Barilla Spa (A)
Report on Supply Chain Management Issues

Table of Contents

Executive Summary
Issue Identification
Root Case Analysis
Alternatives and Options
Recommendations
Implementation
Monitor and Control
Exhibits

Executive Summary
Giorgio Maggiali, director of logistics of Barilla SpA stated the the

growing burden that demand fluctuations imposed on the company's manufacturing and distribution system. The solution was proposed as Just In
Time Distribution Program. Due to specific Barilla's supply chain system it is not quite simple. Barilla needs to improve their own forecasting system and need to develop a set of decision rules.
They need to re-group and decide where to go with JITD. For this purpose the main issues where identified and and recommendations were made. The implementation plan is filled with immediate and short run activities. Barilla enjoys a strong brand image in Italy. It was driven by success as the highest quality pasta for every Italian family - “Where is Barilla, there is a home”. Timely distribution of quality products is a strategic mission
Barilla SpA and the recommendations made can be used to reflect and strengthen this mission.

Issue Identification
The following are the list of issues that must be addressed:
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Too many different types of distribution centres

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Long inventory time

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Small product variety in stores

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No minimum or maximum order quantities

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Long lead time

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Root Case Analysis

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Too many different types of distribution centres
Most Barilla products were shipped from the plants to one of two

Barilla central distribution centres (CDCs) from where they were distributed through three types of retail outlets: small independent grocers, supermarket chains and independent supermarkets. Approximately 35% of Barilla's dry products (30% in the