Barilla Spa Case Study

| |2013 |

| |SCMP: Session 5—Written Case Study |

| |Response |

| | |

| |Prepared by: Elsie Chow |

|[Barilla spa (a) case response] |

|Report on Supply Chain Inventory Management Issues. As the decision maker, Giorgio Maggiali, you are faced with making the decision to |

|promote or discard the just-in-time distribution (JITD) initiative. |

Table of Contents

Executive Summary 3

Introduction 4

Issues Identification and Root Case Analysis 5

Alternatives and Options 9

Recommendations 10

Implementation 11

Monitor and Control 12

Exhibits 15

Executive Summary

Introduction

Issues Identification

The following are a list of issues that must be addressed:

• Data

• Promotions/Sales and Marketing—Advertising (heavy, brand positioned as the highest quality); Trade promotions (frequent)—canvas period 10-12 in a year, typical duration of 4-5 weeks—distributor could buy as much product as desired to meet present and future needs at the offered discount; Volume Discounts also given

• Sales Represenatives: The compensation system for the sales reps was based on the amount of products sold to the distributors. This was casuing problems as the sales reps would try to push more products during the promotional period to get a bouns an were not able to sell as much during non-promotional periods, which added to the variation in demand and made forecasting difficult.

• Large number of SKU’s:...