It provided an additional service offered by Barilla at no additional cost. They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. It would also be beneficial to provide these retailers with handheld computers so their orders would go directly to the distributor or Barilla warehouse thus allowing Barilla to obtain near real-time usage data. Other distributors and retailers were carrying too much inventory. Perhaps working with on a pilot scale initially to entice other stakeholders in the value chain would be the most effective strategy to establish the sense of buy-in the program absolutely depended on to be a success. The system needs to adjust to the JITD program by manufacturing to meet that demand without building up large inventories which is what they are trying to avoid. A limited time offer!
In the environment in which Barilla operated in , do you believe JITD or a similar kind of program would be feasible? They will be concerned about the loss of control in deciding their inventory levels. After convincing the in-house sales team that the JITD program was worth trying, Barilla should focus on convincing the outside companies that the program would work for them. The JITD system has the potential to substantial reduce costs if it is implemented correctly. Benefits to the JITD program include delivering only what was needed to the distributors to avoid large inventories, limiting the variation in order swings from week to week for dry products, and improving operations to determine quantities and delivery schedules. As Giorgio Maggiali, how would you deal with these?
The key to making this effort successful was stud obtain the inventory and sales data for Barilla to accurately forecast the demand for their products. Sales Representatives Incentives based on the amount of the products that they sold to the distributors. Flexible scheduling based on orders from distributors could not be achieved.
The JITD program would also allow distributors and retailers to carry more variety with fewer inventories. These strategies heavily influenced the demand.
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If you need this or any other sample, we can send it to you via email. The production division is concerned about the lack of a sophisticated forecasting system in order to properly use jitx data received from the distributors in an efficient way. They felt their relationship with the distributors would be weakened and considered the JITD program a huge threat to their sales.
It would also improve operations for Barilla and their customers. Operations and Supply Management The Core. What causes these conflicts?
Barilla Spa Case Study
As a distributor, I feel inventory management is my job. They will be concerned about the loss of control in deciding their inventory levels. This will streamline the information flow, reduce uncertainty in vasereduce the lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost. Production sequencing based on type and size of facilitymade it cost prohibitive to change-over product runs or mix multiple types.
Barilla Spa Case Study Analysis Essay
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The fluctuation demand may lead to overtime shifts in order to meet the demand, higher inventory of raw materials and frequent capacity adjustments, as well as higher transportation costs which all increase the overall cost of the product.
This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. Barilla would use forecasting jits and analytical tools to determine product quantities in a sensible and logical manner.
Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia
Barilla should be able to monitor and control the partnership with its distributors by brilla their performance, these are the following list of inclusions that may be used for this purpose:. Check it out goo.
Once this is brought under control, stufy other problems will be solved. Its marketing and sales strategy was based on a combination of advertising and promotions Hammond, 5.
There would be no need for them to place an order and with a week or more of delay before it to be delivered. The sales force needed to understand that the JITD program could be promoted as a selling tool stusy not a threat to their sales. Barilla and their stakeholders would benefit greatly from analyzing the sales data and decomposing it using least squares regression to help normalize the seasonal and trend factors attributable to the severe fluctuations.
Barilla supplied its distributors between 8 and 14 days after it received their orders, the average lead-time being 10 days.
The JITD program would need to be linked to volume discount incentives for distributors and promotion discounts for retailers in order to receive buy-in from the distributors, sales, kitd marketing organizations. Want to get a price estimate for your Essay? The JITD program offered additional service to the customer at no extra cost. They resisted the program for fear of the program threatening their sales levels.
These following are some of the causes of this fluctuating demand that must be addressed: It would also be beneficial to provide these retailers with handheld computers so their orders would go directly to the distributor or Barilla warehouse thus allowing Barilla to obtain near real-time usage data.
The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained Hammond, 3.