Vendor Managed Inventory: Barilla SpA - Stanford...
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Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
Vendor Managed Inventory:Barilla SpA
Rev. 4/01
Barilla Dry ProductFactories
Barilla CDCs
Grande Distribuzione
DistribuzioneOrganizzata
ChainSupermarkets
IndependentSupermarkets
Signora MariaShops
18Barilla-Run
Depots
35% TL
LTL
TL
TLTL
LTL
LTL
65%
90%
TL= Delivery in truck-load quantities.LTL= Delivery in less-than-truck-load quantities
10%
Barilla Supply Chain
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
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Week
Sales at Cortese Northeast DC
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
0100200300400500600700800900
Mean = 300 QuintalsStd. Dev. = 227 Quintals
Orders from Cortese Northeast DC to Pedrignano CDC
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
Bullwhip at Barilla
Causes Impact
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
JITD (VMI) Proposal -
Plant Bar. DC Distrib. Retailer Customer
Why Should Barilla Have Decision Rights?
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
Resistance to JITD
Resistance Solution
InsideBarilla
Distri-butors
Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case
Selling to the CEO...
Barilla Distributor