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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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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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The Bullwhip Effect and Barilla SpA The Bullwhip Effect is an observed phenomenon in forecast-driven distribution channels where there is variability up the supply chain. Some of its causes are: Dependent demand processing Forecast Errors Adjustment of inventory control parameters with each demand observation Lead Time Variability (forecast error during replenishment lead time) Lot-sizing/order synchronization Trade promotion and forward buying Anticipation of shortages One way
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Harvard Business School 9-694-046 Rev.JuneU‚ 1994 Barilla SpA (A) Giorgio Maggiali was becoming increasingly frustrated. As director of Logistics for the world’s largest pasta producer‚ Barilla SpA1‚ he was acutely aware of the growing burden that demand fluctuations imposed on the cornpany’s manufacturing and distribution system. Since his appointment in 1988 as Director of Logistics‚ he had been trying to make headway on an innovative idea proposed by Brando Vitali‚ who had served as Barilla’s
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Barilla SpA (A) Case Analysis Teona Omiadze‚ Nino Tskhvariashvili‚ Mari Zaridze School of Economics‚ Business and Administration of the University of Georgia Instructor: Natia Zedgenidze Tbilisi 2011 Table of Contents Executive Summary……………………………………………………………….3 Introduction………………………………………………………………………..4 Problem Description……………………………………………………………….5 External and Internal Resistances to JITD program……………………………….9 Solution…………………………………………………………………………....11 Recommendations to the
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Case Presentation Barilla SpA Introduction Company & Industry background • World’s largest pasta producer in 1990 • Pasta Share - 35% in Italy and 22% in Europe Channels of Distribution • Products divided in 2 categories – “Fresh” and “Dry” • Fresh Products had 21 day Shelf Lives • Dry Products had Long ( 18 to 24 Months) or Medium(10 to 12 weeks) Shelf Lives • Retail Outlets – Small independent The Issue • During the late 1980s‚ Barilla suffered increasing operational inefficiencies and
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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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abdi DSCI 434 3/24/2011 Barilla SpA Case Study 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? One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics‚ and made very hard for Barilla to meet that demand. For
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