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Barilla Case Study

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Session 5 Case Study: Barilla SpA

Executive Summary

In order to reduce the strain that fluctuating demand is putting on our manufacturing and logistics systems, I am moving forward with an action plan to implement Just-in-Time Distribution at Barilla. Under the Just-in-Time Distribution system, Barilla’s internal logistics will determine the optimal levels of distribution necessary to meet customer demand. While we are likely to face opposition to this program, it is vital that the entire organization understands the process efficiencies and bottom line savings that will result from this distribution system and that there will be a positive impact on the entire manufacturing and distribution channels.
Over the next two months, our sales and management team will be visiting a select number of distributors in order to sell-in the JITD program that will result in the sharing of information, in both directions, in order remove any environment of doubt our customers may have. Our sales team will act as our lead in the gathering and distributing both hard and soft data and maintaining relationships with our distribution customers.
The program, once implemented, benefits distributors by lowering inventory, improving service levels and increasing return on assets (ROA). In addition, our manufacturing and logistics systems will be relieved from the pressures of fluctuating demand.
I will be scheduling a meeting with the entire sales and logistics team, as well as the entire executive team for next Monday to introduce the program. This report will be used as a reference for the discussion.

Giorgio Maggiali
Director, Logistics
Barilla SpA
February 22, 2013

Issue Identification

The most critical issue affecting the supply chain is the frequent demand fluctuations we are experiencing. The highly

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