Long Summary for Barilla Spa (a)

2386 Words May 30th, 2012 10 Pages
• Giorgio Maggiali: Current director of logistics o Appointed in 1988 tried to make way for an innovative idea proposed by Brando Vitali
• Brando Vitali: Director of logistics before Giorgio Maggiali o Proposed Just-in-Time distribution (JITD)
 Modeled after the popular Just-in-time manufacturing concept o Rather than delivering product to distributors when ordered, his logistics plan would specify the “appropriate” delivery quantities
 These quantities would more effectively meet end-consumer’s needs and more evenly distribute WORKLOAD on the manufacturing and logistics systems

- Maggiali tried for 2 years to implement the idea but little progress has been made o Customers unwilling to give up authority in placing orders when desired
o
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SUPERMARKETS
- Remaining dry products distributed through outside distributors to supermarkets o 70% to supermarket CHAINS o 30% to INDEPENDENT supermarkets
- Supermarket typically held from 10-12 days of dry inventory within stores o ON AVG. CARRIED A TOTAL OF 4,800 DRY PRODUCT SKUs o MOST PRODUCTS OFFERED IN MORE THAN 1 PACKAGING TYPE BUT SUPERMARKET USUALLY CARRIED 1 (AT MOST 2) OF THEM
- Supermarket chain distributions done through the chain’s own distribution organization known as “Grande Distribuzione” (large distributor) or GD
- Independent supermarkets distributions were channeled through a distributor known as “Distribuzione Organizzata” (Organized distributor) or DO o A DO acted as a centralized buying organization for a large number of independent supermarkets o Most DO’s had regional operations and retailers they served usually sourced product from only a single DO
- A typical distributor might distribute 150 of Barilla’s 800 dry product SKUs o Most distributors handled products coming from about 200 different suppliers
 OF THESE SUPPLIERS BARILLA WOULD TYPICALLY BE THE LARGEST INT ERMS OF PHYSICAL PRODUCT AND VOLUME OF PRODUCT PURCHASED
 Distributors typically

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