Barilla supply chain inventory management

Instead of weekly of once in two week delivery, more frequent LTL delivery should be offered. Firstly the demand from customers can vary due to seasonality e.

Bringing sweeping changes to supply chain management, the IoT is shifting approaches from a reactive to proactive stance. What actions should Giorgio Maggiali take to deal with these. This demand is unpredictable or at least it is at the moment, with no way to monitor realsell-out in stores and with distributors and stores holding inventory.

By implementing JITD, Maggiali can reassure the internal skeptics that a greater understanding of the distributor warehouse processes and demands will eventually lead to less stockouts. Different product categories were offered during different canvass periods, with the discount depending on the margin structure of the category.

First of all, although the case focuses on domestic Italy distribution-related operational issues, theBarilla management team should define their operation strategy for the near future that covers bothdomestic and international markets in alignment of Barillas market vision.

The optimizing of inventory increased fill rates to retail outlets but also reduced inventory holding costs andimproved service by having enough variety and receiving orders fast. Food spoilage and contamination are some of the biggest concerns in logistics today.

Advanced Radio Frequency Identification RFID tracking offers unparalleled visibility into the food supply chain, monitors and controls temperature, and automates shipping and delivery processes.

Maggiali and ask for more details and expected numeric andfinancial results on the curse of inventory. Externally, Maggiali faced resistance from the distributors. Also salespeople are worried that they will lose power because the functioning areasof marketing and sales will be narrowed.

Barilla & Harvard Business School.

Environment and Root Cause Analysis Despite being the industry leader in pasta manufacturing in Italy and one of the biggest exporters of pasta, Barilla faces two major challenges great demand fluctuation and stock-outs. Reduced inventory will free up space at distributors, which can be used by sales person to sell other products of Barilla to distributors Sales person will be champion of change, besides selling the products, they will be bridging the gap between distributors and Barilla after implementing the JITD system Barilla can look forward to a much more efficient and profitable future.

Some believe that distributors and retailers should shoulder the burden of carrying additional inventory, while others believe these points on the supply chain are already holding too much inventory.

Moreover, it leads to a big amount of urgent orders of small quantities of products that are not discounted at the moment. Therefore you can be in touch with two or three organisations at a time through one system rather than having to rely on multiple links to every single company.

In terms of cost, defined as the most important KPI in the operation strategy, the management teamshould listen to the concerns of Mr. What is the impact of transferring demand information across the supply chain. Supply chain management may rarely be glamorous but it is essential to the survival of any industry that needs to physically transport a product to a customer in a safe and timely way.

Their solution runs our transportation network while opening our eyes to additional opportunities with broad supply chain impact. Recommendation The decision to implement JITD program is very strategic for Barilla if it has to remain ahead of its competitors.

Maggiali could propose a simulation which could be carried out over a fixed time frame, inwhich Barilla would continue to replenish the distributor stocks in the old way, but at thesame time records figures of how they would replenish the same customer differently in thenew way, and then compare the inventory and frequency of stockouts at the end of theperiod.

We continually evolve with BluJay. The operation strategy should identify the order of importance of the five KPIs, and explainmanagements expectations clearly from operations.

High demand fluctuations result in inevitable stock-outs. In order to create a win-win situation, Giorgio Maggiali must address the concerns of loss ofindependence and sharing some of the cost saving.

This specialty includes supply chain analysts, planners, and project managers, who use analytical and quantitative methods to manage the supply chain process. It should also redefine the discounts based on annual sales, rather than order to order.

The problem with Barilla's broken supply chain and a possible solution

Company-wide, the view should be adopted that the relationship withdistributors is a long-term one, a partnership, and should be managed accordingly i. In the supply chain, data is used by companies to track and trace products, analyze resource usage, communicate with people, automate machinery, and so much more.

Upgrade to Premium to enroll in Business Logistics & Supply Chain Management Enrolling in a course lets you earn progress by passing quizzes and exams. Track course progress. Inventory is a fundamental measure of the overall health of supply chain and logistics activities.

The authors of The Definitive Guide to Inventory Management discuss what inventory is, the role of inventory in supply chain management, and why inventory is such an. If Barilla gets control of the inventory management in the whole supply chain, here are some of the additional recommendations for improving the logistics.

First of all, there could be total system integration amongst all the supply chain parties to improve visibility of current data and help Barilla. SCM Barilla SpA Case. Team 2 10/21/ Barilla Case Study - Background • The company was founded in by Pietro Barilla.

• By Barilla is the world’s largest pasta manufacturer, capturing 35% of Italian pasta sales and 22% of all European pasta sales. Construction company TODA Corporation commits to reduce absolute Scope 1 and 2 carbon dioxide emissions by 35 percent between andbased on a percent compounding annual reduction target.

The annual and mid-term targets support TODA Corporation’s goal of reducing scope 1 and 2 CO2 emissions by 57 percent below levels. Amsterdam MBA Operations & Supply Chain Management, Barilla SpA case report Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

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Barilla supply chain inventory management
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Barilla SpA - Harvard Business Case Analysis | Essay Example