Barilla Spa(a) Case Study Essay

1259 Words Jan 9th, 2013 6 Pages
Session 5: Supply Chain Inventory Management
Barilla Spa (A) Case Study

Table of Contents

Executive Summary 3 Issues Identification 4 Environmental and Root Cause Analysis 4 Fluctuating Demand: 4 Resistance to Changes: 5 Alternative and/or Options 5 Alternative #1 – Continue to promote the Just-in-time Distribution (JITD) initiative 5 Alternative #2 – Eliminate product focus sales strategies 5 Recommendations and Implementation 6 Monitor and Control 6

Executive Summary
Sales representatives at the Barilla SpA, world’s largest pasta producer, are seeing customers changing due to long re-order lead-time and frequent stock-outs. Even with a high inventory levels, Barilla is still not able to cope with the
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With this increasing growth, Barilla does not have any sophisticated forecasting technique that would prepare them to meet the demand. There is a minimal visibility for Barilla to see where the volatility is in the demand is coming from.
This is creating the Bullwhip Effect throughout their whole supply chain. The poor communication and cooperation between retailers, distribution centers and manufacturer is the reason that they all are maintaining higher inventory than required.
Resistance to Changes:
There were many resistances to this new initiative when it was being brought up internally and externally. When there is a lack of understanding of the results that a new initiative will bring, there will always be resistance to change. Sales team fears that that they would see a reduction of responsibilities and distribution centers were defensive when they misinterpret the approach as saying they don’t know what they are doing.
Alternative and/or Options
Alternative #1 – Continue to promote the Just-in-time Distribution (JITD) initiative
To be able to eliminate the Bullwhip Effect, there must be an increase in visibility through the whole supply chain. With better communication and an understanding and trust between vendors, it will eliminate the volatility in demand. This will improve the service levels from distributors to retailers and at the same time reduce the inventory carrying cost. With the visibility, it will better Barilla to forecast

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