Barilla jitd implementation

Barilla Spa Case Study

Promotional activities of the company should Barilla jitd implementation conducted through alternative channels of advertisement. Minimum and maximum of order quantities are not defined.

Potential loss of shelf space to competition 3. Due to severe fluctuation in demand Barilla is pushed to increase the buffer of finished goods to avoid stock out and this only means increase in raw materials inventory, carrying cost, transportation cost and production cost which is detrimental to the growth of the company.

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.

Product proliferation and relatively short product shelf-live only deteriorate the situation making operations planning extremely difficult which results in CDCs holding a monthly production inventory, but still not able to meet customer demand.

Additional inventories to dampen fluctuations costs money, costs of maintaining certain service levels should also be taken into consideration.

Case: Barilla Spa (A) Case Solution & Answer

Applying Lean principles to our Supply Chain is misleading to our staff as they think their job security is on the line.

This resulted in poor demand forecasts which would then have to be compensated for in subsequent orders. Barillas distribution network is only based around relationships, not necessarily around efficiency of their supply chain.

These strategies heavily influenced the demand. Main reasons for the limited success were opposition from the sales reps, reluctance of distributors to share their sell-thru data and fear of distributors that in this business model they will lose control and Barilla will have more power.

The company will use the forecast to staff the front desk in the hotel.

Barilla SpA (D): JITD Problem Resolution

The company can better reach towards the target customers as the new system would directly interact with the clients so that the company can determine expectations of the customer.

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: Barilla offered frequent trade promotions and volume discounts.

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.

Flexible scheduling based on orders from distributors could not be achieved. This procedure limited the ability to rapidly shift production between different pastas.

Product proliferation and relatively short product shelf-live only deteriorate the situation making operations planning extremely difficult which results in CDCs holding a monthly production inventory, but still not able to meet customer demand.

It will help to reestablish customers trust as looking for their cooperation is a key to the company success. What are the ways to convince customers to implement JITD?

First, move from quantity based trade discounts to marginal quantity based trade discounts. How would you convince them that the JITD program was worth trying?

Once JITD is in place, they can be incentivized to ensure that distributors order the demand as forecasted by Barilla, and not more or less. As such, it is understandable that the sales and marketing organization has been particularly vocal in their opposition to the JITD.

The company should consider the prospective benefits of the new system to the customer.

Barilla Spa Case Study Analysis

This strategy could be eliminated with the JITD program. How to Write a Summary of an Article? Moreover, it leads to a big amount of urgent orders of small quantities of products that are not discounted at the moment.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.

Barilla SpA, an Italian manufacturer that sells to its retailers largely through third-party distributors, experienced widely fluctuating demand patterns from its distributors during the late s.

JITD was created to solve the problems of a) effects of fluctuating demand (Bullwhip Effect) b) stockouts issue that strain Barilla’s Ma nufacturing and logistics operations.

2. It needs to prove that the implementation of JITD will lessen the current problems that have resulted in high costs of carrying inventory and lost sales, which are shared by all members (Barilla, distributor, and retailer) of the supply chain.

2. What conflicts/barriers internal to Barilla does the JITD program create? Before Barilla can implement JITD it must first garner acceptance from the. My decision is that Barilla should start the implementation of the JITD system with our selected distributors as a pilot, which would enhance visibility with distributors, improve service levels and increase internal efficiencies.

Background Pasta is the staple. Barilla Case Study Phil Kaminsky [email protected] David Simchi-Levi Philip Kaminsky Edith Simchi-Levi – Implementation of Just-in-Time Distribution (JITD) with Barilla’s distributors.

Barilla jitd implementation
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