Introduction In 1875, Pietro Barilla founded Barilla SpA, a small pasta shop in Parma, Italy. Barilla is a family owned company that has been passed down from generation to generation and has become a vertically integrated organization, with many bakeries and factories throughout Italy. For many years, the pasta shop experienced significant growth because of the high quality products that were marketed and produced in their facilities. In fact, during the 1980’s, Barilla experienced a 21 percent increase in growth. Within 10 years, Barilla became the largest pasta manufacturer in Italy. Barilla manufactured 35 percent of the pasta sold throughout Italy and 22 percent of the pasta sold throughout Europe. Additionally, the company also manufactured 29 percent of bakery products. Although the company has been successful over the years, careful analysis will show that by making key changes within the logistics network, the company will be able to reduce the burden of demand fluctuations, maximize their profits, and remain competitive in the pasta industry for many years to come. Complex Logistics Network The Barilla SpA Company has established a complex logistics network. Barilla organized into 7 divisions (bakery, catering, fresh bread, International, and three separate pasta divisions). Barilla divided their entire line of products into two general distribution channel categories “fresh” and “dry” because of perishability differences as well as different retail service requirements for their products. Barilla offers an array of products with over 800 different “dry” stockkeeping units (SKU’s) with 470 different packaging options. Barilla distributes products through two centralized distribution centers (CDC’s) and then throug... ... middle of paper ... ...y in their supply chain. In addition, Barilla should aggregate the demand data to determine the distribution patterns by product type so that they can forecast customer demand more efficiently and determine which products to continue production. Collaborative forecasting with the distributors and retailers will also help Barilla with their demand forecasting as long as all parties come to the table with the information necessary to accurately predict the demand for the products. Even with a poor economy, Barilla can remain competitive in the pasta industry by implementing key strategies in their logistics network, which will improve the overall supply chain performance and help them maximize profits. Works Cited Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain. (3rd ed., pp. 143-177). New York, NY: McGraw-Hill.
Ohori is a smaller corporation with a semi-varied product line, so they classified into the job shop category of the process matrix. Ohori sells ten different grinds ranging from percolator to Turkish style, which requires different variations of the grinding, refining, and roasting process. These variations in the inputs of the process yield different outputs in terms of the flavor and richness of the coffee. Folgers, by comparison, sells its coffee as a single grind type, with variations on its blends. This puts them into the project process category in the process matrix. Some standard options are offered, but the range of choices is limited and determined by marketing in advance of the customer’s order.
The Italian Centre Shop shows many attributes as for how they are able to build on their strengths. This in the end helps a company to expand and grow further to improve their internal performance and as well by gaining more consumers (Kerin, et al., 2015). Firstly, the company’s main strength relies on the location of the different branches, being placed strategically so it is easier to bring in more consumers as well as being easily accessible for people around those areas. Two of the three locations in Edmonton are situated beside shopping centers, Southgate mall and West Edmonton mall, which in the West end is the most popular attraction of the city. The third branch is located in North Edmonton which is known for the heart of “Little Italy”(Spinelli, 2016). Secondly, the Italian Centre Shop sells a variety of merchandise and different cuisine from all around the world, the main place being Italy and others which include: Spain, Romania, Portugal, Ukraine and Poland (Spinelli, 2016). This helps to expand the company’s target market while still keeping
Academia Barilla’s consumers are still a specialized target, despite recent efforts for expansion and growth. For its gourmet foods product line, demographics of consumers in major markets tend to be upper middle to high class citizens of middle to older age. Italy represents the major market for Academia Barilla, with Europe and North America showing promising growth. However, recent severe economic troubles in Italy, Europe, and the United States are a major cause of concern and must be monitored. Regulatory bodies in the countries which market Academia Barilla do not tend to interfere with production. Current consumer trends for healthier, more organic products should be monitored. Whole-wheat and low-carbohydrate products have increased in demand during the past half-decade. Recent developments in the IT field have helped bring e-commerce to new heights. Finally, emerging economies in countries such as Brazil, China, India, and Russia may be targets for possible future high growth opportunities.
Our groups company that we want to expand internationally is Sargento Foods Inc. Sargento Foods Inc. is a family-owned company founded in 1949. They employ roughly 1,500 employees in the state of Wisconsin. Their plants are located in Plymouth, Kiel, Hilbert, and Elkhart Lake as well as out of state facilities in Washington and South Dakota. Sargento Foods Inc consists of four types of business divisions: Consumers Products, Food Service, Food Ingredients, and Culinary Solutions. The Consumer Products division of Sargento in the United States is number one in packaging of cheese products and does the marketing of different products of cheese such as shredded, cheese snacks, and sliced. The Food Service division focuses on preparing cheese products for restaurants chains such. The Food Ingredients division helps other food manufacturing businesses with special cheese orders. The Culinary Solutions division provides cheese to deli operators (Sargento). We decided to expand our products to be recognized internationally. As owners of the company, we have come to a business decision to expand our company to the country of Toronto, Canada. Sargento Foods Inc being a family-owned company provides multiple strengths and opportunities to aid our acts in expansion such as long history, quality of product, and other essential factors. Enter a new market internationally also causes some threats that may affect our success on expanding to Toronto, Canada such as political, economic issues, and cultural issues.
Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.
Boston Beer uses a quality strategic planning system in order to achieve their corporate objectives. They have a good system in place that they use when considering the future decisions of the company. They utilize this system each time that they decide if they are going to introduce a new product into the market. This is one of the reasons that their hard cider was able to become the number one cider in the United States in only eight months.
Happy Hat, a U.S. national chain of frozen yogurt stores with about 500 stores in 40 states is asking for assistance with its business processes. The average number of visitors per store has held constant over the past several years, but revenues per store are down by an average of 10%, and many stores are no longer profitable. The client suspects that a large amount of inventory is being thrown away unused at the end of each day. At the same time, customer polling suggests that the yogurt flavor customers want is often not available, even when the flavor is posted on the menu. People also complain about stores being closed when they visit. Now, the chain is facing increased competition from frozen yogurt sold in 24-hour grocery stores. Happy
The quality control in Pizza My Heart begins from procurement to kitchens at every location. The first thing that sets it apart from others is local sourcing to en...
Differences: Although both lines are new product concept, which try to target similar customer segment who are interested in Italian food, market potential might vary for different product line. First in terms of positioning, in pasta market, dry and frozen pasta occupied large market share due to its higher accessibility than fresh past sold at specialty store and restaurants. This might explain the fact revealed by research that 77% of respondents in favor of fresh pasta concept never purchased fresh pasta before. Therefore, wide distribution of refrigerated pasta will serve customers?desir...
In terms of machinery or technological suppliers, suppliers to the restaurant industry enjoy moderate power, as suppliers are few. This applies to suppliers of coffee, latte and espresso machinery as well due to the small number of organizations servicing the industry. Due to their success in differentiating themselves as providers of premium coffee, Starbucks faces little bargaining power from their customers around the globe. However, a lesson from their entry into the Chinese market has been that an organization needs to clearly understand their target consumers and price their products accordingly to avoid demand challenges.
At the age of seventeen, Fred Deluca decided to open a submarine sandwich shop as a way to help pay for his education of becoming a medical doctor. Dr. Peter Buck offered Fred a $1,000 loan and became his partner and 1965 the first Subway store was opened in Bridgeport, Connecticut. They learned through experience how to run a business, with the integrity of serving a high quality product, and providing excellent customer service. Today, Subway is the world's largest sandwich chain with more than 41,000 locations around the globe. The goal is to serve the highest quality foods, and make sure everything produced meets the safety standards from the time it is grown, to when it is put into a sandwich. To insure this, sustainable agricultural practices such as cover cropping, and crop rotation this restores nutrients and minimizes pesticide and fertilizer use. With thousands of restaurants throughout the world, subways supply chain needs to be sustainable and efficient in order to cut costs. Many vendors and suppliers worked with Subway to add or move locations closer to our distributors, and we have implemented many re-distribution centers which help reduce emissions, and provide lower shipping costs. Subway has a Distribution Operational Efficiency program that’s purpose it so find ways to ensure all traveling routes and techniques are optimized, and all the trucks are shipped with full loads to reduce mileage, and be as efficient as possible. Recently, Subway has introduced a process in the United States that consolidates all orders of equipment into a single shipment for new restaurants, and restaurants being remodeled. This helps eliminate excess packaging, and unnecessary non-value added activity at the building site. Subway...
Target Corporation needs to increase product availability based on the customer needs using a forecasting and supply chain
In 2002 Nestle decided to develop a vertical supply chain as strategy for increasing brand names value and revenues with selected suppliers. The reason behind vertical integration was scarcity of natural resources. For example coffee suppliers and farmers’ activities decreased in the last ten years requiring Nestle actions for supporting farmers’ activities in a more efficient way creating value for both sides as win-win solution. As a result, vertical supply chain supported Nestle increase demand for new coffee products and selected farmers supports coffee beans production required for exclusive brands such as Nespresso (Nestle, 2012).
The aim of this report is to analyze the Starbucks’ supply chain strategy and then to make a literature review of the case
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.