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

    the tickets will be electronic so they just have to swipe the card to gain entry and exit Legal Factors: In organising the event, the Health and Safety rules and regulations should be followed Ensure that contracts and documents are drawn up for all artistes, entertainers, security and caters.

  2. Advance Professional Development

    Lee is a good team worker but his team working skill need to be furnished more, as he has good understanding of team roles. He has good problem solving abilities but lack in discussing problems with others, means that

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    [19] In 2001 when computer manufacturer Gateway was cooling down its 'offline' establishments and Dell was winning by a landslide with its direct Internet sales model, no one predicted what would be another great idea by Apple - opening its first Apple retail store.

  2. AVCE Unit-3 Marketing

    37 people have said yes and they do thing that it will reduce health risks for the diabetic people, which is an extreme encouragement of the Cadburys to launch the new sugar-free chocolate for the diabetic people. 14. Do you think this would encourage Diabetic people to eat low-calorie, sugar-free chocolate?

  1. MG 309 Strategic Management

    Loyal customers can lead to increased revenues for the firm, result in predictable sales and profit streams." According to Webster and Kotler: "Compare the traditional transaction process with the increasingly favored view of marketing being based upon value creation and delivery, and upon developing long term relationships with suppliers and customers."

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    Effective motivational techniques can be adapted to suit the needs of each employee. Motivating Employees with McGregor?s Theory The theory of McGregor indicates that organizations can manage employees in two ways. The first view is McGregor?s theory X, which is a negative assumption of employees.

  1. Barilla Case. To make Barilla, the number one manufacturer of pasta Barilla employs ...

    Most DO?s are doing simple periodic-review inventory systems, and ordering each week. There is no sophisticated method of tracking or forecasting ordering quantities. The end result is that demand variability from DO?s to Barilla puts a severe strain on Barilla?s manufacturing and logistics flow lines.

  2. Questions on Globalisation and International Trade

    As a result, the WWW helps small companies reach the size of audience that was previously only within the reach of large, resource rich firms. 6. If current trends continue, China may emerge as the world's largest economy by 2020.

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