Case Study Barilla

Barilla SpA (A)

Module 1

Brian Fleming

Lara Buthfer

October 7, 2010

ISSUES

Barilla SpA’s customers are changing the way they stock their shelves, and can no longer

Carry the large orders being supplied to them by manufactures. Barrila needs to look at

an alternative approach to order fulfillment, and find a way to take costs out of their

distribution channel without compromising service.

ALTERNATIVES

Barilla could continue to use their current order process system. Which is not helping the

Customer, as they are being left with high levels of inventory. Or they can change the

current ordering system, and implement a new “Just In Time Distribution” system that

can offer the customer an additional service at no charge and lower the amount of

inventory at store levels.

RATIONALIZE

The sales and marketing organizations believe a “Just in time Distribution” system will

take away their job responsibilities if the system is put in place, sales levels will flatten,

and they run the risk of not being able to adjust our shipments sufficiently or quickly to

changes in selling patterns and increased promotions.

The distribution centers believe that they can improve their own inventory and service

levels and others that the system will give too much control to Barilla.

RECOMMENDATION

The “Just in time Distribution” should be considered a selling tool and improve Barilla’s

visibility with the trade and make distributors more dependent on Barilla. To implement

the new process the basic idea for the approach needs to be discussed with the

distributors and get one aboard to run a trial of the “JITD” to see the effectiveness of the

system in progress and from their they can make the decision how to further implement

the “JITD” system.

EXSECUTIVE SUMMARY

My decision is to implement the new “Just In Time Distribution” system to Barillas

distributors. This will increase customer satisfaction,...