Barilla SpA Case Study Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis. Type: Supply Chain Problems/Issues: - Extreme demand fluctuations – week-to-week variation in distributors order pattern‚ strained Barilla’s manufacturing and logistics operations: high inventory‚ stock out‚ low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product - High inventory cost
Premium Supply chain management Inventory Marketing
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
Premium Sales Inventory Supply and demand
Inc. o In 1979 Grace sold the company back to the original owner (Pietro Barilla) - Barilla had a successful return - ANNUAL GROWTH RATE OVER 21% - In 1990 Barilla made up o 35% of pasta sold in Italy 32% Barilla brand 3% market share Voiello & Braibanti brand o 22% in Europe o Barilla held 29% share of Italian bakery-products market - In 1990 Barilla organized into 7 divisions o 3 pasta divisions Barilla Voiello Braibanti o Bakery Products Division Manufacturing medium
Premium Retailing Logistics Marketing
EXECUTIVE SUMMARY Barilla SpA‚ world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system‚ contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information‚ there will be data transparency between Barilla and distributors. Distributors will
Premium Safety stock Economics Time
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
Premium
The Bullwhip Effect and Barilla SpA The Bullwhip Effect is an observed phenomenon in forecast-driven distribution channels where there is variability up the supply chain. Some of its causes are: Dependent demand processing Forecast Errors Adjustment of inventory control parameters with each demand observation Lead Time Variability (forecast error during replenishment lead time) Lot-sizing/order synchronization Trade promotion and forward buying Anticipation of shortages One way
Premium Inventory Supply chain management Supply chain management terms
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
Premium Inventory Supply and demand Supply chain
Executive Summary 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 in 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 entirely different from the existing setup and is being opposed by both
Premium Supply and demand Forecasting Sales
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
Premium Inventory Supply chain management Sales
Name: ABDELRAHIM Abdelrahim Barilla’s Key Success Factors Barilla was founded in 1870. Barilla sells Pasta‚ Sauce and biscuits all over the world Barilla started with a small bakery Barilla made pasta with eggs Retain good management: - Since Barilla was created it is governed by a family. - Barilla left the artisanal zone and entered the industrial domain in 1910. - In terms of quality‚ Barilla’s pasta is with eggs - The family leaves a marge of liberty for the managers but main
Premium Marketing Customer service Food