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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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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logistics at Barilla who has been working on the concept started Brando Vitali who was his predecessor. This was the Just-In-Time-Distribution (JITD) concept as an extension of the Just-In-Time Manufacturing concept developed at Toyota. This basically toyed with the idea of delivering its products to its distributors as per Barilla’s customer demand projections and workload on its manufacturing and logistics systems. The core problem addressed in this case is – “How to effectively implement JITD by resolving
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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 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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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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[Type the company name] | Barilla Sp(A) Case Study | | | | | Barilla JITD Case Study Just in time distribution (JITD) was designed to address the fluctuating demand of products that created additional costs in production‚ scheduling‚ and transportation. Barilla was to blame for several of these underlying problems. For example‚ Barilla offered transportation discounts‚ volume discounts‚ 10-12 promotions throughout the year‚ as well as no maximum or minimum constraints on orders
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issue which will be a direct result of introduction of JIT Distribution system‚ I would like to present the issues and my recommendations to you before our meeting with Marconi’s executives to discuss JITD proposal. As the meeting is scheduled for the of November I would like to hear your thoughts on JITD before the end of this month so I can make appropriate changes to address any issues you might foresee as a direct result of our proposal. The decision to adopt the Just-in-Time Distribution will most
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