Barilla Spa is the world's largest pasta manufacturer founded in 1875 in Italy. It had a strong brand image and 21% annual growth in the 1980s, achieving a 35% market share in Italy and 22% in Europe by 1990. However, it was facing increasing operational inefficiencies and cost penalties due to large weekly variations in distributor order patterns, known as the bullwhip effect, which is amplified demand variation that moves up the supply chain. Implementing a Just-in-Time distribution model was proposed to help Barilla better forecast and deliver the appropriate product quantities on schedule to meet demand more efficiently while decreasing costs.

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