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8/19/2019 Barilla Spa Bullwhip effect
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BarillaCase Presentation
Team: HorizonsSaras Agarwal, Kevin Love, Jennifer Mason, Benedetta Piva, Janani Prithviraj
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Barilla – Positioned ForGrowth
• Revoltioni!ed Pasta "ndstr# – Strong $rand na%e
– &igh 'alit# (rod)t
– "nnovative Mar*eting (rogra%
•
Co%(le+ distri$tion networ* – C-Cs• Large n%$er of (rod)ts )ases additional
)o%(le+it# in the s((l# )hain – .ar#ing shelf life a/e)ts distri$tion
– More )o%(le+ %anfa)tring (ro)esses
– Fresh – fro% 0 – 0 da#s• C-C "nde(endent agents 12 regional warehoses
in "tal# S(er%ar*ets
– -r# – fro% 02 wee*s – 3 %onths• C-C -istri$tors s(er%ar*ets Re%aining dr# (rod)ts
04 s%all Barilla owned warehoses
8/19/2019 Barilla Spa Bullwhip effect
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S((l# Chain "sses5verview
• &igh varia$le ordering (atterns fro% downstrea%distri$tors
• 5((osition fro% distri$tors as well as internal
sales sta/ to i%(le%ent a Jst6"n67i%e6-istri$tion 8J"7-9 (oli)#
• Bllwhi( e/e)t in the s((l# )hain: in)reases )ostand de)reases ;ll rates
• Fo)sed on the fl;ll%ent of distri$tor orders,not )sto%er de%and
8/19/2019 Barilla Spa Bullwhip effect
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"sse
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"sse
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"sse
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"sse
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Re)o%%endations – "nternalSta/
• Barilla needs to restart the J"7- (rogra%$eginning with internal sta/
– ""FM
•
Progra% will assist the% in %eeting theirsales targets
– &ow
• ?ver#da# low (ri)ing strateg#
•
ew Pro%otion Poli)ies• ew sales in)entive (rogra%
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Re)o%%endations 6-istri$tors
• Contine J"7- (rogra% with distri$tors
– ""FM
• "n)reased servi)e levels with less e/ort
•
Lower re'ired safet# sto)* – &ow
• -is)onts to distri$tors willing toi%(le%ent two6wa# ?le)troni) -ata
"nter)hange 8?-"9• "%(le%entation of the .endor Manage%ent
"nventor# 8.M"9