The Evolution of Barilla’s Durum Wheat Supply Chain Contracts for Triple Bottom Line Benefits

Abstract

Purpose

We investigate the innovative supply chain contracts developed and implemented by Barilla, the leading Italian pasta company, in sourcing high-quality durum wheat from farmers in Northern Italy in the Emilia Romagna region.

Methodology/approach

Using case study techniques to gather information, we captured the evolution of the supply chain contracts adopted by Barilla. We gained information mainly through semi-structured interviews with Barilla’s managers, co-op and consortium managers representing farmers, Barilla’s quantitative data related to contracts’ elements and structure, preliminary experimental results, agri-business magazines, industry reports, and academic literature.

Findings

These contracts helped the company improve not only its long-term profits and strategic objectives such as supply security, but also the farmers’ income as well as environmental sustainability, thus providing triple bottom line benefits.

Originality/value

We investigate how Barilla and its suppliers – with the support of additional stakeholders, such as regional institutions – combine in their innovative contracts fixed and market-based prices as well as quality and sustainability-based premiums for desired triple bottom line benefits.

Citation

Formentini, M., Sodhi, M.S. and Tang, C.S. (2016), "The Evolution of Barilla’s Durum Wheat Supply Chain Contracts for Triple Bottom Line Benefits", Organizing Supply Chain Processes for Sustainable Innovation in the Agri-Food Industry (Organizing for Sustainable Effectiveness, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 109-126. https://doi.org/10.1108/S2045-060520160000005013