Long Summary for Barilla Spa (a)

• Giorgio Maggiali: Current director of logistics o Appointed in 1988 tried to make way for an innovative idea proposed by Brando Vitali
• Brando Vitali: Director of logistics before Giorgio Maggiali o Proposed Just-in-Time distribution (JITD)
 Modeled after the popular Just-in-time manufacturing concept o Rather than delivering product to distributors when ordered, his logistics plan would specify the “appropriate” delivery quantities
 These quantities would more effectively meet end-consumer’s needs and more evenly distribute WORKLOAD on the manufacturing and logistics systems

- Maggiali tried for 2 years to implement the idea but little progress has been made o Customers unwilling to give up authority in placing orders when desired o Some even reluctant to provide sales data to help assist the company with making decisions and improvements on forecast/delivery/timing o INTERNAL resistance from sales and marketing team
 Saw the idea as infeasible and dangerous

Background:
- Founded in 1875
- In 1968 the company began construction of a 1.25 million m2 pasta plant
- Cost drove owners into debt and were forced to sell to W.R. Gracce, Inc. o In 1979 Grace sold the company back to the original owner (Pietro Barilla)
- Barilla had a successful return
- ANNUAL GROWTH RATE OVER 21%
- In 1990 Barilla made up o 35% of pasta sold in Italy
 32% Barilla brand
 3% market share Voiello & Braibanti brand o 22% in Europe o Barilla held 29% share of Italian bakery-products market
- In 1990 Barilla organized into 7 divisions o 3 pasta divisions
 Barilla
 Voiello
 Braibanti o Bakery Products Division
 Manufacturing medium to long shelf-life bakery products o Catering Division
 Distributing cakes and frozen crossants to bars and pastry shope o International Division
 SEE exhibits 2 & 3 to show organization

Industry Background:
- Per capita pasta in Italy averages 18 kilos/year
- Some pasta experienced seasonality throughout the