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 demand projections and workload on its manufacturing and logistics systems. The core problem addressed in this case is – “How to effectively implement JITD by resolving
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Barilla SpA Case Table of Contents Executive Summary 2 Issues Identification 3 Environmental and Root Cause Analysis 3 Alternatives or Options 4 Recommendation and Implementation 5 Monitor and Control 6 Conclusion 6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However‚ faced with great external resistance
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• Giorgio Maggiali: Current director of logistics o Appointed in 1988 tried to make way for an innovative idea proposed by Brando Vitali • Brando Vitali: Director of logistics before Giorgio Maggiali o Proposed Just-in-Time distribution (JITD) Modeled after the popular Just-in-time manufacturing concept o Rather than delivering product to distributors when ordered‚ his logistics plan would specify the “appropriate” delivery quantities These quantities would more effectively meet end-consumer’s
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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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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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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 was first founded in 1875 by Pietro Barilla in Parma‚ Italy. Pietro’s son led Barilla through momentous period of growth and in 1940s‚ he passed Barilla to his own sons namely Pietro and Gianni. As time passed by‚ Barilla evolved from its modest beginnings into a large‚ vertically integrated corporation with factories spread throughout Italy. The expansion of existing businesses both in Italy and other European countries as well as the acquisition of new and related businesses had enabled
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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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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 like to hear your thoughts on JITD before the end of this month so I can make appropriate changes to address any issues you might foresee as a direct result of our proposal. The decision to adopt the Just-in-Time Distribution will most
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can not be ignored. High inventory levels in Barilla’s Central Distribution Centers (CDCs) and in its distributors’ distribution centers represent increasing financial burdens on both Barilla and its distribution partners. The tight heat and humidity specifications in the pasta dry process makes it difficult for Barilla to quickly respond to the huge fluctuation and uncertainty of demand form distributors. As a result‚ Barilla’s customer order fill rate is suffering and so does its manufacturing and
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