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1、STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA Strategic Supply Chain Management:Barilla sPA Drainville, Julie, Pieris Sherline, Yu Zhewen, Ren Yuan, Okafo EKE, Ifeoma ESC4710 _010 March 27, 2017,1,STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA Table of Contents Case Study 2: Barilla SpA . 3 Company B
2、ackground.3 Company Origins. 3 Figure 1: Trend of Barilla Sales and Italian Price Index . 4 Pasta Market Share . 5 Figure 2: 1990 Italian Pasta Market by Market Share. 5 Figure 3: 1990 European Pasta Market by Market Share . 5 Figure 4: 1990 Italian Bakery Market by Market Share. 6 Pasta Manufacture
3、. 6 Figure 5: Barillas Product Divisions. 6 Channels of Distribution. 7 Figure 6: An illustration of characteristic of Barillas Products . 7 Underlying Drivers and Cause of Fluctuation Demand .7 Figure 7: Weekly Demand of Barilla Dry Products . 8 (Hammond, 1994, p.22). 8 Lack of Downstream Visibilit
4、y. 8 The Bullwhip Effect . 9 (Chopra others were dedicated plants including long and short pasta plants.,STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA,Channels of Distribution A profile of Barillas products, as well as some key features is shown below in Figure 6.,Figure 6: An illustration of charac
5、teristic of Barillas Products Underlying Drivers and Cause of Fluctuation Demand Barilla is currently experiencing a high rate of fluctuation in the demand generated from their customer, as displayed in Figure 7 below. There are multiple underlying factors that contribute to this sporadic demand pat
6、tern. This fluctuation creates a difficult environment for a supply chain to be effective resulting in negative effects for both the organization and the customer.,8,STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA,(Hammond, 1994, p.22). Figure 7: Weekly Demand of Barilla Dry Products In examining Figu
7、re 7 we are able to visualize the extreme fluctuation in customer demand Barilla experiences. The chart displays that Barilla dry products mean is 300 quintals and a standard deviation of 227 quintals. The standard deviation value is close to the mean, which showing high variations. This demonstrate
8、s that the distribution pattern has extreme fluctuation. The maximum order number is approximately 900 quintals and the minimum order number of approximately 50 quintals; such a large gap shows the unpredictability Barilla currently faces. This is a result of customers placing orders in reaction to
9、demand. This type of pattern is usually a result of orders being placed due to panic or over ordering in anticipation for customer demand. The demand pattern displayed in Figure 7 creates higher cost for the entire supply chain. Lack of Downstream Visibility Barilla and its customers currently do no
10、t 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,9,10,STRATEGIC SUPPLY CHAIN MANAGEMENT:BARILLA SPA a distorted demand 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 Effect The order patterns, shown in Figure 7 are a direct result of the bullwhip effect. The bullwhip effect identif
