1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? Just In Time Distribution is a unique idea that the logistics director wanted to implement at Barilla. It was in response to the significant fluctuations in sales demand that Barilla was experiencing from their distribution centers. Exhibit 12 in the case shows how volatile the ordering could be. It looks very unpredictable using their current
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What is the JITD program? Evaluate it from the perspective of Barilla and an independent distributor. What kind of products might such a program is best suited for? The pasta supply chain suffered high inventory levels at each segment of the supply chain; stock-outs at the distributor’s level and the customer’s demand variability magnified the problem. Availability of demand information at store levels is hard to get. A JITD system utilizes a vendor-controlled inventory scheme to combat a distribution
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Ans3 JITD program created some conflicts both external (i.e. from the distributor perspective) and internal (i.e. from the sales perspective) which are explained below. JITD- Internal Conflicts JITD created some internal resistance within the organization. Sales and marketing department opposed the plan of JITD. They had many fears related to implementation of JITD. There concerns can be explained in the following ways. 1 Sales representative felt that their responsibilities would be reduced
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Barilla Case 1a. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits of this program? There is a large variability in demand. (GD’s and DO’s order once a week‚ in varying quantities‚ causing a bullwhip effect). This is strange‚ as the total market is relatively flat and nearly completely saturated. Because pasta is so common in Italy‚ people usually stick with their choice of brand‚ which is why demand should be stable for Barilla’s
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Giorgia Maggiali‚ head of materials management for Barilla‚ is developing and implementing the “Just-in-Time Distribution” program across the business. It is recommended Maggiali utilize sales reps to streamline and advocate for JITD at the store level. Work Directly with Internal and External Groups to Communicate Clear Vision In order to successfully implement a change in how business is conducted in any large institution‚ like the JITD system‚ it needs to overcome resistive forces from internal
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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
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MARKETING – II CASE ANALYSIS Barilla SpA (A) SUBMITTED BY: Section A Group 9 Shivani Jain Anuj Peepre C. Narayana Reddy Santosh Kumar Pushpendra Singh Ritesh Kumar Mohammed Shahbaaz Executive Summary: Barilla SpA‚ an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties‚ Giorgio Maggiali‚ the Chief
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Barilla SpA currently must decide the logistic planning of its future production and distribution systems. The company is suffering from issues dealing with fluctuating demand from distributors‚ and the lack of end user sales and demand information. Brando Vitali‚ the former director of logistics for Barilla‚ suggested the use of a Just-In-Time Distribution (JITD) system in order to fix these issues. After much resistance from distributors and Barilla employees itself‚ a decision as to whether
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0019038430Barilla SpA Rohit Agarwal NUID : 001903843 Barilla SpA (A) Introduction: Barilla was founded in 1875 when Pietro Barilla opened a small shop in Parma‚ Italy on via Vittorio Emanuele. Adjoining the shop was the small “laboratory’ Pietro used to make the pasta and bread products he sold in his store. In 1990‚ Barilla was the largest pasta manufacturer in the world‚ making 35% of all pasta sold in Italy and 22% of all pasta sold in the Europe. Barilla was organized into seven divisions: three pasta
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Barilla SpA was founded in 1875 by Pietro Barilla and has evolved into a large‚ vertically integrated corporation with flour mills; pasta and bakery factories located throughout Italy and is a global leader in producing and selling a multitude of these goods. Review of this case study shows a core problem of weekly demand fluctuations in the distribution order patterns which impacted manufacturing and other chains in the system. The fluctuations brought increasing operational inefficiency and cost
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