Barilla 案例分析

...StrategicSupplyChainManagement:BarillasPADrainville,Julie,PierisSherline,YuZhewen,RenYuan,OkafoEKE,IfeomaESC4710_010March27,2017TableofContentsTOC\o"1-3"\h\z\uHYPERLINK\l"_Toc478380729"CaseStudy2: BarillaSpA3CompanyBackground3CompanyOrigins3Figure1:TrendofBarillaSalesandItalianPriceIndex4PastaMarketShare5Figure2:1990ItalianPastaMarketbyMarketShare5Figure3:1990EuropeanPastaMarketbyMarketShare5Figure4:1990ItalianBakeryMarketbyMarketShare6PastaManufacture6Figure5:Barilla’sProductDivisions6ChannelsofDistribution7Figure6:AnillustrationofcharacteristicofBarilla’sProducts7UnderlyingDriversandCauseofFluctuationDemand7Figure7:WeeklyDemandofBarillaDryProducts8(Hammond,1994,p.22).8LackofDownstreamVisibility8TheBullwhipEffect9(Chopra&Meindl,2016)10Figure8:DemandFluctuationatDifferentStagesintheSupplyChain10SupplyChainObjectives11Figure9:BarillaDistributionChannel11PastaDemandPatterns11ImpactofFluctuationDemand12AffectedLineItems13JustinTimeDistribution(JITD)andcostreduction14FunctionsofJustinTimeDistribution14BarillaImplementationofJustinTimeDistribution16CustomerResistance17CustomerPersuasion17Internalresistance18InterpretationofJITDtosalespeople19EffectonSalesPerformanceandCustomerSatisfaction19EffectsonPromotions20ChannelDecisions21DownstreamSupplyChainVisibility21(Weblearnindia2014)22Figure10:VisualizationofaSupplyChain22Visibility-UpstreamfromtheManufacturer23References25CaseStudy2: BarillaSpACompanyBackgroundCompanyOriginsBarillaisanorganizationownedbyPietroBarilla,whichstartedoutin1875asaretailer.Thestore’smainproductsincludedpastaandbreadthatwereproducedinalabnextdoor(Hammond,1994,p.1).Barillagrewturningintoalargepastamanufacturer,experiencingsignificantgrowthbeforeitwaspassedtohissonsPietroandGianniinthe40’s(Hammond,1994,p.1). AsBarilla’sownershipwaspasseddownthroughthegenerations,thecompanygrewandbecameaverticallyintegratedcorporation(Hammond,1994,p.1).Thegrowthresultedtheorganizationbeingcompromisedofflourmills,pastaplantsandbakery-productfactoriesgeographicallydispersedthroughoutItaly(Hammond,1994,p.2).Barillawasabletogrowitsmarketshareofthepastaindustrythroughtheirmanufactureofhighqualityproducts,innovativemarketingtechniquesandpracticesandbycreatingastrongbrandwithinItaly.Thesestrategiesresultedindoubledigitgrowth.Barillamadeboldstridesandbegantoconstructtheworld’smostsophisticatedandtechnologicallyadvancedpastaplant(Hammond,1994,p.2).ThehighinvestmentinbuildingthisfacilityplacedhugepressureonBarilla’sfinances.In1971,BarillaendedupbeingsoldtoamultinationalfirmnamedGrace(Hammond,1994,p.2).Inadditiontochangesintheorganization'sbusinesspractices,GraceintroducedanewlineofbakeryproductscalledWhiteMill.ThehighlyregulatedItalianeconomyandBarillaoperatingenvironmentcoupledwithdifficulteconomicconditionsofthe70’smadeitdifficulttooperateBarillaremainprofitably(Hammond,1994,p.2).Thisledtothere-saleofBarillatoitsoriginalownerPietroBarillain1979(Hammond,1994,p.2).WithnewinfusionofcapitalcoupledwiththeorganizationalchangesinstitutedbyGrace,PietrowasabletoreturnBarillatoitsformergloryasdepictedinFigure1.Agrowthrateof21%wasmadepossibleinthe80’sthroughtheinternationalexpansionoftheBarillabrand,andtheacquisitionofnewbusinesses(Hammond,1994,p.2).Barillamaintainedaresearchanddevelopmentfacilityandpilotproductionplantfordevelopingandtestingnewproductsandproductionprocessesfortheirorganization. PastaMarketShareThefollowingdatawasextractedfromtheBarillacasestudy.PastaManufactureThemajorprocessesinvolvedinpastamanufacturinginclude:mixing,rolling,cutting,heatinginakiln,dryingandpackaging.Barillaemployedatightlycontrolledproductionsequencetominimizechangeovercostsinspiteofproducingawidevarietyofpastacreatingaveryinflexiblemanufacturingenvironment(Hammond,1994,p.3).Someplantsproduceddifferentvarieties;otherswerededicatedplantsincludinglongandshortpastaplants.ChannelsofDistributionAprofileofBarilla’sproducts,aswellassomekeyfeaturesisshownbelowinFigure6.UnderlyingDriversandCauseofFluctuationDemandBarillaiscurrentlyexperiencingahighrateoffluctuationinthedemandgeneratedfromtheircustomer,asdisplayedinFigure7below.Therearemultipleunderlyingfactorsthatcontributetothissporadicdemandpattern.Thisfluctuationcreatesadifficultenvironmentforasupplychaintobeeffectiveresultinginnegativeeffectsforboththeorganizationandthecustomer.InexaminingFigure7weareabletovisualizetheextremefluctuationincustomerdemandBarillaexperiences.ThechartdisplaysthatBarilladryproductsmeanis300quintalsandastandarddeviationof227quintals.Thestandarddeviationvalueisclosetothemean,whichshowinghighvariations.Thisdemonstratesthatthedistributionpatternhasextremefluctuation.Themaximumordernumberisapproximately900quintalsandtheminimumordernumberofapproximately50quintals;suchalargegapshowstheunpredictabilityBarillacurrentlyfaces.Thisisaresultofcustomersplacingordersinreactiontodemand.Thistypeofpatternisusuallyaresultofordersbeingplacedduetopanicoroverorderinginanticipationforcustomerdemand.ThedemandpatterndisplayedinFigure7createshighercostfortheentiresupplychain.LackofDownstreamVisibilityBarillaanditscustomerscurrentlydonothaveinfrastructurethatallowsthemtoenableinformationsharingofcustomerdemandthroughoutthesupplychain.Thisresultsinsupplychainstagesbeingblindofactualcustomerdemand.Thisresultsinadistorteddemandpatternasitflowsdownstreamthroughthesupplychain.ThisisreflectedintheorderpatternsBarilla'sreceive.Thiscreatesadifficultenvironmentforsupplychaintocoordinateefforts.TheBullwhipEffectTheorderpatterns,showninFigure7areadirectresultofthebullwhipeffect.Thebullwhipeffectidentifiedinthedemandpatternsofthesupplychain.Orderssentthroughoutthesupplychainbecomelargerinvarianceincomparisontotheactualdemandoftheendcustomers.Thiseffectisgeneratedbyalackofsupplychaincoordinationandinformationsharingthroughoutthesupplychain(Chopra&Meindl,2016).Figure8isapictorialrepresentationofhowthebullwhipeffectlooksthroughthesupplychain.Whenlookingatthewholesaler’sordertomanufacturerwecanseesimilaritiesinBarillademandpatterns.Figure8displaysaproductwithsteadydemandhoweverasittravelsthroughoutthesupplychainhighdemandfluctuationoccurs.ItisapparentthatBarillaiscurrentlyexperiencingthebullwhipeffectduetotheircurrentrelationshipwiththeircustomers.Eachphaseinthesupplychainiscurrentlyoperatinginsilos.Thisisaresultofeachstagefocusingondifferentobjectiveswithouttheconsiderationoftheoveralleffectithasonitssupplier. SupplyChainObjectivesTheimagebelowinFigure9isagraphicalrepresentationofBarilla’sdistributionchannel.Thisdisplaysthevariousstageswithinthesupplychain.Dryproductsmustgothroughmultiplechannelsbeforereachingtheendcustomer.Theoverarchingproblemlieswithefficientsupplychaincoordination.Thisincludesalackofforecastingsystemandcommunicationtoensurethatdemandneedsaremet.Itisapparentthatthereislackofcoordinationofobjectivesanddemandbetweencentraldistributioncenter(CDC)andthegranddistributor(GD).Forinstance,thedistributorpurchasesdryproductsinhighervolumeswhenapromotionordiscountingiventodecreasetheirinventorypurchasingcost.Theydon’tconsiderthepotentialconsequencesthismaygenerateinthelongtermforthesupplychain.Thisdecentralizeddecision-makingresultsinhighandunpredictablefluctuationsindemand.PastaDemandPatternsDemandpatternsforpastahavebeenrelativelystablethroughouthistory.In1980’sitwasshownthat“Italianpastamarketasawholewasrelativelyflat,growinglessthan1%peryear.Itisestimatedthattheaveragein1990“percapitapastaconsumptioninItalyaveragednearly18kilosperyear”(Hammond,1994,p.2).PastaisastapleconsumedinlargequantitieswhencomparedtootherEuropeancountries.PastaalsoexhibitslimitedseasonalityindemandwithspecialtypesofPastapopularintheEasterandsummer(Hammond,1994,p.2)Overtheyears,pastasaleshavekeptpacewithinflation;howeverinthe90’swhenthemarketremainedflat,saleswereboostedbyexports.ThisshowsthatthedemandpatternsforBarillaarenotaccuratetotheactualconsumptionofpastainItaly.ThegraphinFigure1asseenonpage3isrepresentativeofBarillasales,whichhaskepttrackwiththeItalianwholesalepriceindex.WecanusethisindexasameasuretheinflationintheItalianeconomy.Theprofileofthegraphsuggeststhatsaleshavekeptpacewithinflation.Accordingtothisdatainferencescanbemadethatdemandhasremainedstable.ImpactofFluctuationDemandThehighfluctuationincustomerdemandisknownasthebullwhipeffect.ThisisaconsequenceofineffectivecoordinationandinformationsharinginBarillasupplychain.Thislackofcoordinationhasresultedtotheimplementationofreactionaryinventory,salesandmarketingdecisions.Thiscreatesadetrimentalimpactontheperformanceofthesupplychain’sabilitytomeetchangingdemandsandcustomerneeds.Thefluctuationdemandhasahighimpactoftheorganizationabilitytomeetfluctuatingfulfillratessubsequentlyleadingtostockouts.InanattempttominimizetheseoccurrencesBarillatriestomaintainhighinventorylevelsoffinishedgoods.Itisdifficultfortheorganizationtoresponsetofluctuationdemandpatterns,astheremanufacturingprocesshaslimitedflexibility.Theproductionsequenceimplementedtokeepchangeovercostlowandproductqualityhighhasdecreasedtheirabilitytodealwithunexpectedperiodsofhighdemandfluctuation.Themanufacturingprocessinabilitytoresponsewelltohighdemandfluctuationsresultsinahighercostfortheorganization.Inperiodsofunexpectedlyhighdemand,thedesiredqualityoftheproductmaybejeopardizedduetostressofthemanufacturingprocesstoproduceordersfaster.Whenstocksoutoccurahigherreplenishmentlead-timeisexpectedduetotheirincapabilitytoincreasecapacity.Theimpactisfeltbyanincreaseinoverallcostandanegativeeffectoncustomerrelationships.Unexpectedvariationsofdemandatthedistributionlevelsresultstohighinventoryholdingcost,distributioncost,stockoutcost,transportationcost,labourcost,productavailabilityandriskofanegativecustomerrelationship.Theincreaseininventoryholdinginordertomeetdemandexposesittoahigherriskofpilferageandobsolescence.Withoutaplantochangethemethodsofcoordinationwithinthesupplychain,theorganizationwillcontinuetoincreaseitscostintryingtomeethighfluctuatingdemandpatterns.AffectedLineItemsThereisasignificantfinancialimpactoforderfluctuationforBarilla.Whenordersarehigherthanexpectedthisleadsto:Changeinproductionsequenceandadditionalcostsofproductionwhichreducesmarginandaffects(lowers)profitWhenproductionisnotmetitisalostsalewhichalsoreducesprofitabilityWhenordersarelowerthanexpected:WhenthereisoverproductionandthemanufacturerincreaseitsfinishedgoodsinventoryresultinginhigherholdingcostandgeneratedaneedformorespacewithinthewarehouseAssetinthebalancewillbeincreaseditaffectscashflowJustinTimeDistribution(JITD)andcostreductionJITDisamechanismtocreateamorestreamlinedsupplychainthroughanincreaseininformationsharing,andcoordinationofsupplychainsforBarilla.TherequestedchangedemandsforamajorchangeintherelationshipsbetweenBarillaandtheircustomer.TheoverallimplementationofJITDissaidtohavedirectimpactoncostfortheorganization.In1988Vitalistatedoneofthemaincontributionstocostintheirsupplychainwas;“distributioncost,inventorylevelsandultimatelyourmanufacturingcostsifwedidn’thavetorespondtothevolatiledemandpatternsofthedistributors”(Hammond,1994,p.7). Theproposedchangeintheirsupplychainissaidtoreducecostbycreatingamoreaccuratedepictionofdemandthroughbetterinformationsharingandoverallcoordination.TheimplementationofJITDwouldgivecostreductionstotheorganizationbyallowingthemtobetterforecastdemandandmanagetheiroverallinventorylevels.Currentlytheorganizationisreactingtodemandthatisinflatedasaresultofthebullwhipeffect.Inordertotryandmatchdemandtheorganizationattemptstoabsorbtheuncertaintythroughhighlevelsofinventory.Thiscreateshighercostfortheentireorganizationandcanhavenegativeimpactonproductavailabilityandcustomerrelationshipsastheyhaveaninabilitytoforecastactualdemand.Withanincreaseincoordinationandinformationsharing,thesupplychainwouldgaintheabilitytodecreaseitscostandincreasecustomersatisfaction.Betterforecastingenablestheorganizationabilitytohaveamoreaccurateproductavailability,morestableleadtimesduetoadecreaseinstockouts,anoverallincreaseinpositivecustomerrelationshipsandanincreaseinprofitability(Chopra&Meindl,2016,p249).FunctionsofJustinTimeDistributionAmoretransparentsupplychainallowstheorganizationtohaveabetterunderstandingoftheoverallcustomerdemand.AmoreaccuratedepictionofcustomerdemandswillleadtobetterinformationandcoordinationbetweenBarillaanditscustomers.AJITDimplementationshouldhavedirecteffectontheorganizationabilitytoreducemanufacturing,inventory,transportationandlabourcost;areductioninreplenishmentleadtime,andinincreaseinproductavailabilityandcustomerrelationships.Theincreaseininformationsharingwillallowtheorganizationtocreateamoreaccurateforecastofdemandthroughoutthesupplychain.Thisresultsinabettermanagementofinventory.Reducingtheorganization’sstockoutpercentageanddecreasingthereplenishmentleadtimeneededtomeetordersfortheircustomer.Astheinformationflowsthroughthesupplychaineverystagewillamoreaccuratepictureofdemand,decreasingtheamountofordersinthesupplychainthatareboughtthroughpanicandoverordering(Chopra&Meindl,2016).Themorestabledemandwouldallowallstagesofthesupplychaintoreducetheiroverallcostofoperationandincreaseprofitability.Adecreaseinmanufacturingcostwouldbegeneratedwithanaccurateforecast,asproductionschedulewouldreflectactualconsumerconsumption.Adecreaseinthepurchaseofrawmaterialsandadecreaseintheoverproductionoffinishedgoodsinventorycontributetothedecreaseofmanufacturingcost.Withthereductioninfinishedgoodsandrawmaterialinventorytheorganizationhastheabilitytodecreaseitsoverallinventorycost.Aslessmaterialisneededbecauseofsteadydemandtheorganizationwouldinturnhavelessinventory-holdingcostandcandecreasetheamountofspacenecessarytostorebothrawandfinishedgoods.WiththeabilitytobetterunderstandcustomerdemandBarillawouldgaintheabilitytomakemoreefficienttransportationschedulestotheirdistributioncentersandtheircustomers.Thedecreaseinfluctuatingdemandallowstheorganizationtobetterplanefficientmethodsoftransportations.Thiswoulddecreaseoveralllabourcostthroughoutthesupplychainanddecreasebottlenecksatshippingandreceivingduringperiodsofhighdemandfluctuation.BarillaImplementationofJustinTimeDistributionBarillawantstoimplementJITDthroughouttheirsupplychainbygainingaccesstocustomerinformation.Barillabelievesthattheyshouldhavetheabilitytodeterminetheproductdeliverysequence.TheimplementationsoftheJITDprogramwouldallowtheorganizationtostreamlinetheirsupplychainprocessesandstabilizecostinthesupplychain.Steadydemandgiveseverystageofthesupplychaintheabilitytoplancapacityandcostassociatedwithmeetingcustomerdemandmoreaccurately.Thisresultsinhigherproductavailabilityandfastreplenishmentlead-time.Amorepredictabledemandallowstheorganizationtocreateamoreresponsivesupplychainanddecreasestheoverallstockoutpercentage.Thedecreaseinstockoutpercentagesincreasestheorganization'scustomersatisfactionthroughoutthesupplychain.BarillaislocatedatthebackendofthesupplychainandinturnfeelstheeffectoffluctuatingdemandthemostasseeninFigure8onpage9.ItisimportantthattheinformationflowsfromtheendconsumerthroughtothemanufacturertooptimizethetotaleffectofJITD. Theproposedsolutionisbasedonavendormanagedinventory(VMI);whichholdsthesupplier/manufacturerresponsibleforinventorylevelsthroughoutthesupplychain(Chopra&Meindl,2016,p261).Thisallowsthemanufacturertohaveabetterdepictionofdemandandincreaseinventorymanagementcapabilitiesthroughoutthesupplychain,increasingthesupplychainsurplus.AsBarillaisthemanufactureritisimportantthatthey,tooptimizetheimplementationoftheJITDprogram,manageproductsequence.TheVMIhastheabilityto“allowamanufacturertoincreaseitsprofits-aswellastheprofitsoffortheentiresupplychain-ifbothretailerandmanufacturermarginsareconsideredwhenmakinginventorydecisions”(Chopra&Meindl,2016,p261).Barillawouldbeabletobetterfillthegapsinforecastingfortheentiresupplychainallowsallstagestoreducecostandincreasecustomersatisfaction.CustomerResistanceBarillaisexperiencingcustomerresistanceintheimplementationoftheJITDidea.TherearemultiplefactorsthatcontributetoBarillacustomerresistance.Primarilytheircustomersblamethem,Barillaforthefluctuationindemand.Customersstatedthat“managinginventoryismyjob;Idon’tneedyoutoseemywarehouseormyfigures.Icouldimprovemyinventoryandservicelevelsmyselfifyouwoulddelivermyordersmorequickly”(Hammond,1994,p.9).Thiscreatesmoreresistancetowardstheircustomer.Itisapparentthattheydonotcomprehendtheunderlyingcontributiontothefluctuationindemand.Withblamebeingpassedfromstagetostageinthesupplychain,thereisnofocustoeliminatetherootcause.Barillacustomersarecurrentlyfocusedonoptimizingtheirorganizationanddonothaveanyregardathowitmaynegativelyimpactothersintheirsupplychain.ThisshowsthecustomerdoesnotfullyunderstandthebenefitsofimplementingtheJITDprogramthroughouttheirsupplychain.CurrentlyBarillacustomers,experiencemultiplesalesincentivesduringtheyear.Thechangeintherelationshipmakestheircustomersfeelasiftheywillnolongerbeabletotakeadvantageofthosesituationsinturnresultinginhighercostforthem. CustomerPersuasionMaggialipersuadedcustomerstoatleasttrytheJITDprogram.“JITDshouldbeconsideredasellingtool.We’reofferingthecustomeradditionalserviceatnoextracost”(Hammond,1994,p8).InorderproperlytopersuadecustomerstoimplementtheJITDprogram,itisimportantthatMaggialihasastrongunderstandingofhiscustomer’sneedsanddesires.ItisimportantthatMaggialiensurethattheirpropositionshowthattheircustomergoalsandarealignedwithBarilla.Properincentivesshouldbegeneratedthroughoutthesupplychainduringtheimplementationprocess(Chopra&Meindl,2016,p256).MaggialimustfindawaytoexpressthebenefitsthatwillbefeltbytheircustomersoncetheJITDprogramisimplemented.Itisimportanttocommunicatestakeholderconsortiumbasedonareal-timevendormanagedinventorysystem.Toaggregatedemandsfromalldistributorsandoffsetthedemandchangesofdifferentmarketplaces.TherelationshipsbetweenBarillaandthedistributorswillbeimprovedratherthanharmed.CurrentlytheyhaveonecustomerwhoiswillingtotrytheJITDprogram;thereforeitisimportantthatrecordsofallimprovementsaremade.Thiswillallowthenusingtheimplementationasadisplaytoothercustomersthebenefitsfortheircustomers.Thiswillcreateastrongerargumentwhentalkingtootherclientsaboutmakingbigchangesintheirrelationship.InternalresistanceThelevelofscepticismandresistancefacedbythesalespeopleisanindicatorthatBarillafailedtoestablishaneffectivechangemanagementstrategy.Changemanagementisdefinedasa“professionaldiscipline,whichfocusesonsupportingorganizationsontheirwaytosuccessfultransitionforalessthanidealstatusquotoadesiredfuturestate”(Vedenik&Leber,2015).InordertohaveasuccessfultransitiontoJITD,Barillaschangemanagementstrategyshouldconsiderthefollowing:ThelevelofstressimposedonthesalespeoplefromtheorganizationalchangethroughouttheimplementationphaseTheimpactofsalespeopleresistanceonthesuccesstheorganizationalchangeAplanofactiontocounteractresistancethroughpropercommunicationchannelsandresourcesConsiderationofthemicroandmacroeffectsoftheproposedsolutionImpactofJITDontheday-to-daybusinessanditscompanystructureUnderstandhowtocommunicateandmotivatetheemployeesintoacceptingtheorganizationalchangeaheadInordertoincreasethesuccessofJITD,changemanagementstrategiesmustbedevelopedtokeepthestrugglesofimplementationinmid.AnoverallshiftinBarilla’scompanyculturemaybenecessarytosuccessfullyimplementchanges.AsstatedbyClardyintheImprovetheProcessofManagingChange“creatinganorganizationalcultureandworkforcethatisappreciativeoftheneedforchange,improvement,learning,growth,andinnovation”(ClardyA.,2013).Judgingbythesalespersons’feedback,itappearstheyviewtheorganizationchangeinconflictwiththeirbeliefsofBarillasvalue.Inordertochangethatview,managementmustensurethatthesalespeoplefeelempoweredbythechangeandaregiventhesupportneededthroughouttheimplementationphasebyestablishingclearcommunicationlines.InterpretationofJITDtosalespeopleThesalesrepresentativesarefocusedonmeetingsalesgoals.Theycurrentlyoperatewithaviewonoptimizingtheircontributiontotheorganizationanddonotfocusonhowthisaffectsotheraspectsoftheorganization.TheyviewedJITDasnotonlyimposingontheirsalesperformance,butenforceguidelinesthatplacerestrictionsandmonitortheirperformance.Itappearsthesalesgroupisresistanttochange.AlthoughtheJITDisagreatconcept,theyfailedtounderstandthemagnitudeofoperation