Barilla SpA

OVERVIEW

• Founded in 1875
• Technological leader in pasta production
• Vertically integrated manufacturer
• Inflexible in reacting to demand changes

SUPPLY CHAIN

• Plant to CDC to Distributor to Retailer
• Plant to Depot to Retailer

CHALLENGE

• Huge variations in orders from the distributors

CAUSES / EFFECTS

• Trade promotions to push certain products
• Volume discounts
• Incentives to sale staff
• Holding large volumes of inventory
• Challenges with forecasting demand

JITD

• Collect daily data on sales from distributors
• Barilla uses forecast to replenish stock

BENEFITS / DRAWBACKS

• Consistent ordering from distributors
• Reduced inventory holding costs
• Improved forecasting leads to fewer stockouts
• Requires buy in from stakeholders
• Distributors losing control of ordering