Barilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories‚ local optimization 3 1.2 Lack of inventory information and
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BARILLA SpA CASE ANAYLSIS XUELAI (ANDY) HU Contents Executive Summary 2 Issue Identification 3 Environmental and Root Cause Analysis 4 Alternatives or Options 6 Recommendations and Implementation 6 Monitor and Control 8 Executive Summary Barilla SpA‚ a large vertical integrated corporation that makes pasta and bread products is experiencing rising costs due to extreme variability in demand from its distributors. In order to improve company’s sale margins‚ Giorgio Magialli
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Supply Chain Management Assignment 3: Supply Chain Coordination Describe Barilla’s manufacturing and distribution operations. Manufacturing: Barilla has 25 plants‚ including large flour mills‚ pasta plants‚ and fresh bread‚ as well as plants producing specialty products. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. The plants were specialized by the type of pasta they would produce‚ with the primary distinction
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Barilla Case ____________________________________________________________ ______________ Overview of Barilla Barilla appears to be in a commodity industry‚ suggesting flat demand. Barilla positions themselves as the branded‚ premium‚ dry pasta. Their order qualifiers are consistency and quality‚ and their order winners are brand recognition and variety in shapes. In fact their product line is extensive – 800 products. However‚ Barilla faces demand fluctuations that strain their
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The case begins with Giorgio Maggiali’s frustration with the fluctuations imposed on the company’s manufacturing and distribution system. He is the director of logistics at Barilla who has been working on the concept started Brando Vitali who was his predecessor. This was the Just-In-Time-Distribution (JITD) concept as an extension of the Just-In-Time Manufacturing concept developed at Toyota. This basically toyed with the idea of delivering its products to its distributors as per Barilla’s customer
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What are the reasons for the increase in variability in Barilla’s supply chain? Barilla gave volume reductions for the merchants ordering capacity fully loaded quantities‚ in turn causing merchants to place more supply orders than necessary leaving their inventory levels high. This meant that the retailers did not have to order as often due to high inventory rates on hand. There is also a weekly change in customer demand for the pasta produce. The lack of information to customer demand data in
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BARILLA CASE STUDY REPORT 1. Introduction Barilla was founded in 1875 in Parma‚ Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s‚ it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s‚ due to the big investment for pasta plant‚ Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979‚ the Barilla brother had enough money
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Executive Summary As per our conversation last week I would like to revisit the idea originally brought to life by Brando Vitali before he was promoted to head one of our company’s new divisions overseas. In order to address the issue which will be a direct result of introduction of JIT Distribution system‚ I would like to present the issues and my recommendations to you before our meeting with Marconi’s executives to discuss JITD proposal. As the meeting is scheduled for the of November I would
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Case Barilla SpA (A) Discussion Question 1. Answer these questions about the Barilla case study; a. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits of this program? The main underlying cause of the difficulties that the JITD program was created to solve is the effect of fluctuating demand which can be divided the root causes as per below. * Transportation Discounts * Volume Discounts * Promotional Activities
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Background In 1875‚ Barilla was founded in Parma‚ Italy by Pietro Barilla. In the 1940’s the company was passed on two his two sons who led the company through a really strong period of growth. During this time the company transformed into a vertically integrated corporation and chose to distinguish itself through robust branding. Expansion of the company drove the Barilla brothers into debt‚ where they were decided to sell the company to an American firm. However‚ years later the Barilla brothers were
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