Barilla Spa Case

Submitted byApurva mittal

Gaurang agarwalRiya Giri

Yash Maurya

INTRODUCTION

Founded by Pietro Barilla in 1875. 21% annual growth rate during the 1980’s.World’s largest manufacturer as of 1990.35% market share in Italy.22% market share in Europe.Strong brand image.In depth market campaign

Key Issues

• Increasing operational inefficiencies• Cost penalty This results from large week to week variations

in its distributors order pattern.

Distribution Channel

• Raw Material• Supplier• Manufacturer• Distributor• Customer• End Consumer

Product distribution

A.• Independent storesB.• Independent supermarkets• Chain supermarkets

Bullwhip effect

Amplified Variation in demand as one moves up the Supply chain.

Retailer Wholesaler

DistributorFactory

Cause of Bullwhip effect

• Demand forecast• Long lead times• Order batching• Price fluctuations

Implementations of JID

• Barilla logistics would forecast and deliver the appropriate quantities at specific time.

• Better able to meet demand.• Would allow barilla to distribute workloads

more evenly and efficiently.• Decisions on distributions are transferred to

barilla.

JID benefits

• Decreases wasted overtime.• Decrease inventory and carrying cost.• Improve service sales.• Increase ROI for all