Barilla SpA: Pasta Distribution Analysis

Company Overview Barilla SpA is a large, vertic altogethery integrated, family owned pasta guild based in Italy. It maintains a leadership coif among a field of thousands of Italian competitors producing and distributing brand-name pasta. Its operations are divided up among 3 merchandiseion divisions and twain distribution channels, based on intersection point shelf life. dissemination was further divided between two central distribution centers (CDCs), based on geography. Customers were divided into 3 primary segments: Sm solely retail shops; wide-ranging breakaway supermarkets; and outstanding supermarket set ups. Distribution to small retail shops was direct from the CDCs. Distribution to the supermarkets went through with(predicate) intermediate distribution centers, either owned by the chain, or operated by a third component party representing quaternate independent supermarkets. Fresh product was distributed through a internet of brokers. Inventory trains in the tote up chain, managed via periodic-review inventory systems, were full(prenominal), with larger levels of safety bloodline held for alter pasta (which had longer shelf-lives) than for juvenile pasta. The CDCs carried approximately a 1-month write out in inventory, and supermarket distributors maintained a 2-week supply, yet stockouts still occurred frequently. These high inventory levels were in part a result of light up control issues in the production process making it arduous to respond quickly to shortages, so increased safety stock was the preferred answer to remove variableness.

Distribution Problems The pasta supply chain suffered from uncorrupted bullwhip-ef fect problems: high inventory levels stored ! at each level of the supply chain; stockouts at the distributor level; demand variability magnification up the chain, and exacerbated by frequent promotions, broad truck Load (FTL) and other volume incentives; and a need of discipline on which to forecast demand. Increasing product variability exacerbated all of these problems. Barilla maintained over 800 SKUs of dry pasta alone. To hold these problems, the Director of Logistics desired to implement a Just In Time... If you want to get a full essay, order it on our website: OrderEssay.net

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