BARILLA CASE STUDY JITD

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. The program could decrease their inventories and improve their delivery rate to their stores. They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now. We use cookies to give you the best experience possible. In order for the JITD program to be acceptable to me and to the other distributors , it would have to include my needs as opposed to excluding them.

Civil Rights Movement Essay. Want to get a price estimate for your Essay? In order for the JITD program to be acceptable to me and to the other distributors , it would have to include my needs as opposed to excluding them. 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. 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.

They could respond to the ultimate demand from the end-consumerby using the consumers input to produce orders Hammond, 8. They resisted the program for fear of the program threatening their sales levels.

barilla case study jitd

Civil Rights Movement Essay. The JITD system has the potential to substantial reduce costs if it is implemented correctly.

Barilla Spa Case Study

These following are some of the causes of this fluctuating demand that must be addressed: The entire relationship between the sales representatives and distributors appears to weaken with baeilla JITD program, as the sales representatives lose their traditional areas of influence and the ability for distributors to control their inventory is taken away. Demand fluctuations Bullwhip effect.

barilla case study jitd

The production division is concerned about the lack of a sophisticated cqse system in order to properly use the data received from the distributors in an efficient way. 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:. It would also be beneficial to provide these retailers studj handheld computers so their orders would go directly to studt distributor or Barilla warehouse thus allowing Barilla to obtain near real-time usage data.

  BOSCH MASTER THESIS GEHALT

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, atudy marketing organizations.

Maggiali felt the JITD program could improve the relationships between Barilla and the distributors rather than harm them. Information gained from the program would provide Barilla with objective data to improve their own planning process. Distributors also would benefit by realizing that the JITD program would eliminate the need for faster delivery because merchandise would be delivered as desired just-in-time.

Barulla so, which customers would you target next? They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment.

Over 30 successfully finished orders. How would you convince them that the JITD program was worth trying? It provided an additional service offered by Barilla at no additional cost. If properly implemented, the JITD program would be feasible in the environment in which Barilla operated in It seems that allowing them to push their products into my warehouse would reduce their own expenses bariloa not mine.

In order for the JITD program to be acceptable to me and to the other distributorsit would have to include my needs as opposed to excluding them. This would eliminate Barilla scrambling to meet demand swings from the distributor. There would be no need for cass to place an order and with a week or more of delay before it to be delivered.

In the environment in which Barilla operated indo you believe JITD or a similar kind of program would be feasible? Jid 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.

  DISSERTATION SANDRA GAUSEMEIER

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

MBA Case Analysis & More Barilla Spa

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.

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. Implementing the JITD is a good idea for a number of reasons. 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.

Once this is brought under control, many other problems will be solved. 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. We will write a custom essay sample on Barilla Spa Case Study specifically for you. As a distributor, I feel inventory management is my job. 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.

Sales Representatives Incentives based on the amount of the products that they sold to the distributors.