What Are The Reasons For The Increase In Variability In Barilla's Supply Chain?
Reasons for increase in variability of demand in barilla's supply chain:
How Can The Firm Cope With The Increase In Variability?
The firm can cope with increase in variability by:
What Is The Impact Of Transferring The Demand Information Across The Supply Chain?
Can The VMI Strategy Solve The Operational Problems Faced By Barilla?
If the retailer is willing to share the demand information and let the supplier control his inventory then VMI:
The VMI strategy can solve the operational problems faced by Barilla since:
How Can The Supply Chain Meet The Conflicting Goals Of Different Partners And Facilities?
The supply chain can meet the conflicting goals of different partners and facilities with the help of improved information sharing as we have seen in the example of P&G. Without no information sharing each level in the supply chain would have its own estimates for the demand of the products and order as desired increasing inventory levels to a great extent. Also each level would look for their own costs and schedules rather than for a globalized supply chain.
We noticed in Barillas supply chain that due to reluctance of retailer to share demand data disturbances in downstream-created large changes all through the supply chain (Bull-Whip). Therefore Globalized supply chain can drive all the networks to focus towards a common goal- improve overall value of supply chain and increase customer levels. With this in mind each partner and facility will communicate with each other and come up with solutions for their existing problems and manage the entire supply chain.
Wrapping up supply chain can meet conflicting goals with:
