MARKETING – II CASE ANALYSIS Barilla SpA (A) SUBMITTED BY: Section A Group 9 Shivani Jain Anuj Peepre C. Narayana Reddy Santosh Kumar Pushpendra Singh Ritesh Kumar Mohammed Shahbaaz Executive Summary: Barilla SpA‚ an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties‚ Giorgio Maggiali‚ the Chief
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Barilla SpA was founded in 1875 by Pietro Barilla and has evolved into a large‚ vertically integrated corporation with flour mills; pasta and bakery factories located throughout Italy and is a global leader in producing and selling a multitude of these goods. Review of this case study shows a core problem of weekly demand fluctuations in the distribution order patterns which impacted manufacturing and other chains in the system. The fluctuations brought increasing operational inefficiency and cost
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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 We need to regroup now and decide where to go with JITD. Is this type of program feasible in our environment? If so‚ what kind of customers should we target? And how do we convince them to sign up? Against Vitali’s proposal‚ “Just-in-Time Di stribution‚” met with significant resistance within Barilla. The sales and marketing organizations were particularly vocal in their opposition to the plan. A number of sales representatives felt that their responsibilities would be diminished if
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[Type the company name] | Barilla Sp(A) Case Study | | | | | Barilla JITD Case Study Just in time distribution (JITD) was designed to address the fluctuating demand of products that created additional costs in production‚ scheduling‚ and transportation. Barilla was to blame for several of these underlying problems. For example‚ Barilla offered transportation discounts‚ volume discounts‚ 10-12 promotions throughout the year‚ as well as no maximum or minimum constraints on orders
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Executive Summary: Barilla was the largest pasta manufacturer in the world‚ making 35% of all pasta sold in Italy and 22% of all pasta sold in Europe. In addition‚ Barilla held a 29% share of the Italian bakery-products market. Competing in a crowded field of over 2‚000 Italian pasta manufacturers and the Italian pasta market as a whole was relatively flat‚ growing less than 1% per year. Per capita pasta consumption in Italy averaged nearly 18 kilos per year and relatively consistent throughout
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BARILLA SPA (A) BUSINESS CASE AS PRESENTED BY GIORGIO MAGGIALI TABLE OF CONTENTS Executive Summary P2 Issue Identification P3 Root Cause Analysis P4-6 Alternatives and Options P7-9 Recommendations P10-11 Implementation P12-13 Monitor and Control P14 Exhibit P15 Executive Summary Barilla SpA (A) continues to be a market leader in pasta production. We are currently experiencing a growing burden of demand fluctuations for our dry pasta products putting extreme demand
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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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Barilla Spa (A) Case Questions 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? 2. What conflicts or barriers internal to Barilla doe the JITD program create? What causes these conflicts? As Giorgio Maggiali‚ how would you deal with these? 3. Why are Barilla’s customers so resistant to the JITD idea? How might Maggiali be more successful in persuading customer to at least try
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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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