Barilla Case Study
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Barilla SpA (A) Case Report
SCMP Module 5
By
Jamie Brymer
Robert Greene February 12th, 2016
Table of Contents
Executive Summary 3-4
Issue Identification 5-7
Environmental and Root Cause Analysis 8-9
Alternatives or Options 10-12
Recommendations and Implementation 13
Monitor and Control 14
Exhibits Attached
Executive Summary
Barilla SpA, is an Italian pasta manufacturer and distributor and even with an attractive piece of the market (35% in Italy, 22% in Europe) and diversifying product lines, they are experiencing inefficiencies and rising costs due to irregular and ever changing demand from their distributors. Giorgio Magialli, the Director of Logisitics, has been tasked with resolving these issues by gaining control over their fluctuating demand. Barilla currently has in place, a very complex distribution network and has been experiencing increasing variable changes which is not only hitting operations for their inefficiency but increasing costs across the board for inventory, distribution and manufacturing. After much backlash the first time of trying to implement a Just-In-Time Distribution (JITD), the plan is to regroup and decide whether this time of program can be implemented successfully and if so, which customers they should target with this type of system.
The first attempt at implementing the JITD strategy was done by Brando Vitali, the former Director of Logistics, he had proposed that a JITD system would put an end to demand variation and enable their distributors to reduce their inventory on hand, therefore reducing costs, thereby giving them additional service tools at no additional cost. The only thing required would be that the distributors would need to share their sales data, on hand inventory, etc with Barilla who would then be able to forecast and deliver appropriate amounts of products to the distributors in a Just-In-Time...
SCMP Module 5
By
Jamie Brymer
Robert Greene February 12th, 2016
Table of Contents
Executive Summary 3-4
Issue Identification 5-7
Environmental and Root Cause Analysis 8-9
Alternatives or Options 10-12
Recommendations and Implementation 13
Monitor and Control 14
Exhibits Attached
Executive Summary
Barilla SpA, is an Italian pasta manufacturer and distributor and even with an attractive piece of the market (35% in Italy, 22% in Europe) and diversifying product lines, they are experiencing inefficiencies and rising costs due to irregular and ever changing demand from their distributors. Giorgio Magialli, the Director of Logisitics, has been tasked with resolving these issues by gaining control over their fluctuating demand. Barilla currently has in place, a very complex distribution network and has been experiencing increasing variable changes which is not only hitting operations for their inefficiency but increasing costs across the board for inventory, distribution and manufacturing. After much backlash the first time of trying to implement a Just-In-Time Distribution (JITD), the plan is to regroup and decide whether this time of program can be implemented successfully and if so, which customers they should target with this type of system.
The first attempt at implementing the JITD strategy was done by Brando Vitali, the former Director of Logistics, he had proposed that a JITD system would put an end to demand variation and enable their distributors to reduce their inventory on hand, therefore reducing costs, thereby giving them additional service tools at no additional cost. The only thing required would be that the distributors would need to share their sales data, on hand inventory, etc with Barilla who would then be able to forecast and deliver appropriate amounts of products to the distributors in a Just-In-Time...