Barilla Spa (a) Case Study

The supply chains of L.L. Bean should be able to respond on the large fluctuations of orders (e.g. during Christmas the amount of orders will be

The Cincinnati Seasonings Supply Chain is a mockup of a supply chain to support a company that designs and markets food seasonings and sells its products in stores throughout the United States. The purpose of the case study was to familiarize students with setting up a supply chain and simulate its operations. The thought process was to define the product and set up the facilities, vehicles, and routes to have an effective and efficient supply chain. The challenge for the entire exercise was to get the Supply Chain to run continuously for thirty days or more, without interruption or running out of product. Cincinnati Seasonings is a family owned and operated business; the founder was born and raised in Ohio. Cincinnati is

mismatch supply chain strategy that used by Barilla. Barilla should consider moving left or down which

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

The core problem facing Barilla is the high degree of demand variance that it experiences by product and throughout the year. The main causes of the demand variance are limited visibility downstream, and reliance on promotions to push product downstream.

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

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.

patterns even though consumer demand is relatively stable. To date, implementation of the Just in Time Distribution System (JITD) has not been successful. It has been resisted both internally and externally with distribution network. The company either can implement JITD or it should reject the strategy and develop a new one.

Kudler fine food’s supply chain forms the center of its business processes beginning with its purchasing department followed by advertising, accounting, inventory management, forecasting, and merchandising selection and pricing. Its business processes could be enhanced by taking advantage of IT systems like Enterprise Resource Planning (ERP) and, Expanded (ERP), Digital Supply chain, Real-Time Demand-Driven Operation, Inter-organizational information systems (IOS), Electronic data interchange (EDI), Vendor Managed inventory, On-Demand Customer

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.

The other side of the problem is caused by Barilla’s sales and marketing practices, which are based on achieving sales goals without regard to efficient operations. Barilla promotional “canvass” periods are the most problematic of these discounts because they make it in a distributors best interest to invest in months’ worth of stock of a discounted product.  This bulk purchase is unrelated to the near term retail demand and muddles the picture for a Barilla operations manager trying to tailor operations to demand. The volume discounts less problematic because they are incremental, and lead to small changes in orders to achieve a truck-load quantity. This saves on Barilla distribution costs and is unlikely to induce large swings in demand for a given product as trade promotions do.

The AAA region was hit by a period of economic uncertainty caused by the slowdown of Chinese growth, instability of Middle East and economic recession in Russia. The Barilla brand market share in value terms increased in all of the key markets in this area: confirmed position as leading competitor at national level in Russia, market leader in Turkey, and further expansion in Middle East and Israel markets with an aggressive dedicated strategy. The substantial investment in the Solnecnogorsk (Russia) for pasta manufacturing will significantly improve flexibility and profitability in this area (Barilla,

Just-in-time delivery needs good collaboration with vendors of distribution services and of products. The distributor needs a continuity of demand and the chance to define routes, loads and schedules well ahead. By working toward longer-terms, higher-volume procurements with vendors, prices can be cut due to larger transport volume over a long period of time. Just-in-time delivery will cut down the operating costs if the business is substantial for the distribution partner. Just in time delivery needs more frequent deliveries from vendors however it does not voluntarily imply higher transportation costs.

Starbucks then reorganized their supply chain – developing new cost-effective models, relooking into suppliers and reconsidering expenditures by ingredient instead of purchase price (Cooke, 2010). The supply chain was streamlined into 4 categories: Plan, Source, Make and Deliver, adopting a simplified system where coffee beans were manufactured in the same region where they are sold (Starbucks, 2012b, November 30). This was modeled by existing