RossC Barilla SpA
Barilla SpA (A) Case Study: Just-in-Time for Delays
The Barilla SpA (Society of Stockholders) was established in 1875. Barilla is considered the largest pasta producer in the world. The company was successful through the years but debt would overwhelm the company and require it to be sold in 1971; however, in eight short years the company would be sold back. Giorgio Maggiali, the director of logistics, struggled to make a change that he considered would take the company to the next level. The Just-in-time-distribution (JITD) idea was presented by Brando Vitali, former director of logistics, on how to improve and effectively manage demand while increasing revenue with lowered costs. Giorgio Maggiali has been working diligently for two years without the support of the organization. The organization is worried jobs will be lost; responsibilities that they currently have will be taken, and further believe that monies would be lost in trying to transition JITD.
Increased Variability
Barilla has been leading the pasta industry for having the highest quality of pasta on the market. Barilla has continued to evolve to stay relevant in the pasta market place but has struggled with drastic demand fluctuations. The central distribution centers (CDC) are where majority of all products are sent before they are distributed out to places such as super markets, small independent shops, Distribution organizers, and Grand distributors. The CDC lack of ability to forecast demand is costing Barilla significantly. Implementing the JITD idea can prove essential because with data being uploaded into the system, Barilla can not only generate effective distributions process but also get a better understanding of the consumer.
Coping with Increased Variability
Barilla is able to cope with the variability through process management techniques that will be in place. When the company decides to create another SKU or trade promotions, the process will not prove so difficult. Barilla will
The Barilla SpA (Society of Stockholders) was established in 1875. Barilla is considered the largest pasta producer in the world. The company was successful through the years but debt would overwhelm the company and require it to be sold in 1971; however, in eight short years the company would be sold back. Giorgio Maggiali, the director of logistics, struggled to make a change that he considered would take the company to the next level. The Just-in-time-distribution (JITD) idea was presented by Brando Vitali, former director of logistics, on how to improve and effectively manage demand while increasing revenue with lowered costs. Giorgio Maggiali has been working diligently for two years without the support of the organization. The organization is worried jobs will be lost; responsibilities that they currently have will be taken, and further believe that monies would be lost in trying to transition JITD.
Increased Variability
Barilla has been leading the pasta industry for having the highest quality of pasta on the market. Barilla has continued to evolve to stay relevant in the pasta market place but has struggled with drastic demand fluctuations. The central distribution centers (CDC) are where majority of all products are sent before they are distributed out to places such as super markets, small independent shops, Distribution organizers, and Grand distributors. The CDC lack of ability to forecast demand is costing Barilla significantly. Implementing the JITD idea can prove essential because with data being uploaded into the system, Barilla can not only generate effective distributions process but also get a better understanding of the consumer.
Coping with Increased Variability
Barilla is able to cope with the variability through process management techniques that will be in place. When the company decides to create another SKU or trade promotions, the process will not prove so difficult. Barilla will
References: Axsäter, S. (2013). When is it feasible to model low discrete demand by a normal distribution?. OR Spectrum, 35(1), 153-162. doi:10.1007/s00291-011-0278-8 Levi, D., Kaminsky, P. & Levi, E. (2008). Designing and managing the supply chain : concepts, strategies, and case studies. Boston: McGraw-Hill/Irwin. Shavandi, H., & Bozorgi, B. (2012). Developing a location-inventory model under fuzzy environment. International Journal Of Advanced Manufacturing Technology, 63(1-4), 191-200. doi:10.1007/s00170-012-3897-6