Barilla Spa Case Study Essay
Table of Contents I. Executive summary II. Issue Identification III. Environmental and Root Case Analysis IV. Alternatives and Options V. Recommendations VI. Implementation VII. Monitor and Control/ Conclusion
I. Executive Summary
My decision for this case is to implement the Just-In-Time Distribution (JITD) system. 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 into place and to improve margins, Giorgio Magialli, the Director of Logistics at Barilla wants to implement a Just-In-Time Distribution (JITD) system that was proposed by his …show more content…
Moreover, even though Barilla is the most successful pasta manufacturer in the world, they still face a few great issues. Ever since 1980, Barilla was increasingly dealing with demand fluctuations since their distributors order patterns often swung widely from week to week. Barilla also deals with high pressures of manufacturing in terms of production lead-time. They have high inventory carrying and manufacturing costs due to operational inefficiencies. In addition, they have unacceptable cycle systems due to inadequate product availability. Finally, their last issue is the distributors’ inability to carry a large number of SKU’s.
III. Environmental and Root Case Analysis
For instance, we have to begin by stating the reasons for the extreme demand fluctuation Barilla has been going through for decades now. To begin, Barilla brands are heavily advertised. Its marketing and sales strategy is based upon advertising and promotions. Since Pasta is very important for Italians, Barilla’s