Essay on Business Analysis

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Business Analysis Introduction: - Barilla has encountered many areas of their manufacturing and distribution processes that, for many reasons, could be vastly improved. To try to improve these areas, top logistics management decided to try to implement a JITD (just in time distribution) system, similar to VMI (vendor managed inventory). The management felt that they could cut back on problems such as wild demand swings and stock outs by using this method. Their distributors also felt a great deal of pressure to increase their inventory to prevent these stock outs while also ADDING items that they did not already carry, which would lead to even more inventory. Many employees in the logistics…show more content…
The basic underlying cause for the difficulties being faced was the process itself. The pasta making process was very specific and took a long time for lines to change-over and make different types of pasta. This was one of the causes of their inability to meet with big changes in demand, the long, costly change-overs made it was nearly impossible to quickly and efficiently produce whichever pasta was selling extremely well at the moment. Another cause of these problems was the large number of SKU’s that Barilla’s dry products division produced. There were over 800 different SKU’s, many of which were the same pasta in different packaging, and this added to the already high inventories. The biggest cause of the inefficient in the supply chain, in our opinion, was that very few of the distributors had forecasting systems or any type of sophisticated analytical tools. These systems are an integral part of having a supply chain that runs smoothly and efficiently and without being able to produce accurate and detailed forecasts, a “bullwhip effect” is inevitable. The benefits of the program are multifarious, as Barilla would try to smooth the demand swings and be able to distribute the workload
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