Barilla Case Study

1051 Words Dec 12th, 2013 5 Pages
GLOBAL LOGISTICS MANAGEMENT
IE 576

ASSIGNMENT:
BARILLA SpA, Case Study

ELABORATED BY: Jose David Padilla 1028909 Cindy Sutanto 1025458 Karina Anchecta 1025454

1. What factors, internal and external, contribute to the Barilla supply chain carrying large quantities of inventory? Be specific about how these factors increase inventory in the Barilla supply chain.

Internally, their manufacturing process causes long lead time and slow responsiveness to quick changes in demands, especially cause by the constant sale promotions. The Barilla manufacturing’s weakness is shown on how they built the plants based on the type and even size of pasta. Also, there are too many SKU’s available, many which are just different
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| Barilla was trying to reduce its own inventory costs by pushing their products into the distributor’s warehouse. | Explain the distributors that inventory will only be shipped when needed, leading to a decrease in their inventory and decreased inventory cost. |

4. As one of Barilla's customers, what would your response to JITD be? Why? What would make for you worth trying it?
As Barilla’s customer we would limit the information to only the Barilla products because they don’t need to see my deals with other suppliers. It would be very helpful if once the JITD system is proven to work correctly, we could almost forget about handling Barilla products as they would become a Vendor Managed Inventory. They would be responsible for replenishing the inventory and we would increase the customer service level, increasing our own sales. Also, since a smaller amount of inventory would be delivered each time, the inventory holding cost would be reduced and the ordering cost would shift to Barilla.

5. In the environment in which Barilla operated in 1990, do you believe JITD would be feasible? Effective? If so, which customers would you target next? How would you convince them that the JITD program was worth trying? If not, what alternatives would you suggest to combat some of the difficulties that Barilla's operating system faces?

It would be feasible but the way it could be implemented would be dependent on the customers. For

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