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 mentioned-above. The growing pain caused by bullwhip–effect in Barilla’s dry pasta supply chain can not be ignored. High inventory levels in Barilla’s
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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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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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Monday through Friday or other working hours. Ensure all sellers‚ business partners‚ colleagues and clients understand that this is the company culture or your personal policy. Have a personal cell phone that is only for family and friends‚ so you can leave the business phone behind on family outings‚ personal ’me’ time‚ at the health club‚ or with friends. Answer the work phone‚ fax or email ONLY during business hours. Just as you schedule professional obligations‚ also schedule time for personal
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of the fluctuation we see in this exhibit? Your analysis should consider full range of implications to the entire channel‚ and not just Barilla. Per exhibit 12 the impact of order fluctuations are as follows: - Creates a bullwhip effect at Barilla. - Resource and material planning becomes cumbersome and inefficient. - Might increase the lead time because of the bullwhip effect. - Reduces overall operational efficiency. - Reduces the overall profitability
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Barilla SpA - Session 5 Case Report By: Kevin Samra PMAC ID: 10040240 To: Nikki Raycraft 1 Contents Executive Summary....................................................................................................................................... 3 Issues with Impact Analysis........................................................................................................................... 4 Environmental and Root Cause Analysis..............................................
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BARILLA CASE STUDY REPORT 1. Introduction Barilla was founded in 1875 in Parma‚ Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s‚ it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s‚ due to the big investment for pasta plant‚ Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979‚ the Barilla brother had enough money
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Background In 1875‚ Barilla was founded in Parma‚ Italy by Pietro Barilla. In the 1940’s the company was passed on two his two sons who led the company through a really strong period of growth. During this time the company transformed into a vertically integrated corporation and chose to distinguish itself through robust branding. Expansion of the company drove the Barilla brothers into debt‚ where they were decided to sell the company to an American firm. However‚ years later the Barilla brothers were
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Barilla SpA Case Study Barilla SpA‚ the world’s biggest pasta manufacturer‚ has continuously experienced problems with increased costs and inefficiencies in their operation. The fluctuations in demand have caused Barilla SpA’s manufacturing costs‚ inventory costs‚ and distribution costs to go up. Issues that influenced the demand fluctuations are the discounts Barilla SpA offers on both price and transportation‚ the compensations for sales representatives that is based on the volume of goods they
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