Essay on Barilla Spa

861 Words 4 Pages
Jose A. Lavaro
April 8, 2015

Barilla SpA (A)

Introduction Barilla SpA is the world’s largest pasta manufacturer that’s based in Italy. The company enjoyed a 35% market share of the entire pasta industry in Italy and 22% market share in the entire continent of Europe. It manufactures pasta and sells to various retailers largely through third party distributors.
In the late 1980’s, Barilla has been faced with fluctuations of variability in demand, which is straining the manufacturing and distribution system of the company. This has increased operational inefficiencies that resulted in week-to-week variations in its distributors’ order patterns, which has increased the cost of the company of having to hold a high inventory of
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* Amount of Inventory on Hand: this will manage inventory in distribution centers that will eliminate overstocks. * Accuracy of Sales Forecast: Internal customer survey has better results. The number of defective vehicles that go to clinic area and overflow parking area should be minimized. * Manageable Supply and Demand: By adopting the new system, this will help in forecasting sales not just for Barilla but for its customers as well. * Overhead Costs: overtime that is accrued because of poor and unnecessary processes.

Alternatives and analysis 1. To be able to initially apply the JITD system in Barilla-run depots. By initially implementing the JITD system in company-owned depots, this will ultimately give both internal and external customers an idea of how successful the company will be if applied on the entire distribution network. Pros | Cons | * This will decrease the amount of inventory on hand. * This will decrease overhead costs due to overtime and fluctuating inventory in distribution centers. * Production will be based on historical data that is provided by the customers. * This will improve production by eliminating “guesstimates”. * This will improve maximization of truck capacity. * Will eliminate promotional discounts to get rid of overstocks * Will

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