barilla spa case analysis

8/19/2019 Barilla SpA Case Analysis

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Barilla SpA (A) Case Analysis,

a Supply Chain Perspective

Syndicate 4

Ishak Firdauzi R. (!""4###)

$arthin %ukas P. (!""4#4")

Brian %ee (!""4#&')

ea Pra*esya A. (!""4#+!)


2/15

Intrductin - Backrund

• Barilla /as 0unded in "+1& 2y Pietr Barilla.

• In "!3+ Pietr and ianni Barilla cnstruct a".& *illin s5uare *eter pasta plant in

Pedrinan.• In "!1" the c*pany /as sld t 6. R.

race Inc, an a*erican c*pany, and /asreac5uired in "!1! 2y Pietr Barilla.

• In "!!' Barilla /as the larest pasta*anu0acturer in the /rld *akin #&7 0the pasta in Italy and 7 in 8urpe.


3/15

Industry Backrund (")

• Cnsu*ptin per capita 0 pasta in Italy/as "+ kils9year.

• In the late "!+'s Italian pasta *arket /as

:at /ith r/th less than "7 per year.• In "!!' the *arket /as esti*ated #.&

trillin lire /ith r/th nly n Se*lina

pasta and 0resh pasta.• 8;prt *arket rse t '-&7 per year in

the early "!!'s


4/15

Industry Backrund ()

•


5/15

$anu0acturin Prcess (")

$ain *aterials :ur, /ater, and ther ptinal are es andspinach *eal.

– he $aterials /ere *i;ed t 0r* duh then rlled inta ln cntinuus sheet 2y pairs 0 rllers set at

increasinly clse tlerances. – he duh sheet /as 0rced thruh a 2rnze e;trudin

die screen> /hich *ake a distinctive shape.

– he pasta then 2e cutted int a speci?c lenth. he cutpieces then /ere hun ver d/els (r placed nt

trays) and *ved sl/ly thruh a ln tunnel kiln thatsnaked acrss the 0actry.

– he te*perature and hu*idity in the kiln /ere speci?ed0r each size and shape 0 pasta and tihtly cntrlled tensure hih 5uality.

–

he dryin prcess tk 0ur-hur ln, the pasta then/eihed and packaed.


6/15

$anu0acturin Prcess ()

• Plants /ere varied 2ased n special spesi?catin 0 thepast

• he prducts /ere c*psed /ith r /ithur es andsld as 0resh r dry pasta.

• @n-e pasta /as *ade /ith :ur rund 0r* granoduro (hih prtein hard duru /heat) the hihest5uality :ur.

• 8 2ased pasta and 2akery prducts, used :ur rund0r* grano tenero (tender /heat), such as 0arina.

• Shrt pasta prduct such as *acarni and 0usilli and%n prducts such as spahetti r capellini /ere als*ade seperately.


7/15

Channels of Distribution


8/15

Barila Distribution PatternBarilla separate

distri2utin syste*s0r its 0resh and dryprducts due t theirdierences inperisha2ility and retailservice *anae*ent

=ry Prduct (%nshel0 lives "+-4 *nthand $ediu* shel0 lives"'-" /eeks) Deldne *nth in C=C distri2utr super*arket

Fresh Prduct (Pasta"-day shel0 lives,Fresh Bread ne-dayshel0 li0e) *ved5uickly thruh thedistri2utin syste*

(# days held in C=C)independent aents

Bth =s and =


9/15

Sales andMarketing

Sales &Marketing

Strategy

Sales Representa

tives

Promotion

Advertising

• Deavy advertised psitinin as hihest5uality, *stsphisticated like e/els

and lu;ury avidedi*aes 0 traditinalitalian 0lklre

• 8naed /ith 0a*usathletes and cele2rities0r* *any cuntry strenthenin lyalrelatinships /ith italian0a*ilies t et i*aes as6here there is Barilla,

here is a h*e

Advertising Promoti

on

• Pr*tin 2asedstratey

• =ivided " year t "

Ecanvassperid,crrespndin apr*tinal prra*/ith dierent prduct ineach prra*

At anyti*e, 2uyers

culd 2uy as *any aspssi2leIncentives /ere ivent thse achievinsales taret

•


10/15

Sales Representatives

• !'7 0 Barilla Sales reps /rkin ti*e are spentat the stre level

• Sales reps 2 tasks areG *erchandisin Barillaprduct and settin up in-stre pr*tins.

• Sales reps activities are /eekly *eetin /ithdistri2utrs, assistin the /eekly rder placin 2ythe distri2utr, settin up pr*tins anddiscunts

• Sales reps als have respnsi2ility t reslve anypr2le*s /ith previus delivery such as returns,deletins and any ther pssi2le disputes.

• hey are als discussin the prectin 0 ne/

prducts and prices.


11/15

=istri2utin

• $arity 0 =s and =


12/15

I*petus 0r the HI=Prra*

• =urin "!+'s, Barilla e;periencedthe uncertainty 0 :uctuatinde*and.


13/15


• As they perate in 0d industry, Barilla0und it dicult t hld the sucient?nished ds inventries t *eet

distri2utrs rder re5uire*ent 2ecause it/as cnsidera2ly e;pensive /hen /eeklyde*and has :uctuated and has 2eendicult t predict.

• he cust*ers /ere chanin. heirde*ands /ere :uctuatin, yet the spacein retail utlet re*ained the sa*e


14/15


• hen, Brand Jitali, Barillas =irectrs 0%istics, envisined an idea t chane the/ay 0 prduct delivery 2y havin day-t-day

listics service.• he *ethd /uld 2e prcessed as 0ll/sG

8veryday, distri2utrs /uld prvide Barillathe data n /hat Barilla prducts it had

shipped ut 0 its /arehuse t retailersdurin the previus day, as /ell as the currentstck level 0r each Barilla SKL (Stck KeepinLnit).


15/15


• here are s*e risks n i*ple*entin HI=*ethd.

• he sales level /ill :atten i0 this HI= *ethd is

i*ple*ented• he adust*ent 0r ship*ent *iht 2e

insucient due t 5uick chane 0 sellinpattern

•

HI= *ethd can er the cust*er additinalservice at n e;tra cst and /ill i*prveBarillas visi2ility /ith the trade and *akedistri2utrs *re dependent t Barilla.

barilla spa case analysis

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