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barilla案例分析
Barilla案例分析
StrategicSupplyChainManagement:
BarillasPA
Drainville,Julie,PierisSherline,YuZhewen,RenYuan,OkafoEKE,Ifeoma
ESC4710_010
March27,2017
TableofContents
CaseStudy2:
BarillaSpA
CompanyBackground
CompanyOrigins
BarillaisanorganizationownedbyPietroBarilla,whichstartedoutin1875asaretailer.Thestore’smainproductsincludedpastaandbreadthatwereproducedinalabnextdoor(Hammond,1994,.Barillagrewturningintoalargepastamanufacturer,experiencingsignificantgrowthbeforeitwaspassedtohissonsPietroandGianniinthe40’s(Hammond,1994,. AsBarilla’sownershipwaspasseddownthroughthegenerations,thecompanygrewandbecameaverticallyintegratedcorporation(Hammond,1994,.Thegrowthresultedtheorganizationbeingcompromisedofflourmills,pastaplantsandbakery-productfactoriesgeographicallydispersedthroughoutItaly(Hammond,1994,.
Barillawasabletogrowitsmarketshareofthepastaindustrythroughtheirmanufactureofhighqualityproducts,innovativemarketingtechniquesandpracticesandbycreatingastrongbrandwithinItaly.Thesestrategiesresultedindoubledigitgrowth.Barillamadeboldstridesandbegantoconstructtheworld’smostsophisticatedandtechnologicallyadvancedpastaplant(Hammond,1994,.ThehighinvestmentinbuildingthisfacilityplacedhugepressureonBarilla’sfinances.In1971,BarillaendedupbeingsoldtoamultinationalfirmnamedGrace(Hammond,1994,.
Inadditiontochangesintheorganization'sbusinesspractices,GraceintroducedanewlineofbakeryproductscalledWhiteMill.ThehighlyregulatedItalianeconomyandBarillaoperatingenvironmentcoupledwithdifficulteconomicconditionsofthe70’smadeitdifficulttooperateBarillaremainprofitably(Hammond,1994,.Thisledtothere-saleofBarillatoitsoriginalownerPietroBarillain1979(Hammond,1994,.
WithnewinfusionofcapitalcoupledwiththeorganizationalchangesinstitutedbyGrace,PietrowasabletoreturnBarillatoitsformergloryasdepictedinFigure1.Agrowthrateof21%wasmadepossibleinthe80’sthroughtheinternationalexpansionoftheBarillabrand,andtheacquisitionofnewbusinesses(Hammond,1994,.Barillamaintainedaresearchanddevelopmentfacilityandpilotproductionplantfordevelopingandtestingnewproductsandproductionprocessesfortheirorganization.
Figure1:
TrendofBarillaSalesandItalianPriceIndex
PastaMarketShare
ThefollowingdatawasextractedfromtheBarillacasestudy.
Figure2:
1990ItalianPastaMarketbyMarketShare
Figure3:
1990EuropeanPastaMarketbyMarketShare
Figure4:
1990ItalianBakeryMarketbyMarketShare
PastaManufacture
Themajorprocessesinvolvedinpastamanufacturinginclude:
mixing,rolling,cutting,heatinginakiln,dryingandpackaging.Barillaemployedatightlycontrolledproductionsequencetominimizechangeovercostsinspiteofproducingawidevarietyofpastacreatingaveryinflexiblemanufacturingenvironment(Hammond,1994,.Someplantsproduceddifferentvarieties;otherswerededicatedplantsincludinglongandshortpastaplants.
ChannelsofDistribution
AprofileofBarilla’sproducts,aswellassomekeyfeaturesisshownbelowinFigure6.
UnderlyingDriversandCauseofFluctuationDemand
Barillaiscurrentlyexperiencingahighrateoffluctuationinthedemandgeneratedfromtheircustomer,asdisplayedinFigure7below.Therearemultipleunderlyingfactorsthatcontributetothissporadicdemandpattern.Thisfluctuationcreatesadifficultenvironmentforasupplychaintobeeffectiveresultinginnegativeeffectsforboththeorganizationandthecustomer.
InexaminingFigure7weareabletovisualizetheextremefluctuationincustomerdemandBarillaexperiences.ThechartdisplaysthatBarilladryproductsmeanis300quintalsandastandarddeviationof227quintals.Thestandarddeviationvalueisclosetothemean,whichshowinghighvariations.Thisdemonstratesthatthedistributionpatternhasextremefluctuation.Themaximumordernumberisapproximately900quintalsandtheminimumordernumberofapproximately50quintals;suchalargegapshowstheunpredictabilityBarillacurrentlyfaces.Thisisaresultofcustomersplacingordersinreactiontodemand.Thistypeofpatternisusuallyaresultofordersbeingplacedduetopanicoroverorderinginanticipationforcustomerdemand.ThedemandpatterndisplayedinFigure7createshighercostfortheentiresupplychain.
LackofDownstreamVisibility
Barillaanditscustomerscurrentlydonothaveinfrastructurethatallowsthemtoenableinformationsharingofcustomerdemandthroughoutthesupplychain.Thisresultsinsupplychainstagesbeingblindofactualcustomerdemand.Thisresultsinadistorteddemandpatternasitflowsdownstreamthroughthesupplychain.ThisisreflectedintheorderpatternsBarilla'sreceive.Thiscreatesadifficultenvironmentforsupplychaintocoordinateefforts.
TheBullwhipEffect
Theorderpatterns,showninFigure7areadirectresultofthebullwhipeffect.Thebullwhipeffectidentifiedinthedemandpatternsofthesupplychain.Orderssentthroughoutthesupplychainbecomelargerinvarianceincomparisontotheactualdemandoftheendcustomers.Thiseffectisgeneratedbyalackofsupplychaincoordinationandinformationsharingthroughoutthesupplychain(Chopra&Meindl,2016).Figure8isapictorialrepresentationofhowthebullwhipeffectlooksthroughthesupplychain.Whenlookingatthewholesaler’sordertomanufacturerwecanseesimilaritiesinBarillademandpatterns.Figure8displaysaproductwithsteadydemandhoweverasittravelsthroughoutthesupplychainhighdemandfluctuationoccurs.
Figure8:
DemandFluctuationatDifferentStagesintheSupplyChain
ItisapparentthatBarillaiscurrentlyexperiencingthebullwhipeffectduetotheircurrentrelationshipwiththeircustomers.Eachphaseinthesupplychainiscurrentlyoperatinginsilos.Thisisaresultofeachstagefocusingondifferentobjectiveswithouttheconsiderationoftheoveralleffectithasonitssupplier.
SupplyChainObjectives
TheimagebelowinFigure9isagraphicalrepresentationofBarilla’sdistributionchannel.Thisdisplaysthevariousstageswithinthesupplychain.Dryproductsmustgothroughmultiplechannelsbeforereachingtheendcustomer.
Figure9:
BarillaDistributionChannel
Theoverarchingproblemlieswithefficientsupplychaincoordination.Thisincludesalackofforecastingsystemandcommunicationtoensurethatdemandneedsaremet.Itisapparentthatthereislackofcoordinationofobjectivesanddemandbetweencentraldistributioncenter(CDC)andthegranddistributor(GD).Forinstance,thedistributorpurchasesdryproductsinhighervolumeswhenapromotionordiscountingiventodecreasetheirinventorypurchasingcost.Theydon’tconsiderthepotentialconsequencesthismaygenerateinthelongtermforthesupplychain.Thisdecentralizeddecision-makingresultsinhighandunpredictablefluctuationsindemand.
PastaDemandPatterns
Demandpatternsforpastahavebeenrelativelystablethroughouthistory.In1980’sitwasshownthat“Italianpastamarketasawholewasrelativelyflat,growinglessthan1%peryear.Itisestimatedthattheaveragein1990“percapitapastaconsumptioninItalyaveragednearly18kilosperyear”(Hammond,1994,.PastaisastapleconsumedinlargequantitieswhencomparedtootherEuropeancountries.PastaalsoexhibitslimitedseasonalityindemandwithspecialtypesofPastapopularintheEasterandsummer(Hammond,1994,Overtheyears,pastasaleshavekeptpacewithinflation;howeverinthe90’swhenthemarketremainedflat,saleswereboostedbyexports.ThisshowsthatthedemandpatternsforBarillaarenotaccuratetotheactualconsumptionofpastainItaly.
ThegraphinFigure1asseenonpage3isrepresentativeofBarillasales,whichhaskepttrackwiththeItalianwholesalepriceindex.WecanusethisindexasameasuretheinflationintheItalianeconomy.Theprofileofthegraphsuggeststhatsaleshavekeptpacewithinflation.Accordingtothisdatainferencescanbemadethatdemandhasremainedstable.
ImpactofFluctuationDemand
Thehighfluctuationincustomerdemandisknownasthebullwhipeffect.ThisisaconsequenceofineffectivecoordinationandinformationsharinginBarillasupplychain.Thislackofcoordinationhasresultedtotheimplementationofreactionaryinventory,salesandmarketing
decisions.Thiscreatesadetrimentalimpactontheperformanceofthesupplychain’sabilitytomeetchangingdemandsandcustomerneeds.
Thefluctuationdemandhasahighimpactoftheorganizationabilitytomeetfluctuatingfulfillratessubsequentlyleadingtostockouts.InanattempttominimizetheseoccurrencesBarillatriestomaintainhighinventorylevelsoffinishedgoods.Itisdifficultfortheorganizationtoresponsetofluctuationdemandpatterns,astheremanufacturingprocesshaslimitedflexibility.Theproductionsequenceimplementedtokeepchangeovercostlowandproductqualityhighhasdecreasedtheirabilitytodealwithunexpectedperiodsofhighdemandfluctuation.
Themanufacturingprocessinabilitytoresponsewelltohighdemandfluctuationsresultsinahighercostfortheorganization.Inperiodsofunexpectedlyhighdemand,thedesiredqualityoftheproductmaybejeopardizedduetostressofthemanufacturingprocesstoproduceordersfaster.Whenstocksoutoccurahigherreplenishmentlead-timeisexpectedduetotheirincapabilitytoincreasecapacity.Theimpactisfeltbyanincreaseinoverallcostandanegativeeffecton