Barilla Spa

Case Response to “Barilla SpA”

Prepared for: Module Coach

Table of Contents

Executive Summary……………………………………………………………………………………………3

Issue Identification…………………………………………………………………………………………….4

Root Cause Analysis…………………………………………………………………………………………...5

Qualitative Analysis……………………………………………………………………………………………7

Alternatives and Options…………………………………………………………………………………….9

Recommendation………………………………………………………………………………………………11

Implementation.………………………………………………………………………………………………..13

Monitor and Control…………………………………………………………………………………………..14

Exhibits……………………………………………………………………………………………………………..15

Executive Summary

Barilla SpA is the world’s biggest producer of pasta. It holds the highest market share in Italy and throughout Europe. The demand for pasta around the world is growing at a remarkable pace of 20-25% per year. There is room for growth as well as creating a specialized system of consistency to fuel consumers needs.

Barilla’s introduction of its new Just In Time Distribution (JITD) isn’t panning out so well. Its main issues were identified. A Root Cause Analysis as well as a Qualitative Analysis was done to in order to see if the problem could be fixed. Alternatives and Options were discussed on the best possible recommendation of either discarding the JITD or keeping it.

The analysis surprisingly did not keep the Just In Time Distribution system, but it did introduce a new one: establishing consistency throughout the organization.

Issue Identification

Preventing Stock outs

After the JITD was introduced, Barilla wasn’t able to fulfill an order from a customer. It had missed its target by 12 cases.

Empty Shelves

Orders weren’t filled constantly, so a distributor used another competitor’s product.

Sales Force

The sales force is starting to lose its confidence in that it won’t meet its monthly sales target.

Lack of Communication

There is no system that communicates effectively between warehouses and customers that avoids mistakes and...