Barrilla Spa Case - Environmental and Root Cause Analysis

Barilla SpA (A)

Session 5

Case Study

Prepared for:

Prepared by:

Table of Contents

I. Table of Contents

II. Executive Summary

III. Issues

IV. Environmental are Root Cause Analysis

V. Alternatives

VI. Pros and Cons

VII. Recommendations

VIII. Implementation

IX. Monitor and Control

Executive Summary

As previously discussed, I am a great supporter of Brando Vitali’s vision of a Just-in-Time Distribution (JITD) whereby we deliver based on what we determine to be the appropriate quantities in order to effectively meet end users needs while at the same time more evenly distributing the workload of Barilla’s manufacturing and logistics systems.

I have been met with quite a bit of resistance on this vision I have been trying to implement for the past two years by both internal and external forces yet, I still feel this is what will be best for us and provide the best value all across the board. I strongly believe that by focusing on the dry products division sold through the distributors with the JITD, we would be able to counteract the “bullwhip effect” we are experiencing. We would be in control, we would monitor the flow of products and make the decisions as to what products to ship, when to ship them and in what quantity. With this program running I believe we would eliminate dissatisfied customers and stock outs and eliminate the potential lost customer buying our competitors products while becoming more efficient and less costly.

This report will be used to identify the benefits and/or risks involved with my recommendation of implementing a JITD system.

Giorgio Maggiali,

Director of Logistics

Barilla SpA,

Issues

Barilla SpA, is an Italy based company, is the world’s largest Pasta manufacturer. It has a 35% market share in Italy and a 22% market share in Europe. We have a very complex distribution network most of our products