the problem lies in its lack of tactics to win the stake-holders’ support. Possible solutions corresponding to different aspects of problems are discussed along with the problem analysis. Finally, a stake-holder consortium based on a real-time vendor managed inventory system is suggested.
Problems and Possible Solutions
The problems that JITD intends to solve: * Demand fluctuation and low customer fill rate: As the Exhibit 12 showed, the demand variability is huge. On the other hand, the production line of Barilla can not afford frequent changes in order amount due to the long setup process. It comes out that if the forecast is unreliable, they will either need to build up huge inventory or lose the customer fill rate, none of them is favorable. Also, the Barilla customers will face stockout due to the low fill rate of Barilla. Another reason could be the big order policy (refer to Conflicts internal to Barilla) makes GD/DO stockouts by “buying the wrong product a lot” but “having no extra space or money to buy the correct product to meet the demand”. * High Inventory at distributors and No Space or further
The Barilla SpA
(Harvard Case)
Qian Wang
Tsai-Lan Huang
Xiaoqing Ge
February 2, 2000
Summary
The JITD initiative at Barrila drew a lot of internal and external objections which made it unsuccessful in terms of implementation. An in-depth analysis of the Barrila’s case reveals the various sources of objections. As an attempt to solve the traditional problems within the uncertainties-affected supply chain, the JITD idea is commendable. But the problem lies in its lack of tactics to win the stake-holders’ support. But the problem lies in its lack of tactics to win the stake-holders’ support. Possible solutions corresponding to different aspects of problems are discussed along with the problem analysis. Finally, a stake-holder consortium based on a real-time vendor managed inventory system is suggested.
Problems and Possible Solutions
The problems that JITD intends to solve: * Demand fluctuation and low customer fill rate: As the Exhibit 12 showed, the demand variability is huge. On the other hand, the production line of Barilla can not afford frequent changes in order amount due to the long setup process. It comes out that if the forecast is unreliable, they will either need to build up huge inventory or lose the customer fill rate, none of them is favorable. Also, the Barilla customers will face stockout due to the low fill rate of Barilla. Another reason could be the big order policy (refer to Conflicts internal to Barilla) makes GD/DO stockouts by “buying the wrong product a lot” but “having no extra space or money to buy the correct product to meet the demand”. * High Inventory at distributors and No Space or further