GLOBAL LOGISTICS MANAGEMENT IE 576 ASSIGNMENT: BARILLA SpA, Case Study ELABORATED BY: Jose David Padilla 1028909 Cindy Sutanto 1025458 Karina Anchecta 1025454 1. What factors, internal and external, contribute to the Barilla supply chain carrying large quantities of inventory? Be specific about how these factors increase inventory in the Barilla supply chain. Internally, their manufacturing process causes long lead time and slow responsiveness to quick changes in demands
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Executive Summary Giorgio Maggiali is the director of Logistics for Barilla and was appointed to this position when his predecessor Brando Vitati was promoted. Vitati had proposed a Just in Time Delivery (JITD) model for Barilla. Vitati has commented on the “thinning margins” the industry was experiencing and the need to “take costs out of our distribution channel without compromising service”. He felt operations could be improved if Barilla was responsible for determining the quantities and delivery
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Barilla spA: Case Report Prepared by Claudio Parra Supply Chain Management Seneca(Markham) Monday’s Submitted: Wednesday, October 15, 2014 Submitted to: Perry Davidson Table of Contents Table of Contents……………………………………………………………………2 Introduction……………………………………………………………………………3 Environment and Root Cause Analysis…………………………………4-5 Issue Identifier…………………………………………………………………………6 Recommendation……………………………………………………………………7 Implementation………………………………………………………………………8 Monitor Chart…………………………………………………………………………9
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Executive Summary Barilla Spa, an Italian pasta manufacturer is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. A Just in Time Distribution (JITD) system is the leading solution to the problem and will help aid with the bullwhip effect, amplified variation in demand as one moves up the supply chain, Barilla is currently experiencing. The JITD system will be gradually rolled out over a one-year duration to directly impact Barilla’s
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|Barilla SpA (A): Case Study | | | |Module 1 Session 5 - Supply Chain Inventory Management | Table of Contents Executive Summary 1 Issue Identification
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Executive Summary Barilla SpA is a world largest past manufacturer has experienced a phenomenal growth. The company had pasta share of 35% in Italy and 22% in Europe, plus 29% in Italian bakery product market (p. 2 case). However, it began taken a tall on Barilla’s “manufacturing and distribution system” (p. 1 Case). Without having proper data and control over the orders the company experienced wide fluctuations in demand. As a result Barilla experienced bullwhip effect where forecasting was not
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and Barilla’s Sales and Marketing Department. Barilla Spa, an Italian pasta manufacturer, is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. In order to bring things back and to improve its margins. I have studied the reasons for this opposition by several facts and have suggested recommendations. I suggest that in order to condense the Bullwhip effect being experienced by Barilla, their supply chain would have to be centralized
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Barilla SpA(A) 1. What are the causes of fluctuation? (20 points) • Distributors Demand Forecasting - Distributors lack the forecasting systems to predict demand accurately. They rely mostly on average demand from previous periods to forecast demand. They do inventory review weekly and place order when inventory level drops below safety stock level. Safety stock level is calculated based on average demand, which fluctuates from time to time. • Leadtime - Manufacturing process
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THE BARILLA Spa CASE [pic][pic] QUESTION 1: Observe Exhibit 12. What are the underlying causes and drivers that make order patterns to look this way? Provide a discussion on these causes/drives to show how they are causing the resulting demand pattern. Examples of items to consider include transportation discounts, promotional activity, product proliferation. The BARILLA case is an illustrative example where we can understand the effects of a phenomenon which
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Executive Summary Barilla SpA, as one of Italy’s refined pasta supplier, they have come a long way in developing a renowned brand for its pasta and produce. Their supply chain and manufacturing process is heavily vertical integrated. However, recently, they are facing a number of difficult challenges and obstacles in order to meet the demand needs from its customer. There are a number of constraints in the operation process that has limited the amount of information- forecast data being
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