Barilla Spa

nary(prenominal)adays, manufacturing and table services firms face growing ch allenges to increase profit margins amidst increasingly fiercer competition. Under such circumstances, industry analysts and im fiber cooking stove experts suggest manufacturers and service providers to promote more effective supply and demand planning, caution, and execution as the means to unlocking signifi quartert gains in margins. By definition, Search CIO (2007) defines SCM as the management of training, materials, and finances along a strand of process from suppliers to manufacturers and then from manufacturers to customers.The interests in the discussion of supply chain management occur since it relates to costs decrease in all aspects of business process especially regarding the inventory simplification that suggests manufacturer produce goods when needed. The bureau highlights that supply chain management result enhance lead time (time-to-market) of particular products, thus enabling al l parties within an organization to manage their resources more effectively. Concerning the issue, this paper will answer for supply chain management issue in kelpwort spA, an Italian manufacturer that sells their products to its retailers mainly via third-party distributors.The competition in the market has ca mapd unfavorable situation for kelpwort during late 1980s when the company faced unpredictable demands from its distributors. 2. What ar the reasons for the increase in variability in Barillas supply chain? Barilla maintains separate supply chain because the company has two general products wise(p) and teetotal products, which required special treatment. In this situation, fresh products is mainly purchased from the two central diffusion centers (CDCs) by independent agents who raise channeled the products into 70 regional warehouses across Italy.Meanwhile, about two third of dry products are sold at supermarkets. Figure 1 explains the supply chain systems for Barill a. Figure 1 Barilla Distribution Systems 3. How can Barilla recognise with the increase in variability? In order to succeed the distribution system, Barilla is known to practice the replenishment dodging, which describes an agreement mingled with Barilla and their supplier to share the data about relative frequency and inventory levels to stir Barilla demands (About. com, 2008).By delivering the products under the agreement with suppliers, Barilla is able to support their however in time (JIT) distribution system, which is considered to be the optimum strategy to follow through the companys mission of having increased customers gaiety. 4. What is the impact of transferring demand information across the supply chain? By sharing information between Barilla and their suppliers, there are positive impacts since the combination of JIT and replenishment strategy supports the demand fluctuations, reduced inventory level at warehouse, decreased stock-out levels etc.5. after part th e seller Managed scrutinise strategy solve the operational problems faced by Barilla? In Vendor Managed Inventory (VMI) strategy, the suppliers have greater state over the supply since they are required to determine the delivery frequency and inventory levels in order to maintain the agreed stock levels in warehouses. In addition, the practice of this system also helps Barilla to track out-of-stocks and other performance data, previous years sales history and trends.Therefore, the practice of Vendor Managed Inventory (VMI) has solved the operational problems at Barilla. 6. How can the supply chain meet disputeing goals of different partners and facilities? In order to avoid the conflict between different partners and suppliers of Barilla, the company must ensure that the implementation of alone in Time system will help the maintenance of satisfaction in services, inventory levels, and stock-out levels and others in which each supplier has taken part of the system.In addition, B arilla must also ensure that within implementation steps, the use of EDI to deliver the inventory information is the same among suppliers so the reliability can be secured and the compatibility level can be reached. Reference About. com. (2008). Reduce Inventory with these 3 Supplier Partnership Strategies. Retrieved September 7, 2008 from http//logistics. about. com/od/inventoryoptimization/a/supplier_partnr. htm Hammond, Janice H. (2008). Barilla SpA (A). Harvard Business School.OBrien, Kevin and Brian Springman. (2004). Optimizing Supply Chains, Understanding Demands. Retrieved September 7, 2008 from http//www. crmbuyer. com/story/35892. hypertext markup language Search CIO. (2007). Supply Chain Management. Retrieved September 7, 2008 from http//searchcio. techtarget. com/sDefinition/0,,sid19_gci214546,00. html YAO Kao-hua, LIU Chang-chuan. (2006). An Integrated come near for Measuring Supply Chain Performance. Journal of Modern Accounting and Auditing. Vol. 2, No. 10