Barilla Spa Case Response

Barilla Spa Case Response

Session 5: Supply Chain Inventory Management

Assignment 3: Case Response Barilla SpA (A)

Submitted by: Lena

Table of Contents

Executive Summary 3

Issue Identification 4

Issue Identification including Root Cause Analysis 5

Recommendations 7

Implementation Plan 8

Monitor and Control 10

References 11

Executive Summary

Barilla SpA is the world’s largest pasta producer is initiating the Just-in-Time Distribution (JITD), which is supposed to help the company to meet the demand fluctuations imposed on the company’s manufacturing and distribution system. The company had realised that leaving money on the table with understocking or increasing costs with overstocking is not an option.

The current delivery system at Barilla follows the traditional way of ordering through distribution centres placing orders with the company. Instead, Barilla SpA wants to engage its own logistics organizations, which would specify the appropriate delivery quantities that would meet end-customer needs and distribute the workload on Barilla’s manufacturing and logistics system.

The predicament exists in Barilla’s customers, sales representative and marketing organizations resistance to change and internal resistance toward implementing JITD.

In this case study response I will be providing analysis and recommendation on how to increase the chances the Barilla’s management idea of JITD would be acceptable and provide the reasons why it should be considered worthwhile.

Issue Identification

* Resistance to change

* High stock-out rates

* Fluctuating demand

* Periodic-review inventory system at Distribution Centers

* Lack of space in retail outlets (stores/warehouses)

* Poor forecasting and lack of planning

* Difficulty to produce particular pasta that had been sold out due to unexpectedly high demand

| Issue Identification including Root Cause Analysis 1. Resistance to changeThere is strong resistance to change the existing