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

Barilla Case

Free essay example:

Barilla Case Discussion

1. Why is Vitali concerned about Barilla’s approach to order fulfillment?

There are several concerns with the order fulfillment at Barilla. Both the manufacturers and the retailers are suffering from thinning margins and are in need of a system to reduce costs. The current system leaves Barilla with impossible means of anticipating demand swings as well as massive amounts of inventory being “held” at the retailer. Stock-outs are an additional concern in the order fulfillment process. In order to reduce cost and improve service levels, supply chain strategies must take into account the interactions at various levels.

2. What is the approach Vitali suggests for overcoming distribution inefficiencies?

Vitali’s suggestion is to collect data from each distributor daily and use the data collected to make replenishment decisions based on forecasts. In order to do so, improvements should be made to Barilla’a forecasting systems in addition to developing a set of decision rules for making decisions based on the forecasting system.

3. Describe the JITD approach.

The JITD (just-in-time distribution) approach ships products as needed, rather than maintaining inventory. The objective is to be efficient and cost-effective across the entire system – total system-wide costs.Each member of the supply chain should be able to make better decisions about planning, scheduling, production, storage and distribution of materials, transportation arrangements, cost management, etc. These decisions should help the entire chain manage customer relationships, understand customer value and manage costs and improve revenues.

4. What does Barilla need for its new JITD approach?

Barilla needs several items in order to successfully implement its new JITD approach. To start, they will need data provided daily from the distributors. Thus, Barilla will need a strong, clear line of communication with the distributors and the distributors must willingly provide the necessary information. Once distributor cooperation is achieved, improvements to the forecasting system of Barilla should be made as well as the development of a set of decision rules to help determine what to send after each forecast.

What are the concerns about the new system raised by Barilla’s marketing and sales people and its distributors?

Barilla’s sales people are concerned with disruptions in sales levels and increased risk of creating more shelf space for competitors. Marketing people at Barilla have concerns with not being sufficient, risks related to stock-outs, and a lack of trade promotions. Distributors are concerned with efficiency in comparison to the current distributor inventory system.  

5. How should Maggiali solve the implementation problems?

Supply chain management should take into consideration every facility that has an impact on cost and plays a role in making the product conform to customer requirements.

In order to solve the implementation problem, Maggiali must develop a strong line of communication with the distributors and retailers. Barilla may achieve this objective if it can successfully convince the distributors of the benefits of implementing the approach. The objective is to be efficient and cost-effective across the entire system – total system-wide costs and thus, provide benefit to the entire. Barilla should concentrate on the benefits all parties can achieve. Cost analyses should be ran to provide an idea of the benefits involved.  

In addition to the concerns of the distributors, Maggiali should analyze the cost savings and cost reductions of implementing the approach in order to ease internal concerns. The program should be well-developed and efficient before implementation in order to avoid error and disruptions in distributor operations.

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

(?)
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

Related International Baccalaureate Business Studies Skills and Knowledge Essays

See our best essays

Related International Baccalaureate Business Studies essays

  1. AVCE Unit-3 Marketing

    The picture below shows the Nestle Company's financial statement for three years. The profile shows that it has huge turnover and income. So the step for the Cadburys would be to keep the price down and increase sales to get huge turnover.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    * Destructive competition in the textile market. Besides many domestic manufacturers, Thai Tuan has to face with strong foreign competitors coming from China, India, Korea, and England... These competitors with various styles and various prices always threat the development of Thai Tuan.

  1. Project Management - planning an all inclusive carnival concert in the North Western end ...

    The ultimate goal of the project schedule was to create a realistic project schedule that provides a basis for monitoring and controlling the project process for the time dimension of the project. The main output of the Project schedule is displayed in the form of a GANTT chart (Appendix F)

  2. Walt Disney: Case study

    Anheuser Busch accounted for 8.6% of the total market in 2002, while Vivendi Universal and Cedar Fair accounted for 9.8% and 5% of the total market in 2002, respectively. Vivendi Universal skilled 10.4% sales development mostly due to the supplement of new enticements at Universal Studios in Florida and Hollywood; Anheuser Busch's 2.1% sales development due to the worldwide expansions.

  1. Apple: case sudy

    Bargaining Power of Suppliers Apple's "power chip" is provided from either Motorola or IBM. IBM initially made the portion but Motorola retains a permit to double-check that Apple does not count solely on one supplier. As Apple extends to accelerate with technology alterations and expanded clientele obligations, it extends with an ongoing require for suppliers.

  2. MG 309 Strategic Management

    In selecting a business-level strategy, the firm determines: Who it will serve? What needs those target customers have that it will satisfy? How those needs will be satisfied? Purpose of a business-level is to differentiate the firm's position from those of its competitors.

  1. Introduction to e-commerce. Benefits, risks and legislation.

    In It allows the suppliers to increase their sales meanwhile decrease the investment costs. 6. Reduce Labor Costs: The labor costs can be reduced with e-commerce because the sellers can automate their online store fronts. 7. Reduce Advertising Costs: E-commerce can reduce advertising costs because it is easier to update the advertisement using software technology.

  2. Questions on Globalisation and International Trade

    Consumers in other countries also benefit from Ecuador?s flower exports with better products. b) Ecuador?s rose industry began some 20 years ago, and has been expanding rapidly ever since then. Most students will probably focus advances in technology as a key to the industry?s success.

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