Barilla SPA Operations & supply chain management Case study 2012 1 Is there any evidence that Barilla faces the bullwhip effect? If so‚ what causes of the bullwhip effect are present? Barilla has two products lines‚ “dry products representing 75% of sales” and “fresh products representing 25% of sales”. Products are shipped from plants to one of the two central distribution centers (CDCs). Each CDC held about a month’s worth of dry product inventory. There are three types
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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
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Executive Summary In 1987‚ Brando Vitali‚ then Barilla’s director of logistics‚ had proposed an alternative approach to order fulfillment. Vitali envisioned an approach that would radically change the way in which logistics organization managed product delivery by introduction of Just In Time Distribution (JITD) system. The JITD system is designed to mitigate Barilla’s high stock rates‚ fluctuating demands by distributors and stock outs. As the incumbent logistics director‚ -Giorgio Maggiali
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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
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Barilla SpA - Session 5 Case Report By: Kevin Samra PMAC ID: 10040240 To: Nikki Raycraft 1 Contents Executive Summary....................................................................................................................................... 3 Issues with Impact Analysis........................................................................................................................... 4 Environmental and Root Cause Analysis..............................................
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Management Barilla Spa (A) Case Study Table of Contents Executive Summary 3 Issues Identification 4 Environmental and Root Cause Analysis 4 Fluctuating Demand: 4 Resistance to Changes: 5 Alternative and/or Options 5 Alternative #1 – Continue to promote the Just-in-time Distribution (JITD) initiative 5 Alternative #2 – Eliminate product focus sales strategies 5 Recommendations and Implementation 6 Monitor and Control 6 Executive Summary Sales representatives at the Barilla SpA
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Barilla SpA Case Study Barilla SpA‚ the world’s biggest pasta manufacturer‚ has continuously experienced problems with increased costs and inefficiencies in their operation. The fluctuations in demand have caused Barilla SpA’s manufacturing costs‚ inventory costs‚ and distribution costs to go up. Issues that influenced the demand fluctuations are the discounts Barilla SpA offers on both price and transportation‚ the compensations for sales representatives that is based on the volume of goods they
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Barilla SpA - Case Study Table of Contents I. Executive summary II. Issue Identification III. Environmental and Root Case Analysis IV. Alternatives and Options V. Recommendations VI. Implementation VII. Monitor and Control/ Conclusion I. Executive Summary My decision for this case is to implement the Just-In-Time Distribution (JITD) system. Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising
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Barilla SpA (A) Case Analysis Teona Omiadze‚ Nino Tskhvariashvili‚ Mari Zaridze School of Economics‚ Business and Administration of the University of Georgia Instructor: Natia Zedgenidze Tbilisi 2011 Table of Contents Executive Summary……………………………………………………………….3 Introduction………………………………………………………………………..4 Problem Description……………………………………………………………….5 External and Internal Resistances to JITD program……………………………….9 Solution…………………………………………………………………………....11 Recommendations to the
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Barilla SpA currently must decide the logistic planning of its future production and distribution systems. The company is suffering from issues dealing with fluctuating demand from distributors‚ and the lack of end user sales and demand information. Brando Vitali‚ the former director of logistics for Barilla‚ suggested the use of a Just-In-Time Distribution (JITD) system in order to fix these issues. After much resistance from distributors and Barilla employees itself‚ a decision as to whether
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