Barilla
1. Causes for JITD implementation
There were large fluctuations in the demand of pasta industry and distribution centres kept high inventory because of that reason (they were increasing inventory of items they already stocked and added items they currently did not carry). There was also a stockouts issue that strain Barillas’s manufacturing and logistics operations. The main reason for such fluctuations was the so-called bullwhip effect, which is an observed phenomenon in forecast-driven distribution channels where there is variability up the supply chain. Implementing a good JIT program could solve bullwhip faced by the barilla.
Benefits of implementing JITD
Better responsiveness to demand fluctuations
Prevention of the bullwhip effect
Improvement in manufacturing planning, using objective data
Reduced inventory levels
Better relationship with distributors
Lover costs for the involved in the supply chain
Drawbacks of implementing JIT
Unexpected disruptions in the supply process can damaged the system (strike or other disturbance)
Higher possibility of unsuccessful implementation because of the huge internal and external resistance
Additional costs of implementing the system
Higher risks concerning the distribution
2. Conflicts and barriers to JITD iplementation
Causes of internal conflicts
Lack of communication of the newly proposed JITD system from top management to different departments.
Lack of explanation of the benefits of JITD.
Created distrust in relation to changes.
Lack of inclusion of employees into the planning process of the JITD system.
Lack of consideration for the needed adaptation of different departments to the JITD system.
Internal conflicts and barriers
Sales perspective of opposing JITD system:
Fear of diminished responsibilities,
Risk of losing shelf space to competitors.
Marketing perspective of opposing JITD system:
Inability of running trade promotions
Distribution perspective of
There were large fluctuations in the demand of pasta industry and distribution centres kept high inventory because of that reason (they were increasing inventory of items they already stocked and added items they currently did not carry). There was also a stockouts issue that strain Barillas’s manufacturing and logistics operations. The main reason for such fluctuations was the so-called bullwhip effect, which is an observed phenomenon in forecast-driven distribution channels where there is variability up the supply chain. Implementing a good JIT program could solve bullwhip faced by the barilla.
Benefits of implementing JITD
Better responsiveness to demand fluctuations
Prevention of the bullwhip effect
Improvement in manufacturing planning, using objective data
Reduced inventory levels
Better relationship with distributors
Lover costs for the involved in the supply chain
Drawbacks of implementing JIT
Unexpected disruptions in the supply process can damaged the system (strike or other disturbance)
Higher possibility of unsuccessful implementation because of the huge internal and external resistance
Additional costs of implementing the system
Higher risks concerning the distribution
2. Conflicts and barriers to JITD iplementation
Causes of internal conflicts
Lack of communication of the newly proposed JITD system from top management to different departments.
Lack of explanation of the benefits of JITD.
Created distrust in relation to changes.
Lack of inclusion of employees into the planning process of the JITD system.
Lack of consideration for the needed adaptation of different departments to the JITD system.
Internal conflicts and barriers
Sales perspective of opposing JITD system:
Fear of diminished responsibilities,
Risk of losing shelf space to competitors.
Marketing perspective of opposing JITD system:
Inability of running trade promotions
Distribution perspective of