Distribution (contd..)
--Super-Market (65% of dry products)
-Chains (70% of supermarkets)
▪Distribution thorough the chains Distribution
-Organization (grande Distribuzione -GD)
Independently owned Super-markets (30% of Super-markets)
▪Distribution thorough the Organized Distributors (Distribuzione Organizzata - DOs)
-Typically inventory levels at the store would be in the range of 10-12 days of Inventory. Super-market ordering frequency was 'daily'. The replenishmentwould occur in 24-48 hours after the order was received
--Small Independent Grocers
▪35% of Dry Products sold via this route (south 40% and South 30%). Suppliedby Barilla's 18 regional warehouses. Retailers dealt with Barilla throughBrokers.
▪Stores stored inventory of on an avg - about 2 weeks of demand.
--Ordering for Supermarkets
▪Both DOs and GDs ordered once a week
▪Periodic review was done and orders placed if the stocks were below the minlevel
▪Barilla's supply started from the 8th day after the order placement and