1. ADVANCED MANAGEMENT CONTROL and SUSTAINABLE DEVELOPMENT
SMART LEADER APPROACH

2. 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

3. 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

4. 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

5. 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

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

7. 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.

8. 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

9. 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