Barilla spa case study answers. Barilla Spa (A) Case Study Solution for Harvard HBR Case Study 2022-11-05

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Barilla Spa is an Italian multinational food company that is known for producing a wide range of pasta products. The company was founded in 1877 and has since become one of the largest pasta producers in the world, with a market share of around 40% in Italy and a significant presence in other markets as well.

One of the main challenges that Barilla Spa has faced in recent years is managing the demand for its products. The company has a just-in-time (JIT) production system in which it produces and distributes products based on real-time demand from retailers. This system is efficient in that it helps the company minimize waste and reduce costs, but it also makes it vulnerable to disruptions in the supply chain.

In the 1990s, Barilla Spa experienced a number of problems with its JIT system due to fluctuations in demand and delays in the supply chain. This led to problems such as overstocking and understocking of products at different points in the supply chain, as well as excess production costs. In response to these challenges, the company implemented a number of initiatives to improve its supply chain management.

One of the main initiatives that Barilla Spa implemented was the creation of a demand-planning and forecasting system. This system used advanced software to analyze data on sales and customer demand in order to more accurately predict future demand for the company's products. The system also allowed the company to better manage its inventory and production levels, which helped to reduce waste and costs.

In addition to implementing a demand-planning and forecasting system, Barilla Spa also introduced a number of other measures to improve its supply chain management. These included the use of advanced logistics technologies, such as RFID (radio-frequency identification) tags and GPS tracking, to improve the visibility and efficiency of the supply chain. The company also implemented a number of partnerships and collaborations with suppliers in order to improve the reliability and efficiency of its supply chain.

Overall, the initiatives that Barilla Spa implemented were successful in improving the efficiency and reliability of its supply chain. The company was able to reduce waste and costs, and improve the availability and predictability of its products for customers. These improvements helped the company to maintain its strong market position and continue to grow in the competitive pasta market.

BARILLA SPA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

barilla spa case study answers

In order to fix this problem, barilla is going to have to do more than simply make a change to their production system — without knowing the real-time demands of their retailers, Barilla will be forced to struggle with surges in demand and a lack of view to future orders. Page 3 Alternatives and Options……………………………………………………………………. This was causing problems as the sales reps would try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods. Hence they get products after a lag of about 1 month and 3 weeks Chain Supermarkets: — Products are received through a chain of CDC, Large Distributor and in-house inventory. . Bakery Products medium to long shelf-life bakery products 5. State-of-the-art pasta plant due to which the owners ran into debt and sold the family owned business to an American firm W.

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Barilla spa case study answers Free Essays

barilla spa case study answers

The lead will also reduce after applying this approach because manufacturing will only place when the actual figure will be presented. Barilla was to blame for several of these underlying problems. Describes the support and resistance in the various functional areas of Barilla and distributors Barilla approached with the offer. A good plan would be for Barilla to start by running a pilot test within its own depot then with 1 or 2 distributors and use the results of the test regarding the cost savings and improvement in supply chain efficiency to convince other distributors about how beneficiary will be to all by implementing JITD. Also there is a need for increased acceptance of the program in the market, so Barilla needs to make efforts towards convincing the distributors about the benefits of the program. Hence, it is clear that available time for the last mile retailers to sell off their products gets reduced significantly.

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Barilla Spa Case Study

barilla spa case study answers

The QUESTION 4 The demand variability is very high in this industry and if the continuous replenishment program is implemented the business could face the situation of stock outs which would increase the costs of the business. Therefore, the case report involves addressing these problems by implementing Just in time Distribution system which was resisted by the marketing and sales personnel of the organization. Maggiali was looking for possible solutions of the problem. The JITD system gives more power to Barilla which may be looked on with doubt by some distributors who are not sure about the long term intentions of Barilla. The second is not yet visible in the preview. Requests for permission should be directed to permissions hbsp. How might Maggiali be more successful in persuading customer to at least try the JITD program? The distributors were unable to predict the right sizes, they simply wanted to avail the discounts by buying bulk quantities to fill up their shelf spaces.

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hw2 solutions

barilla spa case study answers

List any outside concepts that can be applied: Write down any principles, frameworks or theories that can be applied to this case. Gomak Incorporation Team Wikispeed: Developing Hardware the Software Way. Raw Marketing Copyright 2006 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America 11 10 09 07 06 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means electronic, mechanical, photocopying, recording, or otherwise , without the prior permission of the publisher. There are inaccurate forecasts due to the use of a periodic-review inventory system or manually counting inventory. What causes these conflicts? By making a way out from these problems the Just in time distribution approach can be implemented successfully. He proposed the idea of Just in Time Distribution — a method that would forecast and deliver appropriate quantities to their customers, and would allow Barilla to distribute workloads more evenly and efficiently. The sales and marketing organizations were particularly vocal in their opposition to the plan.

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Barilla SpA (A)

barilla spa case study answers

It should start with the local customers, which would minimize the resources required and can act as a testing ground for the program and help streamline the process. . . The case states that supermarkets carried an average of 4,800 dry-product SKUs and held the products for 10-12 days. Difficulty to run trade promotions with JITD which may push the customer to switch to another brand.

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Barilla Spa Study

barilla spa case study answers

LinkedIn Barilla Spa A Case Study Solution Introduction: Barilla Spa is the largest Italian based pasta manufacturer organization in the world. The case states that it takes ten days for Barilla SpA to deliver orders to distributors. Barilla has been facing huge variability in demand which is straining the manufacturing and distribution network of the company. Some of the effects of demand variations are: There are excess or insufficient inventories. If you were Giorgio Magglia, how would you deal with these? The top management will be concerned about the added responsibility of predicting demand on Barilla without any guarantee of cost reduction.

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Barilla SpA Case Study Answer

barilla spa case study answers

By 1990, the Italian pasta market was estimated to be around 3. . This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain. In addition, targeting the customers from three different channels makes increases the tied up cost for the company in manufacturing a product. The just in time distribution approach will help Barilla SpA in producing the actual demanded quantity so that the loss of inventory and waste can be avoided.

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Barilla Sp(A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

barilla spa case study answers

. It had formed a strong bond with LEGO. About 65% of their dry products take about 2 months to reach in the hands of consumers. It could make use of market surveys or interact with customers on a one-on-one basis. PROS: Resolve the demand fluctuation that often lead to the bullwhip effect. Diagnose the underlying causes of this problem. Manage the demand: Barilla should not only forecast demand but also should try to shape and influence it by marketing using surveys to determine the needs and expectations of the consumers and designing products to satisfy them.

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Barilla Spa

barilla spa case study answers

This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. ALTERNATIVES AND OPTION The proposed new system, Just-In-Time Distribution JITD , is one solution I suggest to resolve the demand fluctuation issues and lower costs. Higher overall warehouse and transportation costs The fluctuation demand may lead to overtime shifts in order to meet the demand, higher inventory of raw materials and frequent capacity adjustments, as well as higher transportation costs which all increase the overall cost of the product. Is this type of program feasible in our environment? How might Maggiali be more successful in persuading customer to at least try Premium Case study Customer Decision making Barilla Spa a Case Study can not be ignored. The tremendous variations occur in demand due to the many factors. .


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