BARILLA SPA

CASE STUDY
 BACKGROUND
HEADQUARTERS LARGEST
BRANDS MANUFACTURER
QUALITY PASTA SHARE MARKET
SURVIVAL PROMOTERS
MARKET SHARE EMPLOYMENT
LINE OF PRODUCTS ESTABLISHED
PRODUCES EXPORTS
PRODUCTION SITES PLANTS


 PROBLEM STATEMENT

Experiencing “BullWhip”
Inefficiencies and Rising costs
Fluctuation in demand from its distributors.
Ex- Director of logistics :- JITD
Current Director of logistics :- Giorgio Maggiali
determine the feasibility of implementing this
program in the face of multi-faceted resistance and
lack of support from the internal and external
business partners.
 ANALYSIS

3 distinct challenges in implementation of JITD

1.
2.Production Challenges
3.Internal Resistance
4.External Challenges
 Production Challenges

Frequent demand fluctuations

High quality is an issue of concern
Cortese:- customers distribution center
Promotion strategy is based on combination of
volume and timing.
Production process is complicated.
Distinctive packaging per geographic region.
 Complexity, Time consuming, Ordering process
 Internal Resistance

Sales Strategy:- Staff to be in close contact with its

customers.
JITD effectively forecasted and placed the orders for
the distributors.
Teams should feel Confident that they will be
rewarded for their support.
Sales personnel:- frightened for their jobs.
Complex Relationship to work
Distributors would not buy if incentives were not
offered to them.
 External Challenges

Growth in export market.

 Forecasting tools, Sophisticated analytical
systems :- Resulting INACCURATE FORECASTS
Distributors unwilling to give up their authority.
JITD plan must address these issues.
 RECOMMENDATIONS

Conduct market research to determine if so many

package sizes are necessary.
Consider one package design for all geographical
locations.
 no. of distribution & Logistics Centers ::
 increase the efficiency.
Sales representatives have greater role in data-
gathering and fostering relationships with
distributors and other customers.
Appropriately reward the sales and marketing
representatives.
 RECOMMENDATIONS

Offering discounts on accumulated volumes instead of

seasonal discount offers.
They can start the JITD with a single external
distributor with promised incentives.
This will help in planning and resolving supply chain
and production issues.

 ALTERNATIVES

1. Test run the JITD with non Italian distributors and

then build a case for Italian market.
2.
3.Collaborate with distributors and retailers in
forecasting and replenishing the products while
sharing individual sales data between various links
in supply chain.
 EFFECTS

Lead to better forecasting models,

+ve impact on Barilla’s ability to meet the customer
demands
 The production and supply uncertainty,
Will help in cutting their own costs and keeping them
low.
