Barilla Spa Questions

Yes, the company is missing out on communication and information sharing within the store network system. The in-store network allows connectivity and provides daily sales totals, also ordering in “real time “processing. It allows POS terminals to talk to one another and allows viewing of up-to-date data at any time.

distributors would have to submit their Stock Keeping Unit (SKU) so that Barilla can control it.

Barilla, the leading pasta manufacturer in Italy, faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains, why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”, i.e. that demand variability increases when moving up the supply chain. Several factors enforce this Bullwhip Effect, e.g. high lead times, poor demand forecasting, and batch ordering. In this report we will point out, that exactly those aspects can be identified as the underlying reasons for Barilla’s problems. In a

Looking at the fluctuation in Exhibit 12, one could expect that poor coordination in the supply chain would increase costs. Provide a discussion for the cost of poor coordination in Barilla’s supply chain. Items to consider here include production changeovers or setups, inventory levels, facility utilization, transportation costs, quantity discounts and promotions, canvas periods etc.

JITD might also help the relationship between Barilla and its distributors, since Barilla won’t need to use pressure on distributors to hold more finished products than necessary.

point of sale system. The POS system is a perpetual inventory counting method that electronically records items immediately upon their point of sale (Stevenson, 2015, pg. 552). In other words, as a cashier scans a customer 's groceries, each scanned item is automatically recorded in the system and deducted from the store’s inventory. Implementing a point of sale would benefit a business’s inventory management function in several ways. First, the POS system will provide managers with a continuous flow of updated information (Stevenson, 2015, pg. 552). As a result, the information will provide more accuracy when used for sales forecasts and analysis, which substantially affect inventory decisions. Continuously, this inventory system would also allow greater flexibility in the sense that it can be wirelessly linked to the main company’s inventory system, creating a network of the company’s inventory systems. The POS system is capable of tracking many operations at once and can be modified according to management’s needs (MacCarthy, n.d.). This flexibility would undoubtedly benefit a large company like Wegman’s with many store locations. Lastly, the system is able to help businesses maintain a high level of customer service. Because the system gives customers a receipt with the price and quantity of each item purchased, the customer is able to see exactly what he or she purchased. This practice

By taking a more collaborative approach, major improvement could be made. One way is by embracing the concept of “Collaborative Planning, Forecasting and Replenishment” (CPFR) which have been developed and successfully employed by leading food retailers. It foresees that data is shared and discussed actively between retailers and suppliers, e.g. by producing joint forecast on annual production volumes, also considering foreseeable flunctuations. With a better understanding of the mutual dependencies, the planning basisi could be improve and complexity reduced. On the short term planning basis, making aviable sales data collected in-store 9from the scanner-equipped cash registers) to suppliers in real time allows suppliers to produce more accuratelty to the actual demand, and thus reducing cost for buffers and excess inventory (Trebilcock 006). Of course, Aldi will have to receive a certain share of these benefits. Going one step further would be to add ”Category Management” to Aldi’s supplier collaboration approach to optimise assortment towards the end of customer needs.

Companies strive to choose not only the best marketing channels, but also the best profitable channel. A profitable channel can promote and successfully sell out of a product that might not otherwise turn a profit for their producers (New Charter University 2015). “The calculations from the cost accountant for the retail segment accounts were 60 percent of sales, and for the foodservice segment accounts were 40 percent. The cost accountant believes that both channels are profitable. The accountant also believes that the company achieves an overall average gross margin of 60 percent on its sales (Bowersox, D. J., Closs, D. J., Cooper, M. B.,

Barilla’s products are divided into Fresh products and Dry products. The demand for these two distinct kinds of products is quite different, and the order, shipment and delivery methods for them are also various.

Even though direct competition has decreased, the tendency of retailers to get their products directly from manufacturers puts the company in a position of relooking its competitive edge as a distributor. The marketplace is shifting from an individuality to supply chain performance – the ability to meet end-customers needs through product availability and responsive and on-time delivery. Supply chain performance crosses both functional lines and company boundaries. Brunswick must change their way to fill customer orders faster and more efficiently than the competition.

The company problem is they using chaos system and it is difficult for the admin to estimate their profit. With the new system developed, the company can manage their inventory data easily, quickly and more secured.

For our Gemba project, we decided to analyze the order fulfillment procedure for Cup of Joe, a coffee shop located in the Lennox Town Center. In order to capture the establishment’s peak hours of business, we primarily visited during the hours of 9:00am-12:00pm. We focused our attention on orders for baked goods, coffee, and espresso drinks, as these products are the shop’s main source of revenue and reputation. On several separate mornings we were able to observe an average of 125 orders over three hours (a takt time of 1.44 minutes). In the evening, there were often less than a dozen orders every hour. Since every order is slightly different, we have described the average order and the steps in the process that are consistent in almost every situation. We have identified multiple areas for improvement, which are referenced in the sections entitled analysis and recommendations.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

This report has been prepared to analyze the supply chain management process, design and planning of this particular Domino’s location. Theoretical parts have been used to evaluate the company’s supply chain process in terms of its product and service offering. This report also focuses on the daily operations of this franchise. The focus has been placed on the daily operations processes of the Dominos store located on lakeshore Blvd. (w), Toronto, ON. This report is a result of team research, case study analysis, a store visit, interviews and insights from Dominos existing employees, application of theoretical concepts, models and prior experience. This study shows how Dominos has been able to position itself as a market leader in its segment. Finding various aspects of the company’s processes, provides as an token of appreciation to the company’s efforts to continuously grow in the changing market conditions by taking new product design into consideration and being innovative against its competition.

In 2010, PepsiCo Beverage Company (PBC), a working unit of PepsiCo Inc. (PepsiCo), the second biggest sustenance and refreshment organization on the planet, got the inventory network advancement recompense from the Council of Supply Chain Management Professionals (CSCMP). PepsiCo was given this grant for its creative conveyance procedure, the "Direct to Store Delivery show", that decreased framework wide stock, disposed of stockroom space imperatives, upgraded the potential for boundless SKU development, and conveyed distribution center expense reserve funds. In the wake of indicating tremendous development in the 1990s and early2000s, PBC thought that it was hard to deal with its dispersion focuses and distribution centers.