Barilla Case

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Contents

EXECUTIVE SUMMARY 2

ISSUE IDENTIFICATION 3

Short Term Issues 3

Long Term Issues 4

ENVIRONMENTAL AND ROOT CAUSE 6

Strengths 6

Weaknesses 6

Opportunities 7

Threats 8

ALTERNATIVES AND OPTIONS 9

Alternative 1: Experimenting JITD internally before rolling out with distributors 9

Alternative 2: Including sales representatives in the JITD forecasting process 9

Alternative 3: New customer base- convenience and grocery stores- for JITD implementation 10

Alternative 4: Implement a shared information system between distributors and Barilla 11

Alternative Evaluation 11

Decision Criteria 11

RECOMMENDATIONS 13

MONITOR & CONTROL 16

EXECUTIVE SUMMARY

Barilla SpA is a manufacturer producing pasta and bread products. Its goal is to be a leading company in global Italian meal experiences and bakery products.

Barilla is currently facing an issue with implementing Just in Time Distribution (JITD) on deliveries to its distributors. JITD enables cost savings opportunities not just for Barilla but for distributors and retailers as well. Barilla is currently unable to implement the JITD program due to various backlash from distributors. This, combined with variable market demand and inconsistent lead times, lead to inefficient implementation of the JITD strategy

Alternatives have been discussed to address the existing issue on hand. These include experimenting with JITD concepts internally, utilizing sales representatives for better forecasting, obtaining a new customer base or implementing a new hared information system between Barilla and distributors.

Based on the decision criteria, the selected recommendation was to utilizing sales representatives for better forecasting. The long term and short term benefits of this recommendation, in addition to the strategic fit and financial feasibility of this plan makes it a desired option compared to the remainder alternatives....