Their plants are not designed to quickly shift from making linguini to macaroni, from spaghetti to capellini, etceteras. This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine. Sales Representatives Incentives based on the amount of the products that they sold to the distributors. Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes.
Literature Review Dissertation chapter: 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 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. We will write a custom essay sample on Barilla Spa Case Study specifically for you. 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. Information gained from the program would provide Barilla with objective data to improve their own planning process. There would be no need for them to place an order and with a week or more of delay before it to be delivered.
Customer service Barilla has no visibility when it comes to plan and forecast in order to meet the customer demand. If properly implemented, the JITD program would be feasible in barillz environment in which Barilla operated in If so, which customers would you target next?
Barilla Spa Case Study Analysis Essay
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. 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.
It provided an additional service offered by Barilla at no additional cost. Barilla could also demonstrate to the distributors how the JITD program would work and save them money.
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 varilla how much they could inflate their orders based on their forecast varilla the lead-time needed to fill them.
It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine. The top management will be concerned about the added responsibility of predicting demand on Barilla without any guarantee of cost reduction.
The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat to their sales. This strategy could be eliminated with the JITD program. Hi there, would you like to get such an essay? They need included as equitably as possible in balancing their system to respond to fluctuating demand.
They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. Therefore mentioned analysis discussed a variety of methods by which to make such implementation more viable barilpa it was in the past.
Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia
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 depended on sttudy be a success.
The logistics people seemed most willing to try the JITD program when Maggiali approached them in Get your custom essay sample. As a distributor, I feel inventory management is my job. The system needs to adjust to the JITD program by manufacturing to meet that demand without building up large inventories which vase what they are trying to avoid.
Vitali noted they Barilla should only ship when needed from inventories in distributor warehouses to meet demand and absorb the pressure on production. This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. The JITD program would need to be linked to volume discount incentives for distributors and promotion discounts stufy retailers in order to receive buy-in from the distributors, sales, and marketing organizations.
They felt their relationship with the distributors would be weakened and considered the JITD program a huge threat to their sales. Jktd JITD program offered additional service to the customer at no extra cost. Production sequencing based on type and size of facilitymade it cost prohibitive to change-over product runs or mix multiple bari,la. How would you convince them that the JITD program was worth trying?
In other words, even though the end-customer demand would be used to generate production quantities, the demand would not be pulled from the downstream process, i. A limited time offer!
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 greater number of trucks that it required in periods of high demand increased its Transportation costs. 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.
This will streamline the information flow, reduce uncertainty in demandreduce the lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost.