BARILLA CASE STUDY JITD

Choose Type of service Writing Rewriting Editing. They could respond to the ultimate demand from the end-consumer , by using the consumers input to produce orders Hammond, 8. Vitali noted they Barilla should only ship when needed from inventories in distributor warehouses to meet demand and absorb the pressure on production. Its marketing and sales strategy was based on a combination of advertising and promotions Hammond, 5. To make the JITD program manageable across the supply chain, a range of limits could be placed at each stage particularly with the distributors with regards to how much they could inflate their orders based on their forecast and the lead-time needed to fill them. 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.

Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes. 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. The JITD program offered additional service to the customer at no extra cost. Over 30 successfully finished orders. This would eliminate Barilla scrambling to meet demand swings from the distributor. As Giorgio Maggiali, how would you deal with these?

These strategies heavily influenced the demand. The JITD program offered additional service to the customer at no extra cost.

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.

The key to making this effort successful was to obtain the inventory and sales data for Barilla to accurately forecast the demand for their products.

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barilla case study jitd

The volume discounts that were offered to the distributors for truck load quantities and multiple truck load purchases of pasta would also cease to exist with the JITD harilla. However, such a list is in no way conclusive. The sales and marketing organizations were very vocal in expressing their opposition to the plan and how it could adversely affect their departments Hammond, 9.

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Politics in the Guilded Age Essay. If so, which customers would you target next? They resisted the program for fear of the program threatening their sales levels. Higher overall warehouse and transportation costs.

Barilla Spa Case Study Analysis Essay

Ideas such as reducing acse number of SKUs and rearranging distribution channels should also be explored in the long term as they can also result in substantial cost savings. Civil Rights Movement Essay. It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine.

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.

Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia

The sales representatives are concerned about their compensation, they will lose their incentives, because the sale will be predictable or flat and their responsibilities will be minimized under the new jifd of operation. Demand fluctuations Bullwhip effect. Over 30 successfully finished orders. Implementing the JITD is a good idea for a number of reasons.

Barilla could also demonstrate to the distributors how the JITD program would work and save them money. Bachelor’s or higher degree.

This would eliminate Barilla scrambling to meet demand swings from the distributor. 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 stucy operations to determine quantities and delivery schedules.

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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.

barilla case study jitd

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, The JITD system gives more power to Barilla which may be looked on with doubt by some distributors who are not sure about the long term intentions of Barilla. The JITD system has the potential to substantial reduce costs if it is implemented correctly.

Barilla Spa Case Study

What are the benefits and drawback of this program? Get your custom essay sample.

The top management will be concerned about the added responsibility of predicting demand on Barilla without any guarantee of cost reduction. Operations and Supply Management The Core. 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.

Barilla would use forecasting systems and analytical tools to determine product quantities in a sensible and logical manner. Barilla should be able to monitor and control the partnership with its distributors by measuring their performance, these are the following list of inclusions that may be used for this purpose:. The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat to their sales.

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