Barilla SpA Case Study Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis. Type: Supply Chain Problems/Issues: - Extreme demand fluctuations – week-to-week variation in distributors order pattern‚ strained Barilla’s manufacturing and logistics operations: high inventory‚ stock out‚ low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product - High inventory cost
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ASSIGNMENT 2: BARILLA SPA INTRODUCTION Barilla SpA (Barilla)‚ is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been experiencing widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific sequence of pasta production is used that minimizes the incremental changes in kiln temperature in order to keep the changeover costs low and the product quality high. This process makes
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Case study Nicola Marcheselli Head of Cash Management Barilla SpA‚ the multinational pasta maker‚ has a long-standing tradition – founded in 1877 by Pietro Barilla in Parma‚ Italy‚ it remains privately held by the fourth generation of Barilla family. The company’s portfolio includes Barilla‚ Mulino Bianco‚ Pavesi‚ Voiello‚ Alixir in Italy‚ as well as the Wasabröd (Sweden)‚ Misko (Greece)‚ Filiz (Turkey)‚ Yemina and Vesta (Mexico) trademarks abroad. The consolidated revenue of the Barilla
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Executive Summary Barilla‚ the leading pasta manufacturer in Italy‚ faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains‚ why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”‚ i.e. that demand variability increases when moving up the supply chain
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functions of business on software‚ however most of them have been limited to conversion of data from legacy Systems to new systems till the advent of ERP System. Many projects have failed‚ new systems were not up to the task and this meant additional cost and loss of business. With the arrival of ERP‚ all this has changed. Advent of ERP’s has led to introduction of new tools‚ custom methodology databases and applications leading to effective and efficient utilization of resources & increase in overall
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Barilla Spa (A) Case Questions 1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? 2. What conflicts or barriers internal to Barilla doe the JITD program create? What causes these conflicts? As Giorgio Maggiali‚ how would you deal with these? 3. Why are Barilla’s customers so resistant to the JITD idea? How might Maggiali be more successful in persuading customer to at least try
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will resolve the increasing operational inefficiencies and cost penalties that have resulted from large week-to-week variations in Barilla’s distributors order patterns. In order to reduce the Bullwhip effect being experienced by Barilla‚ their supply chain would have to be Centralized. This solution allows Barilla to see end customer demand and eliminate costs involved with inventory‚ manufacturing‚ and transportation. JITD would allow Barilla to work directly with its distributors and create a flexible
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domestically over 2000 pasta manufacturers in Italy. Declining margins. * Pasta market is extremely price sensitive. * Barilla is the market leader in Italy and is the industry’s largest manufacturer. * Supply chain represents approximately 55-58 calendar DOH of dry goods (30 in the CDC‚ 14 at the Distributor‚ 11-14 at the Supermarket or Independent Shops) Competitive Strategy * Barilla is the largest pasta manufacturer in the world (35% of market in Italy and 22% of market in Europe) * Also 29% of
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What historical factors affect Ford’s ability to move to a built to order (BTO) model? Few of the historical factors affecting Ford’s ability to move to BTO are as follows: 1. Large number of suppliers: The fundamental issue for Ford is the management and control of their large database of their business partners‚ particularly suppliers and sub-suppliers. Unlike Dell‚ which has only about 50 suppliers‚ Ford has several thousand suppliers and operates in a more complex network of business
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to implement at Barilla. It was in response to the significant fluctuations in sales demand that Barilla was experiencing from their distribution centers. Exhibit 12 in the case shows how volatile the ordering could be. It looks very unpredictable using their current method of distribution‚ which is causing excess inventory and stockouts. By nature‚ their pasta products experience waves of high and low demand. Seasonal and promotional fluctuation was making it hard for Barilla to correctly forecast
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