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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CASE ANALYSIS OF BARILLA SPA Problem seen in Barilla SpA by Giorgio Maggiali-Director of logistics is the demand fluctuations imposed on the company manufacturing & distribution system. Brando Vitali which was an earlier Director of logistics in Barilla SpA proposed an idea of Just- in- time distribution (JITD) for this problem. Instead of Distributors giving orders according to them‚ company should deliver its products on time by its own logistics system on the basis of end consumer needs. By
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Executive Summary As per our conversation last week I would like to revisit the idea originally brought to life by Brando Vitali before he was promoted to head one of our company’s new divisions overseas. In order to address the issue which will be a direct result of introduction of JIT Distribution system‚ I would like to present the issues and my recommendations to you before our meeting with Marconi’s executives to discuss JITD proposal. As the meeting is scheduled for the of November I would
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seen in Exhibit 12? What are the underlying drivers 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
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Barilla was first founded in 1875 by Pietro Barilla in Parma‚ Italy. Pietro’s son led Barilla through momentous period of growth and in 1940s‚ he passed Barilla to his own sons namely Pietro and Gianni. As time passed by‚ Barilla evolved from its modest beginnings into a large‚ vertically integrated corporation with factories spread throughout Italy. The expansion of existing businesses both in Italy and other European countries as well as the acquisition of new and related businesses had enabled
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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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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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CASE STUDY BARILLA SpA (A) Report on Supply Chain Inventory Management TABLE OF CONTENTS Executive Summary 3 Issue Identification 4 Issue Identification & Root Cause Analysis 5 Alternatives and options 7 Recommendations 9 Implementation 10 Monitor And Control 11 EXECUTIVE SUMMARY Barilla SpA (Barilla)‚ is an Italian largest pasta manufacturer in the world manufacturer that
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Barilla SpA - Case Study Table of Contents I. Executive summary II. Issue Identification III. Environmental and Root Case Analysis IV. Alternatives and Options V. Recommendations VI. Implementation VII. Monitor and Control/ Conclusion I. Executive Summary My decision for this case is to implement the Just-In-Time Distribution (JITD) system. Barilla SpA‚ an Italian pasta manufacturer‚ is experiencing amplified levels of inefficiencies and rising
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Inc. o In 1979 Grace sold the company back to the original owner (Pietro Barilla) - Barilla had a successful return - ANNUAL GROWTH RATE OVER 21% - In 1990 Barilla made up o 35% of pasta sold in Italy 32% Barilla brand 3% market share Voiello & Braibanti brand o 22% in Europe o Barilla held 29% share of Italian bakery-products market - In 1990 Barilla organized into 7 divisions o 3 pasta divisions Barilla Voiello Braibanti o Bakery Products Division Manufacturing medium
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