Business School s Code Of Ethical Behavior - 1395 Words

Barilla Case Ian Gregory 29 January 2017 In accordance with the business school’s Code of Ethical Behavior, I attest that I have not engaged in any acts of plagiarism in completing the assignments. – Ian Gregory Case Issues Barilla was one of the most successful brands of Italian pasta during the time period enumerated in the case. Despite their success, there were a variety of issues that plagued the company. Such issues included fluctuating demand that created a bullwhip effect throughout the supply chain, putting excessive pressure on the corporation. Some of the problems with variable demand may have been related to issues with the sales and promotional methods that the company was undertaking. Trade promotion†¦show more content†¦Failure to do so was inhibiting the implementation of the JITD system and thus allowing problems faced by the company to fester. Supply Chain Issues The foremost of the issues being faced by the company seemed to be related to their supply chain. Forecasting demand, as earlier mentioned, was difficult due to variably. As it stood at the onset of the case neither Barilla nor their distributors had the technology or sophistication in their supply chains to accurately measure the fluctuating demand. Additionally, there were no order limits for distributers, which in conjuncture with the poor forecasting abilities of the company, created strain on the manufacturing process. The use of trade promotion further served to create unsteady demand. To add to these problems most of the distributors seemed to batch their orders; choosing to order on a weekly basis rather than in real time. This method for ordering was at odds with the supermarkets from which the distributors ordered. It is stated in the case that the supermarkets placed daily orders to the distributers biased on items sold during business hours. All of th ese factors decreased the logistical effectiveness of the company. Neither Barilla nor their distributors desired to take on excess inventory to buffer for the demand fluctuation. 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