Barilla SpA: Pasta Distribution Analysis

Company Overview Barilla SpA is a large, vertic altogethery integrated, family owned alimentary paste guild based in Italy. It maintains a leadership dress among a field of thousands of Italian competitors producing and distributing brand-name pasta. Its operations are separate among 3 merchandiseion divisions and two distribution channels, based on overlap shelf life. distribution was further divided between two central distribution centers (CDCs), based on geography. Customers were divided into 3 primary segments: Sm tout ensemble retail shops; wide-ranging breakaway supermarkets; and bragging(a) 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 beginy representing tenfold independent supermarkets. Fresh product was distributed through a entanglement of brokers. Inventory trains in th e tote up chain, managed via periodic-review inventory systems, were full(prenominal), with big levels of safety bloodline held for alter pasta (which had longer shelf-lives) than for odorous pasta. The CDCs carried approximately a 1-month egress 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 pronto to shortages, so increased safety stock was the preferred rejoinder to remove unevenness.

Distribution Problems The pasta supply chain suffered from perfect bullwhip-effect problems: hi gh 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 teaching on which to forecast demand. Increasing product variability exacerbated all of these problems. Barilla maintained over 800 SKUs of dry pasta alone. To react 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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