Barilla Spa Case study
Barilla SpA - Case Study
Table of Contents
I. Executive summary
II. Issue Identification
III. Environmental and Root Case Analysis
IV. Alternatives and Options
V. Recommendations
VI. Implementation
VII. Monitor and Control/ Conclusion
I. Executive Summary
My decision for this case is to implement the Just-In-Time Distribution (JITD) system. 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 into place 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 the distributors and Barilla’s Sales and Marketing Department.
In this report we have studied the reasons for this opposition and have suggested strategies. We have given our rationale for the JITD system to work and have proposed recommendations to resolve all existing issues. We think that a centralized supply chain with Barilla having authority of the orders over the distributors will result in better margins for all the partners.
We believe that by following these recommendations and implementations, Barilla will succeed in influencing its distributors and sales and marketing personnel to work together and apply the JITD program. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain.
II. Issue Identification
Pietro Barilla founded Barilla in 1875 as a small shop in Parma, Italy. In 1990, Barilla SpA is the largest Pasta manufacturer in the world. It has a 35% market share in Italy and a 22% market share in Europe. In addition, Barilla divides its product
Table of Contents
I. Executive summary
II. Issue Identification
III. Environmental and Root Case Analysis
IV. Alternatives and Options
V. Recommendations
VI. Implementation
VII. Monitor and Control/ Conclusion
I. Executive Summary
My decision for this case is to implement the Just-In-Time Distribution (JITD) system. 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 into place 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 the distributors and Barilla’s Sales and Marketing Department.
In this report we have studied the reasons for this opposition and have suggested strategies. We have given our rationale for the JITD system to work and have proposed recommendations to resolve all existing issues. We think that a centralized supply chain with Barilla having authority of the orders over the distributors will result in better margins for all the partners.
We believe that by following these recommendations and implementations, Barilla will succeed in influencing its distributors and sales and marketing personnel to work together and apply the JITD program. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain.
II. Issue Identification
Pietro Barilla founded Barilla in 1875 as a small shop in Parma, Italy. In 1990, Barilla SpA is the largest Pasta manufacturer in the world. It has a 35% market share in Italy and a 22% market share in Europe. In addition, Barilla divides its product