Barilla spA case analysis Barilla SpA, an Italian pasta manufacturer, is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. The main problem addressed in this case is how to effectively implement JITD system suggested by Giorgio Magialli, the Director of Logistics by resolving the issue of gaining control over the fluctuating demand. Barilla has a very complex distribution network including independent third party distributors
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acceptable and provide the reasons why it should be considered worthwhile. Issue Identification Barilla is a large vertical integrated corporation that makes pasta and bread products with flourmills, pasta plants, and bakery-product factories locate throughout Italy. It has used traditional distribution system, which distributors checked their inventory levels and placed orders with Barilla. However, due to extreme variability in demand from its distributors, the traditional distribution system
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Barilla S.p.A. Cases A and B 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? The JITD program was created to view distributors’ shipment data and sends only the required amount to stores. Barilla would be able to ship products on a need basis instead of piling up huge stocks in their facilities and that of their customers. The complex nature of manufacturing sequences of pasta made it extremely
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the brainchild of Maggiali’s predecessor Brando Vitali. Although Maggiali supports JITD, members of Barilla’s own sales and marketing organization do not support the new idea and therefore not cooperating. JITD once implemented was meant to have Barilla produce not on orders from distributors, but according to their own prediction of demand. Barilla’s forecasting methods were poor because when demands fluctuated it affected their supply chain. This was also brought on by the complex distribution
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Barilla SPA (A) Case Report By CHIEMEKA EZEJIOFOR Table of contents Summary Page Executive Summary 3 Issue identification 4 Root cause Analysis 5 Recommendation 6 Recommendation Implementation Plan 7 Conclusion 8 Part 1 Executive summary Barilla SPA (A), the largest producer of Pasta
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CASE REPORT BARILLA SpA (A) PREPARED FOR PREPARED BY DATE | | | | | |Section |TITLE
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Barilla SpA Case B a Exe ecutiv Sum ry ve mmar Pasta is a st P taple food of traditiona Italian cu isine, which was tradit o al h tionally produce by hand. However, today many varieties o pasta are commerc ed y of e cially produc ced and are broadly available in su upermarket across th world. Barilla SpA, an Italian ts he w p world’s larg gest pasta m manufactur rer based company, was at one point in the 1990s the w ng a a aly % e. producin 35% of all the pasta sold in Ita and 22% in
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For exclusive use at Massachusetts Institute of Technology (MIT), 2015 9-694-046 REV: MARCH 25, 2008 JANICE H. HAMMOND Barilla SpA (A) Giorgio Maggiali was becoming increasingly frustrated. As director of logistics for the world’s largest pasta producer, Barilla SpA1, he was acutely aware of the growing burden that demand fluctuations imposed on the company’s manufacturing and distribution system. Since his appointment in 1988 as director of logistics, he had been trying to make headway
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Barilla SpA Part A Barilla Case Study Phil Kaminsky David Simchi-Levi kaminsky@ieor.berkeley.edu Philip Kaminsky Edith Simchi-Levi Barilla SpA is the world’s largest pasta manufacturer The company sells to a wide range of Italian retailers, primarily through third party distributors During the late 1980s, Barilla suffered increasing operational inefficiencies and cost penalties that resulted from large week-to-week variations in its distributors’ order patterns McGraw-Hill/Irwin
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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
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