Barilla SpA Case Study
As seen with Barilla, the variability can be caused by several issues. To begin with, lack of sharing information and visibility in the supply chain is among the reasons. Also, unexpected delays in supply of products to the distributors and an inability to adapt to events as they happen in real time are among the issues that resulted to variability in the Barillas supply chain.
While it is expedient to diversify on products a company deals with, this, as seen with Barilla, might come at a cost. The company produces a total of 200 varieties of pasta and has a large variety of packaging that amounts to 470. Moreover, it has a very long setup line, approximately 10 days.
To avoid conflict between players of the supply chain, Barilla has to put some measures in place. It has to be ensured that, Just-In –Time-Distribution (JITD) is implemented, this is to enhance order fulfillment. More importantly, Barilla needs to base its production on predictions in demand other than on orders. Additionally, the company has to collect information on demand and put it to use. Lastly, to avoid stress in the retailer’s end, Barilla has to notify the distributors first in case there is the need for additional inventories in the store. The store, also, has to ensure that the arrival of merchandise on shelves is timely.
Transferring demand information across the store is imperative in ensuring that there are no fluctuations in demand. ...Show more