and Barilla’s Sales and Marketing Department. Barilla Spa‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. In order to bring things back and to improve its margins. I have studied the reasons for this opposition by several facts and have suggested recommendations. I suggest that in order to condense the Bullwhip effect being experienced by Barilla‚ their supply chain would have to be centralized
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Barilla spA case analysis Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. The main problem addressed in this case is how to effectively implement JITD system suggested by Giorgio Magialli‚ the Director of Logistics by resolving the issue of gaining control over the fluctuating demand. Barilla has a very complex distribution network including independent third party distributors and
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Executive Summary Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing greater levels of inefficiencies and rising costs due to variability in demand from its distributors. In order to restore things to order and to improve margins‚ Giorgio Magialli‚ the Director of Logistics at Barilla wants to implement a Just-In-Time Distribution (JITD) system that was proposed by his predecessor Brando Vitali. This system is completely different from the existing setup and is being opposed by both the
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domestically over 2000 pasta manufacturers in Italy. Declining margins. * Pasta market is extremely price sensitive. * Barilla is the market leader in Italy and is the industry’s largest manufacturer. * Supply chain represents approximately 55-58 calendar DOH of dry goods (30 in the CDC‚ 14 at the Distributor‚ 11-14 at the Supermarket or Independent Shops) Competitive Strategy * Barilla is the largest pasta manufacturer in the world (35% of market in Italy and 22% of market in Europe) * Also 29% of
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Executive Summary Barilla‚ the leading pasta manufacturer in Italy‚ faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains‚ why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”‚ i.e. that demand variability increases when moving up the supply chain
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Case Analysis 3 Barilla SpA MGT 371 Section 2 – Team 6 What is the impact of fluctuating demand on operations? Because of the way Barilla’s manufacturing process works‚ demand fluctuations have a significant impact on the company’s operations. Tight heat and humidity specifications in factory tunnel kilns require very specific sequences of pasta production‚ which means Barilla has limited flexibility in ramping up (or ramping down) the production of pastas experiencing unexpected demand levels
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Barilla Case 1a. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits of this program? There is a large variability in demand. (GD’s and DO’s order once a week‚ in varying quantities‚ causing a bullwhip effect). This is strange‚ as the total market is relatively flat and nearly completely saturated. Because pasta is so common in Italy‚ people usually stick with their choice of brand‚ which is why demand should be stable for Barilla’s
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Barilla SpA (A) Case Study Analysis 2 Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawback of this program? 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 (Hammond‚ 1). Instead of distributing Barilla’s products based on the orders the distributors
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BARILLA CASE REPORT Table of Contents Executive Summary Part 1 Executive Summary Issue Identification Part 2 Fundamental Issues Part 3 Systematic Issues Environmental & Root Cause Analysis Part 4 Qualitative and Quantitative Analysis Alternatives and or Options Part 5 Alternatives Recommendations Part 6 Recommendations Implementation Part 7 Recommendations and Implementation
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on an entirely different character depending on ones values. People associate food with their own personal lifestyles‚ culture‚ history‚ values‚ heritage‚ history‚ identity‚ and other attributes that make them unique. Gianluigi Zenti Academia Barilla and ElBulli have a lot of common themes: they have applied and are still applying the cultural and social influences to the food industry‚ they are oriented and focused on innovation and creativity‚ they have pioneered and restructured their own markets
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