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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Executive Summary Barilla SpA is a world largest past manufacturer has experienced a phenomenal growth. The company had pasta share of 35% in Italy and 22% in Europe‚ plus 29% in Italian bakery product market(page 2 case) However‚ it began taken a tall on Barilla’s “manufacturing and distribution system” (page 1 Case). Without having proper data and control over the orders the company experienced wide fluctuations in demand. As a result Barilla experienced bullwhip effect where demand forecast
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Barilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories‚ local optimization 3 1.2 Lack of inventory information and
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Executive Summary The Italian Pasta Manufacturer‚ Barilla SpA‚ is experiencing inefficiencies and increases in cost due to variability in demand from its distributors. Giorgio Magialli‚ the Director of Logistics‚ wants to implement a Just-In-Time Distribution (JITD) system to gain more control. The JITD system was originally proposed by Barilla’s former Director of Logistics‚ Brando Vitali. The new system is untraditional and is being rejected by both distributors and Barilla’s internal departments
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Barilla SpA (A) Christel Bou Farhat Notre Dame University 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? In your answers‚ consider the Barilla and distributors points of view (400-500 words). * Barilla’s Supply Chain suffered from the bullwhip effect that was mostly caused by the demand fluctuations and damaging the company’s manufacturing and distribution system. This fluctuating
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Barilla Case ____________________________________________________________ ______________ Overview of Barilla Barilla appears to be in a commodity industry‚ suggesting flat demand. Barilla positions themselves as the branded‚ premium‚ dry pasta. Their order qualifiers are consistency and quality‚ and their order winners are brand recognition and variety in shapes. In fact their product line is extensive – 800 products. However‚ Barilla faces demand fluctuations that strain their
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The case begins with Giorgio Maggiali’s frustration with the fluctuations imposed on the company’s manufacturing and distribution system. He is the director of logistics at Barilla who has been working on the concept started Brando Vitali who was his predecessor. This was the Just-In-Time-Distribution (JITD) concept as an extension of the Just-In-Time Manufacturing concept developed at Toyota. This basically toyed with the idea of delivering its products to its distributors as per Barilla’s customer
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What are the reasons for the increase in variability in Barilla’s supply chain? Barilla gave volume reductions for the merchants ordering capacity fully loaded quantities‚ in turn causing merchants to place more supply orders than necessary leaving their inventory levels high. This meant that the retailers did not have to order as often due to high inventory rates on hand. There is also a weekly change in customer demand for the pasta produce. The lack of information to customer demand data in
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Supply Chain Management Assignment 3: Supply Chain Coordination Describe Barilla’s manufacturing and distribution operations. Manufacturing: Barilla has 25 plants‚ including large flour mills‚ pasta plants‚ and fresh bread‚ as well as plants producing specialty products. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. The plants were specialized by the type of pasta they would produce‚ with the primary distinction
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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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