Barilla jitd implementation

If so, which customers would you target next. In the environment in which Barilla operated indo you believe JITD or a similar kind of program would be feasible.

Barilla Case Study

Long lead times and recurring stock-outs undermined customer trust to Barilla. They also felt that, they would loose the opportunity to gain advantage during the promotional periods and they cannot place orders at will.

When demand fluctuates manufacturing and distribution team experience too much pressure. The buyers, in turn appeared to sabotage the logistics departments. It Barilla jitd implementation in high manufacturing demand for the same product category leaving no room for operations flexibility.

JITD feasibility is evaluated by addressing the following issues: Stock out of the company will lead to negative reputation in the eyes of the customer which turn in a loss of customer loyalty.

Barilla will have the control of production and not Barilla jitd implementation on the order of distributor. Once this is brought under control, many other problems will be solved. In addition to customer distrust, there is an internal resistance form sales representatives fearing diminishing of their responsibilities and decrease of their incentive bonuses.

In this process, the company would integrate the process with each other so that effectiveness will improve………………. The proposed JITD system required the distributors to share their sales data with Barilla, who would then forecast and deliver appropriate amounts of products to the distributors at the right time in order to effectively meet demand.

Once the internal issues are addressed and the new philosophy starts taking precedence they can effectively communicate JITD to their DO channels. How would you convince them that the JITD program was worth trying.

Keeping everyone informed would be key as the only way to reassure staff and address uncertainty would be to educate them on pros on cons of the system being brought to life. It results in 8 to 14 days order lead time despite short distance between plants, CDCs and customers. The situation leads to bulk ordering which causes demand fluctuation.

It results in 8 to 14 days order lead time despite short distance between plants, CDCs and customers. Barilla was dealing with perishable items and the lead times of between 8 and 14 days after it received their orders, the average lead-time being 10 days was high given the nature of products and continuously changing ordering patterns.

Therefore mentioned analysis discussed a variety of methods by which to make such implementation more viable than it was in the past.

Barilla Sp(A) Harvard Case Solution & Analysis

Environment and Root Cause Analysis Despite being the industry leader in pasta manufacturing in Italy and one of the biggest exporters of pasta, Barilla Barilla jitd implementation two major challenges great demand fluctuation and stock-outs.

The case contains tables showing the output of the regression model, and compares the fit of the moving average and regression models. Moreover, it leads to a big amount of urgent orders of small quantities of products that are not discounted at the moment.

Short term Barilla has canvass period which each corresponding to a promotional program. These distributors expressed concerns about becoming too tight to Barilla and fearful of losing control by giving Barilla the power to push products into their warehouse just so they Barilla can reduce its costs.

His philosophy was to consider JITD as a selling tool rather that a threat to sales. Once DOs are up to speed on JITD, a simulation should be considered with external distributors to demonstrate the benefits of the new distribution system once it is implemented.

The whole process should be done in stages to allow staff to adapt to the changes gradually. The main causes of demand fluctuation are identified as follows: Environment and Root Cause Analysis Despite being the industry leader in pasta manufacturing in Italy and one of the biggest exporters of pasta, Barilla faces two major challenges great demand fluctuation and stock-outs.

Barilla should not only forecast demand but also should try to shape and influence it by marketing using surveys to determine the needs and expectations of the consumers and designing products to satisfy them. They resisted the program for fear of the program threatening their sales levels.

Minimum and maximum of order quantities are not defined. They have overinvested in making their facilities efficient at producing like types and sizes of pasta, which made it cost and schedule prohibitive for them to changeover production runs to meet variations in demand.

Sales representatives are key contacts between a company and its customers and they should be motivated to promote Barilla strategy.

The customers would show their loyalty when they would receive product in high quality with the appropriate standards so that the new system should maintain the required standards.

Main reasons for fluctuating demand:. Implementation of JITD program will address demand fluctuation, stock-outs, and information flow.

It will help to reestablish customers trust as looking for their cooperation is a key to the company success. JITD- Internal Conflicts JITD created some internal resistance within the organization.

Case: Barilla Spa (A) Case Solution & Answer

Sales and marketing department opposed the plan of JITD. They had many fears related to implementation of JITD.

Barilla Spa, Just in Time Distribution

There concerns can be explained in the following ways. Communicate JITD benefits to distributors Poor internal Communication between Barilla and Sales staff Poor external communication between Barilla and independent distributors What is the JITD - Barilla logistics would forecast and deliver the appropriate quantities at specific times -.

Barilla Spa, Just in Time Distribution Essay. Words Nov 10th, 6 Pages. Show More. Barilla spA case analysis Besides, the distributors, the internal Barilla's sales force were also reluctant to these JITD implementation, as they were sacred of losing their jobs, if the ordering process was automated and the Barilla would not need.

Barilla SpA Case Table of Contents Executive Summary 2 Issues Identification 3 Environmental and Root Cause Analysis 3 Alternatives or Options 4 Recommendation and Implementation 5 Monitor and Control 6 Conclusion 6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of.

Brando Vitali suggested the implementation of a Just-In-Time Distribution (JITD) strategy, which is essentially the Vendor Management Inventory (VMI) strategy. Barilla will be in charge of the channel between the CDCs and the distributor and decide on the timing and size of shipments to its distributors.

Barilla jitd implementation
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Barilla Spa, Just in Time Distribution - Essay