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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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 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 Memo – Barilla SpA Student #: 68979111 Giorgio Maggiali‚ as director of Logistics for Barilla SpA‚ was acutely aware of the growing burden that demand fluctuations imposed on the company’s manufacturing and distribution system. In order to address this issue‚ he proposed the innovative idea of Just-‐in-‐Time
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Executive Summary Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. In order to bring things back in order and to improve margins‚ Giorgio Magialli‚ the Director of Logistics at Barilla wants to implement a Just-In-Time Distribution (JITD) system that was proposed by his predecessor Brando Vitali. This system is entirely different from the existing setup and is being opposed by both
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Barilla spA case analysis Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. The main problem addressed in this case is how to effectively implement JITD system suggested by Giorgio Magialli‚ the Director of Logistics by resolving the issue of gaining control over the fluctuating demand. Barilla has a very complex distribution network including independent third party distributors and
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Executive Summary Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing greater levels of inefficiencies and rising costs due to variability in demand from its distributors. In order to restore things to order and to improve margins‚ Giorgio Magialli‚ the Director of Logistics at Barilla wants to implement a Just-In-Time Distribution (JITD) system that was proposed by his predecessor Brando Vitali. This system is completely different from the existing setup and is being opposed by both the
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Barilla Brando Vitali‚ the earlier Director of logistics in Barilla SpA proposed an idea of Just- In- Time Distribution (JITD). The proposed JITD system required the distributors to share their sales data with Barilla‚ who would then forecast and deliver appropriate amounts of products to the distributors at the right time in order to effectively meet demand. Instead of Distributors giving orders according to them‚ company should deliver its products on time by its own
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domestically over 2000 pasta manufacturers in Italy. Declining margins. * Pasta market is extremely price sensitive. * Barilla is the market leader in Italy and is the industry’s largest manufacturer. * Supply chain represents approximately 55-58 calendar DOH of dry goods (30 in the CDC‚ 14 at the Distributor‚ 11-14 at the Supermarket or Independent Shops) Competitive Strategy * Barilla is the largest pasta manufacturer in the world (35% of market in Italy and 22% of market in Europe) * Also 29% of
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Barilla SpA (A) Case Study Analysis 2 Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawback of this program? Brando Vitali‚ Barilla’s director of logistics‚ proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional practice of delivering products to their distributors (Hammond‚ 1). Instead of distributing Barilla’s products based on the orders the distributors
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