IE 7325 Supply Chain Management
Case Study-5 fw9795@wayne.edu Barilla SpA
Summary: Barilla an Italian pasta maker founded on 1875 as a small shop in Parma by Pietro Barilla. They were known for their pasta and bread products. In 1940s, they evolved into large vertically integrated company with flour mills, pasta plants and bakery products throughout Italy. As increase in competitors the brand value of barilla is increased by their high product quality. In 1971,the company suffered huge debt because of their decision to construct a state of art pasta plant in Pedringo.So the company’s was sold to an American multinational firm W.R.Grace,Inc.But the company struggle to pay off its acquisition then they sold back to Barilla. The market condition was improved and the company enjoyed an annual growth of 21%and decided to expand their business internationally. They forecasted potential increase in the Eastern European market in the future. Barilla comprised of its three brands: the barilla, Voiello and Braibanti with respective of its cost from low to high.
Barilla owned an extensive network of plants throughout Italy. Whereas the R& D facilities and pilot production plant in Pedringo is used to develop new products. They divided entire products into two categories Fresh and Dry products based on their shelf lives. The dry products are about 75% of sales and 800 different packaged SKUs.The company owned two Central Distribution centers: The Northern at
Recognized as one of the leading computer manufacturers, Dell uses an astonishing supply chain through pull-to-order procurement and just-in-time inventory management. Their strategy is highly efficient and drives costs to a minimum while allowing for minimal lead times and production times of under 4 hours for each order as their suppliers maintain levels of inventory based on forecasts within Dell warehouses near Dell assembly
In the effort of keeping with the extremely unpredictable demand the production cost may rise dramatically as a result of diseconomies of scale. In addition the set up cost for producing different products in the production line is heavy and Barilla has an enormous product line of different products. The production plant in Pedrignano is big and technologically advanced but at the same time the pasta production is a complicated process and especially the drying of different types of pasta required precision in temperature and humidity levels that could not be changed
In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015).
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
They stated that Barilla was an Italian company that produced pasta in both Italy and the United States depending on the product being sold. In their frequently asked questions page I realized that address of where the pasta came from was also the location of their corporate office.
One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics, and made very hard for Barilla to meet that demand. For example, as noted on the case “the specific sequence of pasta production necessitated by the tight heat and humidity specifications in the tunnel kiln made it difficult to quickly produce a particular pasta that had been sold out due
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
Borgo 979 is a small and well-decorated food shop, located in the heart of Bologna. This food shop is a pleasant place, where one can get a taste of the best prosciutto, salamis, cheese, tigelle(small bread) and other specialties of the region. The owner of Borgo979 is very knowledgeable, and he knows about all his products, as he personally sources them from the local farms, around the area. One can enjoy a nice meal, along with a variety of local wines that are available at the food shop. There is a small seating arrangement inside the food shop, but otherwise is mostly a take away.
When I was eating at Tim Hortons today, I noticed that there were boxes stacked on top of each other next to the vending machines under the staircase. The boxes are all branded with the Tim Hortons logo so I assume that they all belonged to Tim Hortons. None of the boxes were opened, but I could easily guess the contents inside just by looking at the pictures found on the outside of each box (spoons, napkins, chocolate milks, etc…).
The mission of Academia Barilla is to protect, develop, and promote the art of Italian cuisine and gastronomic culture around the world. It develops the Italian culinary art by celebrating traditions, nourishing innovation, and promoting the knowledge and the enjoyment of Italian regional cuisines. Products, courses, publishing and consultancy services provided by Academia Barilla serve as the key roads towards fulfilling this mission.
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.
Because of the way Barilla’s manufacturing process works, demand fluctuations have a significant impact on the company’s operations. Tight heat and humidity specifications in factory tunnel kilns require very specific sequences of pasta production, which means Barilla has limited flexibility in ramping up (or ramping down) the production of pastas experiencing unexpected demand levels. Furthermore, because of extremely high holding costs, it is simply not economically viable for Barilla to maintain substantial finished goods inventories to guarantee fulfilling distributors’ fluctuating order quantities.
According to our class text Supply Chain Management’s goal is to create fast, efficient, and low-cost network of business relationships to get a company’s product from concept to market. In order to understand the goal we must know that the supply chain is the process the raw materials of a product go through in order to be available to the consumer. The relationships that the business creates are needed in order to create the product, each process the product goes through creates value, the supply chain is often called the value chain. Internet technologies are increasingly making the supply chain management process much more efficient and worth the initial investment. The supply chain management life
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,