Barilla SpA is suffering from a problem of their own making - their distribution system is overly complex. That complexity is causing them to be unable to respond to their widely varying customer demand. Their customers‚ distributors‚ are forced to hold high inventories while simultaneously enduring stockouts on average of 7%‚ all because Barilla can’t rationalize their own processes to handle variability in demand. Barilla’s manufacturing process is long and inflexible. Given the high variability
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What historical factors affect Ford’s ability to move to a built to order (BTO) model? Few of the historical factors affecting Ford’s ability to move to BTO are as follows: 1. Large number of suppliers: The fundamental issue for Ford is the management and control of their large database of their business partners‚ particularly suppliers and sub-suppliers. Unlike Dell‚ which has only about 50 suppliers‚ Ford has several thousand suppliers and operates in a more complex network of business
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chain. Albeit‚ I need to contend with both internal and external stakeholders’ resistance to the system’s implementation‚ get the top management buy–in and build trust among stakeholders by engaging them at different levels. My decision is that Barilla should start the implementation of the JITD system with our selected distributors as a pilot‚ which would enhance visibility with distributors‚ improve service levels and increase internal efficiencies. Background Pasta is the staple
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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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to implement at Barilla. It was in response to the significant fluctuations in sales demand that Barilla was experiencing from their distribution centers. Exhibit 12 in the case shows how volatile the ordering could be. It looks very unpredictable using their current method of distribution‚ which is causing excess inventory and stockouts. By nature‚ their pasta products experience waves of high and low demand. Seasonal and promotional fluctuation was making it hard for Barilla to correctly forecast
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EXECUTIVE SUMMARY Barilla SpA‚ world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system‚ contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information‚ there will be data transparency between Barilla and distributors. Distributors will
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Barilla SpA (Written Case Report) By Imran Chaudhry Overview: Barilla SpA one of the world’s largest pasta producer has growing burden of demand fluctuations and venialities on its manufacturing and distribution system. Giorgio Maggiali as director of logistics trying to implement idea of JITD (Just-in Time Delivery) so that Barilla’s own logistics department could manage more effectively delivery quantities and meet end consumer’s needs and more evenly distribute the workload on its
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Barilla’s pasta supply chain suffers from classic bullwhip-effect problems: High inventory levels maintained at each level of the supply chain; frequent stockouts at the distribution level; demand variability exaggeration up the chain‚ and aggravated by constant sales promotions‚ Full Truck Load(FTL) and other volume incentives; and a lack of information on which to forecast demand. In addition‚ the increasing variability of Barilla’s dry pasta product (about 800 SKUs) intensifies all the problems
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Management Barilla Spa (A) Case Study Table of Contents Executive Summary 3 Issues Identification 4 Environmental and Root Cause Analysis 4 Fluctuating Demand: 4 Resistance to Changes: 5 Alternative and/or Options 5 Alternative #1 – Continue to promote the Just-in-time Distribution (JITD) initiative 5 Alternative #2 – Eliminate product focus sales strategies 5 Recommendations and Implementation 6 Monitor and Control 6 Executive Summary Sales representatives at the Barilla SpA
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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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