Background In 1875‚ Barilla was founded in Parma‚ Italy by Pietro Barilla. In the 1940’s the company was passed on two his two sons who led the company through a really strong period of growth. During this time the company transformed into a vertically integrated corporation and chose to distinguish itself through robust branding. Expansion of the company drove the Barilla brothers into debt‚ where they were decided to sell the company to an American firm. However‚ years later the Barilla brothers were
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Barilla SpA Case Table of Contents Executive Summary 2 Issues Identification 3 Environmental and Root Cause Analysis 3 Alternatives or Options 4 Recommendation and Implementation 5 Monitor and Control 6 Conclusion 6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However‚ faced with great external resistance
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approach to order fulfillment. Vitali envisioned an approach that would radically change the way in which logistics organization managed product delivery by introduction of Just In Time Distribution (JITD) system. The JITD system is designed to mitigate Barilla’s high stock rates‚ fluctuating demands by distributors and stock outs. As the incumbent logistics director‚ -Giorgio Maggiali‚ I have the intention of implementing the JITD system in Barilla’s Supply chain. Albeit‚ I need to contend with
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Barilla Case ____________________________________________________________ ______________ Overview of Barilla Barilla appears to be in a commodity industry‚ suggesting flat demand. Barilla positions themselves as the branded‚ premium‚ dry pasta. Their order qualifiers are consistency and quality‚ and their order winners are brand recognition and variety in shapes. In fact their product line is extensive – 800 products. However‚ Barilla faces demand fluctuations that strain their
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Just-in-Time distribution (JITD) Modeled after the popular Just-in-time manufacturing concept o Rather than delivering product to distributors when ordered‚ his logistics plan would specify the “appropriate” delivery quantities These quantities would more effectively meet end-consumer’s needs and more evenly distribute WORKLOAD on the manufacturing and logistics systems - Maggiali tried for 2 years to implement the idea but little progress has been made o Customers unwilling to give up authority
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Executive Summary The Italian Pasta Manufacturer‚ Barilla SpA‚ is experiencing inefficiencies and increases in cost due to variability in demand from its distributors. Giorgio Magialli‚ the Director of Logistics‚ wants to implement a Just-In-Time Distribution (JITD) system to gain more control. The JITD system was originally proposed by Barilla’s former Director of Logistics‚ Brando Vitali. The new system is untraditional and is being rejected by both distributors and Barilla’s internal departments
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CASE ANALYSIS OF BARILLA SPA Problem seen in Barilla SpA by Giorgio Maggiali-Director of logistics is the demand fluctuations imposed on the company manufacturing & distribution system. Brando Vitali which was an earlier Director of logistics in Barilla SpA proposed an idea of Just- in- time distribution (JITD) for this problem. Instead of Distributors giving orders according to them‚ company should deliver its products on time by its own logistics system on the basis of end consumer needs. By
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BARILLA SpA CASE ANAYLSIS XUELAI (ANDY) HU Contents Executive Summary 2 Issue Identification 3 Environmental and Root Cause Analysis 4 Alternatives or Options 6 Recommendations and Implementation 6 Monitor and Control 8 Executive Summary Barilla SpA‚ a large vertical integrated corporation that makes pasta and bread products is experiencing rising costs due to extreme variability in demand from its distributors. In order to improve company’s sale margins‚ Giorgio Magialli
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Barilla SpA is an Italian pasta manufacturer comprised of 7 divisions: 3 pasta‚ bakery‚ bread‚ catering‚ and international. By 1990‚ Barilla had become the largest pasta manufacturer in the world. The company ships its pasta to one of two central distribution centers (CDC) where it is bought by individual supermarket distributors called "grande distribuzione" (GD for larger supermarkets) and "distribuzione organizzata" (DO for smaller‚ independent supermarkets). During the late 1980s‚ the distributors
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Executive Summary Barilla SpA is a world largest past manufacturer has experienced a phenomenal growth. The company had pasta share of 35% in Italy and 22% in Europe‚ plus 29% in Italian bakery product market(page 2 case) However‚ it began taken a tall on Barilla’s “manufacturing and distribution system” (page 1 Case). Without having proper data and control over the orders the company experienced wide fluctuations in demand. As a result Barilla experienced bullwhip effect where demand forecast
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