Global Supply Chain Management Barilla SpA Case Discussion Questions 1-a The underlying causes of difficulty that the JITD program was created to solve were stock outs and high levels of inventory. These were both caused by demand uncertainty. There were several inefficiencies due to demand uncertainty; there were long lead times and it was costly for Barilla to try and quickly produce their products. They had poor forecasts due a poor flow of information which led to a bullwhip effect
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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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Just-In-Time Distribution and Barilla SpA Anybody who knows something about business had heard the term Just-in-time (JIT) inventory. It involves producing only what is need‚ when it is needed. The principle of Just in time is to eliminate sources of manufacturing waste by getting the right quantity of raw materials and producing the right quantity of products in the right place at the right time.(1) In this way‚ manufactures receive parts and materials "just in time" to meet the day’s manufacturing
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Barilla SpA I think the main causes for large fluctuations in orders observed at the Pedrignano CDC are too frequent trade promotions‚ volume discounts‚ and distributors’ use of periodic review inventory systems. Collectively‚ Barilla experienced the bullwhip effect in its distribution network. With the use of trade promotions to push product into the grocery distribution network‚ Barilla distributors could buy as much product as desired to meet current and future needs. Without a ceiling in order
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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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Management Barilla SpA‚ the multinational pasta maker‚ has a long-standing tradition – founded in 1877 by Pietro Barilla in Parma‚ Italy‚ it remains privately held by the fourth generation of Barilla family. The company’s portfolio includes Barilla‚ Mulino Bianco‚ Pavesi‚ Voiello‚ Alixir in Italy‚ as well as the Wasabröd (Sweden)‚ Misko (Greece)‚ Filiz (Turkey)‚ Yemina and Vesta (Mexico) trademarks abroad. The consolidated revenue of the Barilla Group – which includes Barilla and Lieken – increased
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implement the 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
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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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Barilla SpA is an Italian pasta manufacturer comprised of 7 divisions: 3 pasta‚ bakery‚ bread‚ catering‚ and international. By 1990‚ Barilla had become the largest pasta manufacturer in the world. The company ships its pasta to one of two central distribution centers (CDC) where it is bought by individual supermarket distributors called "grande distribuzione" (GD for larger supermarkets) and "distribuzione organizzata" (DO for smaller‚ independent supermarkets). During the late 1980s‚ the distributors
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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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