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Barilla SpA Case Study Answer

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Barilla SpA Case Study
Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.
Type: Supply Chain
Problems/Issues:
- Extreme demand fluctuations – week-to-week variation in distributors order pattern, strained
Barilla’s manufacturing and logistics operations: high inventory, stock out, low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product
- High inventory cost and manufacturing cost due to operational inefficiencies
- Strong resistance for JITD (Just In Time Distribution) Program implementation, either from
Barilla’s distributor or its own sales and marketing department or organization.
- Distributors…show more content…
There’s a mismatch supply chain strategy that used by Barilla. Barilla should consider moving left or down which means change their supply chain strategy or change their products strategy. Pasta should be not an innovative products but functional products because it offers great variety and low profit margins. In this case, Barilla should change their Innovative to Functional products and restructure their efficient
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supply chain strategy.
With using Just-In-Time-Distribution (JITD), Barilla can managed the inventory concept, Barilla can give the authority to determine the shipments, decides what products to ship and when to ship it and lastly distributors would have to submit their Stock Keeping Unit (SKU) so that Barilla can control it.

Q: What exactly is causing the distributors order pattern to look like as seen in Exhibit 12? What are the underlying drivers of the fluctuations in the exhibit?
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Overburdened manufacturing and logistics operation
Poor product delivery
Decreasing of retailers/distributors
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