BARILLA CASE STUDY JITD

Civil Rights Movement Essay. Placing limits at the various stages, could act as a restoring force to stabilize the volatile demand by balancing the order frequency with the fill frequency. Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now. Maggiali felt the JITD program could improve the relationships between Barilla and the distributors rather than harm them. 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. If you need this or any other sample, we can send it to you via email.

Barilla has been facing huge variability in demand which is straining the manufacturing and distribution network of the company. The entire relationship between the sales representatives and distributors appears 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. Their plants are not designed to quickly shift from making linguini to macaroni, from spaghetti to capellini, etceteras. 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. Barilla would use forecasting systems and analytical tools to determine product quantities in a sensible and logical manner. They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8.

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

They need included as equitably as possible in balancing their system to respond to fluctuating demand.

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Their process would be very similar to using point-of-sale data from retailers. 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 csse to fill them.

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barilla case study jitd

The JITD program would need to be barills to volume discount incentives for distributors and promotion discounts for retailers in order to receive buy-in from the distributors, sales, and marketing organizations.

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.

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.

Would it be effective? As Giorgio Maggiali, how would you deal with these?

BARILLA CASE STUDY A by Jonathan Toh on Prezi

An overwhelming opposition between Barilla and its distributors continued for over two years. Barilla could also demonstrate to batilla distributors how the JITD program would work and save them money. Hi there, would you like to get such an essay? The entire relationship between the sales representatives caze distributors appears 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.

Their plants are not designed to quickly shift from making linguini to macaroni, from spaghetti to capellini, etceteras.

Maggiali felt the JITD program could improve the relationships between Barilla and the distributors rather than harm them. 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.

Vitali hoped his innovative idea would solve the tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors. Barilla and the distributors can work as a team and plan on different issues. 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.

Flexible scheduling based on orders from distributors could not be achieved. They could respond to the ultimate demand from the end-consumerby using the consumers input to produce orders Hammond, 8. As the s progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the company see Exhibit 12 Cost of having to hold high inventory.

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If so, which customers would you target next? 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.

barilla case study jitd

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. To be truly successful, the JITD program needed to be an end-to-end strategy that could respond to a composite demand signal at all stages in the value chain from sourcing, to production, distribution, marketing, sales and retail.

This step is critical, as this is where the opposition to the JITD program stems from. Placing limits at the various stages, could act as a restoring force to stabilize the volatile demand by balancing the order frequency with the fill csse. This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. They feared that their ability to have specials and increase sales levels would not exist with the JITD program.

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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. Over 30 successfully finished orders. A limited time offer! In the event that the sales force and distributors continue to be opposed to the JITD program, we suggest that Barilla turn its attention to improving their manufacturing operation.

Once this is brought under control, many other problems will be solved.