BaRILLA SPA

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INTRODUCTION ABOUT COMPANY

1875 Barilla spa, an Italian company founded in by

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BARILLA PLANT

6 5 % BARILLA CDCS

35%

10% Click to 90% Master subtitle style edit GRAND DISTRIBUZI ONE CHAIN SUPERMAR 4/21/12 DISTRIBUZIO NE ORGANIZZA TA INDEPEND ENT SUPERMAR

BARILLA RUN DEPOT

SIGNORA MARIA SHOPS

CHANNELS OF DISTRIBUTION
Barilla Divided its products into two

categories , like

Dry Fresh

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PROBLEMS

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1. fluctuations in demand

Reason: promotion
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2. Week forecasting system Causes

Use simple order review system Order in batches no maximum and

minimum quantity.

Miscalculations of ROP and safety stock. Prefer to order in a batch. Due to this uncontrollable Supply system 4/21/12

( upwards 7% stock throughout the year) company face stock outs and back orders.

3. Operational inefficiencies'
Causes
v High inventory cost

They keep 1 month inventory in CDCS and DO carries two week inventory that account 12% of the product cost
v Wastage of inventory

because of poor forecasting, wastage increase because good are of perishable 4/21/12 nature.

4. Problems in SUPPLY CHAIN CULTURE

causes
v
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discount rate is very

EFFECT
v v

autonomy of supermarkets and distributors. poor communications.( dealer and supplier are different entity)

v No information sharing v Distributors do what they want without concerning

suppliers

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Jitd
JITD ( JUST IN TIME DISTRIBUTION

SYSTEM)

Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.

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HOW JITD HELP TO OVERCOME THE PROBLEMS

Deliver quantities required by end user Reduces entire supply chain, inventory

cost and that, result in high service level.

They are not providing discount on batch

orders

Remove inter-firm barrier and bypass other.

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LEAD TIME REDUECED

JITD SYESTEM

Earlier there was 10 day lead time because information flow was slow. There was inter firm barrier by in method they directly observe the order from distributers that make their task easy and remove all the obstacles. reason
As when information passes from various routes, it

takes too much time.

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Solutions
Use detecting method

Supply material not more not less Reduce number of SKUs(stock keeping

units). Supply according to the demand

v

this allow both to CDCs (centre distribution centre) and Dos (distribution centre) to reduce their inventory level. improved forecasting technique to reduce

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PROBLEMS THAT WE FOUND

New manufacturer plant established in

the rural area. than services.

They give preference to sale rather Distribution cost was very high, barilla

supply 35% by their own run depot that add to high inventory cost.

pastas. 4/21/12

They use tunnel kiln for making

SOLUTION FOUND BY US
Using cost effective promotional

technique.
Divide market into segmentations. Like

supply dry food to small retailers.

Use different statistical tools to measure

the demand.
Barilla spa can also go for niche

marketing.
Fresh products that have only 21 days life
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should be directly sold to the retailers.

THANK YOU

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