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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Case Presentation Barilla SpA Introduction Company & Industry background • World’s largest pasta producer in 1990 • Pasta Share - 35% in Italy and 22% in Europe Channels of Distribution • Products divided in 2 categories – “Fresh” and “Dry” • Fresh Products had 21 day Shelf Lives • Dry Products had Long ( 18 to 24 Months) or Medium(10 to 12 weeks) Shelf Lives • Retail Outlets – Small independent The Issue • During the late 1980s‚ Barilla suffered increasing operational inefficiencies and
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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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Just-in-Time Delivery system. JITD 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
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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
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Barilla SpA is suffering from a problem of their own making - their distribution system is overly complex. That complexity is causing them to be unable to respond to their widely varying customer demand. Their customers‚ distributors‚ are forced to hold high inventories while simultaneously enduring stockouts on average of 7%‚ all because Barilla can’t rationalize their own processes to handle variability in demand. Barilla’s manufacturing process is long and inflexible. Given the high variability
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Barilla SpA (A) Christel Bou Farhat Notre Dame University 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? In your answers‚ consider the Barilla and distributors points of view (400-500 words). * Barilla’s Supply Chain suffered from the bullwhip effect that was mostly caused by the demand fluctuations and damaging the company’s manufacturing and distribution system. This fluctuating
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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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Name: ABDELRAHIM Abdelrahim Barilla’s Key Success Factors Barilla was founded in 1870. Barilla sells Pasta‚ Sauce and biscuits all over the world Barilla started with a small bakery Barilla made pasta with eggs Retain good management: - Since Barilla was created it is governed by a family. - Barilla left the artisanal zone and entered the industrial domain in 1910. - In terms of quality‚ Barilla’s pasta is with eggs - The family leaves a marge of liberty for the managers but main
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statement How best to manage Academia to fit into Barilla’s long-term strategy and need for growth. Situation analysis 3C Company Barilla Largest Italian food company in the world. Best-selling pasta brand in the United States Strongest brand name in Italy. Dry pasta and several bakery categories in Italy. While also pasta sauces for the U.S. market. Academia Barilla Feeling the limitation of growing the business with only pasta and sauce. Launched in 2004 to preserve‚ develop‚ and promote authentic
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