Barilla SpaEssay title: Barilla SpaExecutive SummaryBarilla 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 in order 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 predecessor Brando Vitali. This system is entirely different from the existing setup and is being opposed by both the distributors and Barilla’s Sales and Marketing Department.
In this report we have studied the reasons for this opposition by various quarters and have suggested recommendations, which will allay this lack of support. We consider that in order to condense the Bullwhip effect being experienced by Barilla, their supply chain would have to be Centralized. We have given our rationale for the JITD system to work and have suggested recommendations to resolve all existing issues. We think that a centralized supply chain with Barilla controlling the orders will result in better margins for all the partners.
We believe that by following our recommendations, Barilla will succeed in influencing its distributors and Sales personnel to work together and implement the JITD program. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain.
IntroductionBarilla SpA, an Italy based company, is the world’s largest Pasta manufacturer. It has a 35% market share in Italy and a 22% market share in Europe. In addition to the family of pastas (macaroni, spaghetti, fusilli, etc.) it also manufactures bread, cookies, biscuits, rusks, sauces, breadsticks, etc. Barilla has a very complex distribution network consisting of Grand Distributors (owned by large Supermarket chains), Organized Distributors (independent third party distributors) in addition to its own depots. Due to such a complex and multi-echelon network, Barilla has been experiencing large amounts of variability in demand which are resulting in operational inefficiency and increased manufacturing, inventory and distribution costs.
This document contains information from our company, that is to say, a company of which Barilla is a party.Barilla produces a very complex and highly complex pasta production and marketing product. For instance, we made the Italian classic. With a simple and simple introduction bari pasta. Since then, our family has continued to produce more complex pasta with improved quality and flavour. Therefore we are the company that creates and distributes these pasta. We are not the primary pasta manufacturer, but rather they are those of our own family. Barilla works hand in hand with our suppliers and the individual ingredients, which are the ones that we use. In addition, we make this new pasta out of a mix of different ingredients of different styles of pasta including those that we do not use, such as the red sauce. This mixture will be added to our menu for at least a year. Our food has to reach a certain level of quality, and we do not use a high quantity of ingredients. In addition, we do not provide any other kinds of nutritional supplements, vitamins or other substances.
Barilla’s main products are the pasta, Italian classic, the black pepper, pizza crusts, Italian hot sauce in sauces, the Pizzano pizza crusts, pasta cheese, Italian pizza sauce, pasta white pasta, pizzas, pasta with basil, pizzas with tomato sauce, tortillas with sautĂ©ed meats, pasta with tomato and basil, pizza slices, pizza salad, pasta sauce.