Barilla SpA: Business Situation, Analysis and Insights, and Recommendations

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Case Summary
Business situation
Barilla SpA (A), an Italian pasta manufacturer, started in 1875 but has since grown into one of the largest enterprises across Italy. Through innovation and differentiation of its high-quality products, the pasta company has built a reliable brand. However, the company is currently experiencing a high variation in product demand largely because the company serves a diverse distribution network consisting of both large and small distributors, all with diverse order volumes. For this reason, the company logistic director, Giorgio Maggiali is concerned about the company’s reluctance to utilize the just-in-time distribution technique (JITD) to address fluctuations and increase overall efficiency in its distribution system.
Analysis and Insights
Barilla SpA’s (A) primary problem is the increasing fluctuations that significantly strain its logistics and manufacturing operations. Secondly, there is the internal resistance of the JITD program, particularly by the sales and marketing departments. Thirdly, there ...