Barilla Case: Key Assumptions And The Statement Of Issues

1745 Words Nov 23rd, 2010 7 Pages
Executive Summary
My decision is to implement Just in time distribution (JITD) to Barilla Distributors to reduce distribution costs, inventory levels and manufacturing costs. This would enable Barilla to improve relationships with their distributors and provide them with more objective data so that they can improve their own planning procedures. Barilla Operations will have more control on what is being shipped out so that shipments can be planned to optimize full loads. Manufacturing costs can be reduced if schedules are planned in order to enhance operations output….i.e. Reduce down times and ensure long runs of like products to reduce energy costs. They would also be able to achieve financial gains by reducing the large amounts of
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Their incentives were based on achieving sales targets set for the canvass periods. These complex systems created resistance from their own internal sales and marketing organization regarding the implementation as they felt that their jobs would be threatened if the JITD program was put in place. Maggiali would need to convince them of the benefits of the change. In order to convince customers to implement the program, Barilla will need to trial the program on their own distribution channels in order to trouble shoot any problems that they encounter and once they have perfected the program, they will be able to sell the idea to their customers.

Criteria
In this case, implementing the JITD program would allow Barilla Operations to take control of their own manufacturing process and be able to schedule which products are shipped out and control when they ship. The relationship between Barilla and their Distributors will improve as they will need to share information in order for them to achieve their goals. Barilla Operations will be able to improve their own planning procedures which would allow them to evenly distribute the workload on their manufacturing and logistics systems. They will be able to reduce any bottlenecks encountered in certain areas and run more efficiently without disruptions in supply. The ultimate goal is to reduce the costs within the supply chain.

Analysis
Georgio Maggiali – Director of logistics for the worlds largest pasta producer –

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