Barilla Case Study

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Barilla – Case Study Criteria • Title Page • Table of Contents • Executive Summary • Body of Report o Issue Identification o Environmental and Root Cause Analysis o Alternative and Options o Recommendations o Implementations o Monitor and Control • Conclusions • References, Exhibits, and Appendixes Notes: Implement the JITD system within the 18 Barilla controlled depots, representing 35% of the total Dry Product sales. Those products are distributed to the small independent shops which carry an inventory of two weeks. Small shop owners purchase through Brokers that deal with Barilla’s internal purchasing and distribution personnel Supermarkets – Page 265 course readings The remaining Dry Products (65%) are purchased through – 70% distributed to Supermarket chains, with 30% going to Independent Supermarkets. Supermarkets – Large Distributor (GD) – internally owned distribution network Independent Supermarkets – Organized Distributors (OD) – centralized buying organization for a large number of independent supermarkets The sales aspect greatly affects the OD distributors, where sale people are driven to increase the sales at a location. In contrast, GD’s which represent 70% of the Dry Products distributed to the Supermarkets chains are not driven by sales people. This is due to the fact the GD represents an internally owned distribution network. Internal Issues: • Increasingly fluctuating Dry Product demand strain the current manufacturing and distribution system • Due to the nature of pasta production (high quality product require precise specifications) and sporadic demand, replenishing stock-outs proves to be very difficult • Holding inventories of finished product is extremely expensive • Extensive range of SKU in each

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