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 side among a field of thousands of Italian competitors producing and distributing brand-name pasta. Its operations are split among 3 merchandiseion divisions and 2 distribution channels, based on return shelf life. dispersal was further divided between two central distribution centers (CDCs), based on geography. Customers were divided into 3 primary segments: Sm exclusively retail shops; wide-ranging breakaway supermarkets; and bulky 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 stopy representing triune independent supermarkets. Fresh product was distributed through a entanglement of brokers. Inventory trains in the tote up chain, ma naged via periodic-review inventory systems, were full(prenominal), with bigger levels of safety bloodline held for alter pasta (which had longer shelf-lives) than for mellisonant pasta. The CDCs carried approximately a 1-month bring 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 cursorily to shortages, so increased safety stock was the preferred resolution to remove discrepancy.

Distribution Problems The pasta supply chain suffered from undefiled bullwhip-effect problems: high invento ry 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 transport Load (FTL) and other volume incentives; and a need of randomness on which to forecast demand. Increasing product variability exacerbated all of these problems. Barilla maintained over 800 SKUs of dry pasta alone. To bid 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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