Barilla案例分析報(bào)告

1、實(shí)用文檔Strategic Supply Chain Management:Barilla sPADrainville, Julie, Pieris Sherline, Yu Zhewen, Ren Yuan, Okafo EKE,IfeomaESC4710 _010March 27, 2017STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPATable of ContentsCase Study 2: Barilla SpA 4Company Background 4Company Origins 4Figure 1: Trend of Barilla

2、 Sales and Italian Price Index 5Pasta Market Share 7Figure 2: 1990 Italian Pasta Market by Market Share 7Figure 3: 1990 European Pasta Market by Market Share 7Figure 4: 1990 Italian Bakery Market by Market Share 7Pasta Manufacture 7Figure 5: Barilla s Product Divisions 8Channels of Distribution 8Fig

3、ure 6: An illustration of characteristic of Barillas Products 8Underlying Drivers and Cause of Fluctuation Demand 9Figure 7: Weekly Demand of Barilla Dry Products 10(Hammond, 1994, p.22). 10Lack of Downstream Visibility 10The Bullwhip Effect 11(Chopra & Meindl, 2016) 12Figure 8: Demand Fluctuation a

4、t Different Stages in the Supply Chain. 12Supply Chain Objectives 13Figure 9: Barilla Distribution Channel 13Pasta Demand Patterns 14Impact of Fluctuation Demand 14Affected Line Items 16Just in Time Distribution (JITD) and cost reduction 16Functions of Just in Time Distribution 17Barilla Implementat

5、ion of Just in Time Distribution 19Customer Resistance 20Customer Persuasion 21Internal resistance 22Interpretation of JITD to salespeople 23Effect on Sales Performance and Customer Satisfaction. 23Effects on Promotions 24Channel Decisions 25Downstream Supply Chain Visibility 26(Weblearnindia 2014)

6、27Figure 10: Visualization of a Supply Chain 27Visibility - Upstream from the Manufacturer. 28References 315Case Study 2: Barilla SpACompany BackgroundCompany OriginsBarilla is an organization owned by Pietro Barilla, which started out in1875 as a retailer. The stores main products included pasta an

7、d breadthat were produced in a lab next door (Hammond, 1994, p.1). Barilla grew turning into a large pasta manufacturer, experiencing significant growth before it was passed to his sons Pietro and Gianni in the 40 s (Hammond, 1994, p.1). As Barilla s ownership was passed down through the generations

8、, the company grew and became a vertically integrated corporation (Hammond, 1994, p.1). The growth resulted the organization being compromised of flourmills, pasta plants and bakery-product factories geographically dispersed throughout Italy (Hammond, 1994, p.2).Barilla was able to grow its market s

9、hare of the pasta industry through their manufacture of high quality products, innovative marketing techniques and practices and by creating a strong brand within Italy. These strategies resulted in double digit growth. Barilla made bold strides and began to construct the world s most sophisticated

10、and technologically advanced pasta plant (Hammond, 1994, p.2). The high investment in building this facility placed huge pressure on Barilla sfinances. In 1971, Barilla ended up being sold to a multinational firm named Grace (Hammond, 1994, p.2).In addition to changes in the organizations business p

11、ractices, Grace introduced a new line of bakery products called White Mill. The highlyregulated Italia n economy and Barilla operati ng en vir onment coupled with difficult economic conditions of the 70 s made it difficult to operateBarilla remain profitably (Hammond, 1994, p.2). This led to the re-

12、sale of Barilla to its original owner Pietro Barilla in 1979 (Hammond, 1994, p.2).With new infusionof capital coupled with the organizationalchangesinstitutedby Grace, Pietro was able to return Barilla to its formerglory as depicted in Figure 1. A growth rate of 21% was made possible in the 80 s thr

13、ough the international expansion of the Barilla brand, andthe acquisiti onof new bus in esses (Ham mond, 1994, p.2). Barillamaintained a research and developme nt facility and pilot product ion pla nt for develop ing and testi ng new products and product ion processesfor their orga ni zati on.Trend

14、of Barilla Sales and Italian Price IndexBarilla Sales(BLire) Italian Price idnexFigure 1: Trend of Barilla Sales and Italian Price IndexSTRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA1990 Italian Bakery71%Pasta Market ShareThe followi ng data was extracted from the Barilla case study.1990 Italian Past

15、a Market by Market Share3% Barilla ( voiello &32%Braiba nti) Brilla (Traditio nal )65%-. Others(over 2000)Figure 2: 1990 Italian Pasta Market by Market Share1990 European Pasta Market by Marketshare Barilla Others (over 2000)Figure 3: 1990 European Pasta Market by Market ShareFigure 4: 1990 Italian

16、Bakery Market by Market SharePasta ManufactureThe major processes invo Ivedin pasta manu facturi ngin elude: mixing,rolling,cutting,heating in a kiln, drying and packaging. Barillaemployed a tightly con trolledproducti on seque nee to mi ni mize cha ngeover costs in spite of producing a wide variety

17、 of pasta creating a veryin flexiblemanu facturi ng en vir onment (Ham mond, 1994, p.3). Some pla ntsproduced differentvarieties; others were dedicated plants includinglong and short pasta pla nts.Figure 5: Barilla s Product DivisionsCha nn els of Distributio nA profile of Barillas products, as well

18、 as some key features is show nbelow in Figure 6.Barilla Product ProfileBarillaFresh -25% ofScope & FocusofTD訃IILShort Shelf-life1 Medium Shelf-lifeLeng Shelf-life (18-Of 21 days:(10-12 weeks)24 months, ?800 different 5KUS-Separate DistributionSvstenn-Perishabilityconstraint- Different Service kve r

19、equirementsDry - 75% of salesSTRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA34Underlying Drivers and Cause of Fluctuation Demandin the7 below.Barilla is currently experiencing a high rate of fluctuation demand generated from their customer, as displayed in Figure There are multiple underlying factors

20、that contribute to this sporadic demand pattern. This fluctuation creates a difficult environment for a supply chain to be effective resulting in negative effects for both the organization and the customer.Orders from Corlese Northeast DC to Pedngnano CDCwsw-no u 二 9eq(Hammond, 1994, p.22).Figure 7:

21、 Weekly Dema nd of Barilla Dry ProductsIn exam ining Figure 7 we are able to visualize the extreme fluctuatio nin customer dema nd Barilla experie nces. The chart displays that Barilladry products mean is 300 quintals and a standard deviation of 227 quintals. The standard deviation value is close to

22、 the mean, which showing high variati ons. This dem on strates that the distributio n patternhas extreme fluctuati on. The maximum order nu mber is approximately 900 quin tals and the minimum order nu mber of approximately 50 quin tals; such a large gap shows the un predictability Barilla curre ntly

23、 faces. This is a result of customers placi ng orders in reacti on to dema nd. This type of patter n is usually a result of orders being placed due to panic or over ordering inan ticipati onfor customer dema nd. The dema nd patter ndisplayed in Figure 7 creates higher cost for the en tire supply cha

24、 in.Lack of Dow nstream VisibilityBarilla and its customers currently do not have infrastructure that allows them to enable information sharing of customer demand throughout the supply chain. This results in supply chain stages being blind of actual customer demand. This results in a distorted deman

25、d pattern as it flows downstream through the supply chain. This is reflected in the order patterns Barillas receive. This creates a difficult environment for supply chain to coordinate efforts.The Bullwhip EffectThe order patterns, shown in Figure 7 are a direct result of the bullwhip effect. The bu

26、llwhip effect identified in the demand patterns of the supply chain. Orders sent throughout the supply chain become larger in variance in comparison to the actual demand of the end customers. This effect is generated by a lack of supply chain coordination and information sharing throughout the suppl

27、y chain (Chopra& Meindl, 2016). Figure 8 is a pictorial representation of how the bullwhip effect looks through the supply chain. When looking at the wholesaler s order to manufacturer we can see similarities in Barilla demand patterns. Figure 8 displays a product with steady demand however as it tr

28、avels throughout the supply chain high demand fluctuation occurs.Consumer Sales at RckulcrpudLSU- . SJ J -c- -L -c c- _L fv -T*- 1- fl- f% Z4- rl r- o 9 OC 7 屯 3 2 1L I I I I L I I I I I L I I I I L I I I l L I I I I L I I I I L I I I15 9 13 17 21 25 29 33 37 41- .1. .1 1- ) 1- LI- .1. 1- J .1, -E-

29、/d fl rff. -ii ff. n fa. ( .11 ) r 1. 1- n n n ( ( 098 7(m,4(3 2 1Tunefe_IJ - I rc- _c c- fl c- fl m90807605403(2KM)()30()11 h i 11 i i 11I i i i h h i 1111 i i 1111 h 1111115 9 13 17 21 25 29 33 37 41Time1 4 7 )01316 兇22252X31 34374()Time(Chopra & Mei ndl, 2016)Figure 8: Dema nd Fluctuati on at Dif

30、fere nt Stages in the Supply ChainIt isappare nt that Barilla iscurre ntlyexperie ncingthe bullwhipeffect due to theircurre ntrelati on shipwith their customers. Eachphase in the supply chain is currentlyoperatingin silos. This is aresult of each stagefocusingon differentobjectives without theconsid

31、eration of the overall effect it has on its supplier.Supply Chai n ObjectivesThe image below in Figure 9 is a graphical representation of Barilla sdistributi on cha nn el. This displays the various stages with in the supplychain. Dry products must go through multiplechannels before reachingthe end c

32、ustomer.Figure 9: Barilla Distributio n ChannelThe overarchingproblem lies with efficient supply chain coordination.This in cludes a lack of forecasti ng system and com muni catio n to en surethat dema ndn eeds are met.Itis appare nt that thereis lackofcoordi nati onof objectivesanddema nd betwee n

33、cen traldistributi oncenter (CDC) and the grand distributor (GD). For instanee,thedistributor purchases dry products in higher volumes whe n a promoti on or disco unt in give n to decrease their inven tory purchas ing cost. They don t con sider the pote ntial con seque nces this may gen erate in the

34、 long term for the supply chain. This decentralized decision-making results in high and unpredictable fluctuations in demand.Pasta Demand PatternsDemand patterns for pasta have been relatively stable throughout history.In 1980 s it was shown that “ Italian pasta market as a whole was relatively flat

35、, growing less than 1% per year. It is estimated that the average in 1990 “ per capita pasta consumption in Italy averaged nearly 18 kilos per year ” (Hammond, 1994, p.2). Pasta is a staple consumed in large quantities when compared to other European countries. Pasta also exhibits limited seasonalit

36、y in demand with special types of Pasta popular in the Easter and summer (Hammond, 1994, p.2) Over the years, pasta sales have kept pace with inflation; however in the 90s when themarket remained flat, sales were boosted by exports. This shows that the demand patterns for Barilla are not accurate to

37、 the actual consumption of pasta in Italy.The graph in Figure 1 as seen on page 3 is representative of Barilla sales, which has kept track with the Italian wholesale price index. We can use this index as a measure the inflation in the Italian economy. The profile of the graph suggests that sales hav

38、e kept pace with inflation. According to this data inferences can be made that demand has remained stable.Impact of Fluctuation DemandThe high fluctuation in customer demand is known as the bullwhip effect.This is a consequence of ineffective coordination and information sharing in Barilla supply ch

39、ain. This lack of coordination has resulted to the implementation of reactionary inventory, sales and marketing decisions. This creates a detrimental impact on the performance of the supply chain s ability to meet changing demands and customer needs.The fluctuation demand has a high impact of the or

40、ganization ability to meet fluctuating fulfill rates subsequently leading to stock outs. In an attempt to minimize these occurrences Barilla tries to maintain high inventory levels of finished goods. It is difficult for the organization to response to fluctuation demand patterns, as there manufactur

41、ing process has limited flexibility. The production sequence implemented to keep change over cost low and product quality high has decreased their ability to deal with unexpected periods of high demand fluctuation.The manufacturing process inability to response well to high demand fluctuations resul

42、ts in a higher cost for the organization. In periods of unexpectedly high demand, the desired quality of the product may be jeopardized due to stress of the manufacturing process to produce orders faster. When stocks out occur a higher replenishment lead-time is expected due to their incapability to

43、 increase capacity. The impact isfelt by an increase in overall cost and a negative effect on customer relationships.Unexpected variations of demand at the distribution levels results to high inventory holding cost, distribution cost, stock out cost, transportation cost, labour cost, product availab

44、ility and risk of a negative customer relationship. The increase in inventory holding in order to meet demand exposes it to a higher risk of pilferage and obsolescence. Without a plan to change the methods of coordination within the supply cha in, the orga ni zati on will continue to in crease itsco

45、st in tryi ng to meet high fluctuati ng dema nd patter ns.Affected Li ne ItemsThere is a significant financial impact of order fluctuation for Barilla.Whe n orders are higher tha n expected this leads to: Change in producti onseque nee and additi onal costs of product ionwhich reduces margi n and af

46、fects (lowers) profit* When product ion is not met it is a lost sale which also reduces profitabilityWhe n orders are lower tha n expected:* When there is overproducti on and the manu facturerin creaseitsfinished goods inventoryresulting in higherholdingcost andgen erated a n eed for more space with

47、i n the warehouse* Asset in the bala nee will be in creased it affects cash flowJust in Time Distribution (JITD) and cost reductionJITD is a mecha nism to create a more streamli ned supply cha in through anin crease in in formati on shari ng, and coord in ati on of supply cha ins forBarilla.Thereque

48、stedchangedema nds fora majorchangeintherelatio nshipsbetwee nBarillaand theircustomer. Theoverallimpleme ntati onof JITDis saidto have directimpacton costfortheorga ni zati on.In 1988Vitali stated one ofthe maincon tributio nstocost in theirsupply cha in was;“ distributioncost,inven torylevelsand u

49、ltimately our manufacturing costs if we didnt have to resp ond tothe volatile demand patterns of the distributors ” (Hammond, 1994, p.7).The proposed change in their supply chain is said to reduce costby creating a more accurate depiction of demand through better information sharing and overall coor

50、dination.The implementation of JITD would give cost reductions to the organization by allowing them to better forecast demand and manage their overall inventory levels. Currently the organization is reacting to demand that is inflated as a result of the bullwhip effect. In order to try and match dem

51、and the organization attempts to absorb the uncertainty through high levels of inventory. This creates higher cost for the entire organization and can have negative impact on product availability and customer relationships as they have an inability to forecast actual demand.With an increase in coord

52、ination and information sharing, the supply chain would gain the ability to decrease its cost and increase customer satisfaction. Better forecasting enables the organization ability to have a more accurate product availability, more stable lead times due to a decrease in stock outs, an overall incre

53、ase in positive customer relationships and an increase in profitability (Chopra & Meindl, 2016, p 249).Functions of Just in Time DistributionA more transparent supply chain allows the organization to have a better understanding of the overall customer demand. A more accurate depiction of customer de

54、mands will lead to better information and coordination between Barilla and its customers. A JITD implementation should have direct effect on the organization ability to reduce manufacturing, inventory, transportation and labour cost; a reduction in replenishment lead time, and in increase in product

55、 availability and customer relationships.The increase in information sharing will allow the organization to create a more accurate forecast of demand throughout the supply chain.This results in a better management of inventory. Reducing the organization s stock out percentage and decreasing the repl

56、enishment lead time needed to meet orders for their customer. As the information flows through the supply chain every stage will a more accurate picture of demand, decreasing the amount of orders in the supply chain that are bought through panic and over ordering (Chopra & Meindl, 2016). The more st

57、able demand would allow all stages of the supply chain to reduce their overall cost of operation and increase profitability.A decrease in manufacturing cost would be generated with an accurate forecast, as production schedule would reflect actual consumer consumption. A decrease in the purchase of raw materials and a decrease in the overproduction o