Executive Summary Barilla SPA, an Italian pasta manufacturer is the world’s largest pasta producer. Due to its multiple distribution channels, the company gradually suffered operational inefficiencies and increasing overhead costs that resulted from fluctuating demand - orders often swung wildly from week to week. Feeling that an alternative approach needs to be implemented for improvement, the company’s former Director of Logistics, Brando Vitali had proposed a new system call ‘Just-in-Time
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Barilla SpA ------------------------------------------------- Rohit Agarwal Barilla SpA ------------------------------------------------- Rohit Agarwal Barilla SpA (A) Introduction: Barilla was founded in 1875 when Pietro Barilla opened a small shop in Parma, Italy on via Vittorio Emanuele. Adjoining the shop was the small “laboratory’ Pietro used to make the pasta and bread products he sold in his store. In 1990, Barilla was the largest pasta manufacturer in the world, making 35% of
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Solution…………………………………………………………………………....11 Recommendations to the solution …. …….………………………………………12 Other recommendations…………………………………………………………...15 Customer response to the solution…………………………………………………16 Conclusion………………………………………………………………………....21 Executive Summary Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to
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Barilla SpA, the world's biggest pasta manufacturer, has continuously experienced problems with increased costs and inefficiencies in their operation. The fluctuations in demand have caused Barilla SpA's manufacturing costs, inventory costs, and distribution costs to go up. Issues that influenced the demand fluctuations are the discounts Barilla SpA offers on both price and transportation, the compensations for sales representatives that is based on the volume of goods they sell to the distributors
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EXECUTIVE SUMMARY Barilla SpA, world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system, contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information, there will be data transparency between Barilla and distributors. Distributors will
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CASE STUDY Barilla JITD Program Implementation Executive Summary Barilla SpA an italian pasta manufacture has decided to implement JITD program for its dry product range to meet market sales demands by introducing forecast feedback into production system. Barilla products comprises of 800 SKUs mainly divided into two major product categories Fresh and Dry having 65% and 35% of total Barilla product. Barilla owns two distribution centres and one depot to handle all of
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Barilla SpA (Written Case Report) By Imran Chaudhry Overview: Barilla SpA one of the world’s largest pasta producer has growing burden of demand fluctuations and venialities on its manufacturing and distribution system. Giorgio Maggiali as director of logistics trying to implement idea of JITD (Just-in Time Delivery) so that Barilla’s own logistics department could manage more effectively delivery quantities and meet end consumer’s needs and more evenly distribute the workload on its
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Barilla SpA What underlying problem is JITD trying to solve? And what are the causes of that problem? Barilla SpA experience serious fluctuations caused by small swings of the end customer demands, even it was the biggest pasta manufacturer in the Italy and even in Europe and has a systematic distribution channel over decades. The stockouts caused by the fluctuations gave Barilla SpA and its distributors pressures to have more inventories in the warehouse, which increase the cost of both parties
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EXECUTIVE SUMMARY Barilla SpA, world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system, contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information, there will be data transparency between Barilla and distributors. Distributors will
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Barilla SpA (A) – Case Report ISSUE IDENTIFICATION: Main Issue Barilla’s manufacturing and distribution system continuous and growing burden due to tremendous demand fluctuations and variability on a weekly basis had Brando Vitali, former Director of Logistics, propose the idea of Just-In-Time- Distribution (JITD) as an alternative to Barilla’s traditional practice of delivering product to distributors on the basis of what orders they placed. Barilla’s own logistics organization would instead
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