Barilla Spa We need to regroup now and decide where to go with JITD. Is this type of program feasible in our environment? If so‚ what kind of customers should we target? And how do we convince them to sign up? Against Vitali’s proposal‚ “Just-in-Time Di stribution‚” met with significant resistance within Barilla. The sales and marketing organizations were particularly vocal in their opposition to the plan. A number of sales representatives felt that their responsibilities would be diminished if
Premium Marketing Sales
Barilla SpA was founded in 1875 by Pietro Barilla and has evolved into a large‚ vertically integrated corporation with flour mills; pasta and bakery factories located throughout Italy and is a global leader in producing and selling a multitude of these goods. Review of this case study shows a core problem of weekly demand fluctuations in the distribution order patterns which impacted manufacturing and other chains in the system. The fluctuations brought increasing operational inefficiency and cost
Premium Marketing Management Safety stock
for the Bullwhip Effect Giovanni Miragliotta In this article‚ Giovanni Miragliotta has two main purposes. The first one is to strengthen the knowledge on the dynamics of a supply chain via a deep review of the Bullwhip Effect. The second one is to build a new framework abled to classify the causes of the Bullwhip effect. Furthermore‚ this framework can distinguish layers and mechanisms that lead to Bullwhip Effect and so help managers to better understand the causes of this effect and to implement
Premium Management Measurement Causality
Barilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories‚ local optimization 3 1.2 Lack of inventory information and
Premium Supply chain management Inventory Economic order quantity
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
Premium Logistics Inventory Supply chain management
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
Premium Marketing Inventory Safety stock
BARILLA CASE STUDY REPORT 1. Introduction Barilla was founded in 1875 in Parma‚ Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s‚ it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s‚ due to the big investment for pasta plant‚ Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979‚ the Barilla brother had enough money
Premium Management Strategic management Project management
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
Premium Case study Customer Decision making
Supply Chain Management Assignment 3: Supply Chain Coordination Describe Barilla’s manufacturing and distribution operations. Manufacturing: Barilla has 25 plants‚ including large flour mills‚ pasta plants‚ and fresh bread‚ as well as plants producing specialty products. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. The plants were specialized by the type of pasta they would produce‚ with the primary distinction
Premium Supply chain management Inventory Logistics
BARILLA CASE STUDY Causes that led to the JITD idea: Fluctuating demands from the retailers and the burden it caused on the company’s manufacturing and distribution system. The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase. On the other hand when the demand decreases it will be expensive to store the excess inventory. A problem at one point in the supply chain will be translated
Premium Sales Inventory Future