As the s progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the company see Exhibit 12 Cost of having to hold high inventory. Information gained from the program would provide Barilla with objective data to improve their own planning process. Check it out goo. Barilla should be able to monitor and control the partnership with its distributors by measuring their performance, these are the following list of inclusions that may be used for this purpose:. How would you convince them that the JITD program was worth trying? The entire relationship between the sales representatives and distributors appears to weaken with the JITD program, as the sales representatives lose their traditional areas of influence and the ability for distributors to control their inventory is taken away.
Placing limits at the various stages, could act as a restoring force to stabilize the volatile demand by balancing the order frequency with the fill frequency. 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. This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine. These following are some of the causes of this fluctuating demand that must be addressed: Page count 1 page words. Barilla SpA Barilla , is an Italian largest pasta manufacturer in the world manufacturer that sells pasta to retailers largely through third-party distributors.
The greater number of trucks that it required in periods of high demand increased its Transportation costs. The JITD system has the potential to substantial reduce costs if it is implemented correctly. 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.
It provided an additional service offered by Barilla at no additional cost. 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. This was causing problems as the sales reps would try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods.
After convincing the in-house sales team that the JITD wtudy was worth trying, Barilla should focus on convincing the outside companies that the program would work for them.
Barilla Spa Case Study Analysis Essay
Want to get a price estimate for your Essay? Civil Rights Movement Essay. Barilla and the distributors can work cas a team and plan on different issues.
Check it out goo. The JITD program offered additional service to the customer at no extra cost.
Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes. Operations and Supply Management The Core. 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, This procedure limited the ability to rapidly shift production between different pastas.
Over 30 successfully finished orders. An overwhelming opposition between Barilla and its distributors continued for over two years. This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. 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.
Barilla SpA Barillais an Italian largest pasta manufacturer in the world manufacturer that sells pasta to retailers largely through third-party distributors. They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8. Barilla should be able to monitor and control the partnership with its distributors by measuring their performance, jitv are the following list of inclusions that may be used for this purpose:.
It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine. 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.
As the s progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the jid see Exhibit 12 Cost of having to hold high inventory.
Implementing the JITD is a good idea for a number of reasons. Production sequencing based on type and size of facilitymade it cost prohibitive to change-over product runs or mix multiple types. Customer service Barilla has no visibility when it comes to plan and forecast in order to meet the customer demand.
BARILLA CASE STUDY A by Jonathan Toh on Prezi
The key to making this effort successful was to obtain the inventory and sales data for Barilla to accurately forecast the demand for their products. How would you convince them cse the JITD program was worth trying? Information gained from the program would provide Barilla with objective data to improve their own planning process. Therefore mentioned analysis discussed a variety of methods by which to make such implementation more viable ijtd it was in the past.
Barilla Spa Case Study
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. 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.
They feared that their ability to have specials jltd increase sales levels would not exist with the JITD program.
It would also improve operations for Barilla and their customers.