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Barilla SpA- Team 7

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by

Eda Brana-Soto

on 4 November 2014

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Transcript of Barilla SpA- Team 7

What is the problem?
Bullwhip Effect
Recommendation
Barriers to
JITD

Fluctuating
Demand
DISTRIBUTION
Barilla Plants
Barilla- Run
Depots
Barilla CDCs
Grande
Distribuzione
(DC)
Distribuzione
Organizzata
(DO)
Signora Maria
Shops
Chain
Supermarkets
Independent
Supermarkets
65%
35%
90%
10%
2 week supply
2 week supply
JITD
Just in Time Distribution
Benefits
of
JITD
Barilla Level
Distributor Level
Retailer Level
How will JITD
fix the
problem?
Culture
Flexibility
Ne
Technology
Product Quantity
Promotion Incentives
HOW?
1. Prove the concept
2. Invest in technology
3. Incentivize sales team
25% Fresh
75% Dry
1 month supply
1 day
7 days
High levels of inventory and stockouts
1875
Open communication
Sales force
Respond to demand quickly
Forecasting software
Inventory management system
Sku redundancy
Slow changeovers
Limit volume discounts
1. Increase visibility of customer demand
2. Reduce Inventory costs
3. Reduce manufacturing costs
4. Improve current margins
1. Pass savings onto the customer
2. Lower probability of stock-outs
3. Free-up warehouse space
1. Pass savings onto the customer
2. Lower Stock-out Rates
3. Lower Carrying Costs
4. Service Level
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Full transcript