1 / 7

Barilla SpA Case

Barilla SpA Case. OPIM 5110. Why should this work? What are the underlying economics? Who will Benefit?. Coordination Concept: Sequential, Myopic optimization. Evaluation of JITD Proposal. Supplier. Customer. Joint Optimization. Supplier. Customer.

Download Presentation

Barilla SpA Case

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Barilla SpA Case OPIM 5110

  2. Why should this work? What are the underlying economics? Who will Benefit? Coordination Concept: Sequential, Myopic optimization Evaluation of JITD Proposal Supplier Customer Joint Optimization Supplier Customer

  3. Amplification of Orders Placed on Suppliers Consumer Barilla DC Retailer Barilla Plant Distributor

  4. Causes of Fluctuation Poor Communication Promotions Volume Discounts Lead Times Number of SKUs Sales Compensation Stockouts No volume Constraints Cost of Fluctuation Production Inefficient Finished Goods Inventory Distribution Inefficiency Workers Equipment Trucks Complexity Distributor Inventory Causes and Cost of Demand Fluctuation

  5. JITD Implementation problems Action Perspective Causes External Internal

  6. Perspective Distributor’s Barilla’s • Who should have decision rights? • Type of Information to be transferred • Size • Capability • Geography

  7. Causes of Problems • Transportation discounts • Volume discounts • Promotional activities • No minimum or maximum order quantities • Product proliferation • Long lead time • Poor customer service rates • Sales compensation system

More Related