• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Barilla Case. To make Barilla, the number one manufacturer of pasta Barilla employs massive state of the art factories that can not only produce mass quantities, but produce the variety of pasta to satisfy the world.

Extracts from this document...

Introduction

´╗┐Barilla Case Write-Up Barilla and JITD In 1990 Barilla is the largest pasta manufacturer in the world. It manufactures 35% of all pasta sold in Italy, and 22% of all pasta sold in Europe. Barilla markets extensively through advertising and trade promotions for all of its divisions: pasta, bakery, fresh bread, catering, and international. In it?s product categories, Barilla has fresh and dry products. The dry products (dry pasta, dried toast, cookies etc.) are offered in about 800 different SKU?s. Pasta alone is made in 200 different shapes and sizes and is sold via 470 different SKU?s. Barilla caters to it?s consumers of pasta with three different pasta divisions (Barilla, Voiello, and Braibanti), each at a different price point. To make Barilla, the number one manufacturer of pasta Barilla employs massive state of the art factories that can not only produce mass quantities, but produce the variety of pasta to satisfy the world. In fact, just one of its factories, the Pedrignano plant, is capable of producing 900,000 kilos of pasta a day. The competitive dimensions important for the logistics flow of an item like pasta are flexibility and delivery. The metrics to focus on include order size (Q) and re-order (R) quantity across various supply chain entities (retailers, DOs, CDCs). The efficiencies of information flow among various entities, as well as the response rate, queue size and lead time at various points in the distribution channels are also important. ...read more.

Middle

Overall, the situation is a win-win for both parties as there are lower inventory costs, faster delivery times and both parties attain or exceed their previous service levels. Besides just implementing a cross-docking scenario described above, there are a variety of other options at disposal for JITD system and operational efficiencies to consider. 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 forecast future demand. The system would also help create a pull system if we are integrated down to the local supermarket shelf level. If Barilla fully integrates the systems, it can re-negotiate the re-order points, order quantities, and help reduce inventories and safety stock system-wide across all channels. There would be higher service levels, lower inventory costs, and lower lead times across the system. To further reduce lead times within its supply chain, Barilla could hire lean consultants to reduce the setup times amongst various batch loads. The retooling of machines to make quick batch changes can make Barilla factories much more flexible to the variance in consumer demand. With lower costs of batch changes, Barilla could introduce newer varieties faster to test the market. In case of a shortage or high variance in demand, the back orders could be delivered much faster, making all the Barilla supply chain customers happy. ...read more.

Conclusion

Barilla?s current sales and marketing staff, with proper incentives placed on getting buy-in from external parties, can help move the process along faster. Also, the technologies to get implemented may require capital outlay from Barilla to get its local suppliers up and running on it?s system. Proper use of discounts and incentives to local supply chain participants will get the process going faster. Further, it is also crucial that Barilla internally optimize its production and reduce its setup costs and lead times to show how that it is using its resources to make its supply chain customers happier. Some problems to execute such a plan include getting the corporate go ahead on revised incentives plans to internal sales and marketing departments as well as the supply chain participants. Even if Barilla can get most of its major retailers involved, getting and storing all the data and reacting in real-time to market fluctuations can be costly, especially in the 1990s. Furthermore, if a strike happens, there can be greater collateral damage to the shelf space that Barilla currently enjoys at retailers, as there would be simply less inventory in the system. However, Barilla is a market leader and to stay in control and gain market share, it needs to implement a cutting edge technology solution. Barilla needs to go ahead with the slow process of buy-in from its major supply chain partners (with technology support & subsidies from Barilla) through a focused sales and marketing program (with incentives to staff) to get the JITD program implemented. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    Criterion 3 (7 marks) Presentation of information Business studies students should be able to communicate information in a variety of ways, maintaining a clear, logical approach to their work. There are a number of ways in which information can be effectively presented. Choice of methods will be influenced by the context of the investigation,

  2. BP Financial analysis

    http://www.bp.com 4.5 Investment Despite concerns that the fall in share price in 2009 may necessitate reduced dividends, Tony Haywood was confident this would not be needed: "Our priorities are clear, Continue to invest...[and] pay the dividend". (Haywood, in London Evening Standard, 27/2/09)

  1. AVCE Unit-3 Marketing

    3. What type of chocolates do you buy? The graph shows that 15 people have chosen Mars chocolate as their favourite chocolate, whereas only 8 people have voted for Cadburys which means that Cadburys should launch the new product to increase their popularity and sales. It also gives us the competitor's view where the competitors are very effective and it would be a challenge for the Cadburys.

  2. Business plan for Laundry Toaster laundry dryer.

    Our radio and television ads will deliver our message to more customers than any other type of ad campaign. We have a clear understanding of our market so the money spent on broadcast advertising isn't wasted. For television ads, we will stick to 30-second spots which are standard in the industry.

  1. Customer Service

    An customer that decides to make a pub, coffee shop his/her local should expect to receive friendly conversation and a warm welcome form the waiter/waitress. ________________ Provide a comprehensive summary of customer service responsibilities based on your chart. ?The purpose of an organisational chart is to visually express the chain of authority and responsibility within a company.

  2. Ford Company Analysis - corporate structure and financial analysis

    Every director should provide his or her assessment of the effectiveness of the Board and the Committees on which he or she serves. Audit Committee - Ford Motor Co (F) Name (Connections) Board Relationships Title Key Developments Stephen Butler 36 Relationships Director, Chairman of Audit Committee and Member of Nominating

  1. Business Plan - EDGE is a video production company that aims to create self-promotional ...

    produce by themselves without proper equipment because of the substantial difference in video quality and the cost of the cameras. GoPro provides an example of the expanding market, which just 10 years ago was nearly nonexistent, and now has taken over sports media and has sold hundreds of thousands of cameras.

  2. Implementing a Green Supply Chain

    It can not only solve the problem of the enterprise, but also find a better way to success. The enterprise need to strengthen the internal management of enterprises, think, design new functional departments and change the old ones. After this, the enterprise can reduce the waste of resources and the environmental pollution.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work