Barilla Spa (a) Free Essays

BARILLA SpA (A) Table of Contents Part One: Executive Summary3 Part Two: Immediate Issue4 Part Three: Systemic Issues4 Part Four: Qualitative Analysis5 Part Five: Alternatives6 Part Six: Recommendation8 Part Seven: Recommendations Implementation Plan9 Part Eight: Monitor and Control10 Part One: Executive Summary In order to respond to extreme demand variability and incidents of high stock out rates Barilla is currently applying pressure to both its’ manufacturing and logistics departments to restock distribution centres as quickly as possible. This is resulting in high distribution costs and a reduction in overall profits. In the long term I am recommending that Barilla SpA implement a Just in Time Distribution (JITD) system to reduce excess inventory and eliminate stock outs at the distributor to market level of the distribution chain. We will write a custom essay sample on Barilla Spa (a) or any similar topic only for you Order Now The new system will include a forecasting and planning system based on information provided by the distributors on a day-to-day basis. The JITD will reduce inventory to acceptable levels and will reduce inventory carrying cots. It will also flatten demand resulting in cost savings at the manufacturing and shipping levels. It will also provide an opportunity for new sales promotion types and levels. Initially the new system will be implemented on a trial basis and at the end of the trial with successful performance indicated; the system will be presented to internal departments as well as distributors. This report will be used as a basis for discussion in our production meeting at the end of the week. Giorgio Maggiali Director of Logistics Barilla SpA (A) December 4, 2012 Part Two: Immediate Issue Barilla SpA is experiencing difficulty in the manufacturing and logistics sectors of their operation because of an extreme variability in demand of their pasta products. Though demand for pasta in Italy is flat Barilla has been experiencing sudden spikes in demand for varying types of pasta from different areas. Because of rigid manufacturing requirements and lengthy lead times from placement of order to delivery, stock outs have been experienced between the distributors and retail stores. Part Three: Systemic Issues Sales Operations: Nature: Tactical Timing: Short Term Distributors are encouraged to purchase product based on discounts rather than product demand at their customer’s locations. The sales representatives are given specific sales targets to meet and are conceivably focusing on the discounted products because they are an easier sell to the distributors. Distribution: Nature: Tactical Timing: Short Term and Long Term Lead time from placement of order to delivery ranges anywhere from eight days to fourteen days, though the average is ten calendar days. This includes production and shipment of the product. Most distributors do not rely on forecasting systems to place their orders; they simply count stock on a cycle and place orders to refill to the previous level. There is no analysis based on product type, time of year etc. Stock outs are happening between the distributors and the stores; the lead time to fill the product gap is too long. Manufacturing Process: Nature: Strategic Timing: Short Term and Long Term The pasta production process (particular sizes and types of pasta require fixed heat and humidity settings in the kiln) makes it difficult to replace a specific type of pasta that has sold out at a vendor’s store because of unusually high demand. The production process cannot be changed or sped up without risking a decline in quality of the product. Part Four: Qualitative Analysis Barilla SpA is the largest pasta producer in the world. They offer both dry and fresh pasta as well as a variety of other products including cookies, cakes and breads. Currently, the demand for pasta in Italy is flat with only an approximate increase in demand of 1% per year. Barilla competes with other pasta providers (approximately 2,000) by utilizing innovative advertising techniques and by using high quality raw materials in their products. In order to compete in the Italian market they utilize the traditional method of distribution to their customers via their own distribution center as well as a number of independent distributors. Distributors may place orders when they choose; each year is sectioned off (referred to as canvass periods) and specific products are offered at discounted rates in an assigned period. The type of product that is offered in each canvass period is decided by the sales department. There are also volume discounts offered on certain products which may be specialized by the Barilla sales personnel (i. e. free shipping for full truckload orders). Sales staff has set sales targets for each canvass period which results in pressure sales to the distributors. The distributors will purchase more of the discounted products in order that they can pass the savings to their customers to achieve higher sales. The majority of distributor’s periodically review their stock of Barilla products and place orders with Barilla based on re-stocking to the previous level they had of each product type. Input from the store level is not considered as the main factor in ordering. There are no set minimum or maximum levels for types of pasta or for size of distributor. Pasta production is time consuming; a series of steps are involved that must be followed to produce the quality of pasta that is Barilla’s trademark. The drying process alone takes approximately four hours; the settings of the kiln are specific to the size and type of pasta being produced. In addition to production time there is shipping time which varies dependent on the proximity of the manufacturing plant to the distribution center. Shipping encompasses the availability of vehicles and the cost of shipping. The current method of ordering means that there are less-than-truckload or LTL shipments taking place which are more expensive than full-truckload or FTL shipments. Part Five: Alternatives Alternative One: Sales Controls The Barilla sales department will offer product promotions based on product movement at the region/store level. Volume discounts will be discontinued. Pros: Promotions based on sales data from the individual stores will reduce stock outs and will maintain the sales department’s relationship with the customer. Cons: Distributors lose control over the stock and stock levels that they are carrying. Sales of other product lines that Barilla produces will decline and some customers will change to other suppliers for their variety of product. Alternative Two: Inventory Controls Barilla will set minimum/maximum inventory levels for each SKU based on historical sales data. Safety stock will be produced of the pasta types that regularly stock out at the distributor locations. Pros: Instituting set inventory levels for each SKU will ensure a more realistic supply of product for each location. Producing safety stock for the pasta types that spike will reduce restock time and mitigate market share loss. Cons: Historic data is inherently flawed because of trade promotions and volume discounts; minimum/maximum levels would be skewed. Excess stock would take up a significant amount of space and extra storage space would need to be obtained. There will be conflict with distributors because of their loss of control and with sales because of the loss of promotional opportunities. Alternative Three: Just in Time Distribution (JITD) Product will not be ordered by the distributor but will be supplied by the manufacturer to the distributor based on data provided about the previous day’s shipments from the distributor to the customers as well as their current stock levels of Barilla product. Pros: Barilla would ship product only as it was needed rather than having large amounts of excess stock. Information regarding supplies at the distributor’s warehouses would aid Barilla in improving their forecasting system. Barilla would have more control over the distribution process. Cons: Distributors do not want Barilla interfering with their inventory. The sales staff is reluctant to lose their opportunity to meet and exceed sales targets through their promotions. Part Six: Recommendation We recommend the implementation of Alternative Three, the JITD model. JITD will enable Barilla to cut current distribution costs and stabilize supply to the customers. JITD is based on real time data and inventory specific information. Rather than basing product supply on current promotions or volume discounts, product supply is based on historical demand at the specific distributor locations. * This will ensure that customers receive product that they can move rather than being supplied product that will sit on their shelves for extended periods of time. Barilla will be able to reduce inventory levels at their locations because demand will be stabilized and as a result carrying costs will be reduced. * Transportation can be regulated as product delivery is regulated and cost savings can be found through possible transportation discounts (FTL vs. LTL shipments). * Promotions can be tailored to individual products at individual locations. Barilla can manage inventory levels more effec tively than the distributors because we have an understanding of all facets of distribution. The distributors do not have a clear understanding of the manufacturing process and the reason for lengthy lead times. Traditional trade promotion and volume discounts will be eliminated by the implementation of JITD. A new promotion structure will be implemented to maintain market competitiveness. Part Seven: Recommendations Implementation Plan We believe that to encourage both internal and external partners to embrace the JITD system, Barilla should introduce JITD as a pilot project at one of the distribution facilities that has experienced extreme demand variability. Customers are resistant to the change because they will lose control over product type that will be carried. They do not want Barilla to push product through their centres to reduce their costs while restricting the distributor’s role in the delivery system. Barilla can present the data from the pilot project to the other distributors. The data will prove to distributors that implementing the JITD system will be of benefit to them as well as to Barilla. When proposing the JITD system to customers Barilla has to explain that it will: * Reduce Costs * Reduce Inventory Levels Improve Fill Rate to their Stores Implementing JITD is in the best interests of Barilla, the distributors and their customers. There is internal resistance, primarily from the marketing and sales group, because there is a lack of understanding about the effects that implementing the system would have on the various departments and their functions and duties. The sales department, in particular, is concerned that a JITD system would reduce their duties and impedes their ability to sell product by removing the current trade and volume purchasing promotions. In order to get buy in from each department I need to have the support of management including DiMaria, the manager of the sales department. Support for the changeover has to be top down as the current problem is not just a logistics issue but is a supply chain issue. Part Eight: Monitor and Control The pilot project will be implemented within two months and will be take place over the course of three months. The Key Performance Indicators and measurements are: * Customer Demand Levels – Success is flat demand or less than 1% variability in demand. Stock Out Levels – Success is stock out levels at less than 2% per order cycle. * Inventory Levels – Success is less than or equal to 90,000 kilograms of pasta/day at the manufacturing facility and less than 4% excess inventory total at the distributor’s warehouse. At the end of the three month trial the Barilla management team will review the data and prepare a report to present to individual departments within Barilla and to distributors. If figures, as laid out above, have not been met then Barilla will continue to maintain the current distribution process. How to cite Barilla Spa (a), Essay examples

Key Features of Writing a Financial Report

How to Write a Financial Report A financial report is a complex paper that includes information on the income and cash flows, along with a balance sheet. Such reports are analyzed by directors, business managers, investors, government agencies, and analysts. Writing a financial report may seem to be quite difficult but in fact, the accounting required isn’t cumbersome.PreparationFirst of all, select the considered period. There are several types of financial reports regarding time frames. Some of them are prepared annually or quarterly, while some companies prefer monthly reports.If you’re not sure about the time frame, get acquainted with governing documents of your company. Check articles of incorporation and bylaws. Usually, such documents contain information on how often reports should be prepared.You also can get more information by asking your executive. If you’re the executive, you have to decide when reports can be most useful and define a necessary date of the financial report.Once you ’ve clarified the date, make sure that your ledgers are relevant. They must be recorded properly, and all data must be correct in order to make the report useful for readers.All sales and purchases should be recorded. Check if the bank reconciliation is complete and all accounts were processed.Pay your attention to any liabilities that may not have been recorded. Check wages that haven’t been paid yet and any services that haven’t been invoiced. Information on all these items must be included in the financial statements.While preparing a review, you may realize that some information is missing. In this case, you have to find it by tracking down the related documents.Prepare the Balance SheetA balance sheet includes liabilities of your company along with its assets and equity accounts, such as a stock capital and a paid-in capital for a particular period. The title of the balance should include the date and names of organizations.Balance sheets must be properly f ormatted. Usually, the sheet is divided into two parts. The left one (or the top one) includes assets, while the right one (or the bottom one) includes equity and liabilities.The first section of the balance sheet is devoted to assets. Here you have to list current assets and the subtotal of the current assets. After that, list non-current assets, including any items that can be converted to a cash form, and a subtotal of these assets. Sum these two parts on a separate line entitled â€Å"Total Assets†.The next section is focused on equity and liabilities. Thus, it must be titled â€Å"Liabilities and Equity†. First, list current liabilities, such as one-year-long liabilities that include payable accounts, short-term loan payments, and accrued liabilities. Draw up a subtotal of the current liabilities.Next section must include long-term liabilities, such as payable notes and long-term debt, as well as a subtotal of these figures. The separate line entitled â€Å"Total Liabilities† must contain non-current and current liabilities summarized.After this, prepare a list of all equity sources, including the amount of money that may remain if all liabilities were paid and all assets were sold. Sum up total equities with liabilities.Make sure that the figures calculated in â€Å"Total Liabilities and Equity† and â€Å"Total Assets† sections are equal on the balance sheet. If they are not, check your work a couple times to make sure all necessary figures are included. When this part of the financial report is finished, you can start preparing the income statement.Income StatementThis page provides information on earnings and costs for a certain period of time. The title must include the name of the organization and considered time frame.First, list all sources of income, along with amounts of money earned The sources must be organized in a way that is most informative for the company. You may include data on geographical regions or m anagement teams.Calculate the cost of goods sold. This figure will illustrate the total cost of providing your service or manufacturing your product. You have to take into account costs of materials, labor, shipping, and other additional expenses. Subtract the cost of goods from the total revenue and you will obtain the â€Å"Gross Profit† figure.After this, calculate operating expenses, and subtract this figure from the gross profit. Write this figure in a â€Å"Profit Before Taxes† line.The last part of the income statement should address retained earnings, including net losses and net income from the day the organization was founded.Prepare a Statement of Cash FlowsFinally, write a statement of Cash Flows. Start by listing the operating activities of the company. In the next section, list investing activities that must correspond to the balance sheet. The last part of this section must address financing activities that correspond to the equity presented in the balan ce sheet.You have to sum up all categories and create the last section entitled â€Å"Decrease or Increase of Cash†. You can add some notes if needed, including additional information on the future of the company, accounting practices, and pension plans.

Wound vs. Injury

Wound vs. Injury Wound vs. Injury Wound vs. Injury By Maeve Maddox A reader questions the media’s use of injury and wound as if they were interchangeable: I had always thought that to wound describes the deliberate infliction of an injury, while the injury itself could be the result of an accident.   If this is still the case, could you address the confusion. In modern usage, the noun wound [WOOND] refers to any injury that tears the flesh. The verb to wound [WOOND], however, retains its earliest meaning: â€Å"to inflict a deliberate injury that tears the flesh.† For example, a police officer who is shot or stabbed by a perpetrator has been wounded. A fireman who suffers lacerations from being struck by falling debris has been injured. Both the officer and the firefighter have wounds on their bodies, but only the officer was wounded. Likewise, soldiers are wounded by roadside bombs, but construction workers are injured in accidents. The difference is that the wounds suffered by the soldiers are the result of malicious intent, whereas the construction workers received their wounds as the result of accident. In addition to their literal meanings, both noun and verb have acquired figurative uses. For example, an insult may be said to wound the recipient. I am very sorry if I wounded your feelings this afternoon; it was wholly unintentional, I assure you. Narcissism usually starts with a significant emotional wound or a series of them culminating in a major trauma of separation/attachment.   The verb wound, documented in English from 760, predates the noun wound by about 150 years. The earliest documentation of the noun injury is from 1382. In the 15th century, injury was used both as a noun and as a verb, but by the end of the 17th century, the verb form injure had become established. The earliest meaning of the noun injury is â€Å"hurt or loss caused to or sustained by a person or thing.† Synonyms for this type of injury are harm, detriment, and damage. The verb that developed from injury meant, â€Å"to do injustice or wrong to a person.† Only later did the idea of bodily harm become as closely associated with the words injury and injure as it is now. The word wound carries an emotional connotation that injury and injure lack. A false report might injure a person’s career, but wound a person’s feelings. Injure is more or less emotionally neutral, but wound suggests strong emotions of distress or anguish. The following words are options for describing wound in the sense of a break in the flesh: lesion cut gash laceration tear slash graze scratch abrasion bruise contusion The following words are options for wound in the context of emotional injury: insult blow slight offense affront hurt damage pain distress grief anguish torment Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Addressing A Letter to Two People15 Great Word GamesPlurals of Proper Names

Conditional Operator Definition and Explanation

Conditional Operator Definition and Explanation Conditional operators are used to evaluate a condition thats applied to one or two boolean expressions. The result of the evaluation is either true or false. There are three conditional operators:   Ã‚  the logical AND operator. ||  Ã‚  Ã‚  the logical OR operator. ?:  Ã‚  Ã‚  the ternary operator. Conditional Operators The logical AND and logical OR operators both take two operands. Each operand is a boolean expression (i.e., it evaluates to either true or false). The logical AND condition returns true if both operands are true, otherwise, it returns false. The logical OR condition returns false if both operands are false, otherwise, it returns true. Both the logical AND and logical OR operators apply a short circuit method of evaluation. In other words, if the first operand determines the overall value for the condition, then the second operand is not evaluated. For example, if the logical OR operator evaluates its first operand to be true, it does not need to evaluate the second one because it already knows the logical OR condition has to be true. Similarly, if the logical AND operator evaluates its first operand to be false, it can skip the second operand because it already knows the logical AND condition will be false. The ternary operator takes three operands. The first is a boolean expression; the second and third are values. If the boolean expression is true, the ternary operator returns the value of the second operand, otherwise, it returns the value of the third operand. An Example of Conditional Operators To test if a number is divisible by two and four: int number 16; if (number % 2 0 number % 4 0) {   Ã‚  System.out.println(Its divisible by two and four!); } else {   Ã‚  System.out.println(Its not divisible by two and four!); } The conditional operator first evaluates whether its first operand (i.e., number % 2 0) is true and then evaluates whether its second operand (i.e., number % 4 0) is true. As both are true, the logical AND condition is true.

Retail at the speed of fashion (case study) Essay

Retail at the speed of fashion (case study) - Essay Example On the other hand, Zara has individually owned manufacturing units in and around Spain. It has full control over the manufacturing facilities giving them better flexibility. Only the raw materials like undyed fabric are purchased from countries like India and Morocco. The dependence on the suppliers is minimal for Zara. Buyer Power- An industry like fashion is characterized by very high buyer power. The power of the buyers is not in terms of bargaining but in terms of taste and preferences, which can change very swiftly. Zara has a well-dedicated designing team, which produces about 12,000 styles per year. This helps Zara to respond to changes quickly. Threat of Substitutes- Trends in fashion lasts for a very short period. It is substituted by a newer trend. Zara has maintained its position in the industry because it continuously changes to newer trend. It reacts faster than that of the other companies in the business. Barriers to entry- A new company coming into the industry will need a lot of time to be successful. The Capital requirement is high in the industry and one of the most important factors is the Brand identity. These factors create barriers to entry in the industry and there will be very few new competitors in the global scenario. Degree of Rivalry- Zara is a globally accepted brand, which is targeted to all sectors of the society. Brands like Gucci and Armani are more coveted brands not affordable to all. The other companies falling in the category of Zara are Gap, Hennes & Mauritz etc. The competition among these brands is not intense. Moreover, Zara has the competitive advantage of the least response time. The generic strategies developed by Porter states that the profitability of the firm depends on the industry attractiveness. Strengths of a firm can be categorized mainly under two heads- cost advantage and differentiation. By applying

Greek and Roman Sculptures Essay Example | Topics and Well Written Essays - 1250 words

Greek and Roman Sculptures - Essay Example This activity provided steady employment for many architects and sculptors who organized leading workshops in Greece, revolutionizing Greek classical art and architecture. The Parthenon, built by Menesicles and Ictinus, along with the Propylaea (the gateway with the finest paintings and sculpture of the Classical age) crowned the Athenian Acropolis. Other prominent works included The Panhellenic shrines, Delphi (oracle of Apollo) and Olympia (the shrine of Zeus). Delphi (460 BC) is the athlete offering libation of oil from patera (sacrificial bowl) in thanks for victory1. Roman art and architecture was founded on a different principle than their Greek counterparts. The Romans believed that for the continuity of the Roman Empire, they could only do so only through art. Since an emperor could not be omnipresent, it was necessary to set up the statue of the emperor in law courts, market places, public assemblies, and theatres. This policy led to the sculpture of a large number of the imperial effigies to adorn prominent buildings in Rome2. Since its discovery in 1963, the sculpture of Augustus of Prima Porta has been the subject of much scholarly discussion. The marble sculpture is probably a copy of a now-lost bronze statue which was made shortly after 22 BC. Augustus was lionized by the Roman people, he promoted conservative Republican values. He tried to restore faith in the Roman state by equating his role as Pontifex Maximus (Head Priest) with religious and moral values. Augustus used religion to reorganize state and to establish his own rule. He also promoted the cult of emperor as divine by building a temple to the Divine Julius 2.0 Augustus of Prima Porta (Roman Sculpture) Photo of Augustus of Prima Porta (Courtesy: Late Antiquity: Imperial Image) In Augustus of Prima Porta, Augustus is portrayed as a general, draped in a cuirass (breastplate) richly embellished with reliefs. The waist is draped in a paludamentum or officer's cloak. The upraised arms of the figure are an interpretation of ad locutio, a gesture conveying the power of speech in Roman art. It gives a visual demonstration of the emperor's power. Augustus saw himself as the Principate of Rome. Augustus of Prima Porta is one of the earliest examples of imperial portraiture used for political propaganda; the statue's purpose was to identify the state with a well-meaning and enlightened Augustus. The sculpture of Augustus of Prima Porta is a Greco-Roman example of exquisite craftsmanship of the Roman period. The sculpture has the power of expression in its god-like appearance. Practices of deifying rulers and erecting temples in their honor began in Rome as early as the reign of Augustus. Augustus of Prima Porta is the type of statue that stood in such a temple. It adapted an orator's gesture, combined with the pose and body proportions, as prescribed by the Greek Polykleitos and exemplified by the Spear Bearer, Doryphoros. Bare feet suggest that the work may have been posthumous and signified his apotheosis, or elevation to divine status. Carved on the cuirass are scenes, recounting outstanding achievements of Augustus' reign and pictures of the gods and goddesses. The Greek influence can be seen in the depictions of divine figures. The depiction of a Parthian giving back the

Animals Save Lives :: Essays Papers

Animals Save Lives Suppose a family member was suffering from a disease and the doctor announced that thanks to animal research they are coming close to finding a cure. Would it then be acceptable to experiment new drugs and treatments on animals, even if it meant death for the animal? This is a controversial issue, which has many divided as to whether animal testing is a good or bad thing. The vast majority of animal research is; however, devoted to finding curse for human disease. Obviously, in animal research the animals are subjected to many tests, which may cause pain and even have long lasting negative effects. Moreover, animal research is vital to the medical field. Through animal research many cures for humans have been discovered. Animal research became widespread in the late 1800’s and has continued up into today (RDS). Because of this research dozens of vaccines and antibiotics have been discovered and new advancements such as open-heart surgery have been perfected. Animals are used in research and testing when it is necessary to see what happens in the whole living body, where the use of human subjects would not be ethically acceptable (Biomedical Models). Most often animal research is very important in discovering new treatments for diseases and cannot be replaced by computer generated models. One of the best-known medical discoveries is that of insulin, which saves almost 500,000 American, lives each year (Chang). Many more discoveries have been made thanks to animal research and testing. There have also been many breakthroughs and advancements within the psychology field, because of animal research. Psychologists do research on animals in this field to study the animal’s behavior and central nervous system. Through understanding how the nervous system works doctors can then begin to understand more about the complex behaviors humans may exhibit (APA). According the American Psychological Association, â€Å"Animal research has been the major contributor to the knowledge of the basic learning processes and motivational systems, such as hunger, thirst, and reproduction. Also animal research has provided critical information about the sensory processes of vision, taste, hearing, and pain perception.