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Case Study : Barilla 's Supply Chain Management Essay

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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

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