MARKETING – II CASE ANALYSIS Barilla SpA (A) SUBMITTED BY: Section A Group 9 Shivani Jain Anuj Peepre C. Narayana Reddy Santosh Kumar Pushpendra Singh Ritesh Kumar Mohammed Shahbaaz Executive Summary: Barilla SpA‚ an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties‚ Giorgio Maggiali‚ the Chief
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Barilla SpA was founded in 1875 by Pietro Barilla and has evolved into a large‚ vertically integrated corporation with flour mills; pasta and bakery factories located throughout Italy and is a global leader in producing and selling a multitude of these goods. Review of this case study shows a core problem of weekly demand fluctuations in the distribution order patterns which impacted manufacturing and other chains in the system. The fluctuations brought increasing operational inefficiency and cost
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BARILLA CASE STUDY Causes that led to the JITD idea: Fluctuating demands from the retailers and the burden it caused on the company’s manufacturing and distribution system. The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase. On the other hand when the demand decreases it will be expensive to store the excess inventory. A problem at one point in the supply chain will be translated
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Barilla Spa We need to regroup now and decide where to go with JITD. Is this type of program feasible in our environment? If so‚ what kind of customers should we target? And how do we convince them to sign up? Against Vitali’s proposal‚ “Just-in-Time Di stribution‚” met with significant resistance within Barilla. The sales and marketing organizations were particularly vocal in their opposition to the plan. A number of sales representatives felt that their responsibilities would be diminished if
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Global Supply Chain Management Barilla SpA Case Discussion Questions 1-a The underlying causes of difficulty that the JITD program was created to solve were stock outs and high levels of inventory. These were both caused by demand uncertainty. There were several inefficiencies due to demand uncertainty; there were long lead times and it was costly for Barilla to try and quickly produce their products. They had poor forecasts due a poor flow of information which led to a bullwhip effect
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Barilla SpA I think the main causes for large fluctuations in orders observed at the Pedrignano CDC are too frequent trade promotions‚ volume discounts‚ and distributors’ use of periodic review inventory systems. Collectively‚ Barilla experienced the bullwhip effect in its distribution network. With the use of trade promotions to push product into the grocery distribution network‚ Barilla distributors could buy as much product as desired to meet current and future needs. Without a ceiling in order
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References: Babor‚ T. F.‚ Caulkins‚ J. P.‚ Edwards‚ G.‚ Fischer‚ B.‚ Foxcroft‚ D. R.‚ Humphreys‚ K.‚ & Strang‚ J. (2010). Drug policy and the public good. Oxford: Oxford University Press. Harris‚ G. (2006). F.D.A. Dismisses Medical Benefit From Marijuana.The New York Times. Retrieved from: http://www.nytimes.com/2006/04/21/health/21marijuana.html?_r=0. Inciardi‚ J. A.‚ & McElrath‚ K. (2001). The American Drug Scene: An Anthology. Los Angeles‚ CA: Roxbury Publishing Company‚ pp.111-120
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continued to grow. Chain stores aren’t completely bad‚ where else can you get groceries and hardware and household item all in one place other then a chain store‚ like Wal-Mart. Economically chain stores are hard on the communities but have good benefits. Some time this battle with chains stores and local communities is considered a battle with "hearts and wallets". Heart being we may love the local shop around the corner but we still make the chose to shop at Wal-mart. Wallets being that we like
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ASSIGNMENT 2: BARILLA SPA INTRODUCTION Barilla SpA (Barilla)‚ is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been experiencing widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific sequence of pasta production is used that minimizes the incremental changes in kiln temperature in order to keep the changeover costs low and the product quality high. This process makes
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BARILLA SpA (A) Table of Contents Part One: Executive Summary 3 Part Two: Immediate Issue 4 Part Three: Systemic Issues 4 Part Four: Qualitative Analysis 5 Part Five: Alternatives 6 Part Six: Recommendation 8 Part Seven: Recommendations Implementation Plan 9 Part Eight: Monitor and Control 10 Part One: Executive Summary In order to respond to extreme demand variability and incidents of high stock out rates Barilla is currently applying pressure to both its’ manufacturing and logistics
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