Supply Chain of Barilla Case Study Example | Topics and Well Written Essays - 1750 words

Supply Chain of Barilla - Case Study Example Supply chain management deals with the management of materials, information and financial flows in a network of suppliers, manufacturers, distributors and customers.(Lee,1999).This management runs the entire gamut of operations that involve getting ready the supplies and reaching them to consumers. Various layers of distribution and the logistic network assist vitally in the task of reaching the supplies to the consumers. However, it is important for the entire supply chain system to know as to when, how much of which product would be required in which particular outlet and market. The more extensive the supply chain network the more critical is this requirement. Barilla has a wide network and thus their requirement for gathering information and processing it meaningfully becomes more important. Barilla spa was the world’s second largest pasta producer in 1990 It primarily produces 2 categories of products which are categorized as fresh and dry. Barilla accounted for about 35 percent of pasta sold in Italy and 22 percent of the pasta sold in Europe. Barilla mainly supplies the pasta to retail outlets such as small independent shops and supermarkets. In Barilla’s supply chain Barilla’s CDCs (centre distribution centre) and the production factory are located at places that exhibit maximum changes in demand patterns in the supply chain. The Barilla distribution layers include such outlets as GD(grand distributor, DO(organized distributor) and BD (i.e. Barilla-run Depots).These distribution layers receive orders from the supermarkets and shops, and, in turn, place consolidated orders to Barilla CDCs.Barilla CDC ,in turn, for wards the area consolidated figures to the Barilla factory. These distribution outlets serve the purpose of serving Barilla's overseas markets also. For instance Barilla products have a great demand in UK and most UK major supermarkets stock Barilla products through Barilla distribution outlets present in UK. In UK, retailers like Tesco and others generally depend on Barilla's third party distributors for its orders. In UK, Waissel's Ltd. is a major importer of Barilla's product. A long list of Barilla products are imported by Waissel's which includes Savouries, Biscuits & Cakes, Pasta Sauces and Pastas. The Barilla administration relies on computerized systems for its key functions including the supply management involving stock control. It has an excellent distribution service network throughout the UK. While it's administrative office is located in Harrow, its central warehouse is at Thamesmead, London for all of Waissel's worldwide incoming shipments as well as nationwide deliveries (Waissel's).