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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seen in Exhibit 12? What are the underlying drivers of the fluctuation we see in this exhibit? Your analysis should consider full range of implications to the entire channel‚ and not just Barilla. Per exhibit 12 the impact of order fluctuations are as follows: - Creates a bullwhip effect at Barilla. - Resource and material planning becomes cumbersome and inefficient. - Might increase the lead time because of the bullwhip effect. - Reduces overall operational
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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 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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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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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 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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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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meet end-consumer’s needs and more evenly distribute WORKLOAD on the manufacturing and logistics systems - Maggiali tried for 2 years to implement the idea but little progress has been made o Customers unwilling to give up authority in placing orders when desired o Some even reluctant to provide sales data to help assist the company with making decisions and improvements on forecast/delivery/timing o INTERNAL resistance from sales and marketing team Saw the idea as infeasible and dangerous
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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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