Vendor Managed Inventory: Barilla SpA - Stanford...

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Page 1: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case

Vendor Managed Inventory:Barilla SpA

Rev. 4/01

Page 2: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

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

Page 3: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case

0100200300400500600700800900

Week

Sales at Cortese Northeast DC

Page 4: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

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

Page 5: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case

Bullwhip at Barilla

Causes Impact

Page 6: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

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?

Page 7: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case

Resistance to JITD

Resistance Solution

InsideBarilla

Distri-butors

Page 8: Vendor Managed Inventory: Barilla SpA - Stanford …web.stanford.edu/class/msande262/coursework/Barilla07May03.pdf · Barilla Case Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren

Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren HausmanBarilla Case

Selling to the CEO...

Barilla Distributor