Politics in the Guilded Age Essay. The volume discounts that were offered to the distributors for truck load quantities and multiple truck load purchases of pasta would also cease to exist with the JITD program. The sales representatives are concerned about their compensation, they will lose their incentives, because the sale will be predictable or flat and their responsibilities will be minimized under the new mode of operation. 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. These distributors expressed concerns about becoming too tight to Barilla and fearful of losing control by giving Barilla the power to push products into their warehouse just so they Barilla can reduce its costs. 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, and marketing organizations. Once this is brought under control, many other problems will be solved.
Get your custom essay sample. They feared that their ability to have specials and increase sales levels would not exist with the JITD program. An overwhelming opposition between Barilla and its distributors continued for over two years. Civil Rights Movement Essay. The production division is concerned about the lack of a sophisticated forecasting system in order to properly use the data received from the distributors in an efficient way. This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. Flexible scheduling based on orders from distributors could not be achieved.
The sales representatives are concerned about their compensation, they will lose their incentives, because the sale will be predictable or flat and their responsibilities will be minimized under the new mode of operation. Over 30 successfully finished orders. This would each stakeholder at every stage in the value chain to schedule for those causal relationships and better absorb the demand Jacobs and Chase, 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.
Barilla Spa Case Study
As the s progressed, Barilla has been facing huge variability in jitv essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the jit see Exhibit 12 Cost of having to hold high inventory. 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.
They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained Hammond, 3.
Production sequencing based on type and size of facility stjdy, made it cost prohibitive to change-over product runs or mix multiple types. This approach was clearly not working. Barilla SpA Barillais an Italian largest pasta manufacturer in the world manufacturer that sells pasta to retailers largely through third-party distributors.
There would be no need for them to place an casr and with a week or more of delay before it to be delivered. 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 atudy in the value chain from sourcing, to production, distribution, marketing, sales and retail.
Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia
The JITD program offered additional service to the customer at no extra cost. It provided an additional service offered by Barilla at no additional cost. Its marketing and sales strategy was based on a combination of advertising and promotions Hammond, 5. Once Barilla convinced their sales staff of the JITD program benefits, they could utilize their sales representatives to positively promote the program to their distributors and retailers.
They need included as equitably as possible in balancing their system to respond to fluctuating demand. Their plants are not designed to quickly shift from making linguini to macaroni, from spaghetti to capellini, etceteras. These strategies heavily influenced the demand. They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8. 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, and marketing organizations.
Information gained from the program would provide Barilla with objective data to improve their own planning process.
Barilla Spa Case Study Analysis Essay
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. Ideas such as reducing the number of SKUs and rearranging distribution channels should also be explored in the long term as they can also result in substantial cost savings. Would it be effective? If you need this or any other sample, we can send it to you via email.
The volume discounts that were offered to the distributors for truck load quantities and multiple truck load purchases of pasta would also cease to exist with the JITD program. This strategy could be eliminated with the JITD program.
It would also improve operations for Barilla and their customers. However, such a list is in no way conclusive. Their process would be very similar to using point-of-sale data from retailers.
Different sizes of pasta were also made in different plants based on the variety of equipment required acse pasta production Hammond, 3.
Bachelor’s or higher degree. 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.