Name: Assadullah HASHIMI

ID # 020112066

Lecturer: Yardımcı Doçent, CANSER BİLİR

Subject: Supply Chain

Report for Barilla SpA

Introduction
Brillah was founded in 1875, when Pietro Barilla opened a small shop in Parma-Italy on by
Vittorio Emanuele where he used to sell pasta and bread products in his store. By
time passed a Barilla became very famous and formed its modest beginning into large
steped.The Barilla SpA became the World biggest pasta producer in 1990, where Pasta-
Share is 35percent in Italy and 22 percent in Europe, Channels of
Distribution. Products are divided in two categories, Fresh Products and Dry-Fresh
Products which is 21 day Shelf remain, Dry Products have been keep 18 to 24 Months,
or medium 10 to 12 weeks shelf lives, and Retailing outlets were too short as
free .

Problems in Barilla SpA:

They are giving over promotional activities like wise you need to correct your
distribution before you do something extra lack of advanced demand forecasting, the
distributor is not well established, reducing the transportation costs for the consumers,
they were giving very high amount for the customers to keep come, there is no maximum
and minimum orders, increasing the products in hand, having higher lead time, their
services were not enough to customer satisfaction, sales compensation is not good,
having the communication problem, the main problem in Barillah is the distribution
which centered the DO, in dry products exists 8oo different kinds packages of SKUS
where pasta has 200 different kinds and sizes to 470 packages. The barilla whole supply
chain is understanding less gain by information down streaming to up affecting by colt,
and the inventory levels are quite high also high SKU’s like we say here form one of DO,
cortege carries more than 600 quantities of the inventory where orders only 300 carrying
150 from 800 SKU’s. Barilla looks get to -7 percent of stock out into stores. Barrila using
a push strategy where dealing with situated suppliers and retailers of their two entities the
inventory planning purpose is less according to the cost information. While they are
giving discounts from 1.4 to 10 percents, they are gaining the race in Just in Time to
reduce the number of stock out to make able to the techniques. But they left JIT very
complex and hard to believe that promotion cannot work without JIT and the external
problems were seems to look on lack of trust, fear of changing and loss of autonomy. The
main reason for failing in JIT is that the SKU is clear to identify and there is no
investigation about the costs. Barilla did not get the knowledge about the consumers
directly without motivated out of distributor. They need to look out the reduction in the
order as well to keep inventory since it become a unsuitable or might be take more than
two weeks ahead than supermarkets cause haven’t exist the technological instruments to
control their inventory.