Barilla Spa Case Report
Barilla SpA - Session 5 Case Report
By: Kevin Samra PMAC ID: 10040240 To: Nikki Raycraft
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Contents
Executive Summary....................................................................................................................................... 3 Issues with Impact Analysis........................................................................................................................... 4 Environmental and Root Cause Analysis....................................................................................................... 5 Alternatives/Options..................................................................................................................................... 6 Recommendation.......................................................................................................................................... 6 Implementation Plan and Monitor/Control.................................................................................................. 7
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Executive Summary
My decision for this case is to implement the 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 the distributors 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 in order 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. I have given my rationale for the JITD system to work and have suggested recommendations to resolve all existing issues. I think that a centralized supply chain with Barilla controlling the orders will
By: Kevin Samra PMAC ID: 10040240 To: Nikki Raycraft
1
Contents
Executive Summary....................................................................................................................................... 3 Issues with Impact Analysis........................................................................................................................... 4 Environmental and Root Cause Analysis....................................................................................................... 5 Alternatives/Options..................................................................................................................................... 6 Recommendation.......................................................................................................................................... 6 Implementation Plan and Monitor/Control.................................................................................................. 7
2
Executive Summary
My decision for this case is to implement the 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 the distributors 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 in order 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. I have given my rationale for the JITD system to work and have suggested recommendations to resolve all existing issues. I think that a centralized supply chain with Barilla controlling the orders will