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Solving Supply Chain Issues: Case Study of Barilla

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Added on  2019-09-18

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This case study discusses the problems faced by Barilla in their supply chain, including stock outs and the bullwhip effect. It suggests solutions such as Just-In-Time Distribution, e-commerce, express delivery, collaborative forecasts, everyday low pricing, vendor managed inventory, and supply contracts. The case study also explores the competing objectives of farmers, manufacturers, distributors, and retailers in the supply chain.
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Case Study
Solving Supply Chain Issues: Case Study of Barilla_1
Problem: 1a.JITD was mainly developed to resolve the problems of stock outs issue which stains the manufacturing and logistics operations of Barilla.The benefits of Barilla includes the effective decision making related to delivery and improvement in demand forecast in order to meet the needs and demands of consumers. The workload is distributed on the logistics system and manufacturing and distribution centres inventories could be minimised. The drawbacks include the loss of incentive by the sales workers due to the flat seat. The trade promotions are difficult to manage with JITD. b.The trade promotion will be difficult, and the bonus of sales workers will be eliminated after implementation.I will provide the opportunities for sales and personnel marketing which impacts on the program and provide the new way for sales and trade promotion.c.I will accept the program happily because the implementation of the program enables to smooth out the effect of bullwhip effect and minimize the cost of inventory and warehouse space.Problem: 2a.E-commerceThe stages of a supply chain can be improved through getting new ideas and customerdata which help to take the effective decision so that the optimised chain can be developed. The advancement in technology alleviates the effect.b.Express deliveryIt reduced the lead time which reduces the variability in supply chain and enhances the effect.c.Collaborative Forecasts It helps in attaining the supply chain's global optimisation which helps to alleviate theeffect.d.Everyday low pricingIt helps to attract a large number of customers which helps to estimate the demand by the manufacturer and it reduces the effect across the supply chain (Bozarth et al., 2016).e.Vendor managed inventoryIt helps to reduce the cost by knowing the estimated demand and mitigate the risk which alleviates the bullwhip effect.f.Supply contractsIt helps in the long run for achieving the global optimisation which alleviates the effect.Problem: 3Advantages:
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