In this case study, the following questions are addressed:
1. Describe Barilla's supply chain. Which problems is Barilla experiencing and what are the underlying reasons for the problems?
2. Describe Vitali's Just-in-Time-Delivery (JITD) plan. How could this plan improve Barilla's profitabili...
1. Describe Barilla's supply chain. Which problems is Barilla experiencing and what
are the underlying reasons for the problems?
Barilla, a renowned Italian food company known for its pasta, sauces, and baked goods,
adopts a vertically integrated supply chain approach. This allows Barilla to maintain con-
trol over crucial stages, such as sourcing raw materials, manufacturing, and distribution.
By doing so, Barilla ensures consistent product quality, operational efficiency, and the
ability to swiftly respond to market needs. Through careful management, Barilla delivers
exceptional products and ensures global customer satisfaction.
However, Barilla had problems in its supply chain for example:
a) Fluctuations in demand: Barilla faces demand fluctuations caused by seasonality,
promotions, and diverse ordering patterns from wholesalers and retailers, making
demand forecasting and production planning challenging.
b) Bullwhip Effect: Demand volatility triggers the bullwhip effect, amplifying demand
fluctuations and causing inefficiencies in inventory management and production
within the supply chain.
c) Insufficient exchange of information: Barilla's supply chain faces communication
and collaboration challenges among suppliers, distributors, and retailers. This lack
of visibility and coordination worsens the bullwhip effect and negatively impacts
overall supply chain performance.
d) Rare batch orders: Barilla's distributors place infrequent and large batch orders,
further contributing to demand variability and inventory imbalances.
The underlying reasons for these problems include:
a) Advertising strategies: Barilla's frequent promotional activities incentivize distrib-
utors and retailers to place large, one-time orders to take advantage of discounts.
This creates demand peaks that are difficult to manage effectively.
b) Resistance to change and lack of trust: Retailers are reluctant to adopt Barilla's in-
novative approach, such as the Just-In-Time Distribution (JITD) system, which re-
quires them to share sales data and allow Barilla to manage their inventory.
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Lernfix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.72. You're not tied to anything after your purchase.
