• 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

    I will be concentrating on this ingredient. In order to make it tasteful the taste also matters, the ingredients are added for all purposes. It has 19% low calories, which is the key for success. Competitors Research: This is the research for the Cadburys Competitors.

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

    Washroom and Decorations $30,000.00 Security personnel $15,000.00 Rental of tents $5,000.00 Payment of workers $55, 000.00 Payment for the Venue $ 20,000.00 Printing of tickets and Advertising $25,500.00 Clean up Crew $15, 000.00 TOTAL ESTIMATED COST $ 460,500.00 In terms of quality of the project, the stakeholders expect to have high standard of entertainment, lighting, decorations, food, drink and performers.

  1. Walt Disney: Case study

    Despite the detail that Walt Disney has high emblem equity, persons would effortlessly swap to other entertainment undertakings such as observing television, going to theaters, engaging in games undertakings, and etc. Rivalry amidst living firms: The topic reserves market is highly consolidated, with the five biggest businesses in the commerce accounting for 98.5% of the total market in 2002.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    It's simple that Vietnamese is promoting Ao Dai as symbol of Vietnamese lady to the world. It's obviously that every woman from 22 to 45 years old wears Ao Dai in a lot of occasions (company uniforms, at wedding party, at any festival, conference...)

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

    It also changes the way people come across at making purchases and spending money. E-commerce has changed the image of retail, services, and other things that make our economy work. Certainly, it will continue to influence how companies sell and market their products, as well as how people choose to make purchases for many years to come.

  1. 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.

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

    Most DOâs 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 DOâs to Barilla puts a severe strain on Barillaâs manufacturing and logistics flow lines.

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