Barilla

Executive Summary

Giorgio Maggiali, the director of logistics has inherited a problem from his predecessor, Brando Vitali. Thankfully Vitali also left him with a suggested solution to the problem. The problem: Barilla’s manufacturing and logistics network is strained due to a lack of ability to plan for extensive fluctuations in demand; previous attempts to remedy this issue have been met with resistance from key members of the supply chain. Vitali’s proposed solution is for Barilla to take over control of ordering and to closely monitor input of demand in order to better plan for potential spikes in demand. This is referred to as just in time distribution and follows the notion of just in time manufacturing. This suggestion brings with it its own set of hurdles and obstacles to successful implementation. This paper will examine the problems being faced by Barilla in more depth and will break down the aforementioned solution among others as possible options to alleviate the strain that lack of accurate demand forecasts is putting on the company.

Ultimately it will be decided that JITD is the preferable choice, but needs to be implemented slowly to reduce the amount of buy in needed and to test its level of success. It is determined that success of a pilot project in one distribution center will furnish Barilla with more leverage to convince other distributors to buy in. Ways to measure this success will be discussed and a schedule for one year implementation will be laid out.

Issue Identification

Barilla’s manufacturing and logistics network is strained due to a lack of ability to plan for extensive fluctuations in demand; previous attempts to remedy this issue have been met with resistance from key members of the supply chain.

Barilla is experiencing large fluctuations in demand due to a phenomenon known as the “bullwhip effect.” The bullwhip effect is characterized in this instance by small fluctuations in demand at the retail level resulting in...