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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Executive Summary: Barilla was the largest pasta manufacturer in the world‚ making 35% of all pasta sold in Italy and 22% of all pasta sold in Europe. In addition‚ Barilla held a 29% share of the Italian bakery-products market. Competing in a crowded field of over 2‚000 Italian pasta manufacturers and the Italian pasta market as a whole was relatively flat‚ growing less than 1% per year. Per capita pasta consumption in Italy averaged nearly 18 kilos per year and relatively consistent throughout
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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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Barilla SpA Case Study Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis. Type: Supply Chain Problems/Issues: - Extreme demand fluctuations – week-to-week variation in distributors order pattern‚ strained Barilla’s manufacturing and logistics operations: high inventory‚ stock out‚ low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product - High inventory cost
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distributors order patterns. In order to reduce the Bullwhip effect being experienced by Barilla‚ their supply chain would have to be Centralized. This solution allows Barilla to see end customer demand and eliminate costs involved with inventory‚ manufacturing‚ and transportation. JITD would allow Barilla to work directly with its distributors and create a flexible manufacturing process. By following the suggestions made in the plan of action‚ Barilla will succeed in influencing its distributors and
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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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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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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‚ which in turn led
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Free Access to PDF Ebooks Barilla Spa Case Solution PDF Ebook Library BARILLA SPA CASE SOLUTION Are you searching for Barilla Spa Case Solution? Here in our online is the best place to read and download Barilla Spa Case Solution for free. We hope it can help you perfectly. You can access‚ read and save it in your desktop‚ and Barilla Spa Case Solution document is now available for free. Also check our Ebooks Collections related with Subject Barilla Spa Case Solution in PDF format. We have a massive
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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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