Barilla Spa Case Analysis

Executive Summary

An Italian pasta manufacturing company, Barilla SpA Inc is faced with a problem. They are experiencing spikes in demand that their manufacturing facility is unable to cope with. This is being caused by their promotional strategy. The Director of Logistics, Giorgio Maggiali, wants to implement a new forecasting and distribution system, Just In Time Distribution, but he must first address the barriers to implementation. The cultural attitudes of the sales department, and the resistance to change by the sales representatives and the managers of the distribution centres are some of these barriers. They sooner they act to implement an improved logistics and distribution system the sooner they will be able to realize the savings from this.

Statement of Operating Environment

Barilla SpA is an Italian company that started in 1875 making pasta. It has grown over time into a large, complex manufacturing company producing a variety of pastas, biscuits, fresh bread and other items throughout Europe and the world. Barilla sells both dry long shelf life products and fresh products such as bread. This case analysis focuses only on the dry products. The dry products go to three main end users: small independent shops, independent supermarkets and chain supermarkets.

Barilla has a large number of pasta competitors. Pasta is a commodity, so Barilla has distinguished itself from it's competitors by branding itself at the leading brand, the highest quality. Their advertising focused on presenting a modern image, rather than a tradition Italian style. The price of pasta is well known in Italy, so the end consumer who is purchasing this in the supermarket will notice if there is a price reduction. There is a constant demand throughout Italy for pasta, with only minor seasonal variation.

Barilla has a number of factories throughout Italy. Each factory tends to specialize in certain types of pasta. The equipment to manufacture the pasta is large, and...