Barilla Case Study

Barilla spA: Case Report

Prepared by Claudio Parra

Supply Chain Management

Seneca(Markham) Monday’s

Submitted: Wednesday, October 15, 2014

Submitted to: Perry Davidson

Table of Contents

Table of Contents……………………………………………………………………2

Introduction……………………………………………………………………………3

Environment and Root Cause Analysis…………………………………4-5

Issue Identifier…………………………………………………………………………6

Recommendation……………………………………………………………………7

Implementation………………………………………………………………………8

Monitor Chart…………………………………………………………………………9

Barilla is one of the world’s largest pasta manufactures, which also produces bread, cookies and

other quicker perishable items. Holding about 35% of Italy’s market and 22% of the global

market, this vertically integrated company has been faced with challenges in both the

manufacturing and distribution due to the high fluctuation of demand. With about 75% of its

SKU’s being in the pasta line, it has been difficult to keep shelves fully stocked. Even with the

control of flour mills and centralized distribution centres(CDC’s), the information flow between

end consumer and manufacturer has created friction within its business partners.

Being such a large manufacture of pasta(its main product) the distribution process has been

outsource into two separate interties. Grande Distrbuzione(GD’s) focusing on large

supermarket chains, and Distribuzione Organizzata(DO’s) centered around the

smaller/independent supermarkets. This has caused I delay in product reaching the end user,

therefore resulting in 7% stock out throughout the year. Barilla does service the smaller

customer(mom & pop shops) throughout Italy via its own inter-company warehouses, which at

times is forced to take in more inventory than it needs for due to volume pricing pushed

through the sales team.

Although GD’s and DO’s hold sufficient stock being able to deliver product in about 10days from

order placement, the...