Case Analysis of Barilla Spa
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 implementing this idea of JITD, company faces many problems like -----
-Barilla customers are unwilling to share their business data with company due to which company is unable to predict forecast demand & delivery decisions.
-Company own sales & marketing people feel that if this idea is successful they will be out of the company as their will be no need of sales & marketing team after this JITD implementation.
Now scenario was that no one except this idea neither internally by company own employees especially sales & marketing people & nor externally by its own distributors & retailers.
In 1875 Pietro barilla started Barilla SpA in Italy .Pietro passed company to his son Ricardo which in 1940, further passed to his sons-Pietro & Gianni which were far more successful than their ancestors.
Core competency of a company ---- High quality products supported by innovative marketing programmes.
-Marketing practices--- creating a strong brand name & image for its pasta.
-Selling pasta in a sealed cardboard box with a recognizable color pattern
Pietro & Gianni barilla made a pasta plant of 1.25 million sq.metre which was the world largest & most technologically advanced pasta plant in the world which put them deeply into the debt & they have to sell this plant to American MNC, W.R.Grace.
Now according to me this situation was due to the following factors
-Demand was not forecasted as market needed pastas in such a great quantity or not
-Logistics system of
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 implementing this idea of JITD, company faces many problems like -----
-Barilla customers are unwilling to share their business data with company due to which company is unable to predict forecast demand & delivery decisions.
-Company own sales & marketing people feel that if this idea is successful they will be out of the company as their will be no need of sales & marketing team after this JITD implementation.
Now scenario was that no one except this idea neither internally by company own employees especially sales & marketing people & nor externally by its own distributors & retailers.
In 1875 Pietro barilla started Barilla SpA in Italy .Pietro passed company to his son Ricardo which in 1940, further passed to his sons-Pietro & Gianni which were far more successful than their ancestors.
Core competency of a company ---- High quality products supported by innovative marketing programmes.
-Marketing practices--- creating a strong brand name & image for its pasta.
-Selling pasta in a sealed cardboard box with a recognizable color pattern
Pietro & Gianni barilla made a pasta plant of 1.25 million sq.metre which was the world largest & most technologically advanced pasta plant in the world which put them deeply into the debt & they have to sell this plant to American MNC, W.R.Grace.
Now according to me this situation was due to the following factors
-Demand was not forecasted as market needed pastas in such a great quantity or not
-Logistics system of