Barilla SpA Case Study Answer
Barilla SpA Case Study
Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.
Type: Supply Chain
Problems/Issues:
- Extreme demand fluctuations – week-to-week variation in distributors order pattern, strained
Barilla’s manufacturing and logistics operations: high inventory, stock out, low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product
- High inventory cost and manufacturing cost due to operational inefficiencies
- Strong resistance for JITD (Just In Time Distribution) Program implementation, either from
Barilla’s distributor or its own sales and marketing department or organization.
- Distributors inability to carry large number of SKUs
- Suffering from thinning margins, both manufactures and retailers, refer to high costs of distribution channel
- Is JITD program feasible in our environment? What kind of customer Barilla should target? And how to convince them?
List any outside concepts that can be applied: Write down any principles, frameworks or theories that can be applied to this case.
Fisher Supply Chain Framework:
Products Classifications: Functional Versus Innovative Products.
Supply Chain Types: Physically Efficient Versus Market-Responsive Supply Chains
Matching Supply chains with Products:
Functional Products
Physically
Efficient
Supply Chain
MarketResponsive
Supply Chain
Innovative Products
MISMATCH
MISMATCH
List relevant qualitative data: evidence related to or based on the quality or character of something.
-
Barilla differentiated their company with a high quality product supported by innovative marketing programs.
Raw ingredients were transformed to packaged pasta on fully automated 120-meter-long
Copyright © 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing ‘Case
Analysis Coach’.
production line.
Raw
Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.
Type: Supply Chain
Problems/Issues:
- Extreme demand fluctuations – week-to-week variation in distributors order pattern, strained
Barilla’s manufacturing and logistics operations: high inventory, stock out, low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product
- High inventory cost and manufacturing cost due to operational inefficiencies
- Strong resistance for JITD (Just In Time Distribution) Program implementation, either from
Barilla’s distributor or its own sales and marketing department or organization.
- Distributors inability to carry large number of SKUs
- Suffering from thinning margins, both manufactures and retailers, refer to high costs of distribution channel
- Is JITD program feasible in our environment? What kind of customer Barilla should target? And how to convince them?
List any outside concepts that can be applied: Write down any principles, frameworks or theories that can be applied to this case.
Fisher Supply Chain Framework:
Products Classifications: Functional Versus Innovative Products.
Supply Chain Types: Physically Efficient Versus Market-Responsive Supply Chains
Matching Supply chains with Products:
Functional Products
Physically
Efficient
Supply Chain
MarketResponsive
Supply Chain
Innovative Products
MISMATCH
MISMATCH
List relevant qualitative data: evidence related to or based on the quality or character of something.
-
Barilla differentiated their company with a high quality product supported by innovative marketing programs.
Raw ingredients were transformed to packaged pasta on fully automated 120-meter-long
Copyright © 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing ‘Case
Analysis Coach’.
production line.
Raw