This will streamline the information flow, reduce uncertainty in demand , reduce the lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost. It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine. Page count 1 page words. Implementing the JITD is a good idea for a number of reasons. Ideas such as reducing the number of SKUs and rearranging distribution channels should also be explored in the long term as they can also result in substantial cost savings. Vitali noted they Barilla should only ship when needed from inventories in distributor warehouses to meet demand and absorb the pressure on production.
Bachelor’s or higher degree. Barilla has been facing huge variability in demand which is straining the manufacturing and distribution network of the company. Other distributors and retailers were carrying too much inventory. The JITD program would also allow distributors and retailers to carry more variety with fewer inventories. 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. Customer service Barilla has no visibility when it comes to plan and forecast in order to meet the customer demand. This was causing problems as the sales reps would try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods.
Other distributors and retailers were carrying too much inventory.
Therefore, the manufacturing to support the JITD program would take an extreme effort at redesigning their production methods, schedules and learning how to be more agile, more flexible and lean.
The barill could decrease their inventories and improve their delivery rate to their stores. 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, and marketing organizations. 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 atudy on to be a success.
MBA Case Analysis & More Barilla Spa
Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now. Barilla supplied its distributors between 8 and 14 days after it received their orders, the average lead-time being 10 days.
The production division is concerned about the lack of a sophisticated forecasting system in order to properly use the data received from the distributors in an efficient way. The JITD program offered additional service to the customer at no extra cost.
Barilla Spa Case Study Analysis Essay
This step is critical, as this is where the opposition to the JITD program stems from. Demand fluctuations Bullwhip effect. Once Barilla convinced their sales staff of the JITD program benefits, they could utilize their sales representatives to positively promote the program to their distributors and retailers. This would each stakeholder at every stage in the value chain to schedule for those causal relationships and better absorb the demand Jacobs and Chase, They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8.
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This would eliminate Barilla scrambling to meet demand swings from the distributor. The JITD system has the potential to substantial reduce costs if it is implemented correctly.
They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. Bachelor’s or higher degree. Higher overall warehouse and transportation costs.
Barilla Spa Case Study
Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes. This was causing problems as the sales reps barrilla try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods.
If properly implemented, the JITD program would be feasible in the jid in which Barilla stdy in It seems that allowing them to push their products into my warehouse would reduce their own expenses cass not mine. The JITD program would also allow distributors and retailers to carry more variety with fewer inventories. These following are some of the causes of this fluctuating demand that must be addressed: Their process would be very similar to using point-of-sale data from retailers.
However, such a list is in no way conclusive. These retailers would become more committed to Barilla when they realized their orders would flow more efficiently and save them money on in-store inventory.
Flexible scheduling based on orders from distributors could not be achieved.
The entire relationship between the sales representatives and distributors csse to weaken with the JITD program, as the sales representatives lose their traditional areas of influence and the ability for distributors to control their inventory is taken away. 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.
An overwhelming opposition between Barilla and its distributors continued for over two stduy. It would also improve operations for Barilla and their customers. As Giorgio Maggiali, how would you deal with these?