27.6% from the first half of the previous year. The Japanese economy and declining value of the Yen relative to the U.S. Dollar has decreased AJL’s sales volume and profit margin. The Japanese government recently passed laws that confused AJL’s distributors and discouraged potential consumers from buying certain product lines. Furthermore‚ AJL suffers from a negative public image with over 70% of their customer base having either a neutral or negative opinion of the company. In order to rebuild
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In the long term I am recommending that Barilla SpA implement a Just in Time Distribution (JITD) system to reduce excess inventory and eliminate stock outs at the distributor to market level of the distribution chain. The new system will include a forecasting and planning system based on information provided by the distributors on a day-to-day basis. The JITD will reduce inventory to acceptable levels and will reduce inventory carrying cots. It will also flatten demand resulting in cost savings
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called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work‚ he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. The short term objective of Maggiali is to be able to overcome the resistance and implement the JITD solution while the long term orientation is to increase the profitability of the corporation
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large swings in demand on the supply chain resulting from relatively small‚ but unplanned‚ variations in consumer demand that escalate with each link in the chain .Events that can trigger begin at any point in the supply chain: consumer‚ retailer‚ distributor‚ manufacturers‚ raw materials suppliers and so on. As orders progress up the chain‚ each level perceives a greater demand that it seeks to rectify from its own Lets discuss in more detail some of the causes that can trigger this event and we can
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time we find large number of distributors‚ importers. The price gap will continue to widen. Majority of the products will be produced in the countries of Southeastern Asia‚ where labor costs are much less than in developed countries. They will have to close or re-profile to produce exclusive high quality products. Competition between distributors will increase. It will not be feasible to sustain retail growth on the long run. It will lead to disappearance of few distributors and mergers among others
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dealers (franchisees) to buy gas from distributors. Dealers must buy gas from the central oil company. Dealers often complain that this is unfair. The practice has been the subject of antitrust lawsuits. Oil company executives argue that this policy is important because it limits free-riding on the part of the distributors. Explain the executives’ arguments in more detail. The Oil Company executives argue that allowing dealers to buy gas from distributors would be likely to cause supply disruptions
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and in its distributors’ distribution centers represent increasing financial burdens on both Barilla and its distribution partners. The tight heat and humidity specifications in the pasta dry process makes it difficult for Barilla to quickly respond to the huge fluctuation and uncertainty of demand form distributors. As a result‚ Barilla’s customer order fill rate is suffering and so does its manufacturing and distribution operation cost. Despite the excess stocks held in the distributors’ warehouses
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1. Describe Barilla’s manufacturing and distribution operations. Barilla’s has 25 manufacturing plants located all throughout Italy where each plant has a dedicated product that they manufacture ranging from pasta‚ flour mills‚ fresh bread and specialty products such as croissants and Christmas cakes. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. Each plant specialized in manufacturing a type of pasta with the
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distributed directly from CDCs to small independent shops and the t inventory level within these small shops was 2 weeks. * Supermarket chains and Independent supermarkets: 70% of Barilla’s products were distributed through a large distributor “GD” and Organized distributor “DO”. Both GD and DO purchase products from CDCs and hold a 2 weeks of dry products in inventory. During the late 1980s‚ Barilla suffered bullwhip effect due to demand fluctuations and inaccurate demand forecast‚ which caused inefficiencies
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