ADVANCED MANAGEMENT CONTROL and SUSTAINABLE DEVELOPMENT SMART LEADER APPROACH

The role of the Smart Leader in the integration and collaboration approach Leader company plays a key role in integration and synergy connection between actors within the supply chain. Collaboration and integration approach, where the focal company connects downstream with upstream companies The collaboration strategy enhances the potential of economic advantages along the supply chain. With the possibility to coordinate all members and guarantee the fair profitability

The role of the leader in the Value Chain Barilla Case Study The role of the leader in the Value Chain Barilla creates agreements or cultivation contracts with producer organizations and not with farmers, unless of large size Cultivation contracts are agreements signed between parts: Barilla and Stocker/Producer associations Stocker and farmer/smallholders

The reasons to introduce collaborative contracts Functions Needs and Requirements Coordination Provide an institutional framework for greater dialogue between actors Support the integration of the most fragmented components of the supply chain (farmers) Ensure coordination of the entire production process   Grounds/Motivation Stimulate farmers financially Investments to gain the trust of different actors and build a critical mass Reduction of transaction costs Aggregate farmers to reduce research and bargaining costs

The reasons to introduce collaborative contracts The realization of a highly sustainable production under an environmental profile, which allows water savings, reduction of CO emissions and savings on transport costs The increase in quality, guaranteeing "top quality" in protein content and gluten strength, ensuring the 100% Italian product The improvement of product quality, both in the field and in the management and storage phase Safe income and fair profitability distribution in a global market The use of the certified inputs in the correct ways, allowing to produce more and this is more noticeable with unfavorable weather conditions bring to the improvement of quality

The advantages for Barilla Supply Security Protein improvement Quality Efficiency Stability of production Safeguarding the territorial proximity

The reasons to accept supply chain contracts Increase the availability of national durum wheat quality and produced in a sustainable way to meet the needs of the milling industry and pasta Encourage and support virtuous agriculture, with production bonuses linked to the achievement of grain quality standards and the characteristics of the production area Gradually concentrate the durum wheat supply and register the storage centers suitable for the preservation of quality durum wheat Stimulating training, research and innovation in the Italian grain-semola-pasta chain To promote and defend a strong image of Italian pasta in a cohesive manner, guaranteeing its security through the computer traceability of the various steps in the supply chain.

The advantages for stockers Lower costs thanks to improved procurement planning Greater revenue thanks to greater homogeneity and quality of lots Better selection and loyalty of suppliers Lower financial risks related to market fluctuations

The advantages for farmers Increased income security (less fluctuation risks) Greater guarantee of payment (high price volatility with limited margins) Better uniformity on the price mechanism Have a quality goal - (know the goal you must achieve) Increased crop income thanks to the safest price, the quality of the product and the greater quantity produced Improvement of cultivation techniques and professionalism, thanks to technical assistance