Operations management

1. Barilla Spa Case
Submitted by
Apurva mittal
Gaurang agarwal
Riya Giri
Yash Maurya

2. INTRODUCTION
Founded by Pietro Barilla in 1875.
21% annual growth rate during the 1980’s.
World’s largest manufacturer as of 1990.
35% market share in Italy.
22% market share in Europe.
Strong brand image.
In depth market campaign

3. Key Issues
• Increasing operational inefficiencies
• Cost penalty
This results from large week to week variations
in its distributors order pattern.

4. Distribution Channel
• Raw Material
• Supplier
• Manufacturer
• Distributor
• Customer
• End Consumer

5. Product distribution
A.
• Independent stores
B.
• Independent supermarkets
• Chain supermarkets

6. Bullwhip effect
Amplified Variation in demand as one moves
up the Supply chain.
Retailer Wholesaler
DistributorFactory

7. Cause of Bullwhip effect
• Demand forecast
• Long lead times
• Order batching
• Price fluctuations

8. Implementations of JID
• Barilla logistics would forecast and deliver the
appropriate quantities at specific time.
• Better able to meet demand.
• Would allow barilla to distribute workloads
more evenly and efficiently.
• Decisions on distributions are transferred to
barilla.

9. JID benefits
• Decreases wasted overtime.
• Decrease inventory and carrying cost.
• Improve service sales.
• Increase ROI for all