Barilla Case Study Essay example

1721 Words Jul 26th, 2013 7 Pages

1. Introduction
Barilla was founded in 1875 in Parma, Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s, it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s, due to the big investment for pasta plant, Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979, the Barilla brother had enough money repurchased the company. In the 1990s, Barilla is one of the largest and most successful pasta manufactures in the world and dominates the European market.

2. Analysis

Barilla SWOT Analysis will be shown as below table Strength:
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Lastly, in terms of service provided, Barilla’s sales representatives majorly support DO. For example, they spent most of their time to help DO to set up promotions and weekly order. In contrast, the communication with GD was established to communication technology such as telephone or fax.

In regards of supportive activities that included procurement, HR management, technology department and infrastructure. Although, the case did not specifically mention about procurement and technological issues, as one of the top firms in Italy, Barilla SPA attracts potential resources all over Italy. Additionally Barilla also acquired world-class manufacturing system equipped with cutting-edge facilities to support the Barilla’s high demand.

3. Problem Identification

Barilla faces several issues back in the late 1980s. Bullwhip effect on its supply chain is one of the biggest challenges for Barilla has to deal with during that period of time. Bullwhip effect defines as the trend of larger and larger swings of order quantity in response of changes in demand (Lee, 1997). Understanding the cause of bullwhip effect can be the basis to come with the solutions.

First the reason why Barilla experience bullwhip effect on its supply chain system is because Barilla does not have the standard sales forecasting model during the time. With the lack of standard forecasting model, Barilla experienced the overburdened logistic and

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