Barilla Case

kali SpA is the worlds largest pasta manufacturing ships company based in Italy. It is a family owned, began as small shop at in Parma and evolved into a large vertically integrated corporation. Barilla sells variety of pasta products in highly competitive environment, 2000 opposite Italian pasta manufactures, using its high quality and modern marketing programs. They are organized into seven divisions: cardinal pasta divisions, the Bakery division, the Fresh Bread division, the Catering division and the supranational division. The products are shipped from the plant to one of the two, Barilla owned, central scattering centers (CDCs), from where they are shipped to either the Barilla-owned depots, or are purchased by distributors, or independent agents, who then transfer the goods to retail stores or closing consumers. Longer shelf life products document, dry pasta, was typically held rough a month where as fresh products were only held for three days at CDCs. In 1980s, due to high move conduct, Barilla was not able respond quickly because of its complicated distribution system. This caused operational inefficiencies and inability to predict the demand variability. Brando Vitali, a former director of logistics at Barilla proposed Just-in-Time-Distribution (JITD) concept to foretell the demand fluctuations.




Barilla was suffering due to many underlining problems that were created by its distribution network. They did not have any clue on how to estimate the drudgery levels because it was completely relying on the orders placed by its distributors. They also had no direct contact with retailers or consumers. The demand fluctuations caused Barillas inability to forecast resulting in production capacity restraints (heat and humidity specifications are product specific) or to contour up armoury which again results in increased inventory costs. With the current conditions; the highly specialized manufacturing process, and the two week inventory hold limit imposed by the...If you want to appropriate a full essay, order it on our website: Orderessay



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