Barilla’s manufacturing Essay

Manufacturing sal twort has 25 plants, including turgid flour mills, pasta plants, and odoriferous bread, as well as plants producing specialty products. desolate materials, in the manufacturing puzzle out, were trans mixtureed to packaged pasta on spaciousy-automated 120 meter long production lines. The plants were specialise by the type of pasta they would produce, with the primary feature base on the composition of the pasta, e.g. wry out or fresh pasta, pasta with or without eggs and spinach. Also, unconstipated within the same family of pasta products, individual products were ap post to plants based on the size and shape of the pasta. The manufacturing process at kali was very precise, and required firm heat and humidity specifications in the pasta dry process, so as to keep the changeover address low and quality high.Distri preciselyion kelpwort split up its products into dry and fresh product categories and maintained a different dissemination system for the t wo categories. The dry products category includes dry pasta and longer takege-life bakery products, whereas, the fresh products category includes fresh pasta products (with 21-day shelf life) and fresh bread (with angiotensin converting enzyme-day shelf life). kali had two central distribution centers (CDC) to which the products shipped from the plants. The fresh products were because purchased from these CDCs by self-reliant agents who then channeled the products through 70 regional warehouses located throughout Italy.From the CDCs rough 65% of the dry products went to the A-onemarkets, 70% of these (65% of dry products) went to A-one market chains, whereas, the remaining 30% went to independent super markets. The remaining 35% of dry products were distributed from the CDCs to barillas inheringly owned regional warehouses, which then distributed them to smallindependent shops Signora Maria Shops.Dry products apprenticed for supermarket chains were distributed from the CD C to the chains own distribution organization, known as Grande Distribuzione (GD). While those destined for independent supermarkets were distributed from the CDC to a electrical distributor known as Distribuzione Organizzata (DO), which acted as a centralized buying organization for a large number of independent supermarkets. The CDCs held a calendar months inventory for dry products, and 3 geezerhood for fresh products. The GD, DO and the internally owned regional warehouses (for Signora Maria shops) held a two-week supply for Barillas dry products. The following figure ( range 1) shows an illustration of Barillas distribution system for dry productsFigure 1 Barillas Distribution Network for Dry ProductsWhat is the enigma faced by Barilla? What do you cipher are the factors causing this hassle?Barillas pasta supply chain suffers from classic bullwhip-effect problem. It has been experiencing large amounts of variability in necessity resulting in practic adequate inefficiency and increase manufacturing, inventory, and distribution costs. The underlying factors of the fluctuating contract include Barillas sales strategy relying heavily on the use of promotions in the form of price, transportation and volume discounts sales representatives creation rewarded based on the amount of product sold to distributors, which led to sales representatives trying to push product to the distributors during promotions, diminish the ability to accurately forecast sales the distributors having full control over their orders leading to gaming behaviors and the pretermit of a computer forecasting system at the distributor level.Describe the solution proposed by Brando Vitali. wherefore do you intend this would help alleviate the problem?Brando Vitali suggested the implementation of a Just-In-Time Distribution(JITD) strategy, which is essentially the vendor Management Inventory (VMI) strategy. Barilla provide be in charge of the channel between the CDCs and the dis tributor and decide on the timing and size of shipments to its distributors. Thus, dissimilar traditional supply chains in which distributors short letter orders and manufacturers try to satisfy these orders as much as possible, in JITD Barillas own logistics organization would specify the portion delivery quantities those that will more effectively follow the end clients needs tho would as well as more evenly distribute the workload on Barillas manufacturing and logistics system. If implemented, Barilla fuck make better delivery decisions and improve its demand forecasts, be more effective in meet end-customers needs, and more evenly distribute the workload on its manufacturing and logistics systems. Also, the inventory levels at CDCs will in addition be reduced.What conflicts or barriers internal to Barilla does the JITD course of instruction make out? What causes these conflicts? How should Giorgio Maggiali deal with these internal conflicts?The main resistance intern al to Barilla was from the sales and marketing functions, which Barilla, until now, has relied upon for its success. The sales representatives feared simplification in both their responsibilities and bonuses due to a flatted sales level. The marketing people also feared a lessening in responsibilities as trade promotions would be voiceless to run with a JITD strategy. There were also concerns roughly inability to adjust shipments quickly to stock outs, escape of infrastructure to handle JITD, vague cost benefits, and increased competitor shelf space at distributors.I think Maggiali should demonstrate that JITD benefits not just Barilla, but also the distributors. He should run experiments at one or more distributor sites and prove his case. Also, Maggiali should win the marketing and sales people to look at the overall benefit to the supply chain. By getting the top management involved, by effectively advocating the benefits for the full supply chain, and by removing the obs tacles of sales incentives and reduced responsibility, Maggiali bottom effectively deal with this problem and get JITD implemented.How do you think a typical Barilla customer would respond to JITD? Why? How would you influence the customer that the JITD program was worth trying? If you are not satisfactory to sway the customer, what alternatives would you suggest to combat some of the difficulties that Barillas operating system faces?I think a typical Barilla customer, if explained to properly, should be able to comprehend the benefits associated with JITD for the entire supply chain. I would convince the customer by mentioning the benefits of the JITD in removing the bullwhip effect. I would point out the fact that they would actually be reducing their costs significantly because Barilla would be liable for monitoring and replenishing their inventories when levels are low. Moreover, the reduced inventory levels would also save them the cost for both inventories and space.If ho wever, I am not able to convince the customers, I will try other modes, in my capability, to effectively respond to the fluctuating demand. For this purposes, I would either reduce the varieties of products being offered which will reduce the need to have so many different inventories and SKU for both customers and Barilla. I could also try implementing the Just-In-Time (lean production) approach for Barillas manufacturing processes processes which are internal and Barilla has full control over.