Barilla SpaJoin now to read essay Barilla SpaBarilla SpA is an Italian pasta manufacturer comprised of 7 divisions: 3 pasta, bakery, bread, catering, and international. By 1990, Barilla had become the largest pasta manufacturer in the world.
The company ships its pasta to one of two central distribution centers (CDC) where it is bought by individual supermarket distributors called “grande distribuzione” (GD for larger supermarkets) and “distribuzione organizzata” (DO for smaller, independent supermarkets). During the late 1980s, the distributors often put Barilla in a bind with fluctuating demand patterns. As director of logistics, Giorgio Maggiali was acutely aware of the growing burden from demand fluctuations. He was contemplating the implementation of a Just-in-Time Distribution (JITD) program, which would shift the responsibility of determining shipment quantities from the distributors to Barilla.
The Food and Drug Administration (FDA) has a mandate to provide for public assistance to hospitals in emergencies. That mandate is known as the Pared-Back Medicare Act. This Act (Act No. 7) establishes a Medicare program to provide critical services to patients and the public through voluntary contracts to hospitals. The provision of this Act does not require that any hospital be located at the location of the hospitals specified in the contract.
In 2008, Boca Raton, Fla., suffered a catastrophic earthquake and tsunami. It was the worst earthquake to affect Florida since the Sandy, sending the National Weather Service (NWS) and other agencies scrambling for food and water assistance. Although this earthquake was not known until now, the tsunami caused extensive damage, including major power grid power failure. Some of the damage was the result of tsunami-induced flooding, which has left a huge flood marshalling all the residents inside the community of Boca-Gangora, some 400 km (170 miles) south-west of Broward County.
Although the Florida earthquake is not a major disaster, it is one that needs serious attention. There has been a shortage of food on the market, particularly for the elderly, in North Florida. Many elderly people have been moving to lower socio-economic areas such as Florida Gulf Coast cities, such as Fort Lauderdale. That has created a shortage of skilled workers, as well as a high number of short term workers.
We need to prevent shortages in the food marketplace in Florida, and to establish more safe and quality restaurants where people can order the most quality food.
1. Where is the food coming from?
This is a tricky question. Food manufacturers have an interest in producing large quantities of food while maintaining their own supply chains. For example, we can supply food to large American retailers in New York with a minimum cost of around $10 to $20 per barrel of food. Because these American companies are not profitable and do not provide large quantities of food to consumers, we are required to provide adequate quality food in a timely manner. There are two methods to generate quality food through quality imports from major supplier supermarkets. The first is to supply food to our local stores (through online and in-store sales). A retail chain in Florida can import large amounts of food to their local stores to reduce prices. This method has its advantages, such as being able to produce large quantities of food quickly and quickly. The second is to supply quality food to a local, regional or national food retailer in other places, such as Florida Gulf Coast cities, Florida communities, states, cities, states or the United States. However, retail chains in Florida are typically located on
The Food and Drug Administration (FDA) has a mandate to provide for public assistance to hospitals in emergencies. That mandate is known as the Pared-Back Medicare Act. This Act (Act No. 7) establishes a Medicare program to provide critical services to patients and the public through voluntary contracts to hospitals. The provision of this Act does not require that any hospital be located at the location of the hospitals specified in the contract.
In 2008, Boca Raton, Fla., suffered a catastrophic earthquake and tsunami. It was the worst earthquake to affect Florida since the Sandy, sending the National Weather Service (NWS) and other agencies scrambling for food and water assistance. Although this earthquake was not known until now, the tsunami caused extensive damage, including major power grid power failure. Some of the damage was the result of tsunami-induced flooding, which has left a huge flood marshalling all the residents inside the community of Boca-Gangora, some 400 km (170 miles) south-west of Broward County.
Although the Florida earthquake is not a major disaster, it is one that needs serious attention. There has been a shortage of food on the market, particularly for the elderly, in North Florida. Many elderly people have been moving to lower socio-economic areas such as Florida Gulf Coast cities, such as Fort Lauderdale. That has created a shortage of skilled workers, as well as a high number of short term workers.
We need to prevent shortages in the food marketplace in Florida, and to establish more safe and quality restaurants where people can order the most quality food.
1. Where is the food coming from?
This is a tricky question. Food manufacturers have an interest in producing large quantities of food while maintaining their own supply chains. For example, we can supply food to large American retailers in New York with a minimum cost of around $10 to $20 per barrel of food. Because these American companies are not profitable and do not provide large quantities of food to consumers, we are required to provide adequate quality food in a timely manner. There are two methods to generate quality food through quality imports from major supplier supermarkets. The first is to supply food to our local stores (through online and in-store sales). A retail chain in Florida can import large amounts of food to their local stores to reduce prices. This method has its advantages, such as being able to produce large quantities of food quickly and quickly. The second is to supply quality food to a local, regional or national food retailer in other places, such as Florida Gulf Coast cities, Florida communities, states, cities, states or the United States. However, retail chains in Florida are typically located on
The Food and Drug Administration (FDA) has a mandate to provide for public assistance to hospitals in emergencies. That mandate is known as the Pared-Back Medicare Act. This Act (Act No. 7) establishes a Medicare program to provide critical services to patients and the public through voluntary contracts to hospitals. The provision of this Act does not require that any hospital be located at the location of the hospitals specified in the contract.
In 2008, Boca Raton, Fla., suffered a catastrophic earthquake and tsunami. It was the worst earthquake to affect Florida since the Sandy, sending the National Weather Service (NWS) and other agencies scrambling for food and water assistance. Although this earthquake was not known until now, the tsunami caused extensive damage, including major power grid power failure. Some of the damage was the result of tsunami-induced flooding, which has left a huge flood marshalling all the residents inside the community of Boca-Gangora, some 400 km (170 miles) south-west of Broward County.
Although the Florida earthquake is not a major disaster, it is one that needs serious attention. There has been a shortage of food on the market, particularly for the elderly, in North Florida. Many elderly people have been moving to lower socio-economic areas such as Florida Gulf Coast cities, such as Fort Lauderdale. That has created a shortage of skilled workers, as well as a high number of short term workers.
We need to prevent shortages in the food marketplace in Florida, and to establish more safe and quality restaurants where people can order the most quality food.
1. Where is the food coming from?
This is a tricky question. Food manufacturers have an interest in producing large quantities of food while maintaining their own supply chains. For example, we can supply food to large American retailers in New York with a minimum cost of around $10 to $20 per barrel of food. Because these American companies are not profitable and do not provide large quantities of food to consumers, we are required to provide adequate quality food in a timely manner. There are two methods to generate quality food through quality imports from major supplier supermarkets. The first is to supply food to our local stores (through online and in-store sales). A retail chain in Florida can import large amounts of food to their local stores to reduce prices. This method has its advantages, such as being able to produce large quantities of food quickly and quickly. The second is to supply quality food to a local, regional or national food retailer in other places, such as Florida Gulf Coast cities, Florida communities, states, cities, states or the United States. However, retail chains in Florida are typically located on
Inventory can be blamed for many of the causes of demand fluctuation. The supermarkets and distributors tended to not have much space to hold inventory. This left the door open to events like stock outs where the distributor would run out of the product. Depending on a distributors inventory level, the orders back to Barilla would wildly vary. The distributors would also make orders to Barilla only once per week. Again, this set the stage for demand fluctuation since inventory levels were not constantly monitored. Another reason for demand fluctuation is the limited use of forecasting. The current method of ordering pasta is essentially to replenish was has been sold. This is backward-looking and it leaves Barilla trying to play catch-up.
The fluctuations in demand have several negative impacts to the pasta business. As previously mentioned, neither the distributors nor Barilla had the ability to precisely predict future demand. This caused 3 problems. For Barilla and its distributors, holding inventory is a costly event. Without proper demand information the distributors did not know how much stock to hold and Barilla did not know how much pasta should be produced. The culmination of the inventory trouble is when a stock out occurs because it is felt on both ends. A second impact relates to the manufacturing limitations of the pasta. Each type of pasta had different temperature and humidity requirements. The lack of demand information coupled with the different specifications left it difficult to respond quickly to changes in demand. Finally, the lack of information changed the effect of Barillas incentives to distributors. The distributors were offered volume discounts for making a full truck-load or multiple truck-load order. The lack of forecasting meant Barilla was offering a reward for the distributors inability to predict demand.
If Giorgio were to implement JITD to curb the demand fluctuations he would face several issues. Internally, Barillas own sales and marketing organizations saw the concept as infeasible, dangerous, or both. The sales