This combined with the lack of technology and transparency causes an ineffective and dysfunctional supply chain. With the advances that Barilla gained from W. Barillas Problems The main problems that Barilla is having can all be traced back to the broken, or lack of supply chain that Barilla has.
With this the successful growth the problems grew too; in this paper I will discuss the problem that occurred and the solutions that Barilla could have taken to fix them. Barillas Best Route First we have the option that Barilla could allow their current distributors to give their input on the actions they should take and then implement their decisions.
Reference Barilla Pietro Barilla, who used to make and sell his pastas and breads in his own stores, founded Barilla in The quality of his pastas and breads that he sold drove the popularity of his products and the success that he had. Barilla made a big mistake letting their distributors make the decision, and then tell Barilla how much Barillas supply chain were going to carry in their distribution center.
The financial burden of the plant and the decrease in business forced the owners to sell the company to W. In order for Barilla to correctly forecast demand, Barilla would need access to the sales records of the retail outlets. This would be great for CRM, however this would be extremely costly for Barilla.
Demand forecasting is done in attempt to lessen the effects of the bullwhip effect. This proved to be a bad financial choice for W. This in turn would not fix anything, and the bullwhip effect would continue to get worse and cost Barilla a lot of time and money. This information combined with more transparency within the whole supply chain would allow Barilla to fix the segmented broken supply chain that they currently have.
Barilla lets their distributors make the decisions on how much they will carry and deliver, as well as how much Barilla will produce. Barilla would need to build a better relationship with their retail stores to gather the information needed to calculate an accurate forecast model, or they may purchase the data that is needed from the stores.
I found that because I was able to see what the retailer was expecting, inventory on hand, lead and transit times in the whole supply chain, this information helped me to lessen the bullwhip effect. Barilla Solutions Barilla could have approached their issues in a number of different ways; the following are a few different approaches.
Barilla could use quantitative forecasting methods to help to lessen the bullwhip effect. The attitude that Barilla was meant with buy their customers proved that Barilla needed to strengthen their customer relationship management.
I found this information to be invaluable when I was conducting the Beer Game simulation. Barilla would still be allowing their distributors to call the shots when it came to ordering and even controlling the flow of product.
Grace and the leadership of Pietro, Barilla was able to become the largest pasta manufacture in the world. Barilla Issues Barilla had a problem that we see throughout the food industry; Barilla had a hard time in forecasting the fluctuation of demand Schulz, This type of environment is very difficult to produce for; this is why companies try to calculate the demand they will experience demand forecasting.
Grace, because in the cost could not justify the purchase so they sold the company back to Pietro Barilla.pg. 2 MGP | Supply Chain Management | Barilla Case Venkata Gudladona and Kanupriya Verma Since the major problem faced by Barilla is lack of information on the demand.
VMI can help create a collaborative planning where by Barilla can have the demand information. 12 thoughts on “ Smart Pasta: Barilla’s Digitization of the Food Supply Chain ” November 21, Viroopa Volla says: Thanks for writing about food waste reduction!
The problem with Barilla's broken supply chain and a possible solution - A case study - Eric Sisco - Term Paper - Business economics - Supply, Production, Logistics - Publish your bachelor's or master's thesis, dissertation, term paper or essayPages: 6. Presentation on Barilla Spa Case: An HBR Case presented in class in XLRI Jamshedpur (GMP).
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