Barilla Spa (A) Case Questions 1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? 2. What conflicts or barriers internal to Barilla doe the JITD program create? What causes these conflicts? As Giorgio Maggiali‚ how would you deal with these? 3. Why are Barilla’s customers so resistant to the JITD idea? How might Maggiali be more successful in persuading customer to at least try
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BARILLA SpA (A) Table of Contents Part One: Executive Summary 3 Part Two: Immediate Issue 4 Part Three: Systemic Issues 4 Part Four: Qualitative Analysis 5 Part Five: Alternatives 6 Part Six: Recommendation 8 Part Seven: Recommendations Implementation Plan 9 Part Eight: Monitor and Control 10 Part One: Executive Summary In order to respond to extreme demand variability and incidents of high stock out rates Barilla is currently applying pressure to both its’ manufacturing and logistics
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Management Barilla SpA‚ the multinational pasta maker‚ has a long-standing tradition – founded in 1877 by Pietro Barilla in Parma‚ Italy‚ it remains privately held by the fourth generation of Barilla family. The company’s portfolio includes Barilla‚ Mulino Bianco‚ Pavesi‚ Voiello‚ Alixir in Italy‚ as well as the Wasabröd (Sweden)‚ Misko (Greece)‚ Filiz (Turkey)‚ Yemina and Vesta (Mexico) trademarks abroad. The consolidated revenue of the Barilla Group – which includes Barilla and Lieken – increased
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ASSIGNMENT 2: BARILLA SPA INTRODUCTION Barilla SpA (Barilla)‚ is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been experiencing widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific sequence of pasta production is used that minimizes the incremental changes in kiln temperature in order to keep the changeover costs low and the product quality high. This process makes
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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 was first founded in 1875 by Pietro Barilla in Parma‚ Italy. Pietro’s son led Barilla through momentous period of growth and in 1940s‚ he passed Barilla to his own sons namely Pietro and Gianni. As time passed by‚ Barilla evolved from its modest beginnings into a large‚ vertically integrated corporation with factories spread throughout Italy. The expansion of existing businesses both in Italy and other European countries as well as the acquisition of new and related businesses had enabled
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seen in Exhibit 12? What are the underlying drivers of the fluctuation we see in this exhibit? Your analysis should consider full range of implications to the entire channel‚ and not just Barilla. Per exhibit 12 the impact of order fluctuations are as follows: - Creates a bullwhip effect at Barilla. - Resource and material planning becomes cumbersome and inefficient. - Might increase the lead time because of the bullwhip effect. - Reduces overall operational
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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
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chain. Albeit‚ I need to contend with both internal and external stakeholders’ resistance to the system’s implementation‚ get the top management buy–in and build trust among stakeholders by engaging them at different levels. My decision is that Barilla should start the implementation of the JITD system with our selected distributors as a pilot‚ which would enhance visibility with distributors‚ improve service levels and increase internal efficiencies. Background Pasta is the staple
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Barilla SpA (Written Case Report) By Imran Chaudhry Overview: Barilla SpA one of the world’s largest pasta producer has growing burden of demand fluctuations and venialities on its manufacturing and distribution system. Giorgio Maggiali as director of logistics trying to implement idea of JITD (Just-in Time Delivery) so that Barilla’s own logistics department could manage more effectively delivery quantities and meet end consumer’s needs and more evenly distribute the workload on its
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