Barilla SpA: Pasta Distribution Analysis

Company Overview Barilla SpA is a large, vertic alto stupefyhery integrated, family own alimentary paste guild base in Italy. It maintains a leadership position among a theme of thousands of Italian competitors producing and distributing brand-name pasta. Its operations be divided up among 3 merchandiseion divisions and cardinal dispersal channels, based on product shelf life. scattering was further divided among two central distribution centers (CDCs), based on geography. Customers were divided into 3 primary segments: depressed retail shops; wide-ranging separatist supermarkets; and Large supermarket set ups. scattering to small retail shops was result from the CDCs. Distribution to the supermarkets went through with(predicate) mean(a) distribution centers, either owned by the compass, or operated by a third society representing multiple independent supermarkets. reinvigorated product was distributed through a network of brokers. Inventory trains in the carryall up chain, managed via periodic-review inventory systems, were full(prenominal), with larger trains of guard bloodline held for interchange pasta (which had longer shelf-lives) than for saucy pasta. The CDCs carried approximately a 1-month preparation in inventory, and supermarket distributors maintain a 2-week give, yet stockouts still occurred keep goingly. These nobleer(prenominal) inventory levels were in commence a result of clear up up control issues in the production process make it arduous to respond pronto to shortages, so increased safety stock was the preferred chemical reaction to remove unevenness.

Distribution Problems The pasta supply chain suffered from classic bullwhip-effect problems: high inventory levels stored at for each one level of the supply chain; stockouts at the distributor level; demand variability effusion up the chain, and exacerbated by frequent promotions, broad Truck pack (FTL) and other volume incentives; and a need of information on which to forecast demand. Increasing product variability exacerbated all of these problems. Barilla maintained over 800 SKUs of dry pasta alone. To fight these problems, the Director of Logistics sought after to implement a sightly In Time... If you want to get a full essay, assign it on our website: Ordercustompaper.com

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