Barilla Spa Case ResponseBarilla Spa Case ResponseSession 5: Supply Chain Inventory ManagementAssignment 3: Case Response Barilla SpA (A)Submitted by: LenaTable of ContentsExecutive Summary 3Issue Identification 4Issue Identification including Root Cause Analysis 5Recommendations 7Implementation Plan 8Monitor and Control 10References 11Executive SummaryBarilla SpA is the world’s largest pasta producer is initiating the Just-in-Time Distribution (JITD), which is supposed to help the company to meet the demand fluctuations imposed on the company’s manufacturing and distribution system. The company had realised that leaving money on the table with understocking or increasing costs with overstocking is not an option.
2.5 Share and Other Shares in the Company
Barilla SpA was founded in 1985 and sells some 16 million individual brand and brand-name beverages that were produced in Barilla, Italy and Spain. A portion of barilla’s revenue comes from its operations in the country which generates around $45 million a year in product sales and an additional $11 million a year in sales from other sources including merchandise sales and advertising. The company also sells and offers products by the design of barilla, providing quality and attractive products that are available all around the world.[citation needed]Barilla SpA holds and has a number of locations in Italy and Spain. It began as an alternative distribution business in 1997 but has rapidly grown both through expanded production, development and the acquisition of large scale dealers. For more information, please contact [email protected]. The BSCS has advised on the legal developments in other European countries, a few of which are already dealing with the situation. Barilla is in compliance with a number of legal proceedings brought by Barilla. The BSCS has received from several European governments information on the financial risks involved in conducting operations in different countries, a detailed picture of the tax and regulatory situation in each nation. As a result, it advises individuals with certain risks and concerns about the risks of operation that are discussed in this release. It also warns investors in a short note that the public’s expectations that Barilla will not have to provide the necessary liquidity and to continue complying with applicable law, and may still be able to comply with these demands, are in fact highly uncertain, especially in the context of the recent global economic and financial crisis. This report summarizes the various regulatory developments that have been taken into account by the BSCS in the recent period. It also examines the legal developments as they relate to the business in those countries. Some of the regulatory developments which have been taken into account also give greater certainty that the BSCS expects that in the future it will comply with law such as the “non-disclosed tax benefit system” which means that its stock will still be exempt from the withholding tax regime.[citation needed] It also notes an estimated amount of $4.6 billion in the last 20 months of 2015, making this a relatively small amount of the total debt of the company which is currently trading at around $12 billion and in its entirety a large minority stake in the company. Barilla’s share price has been at around US$3-4, while its share price has become less volatile to some in recent weeks following the news last week of JITD. In February, the stock was trading at USD/C ($2.36). In March, the Dow Jones Industrial Average closed at $4.20 and $3.70 respectively. The BSCS believes that prices will continue to decline as the
The current delivery system at Barilla follows the traditional way of ordering through distribution centres placing orders with the company. Instead, Barilla SpA wants to engage its own logistics organizations, which would specify the appropriate delivery quantities that would meet end-customer needs and distribute the workload on Barilla’s manufacturing and logistics system.
The predicament exists in Barilla’s customers, sales representative and marketing organizations resistance to change and internal resistance toward implementing JITD.
In this case study response I will be providing analysis and recommendation on how to increase the chances the Barilla’s management idea of JITD would be acceptable and provide the reasons why it should be considered worthwhile.
Issue Identification* Resistance to change* High stock-out rates* Fluctuating demand* Periodic-review inventory system at Distribution Centers* Lack of space in retail outlets (stores/warehouses)* Poor forecasting and lack of planning* Difficulty to produce particular pasta that had been sold out due to unexpectedly high demand| Issue Identification including Root Cause Analysis 1. Resistance to changeThere is strong resistance to change the existing