Barilla Spa Study
Autor: andrey • February 24, 2014 • Case Study • 741 Words (3 Pages) • 1,723 Views
Barilla SpA has gone through tough times. In the early years of its existence,
several decisions regarding the way the company sells and makes the product has
put them in serious situations. The marketing strategy that the company
implemented has paid off and made the world's biggest pasta manufacturer. With
big investments in advertising, Barilla has positioned their pasta as a high quality
most sophisticated pasta available.
With continuous adversities in making innovations and providing better
service to customers, the company has thought of things to make the distribution of
the products much more efficient. As discussed in the case, the stock-out quantities
were not very desirable. Even though the retailers are not complaining very much
about this, the problem with stock outs directly affects the reputation of Barilla. The
stock-outs can be blamed to the fluctuating demands and the very long delivery
time. Almost every week retailers or supermarket owners place orders. Then after
some days, the products are delivered. The problem with this approach is the
relative forecasting technique that the retailers use. With the fluctuating demand,
even the manufacturing plant of Barilla finds it difficult to foresee the fluctuations.
In addition, Bullwhip effect is experienced by the top of the supply chain. The
bullwhip effect is a phenomenon that the supply chain players experience with
fluctuating orders from the bottom of the supply chain. From the distributors point
of view the fluctuation in orders is not that big, but in the viewpoint of the
manufacturer, this is a problem.
In order to reduce, if not eliminate, the stock-outs, the Just in Time Delivery
(JITD) is presented to the company. The program entails looking into the data of
every retailer and instead of waiting for the orders of the retailer Barilla would make
decisions on possible order quantity. This way, preparations for the delivery be done
early and the lead-time would be reduced. In addition, right amount of products
would be
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