• 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. Business plan for Laundry Toaster laundry dryer.

    We will also buy time well in advance to lower the cost. Our direct mail campaign will begin by getting our name on as many mailing lists as possible. We will then take note of our reaction to each piece of mail we receive and save the ones that communicate

  1. Ford Company Analysis - corporate structure and financial analysis

    Realized annual return in 2011: Average returns for 2008, 2009, 2010 and 2011: We computed monthly returns (2007-2010) using historical stock prices at interactive chart on Yahoo Finance website. Dividends were 0 R = Pt+1-Pt/Pt R2008 = -0.59 R2009 = 2.06 R2010 = 2.34 R2011= -0.249 Average return 2008-2012: =

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

    Serious bikers come from all over the northwest in order to ride here and many want to show their friends this amazing park, which is where we can benefit. Also, many of the regulars of the park have attempted to make edits in the park and almost all of them are bad, quite frankly, and without a hint of professionalism.

  1. Implementing a Green Supply Chain

    2.2 Strengthen the user?s environmental consumer awareness It is important to understand the significant of the green consumption to sustainable development. This can reduce the destruction of environment from the end of consumption. At the same time, developing the green consumption can transform the behaviour of customers and improve the realization of environmental protection.

  2. Business report -marketing Smiley toast

    Hence, some of the products that could replace Smiley Toast are: Kurekure, Lays, other chips, Snacks, Road side food, biscuits, oats, corn, other breads and pastry. Strengths for competitors: They have been in the market for a very long time, giving them a better edge with their customers.

  1. Customer Service

    There are different departments in Friends First but they are all linked in one way or another with each other. The main type of service supplied by Friends First is insurance, both life and health. They also do pensions for individual people of large companies.

  2. Questions on Globalisation and International Trade

    On the monetary front, one would expect that China would have to have fully convertible and trading currency, and it could become one of the ?benchmark? currencies of the world. From the perspective of Western global firms, China would represent both a huge market, and potentially the home base of some very capable competitors.

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