Barilla Jitd

Organisations are now faced with new and improved ways to provide basic services to customers and a major challenge for managers is to locate the most appropriate technology innovations for their business.

The big-bang or cut over approach requires the good skilled personnel, and also training for the new systems, working processes and running, maintenance the new system. The productivity was reported a reduction in the first month after the new system running, but improves gradually in the later months. The accounting reports can be done in two or three day, rather than two to three weeks when using the old systems. Also, with the new system, sharing and collaboration helps reduce inventory, as much as 25%, and also increase the fulfillment ratio from 80% to 95%, service quality has improved to

Of course, I won’t say that this estimate of three weeks is as certain as our other time estimates. All we need is a change of staff at the Agency and we are in trouble. But once we have both the specifications and the approval, you can immediately start on developing the production processing system (g).”

Moreover, by all this alternatives the company will get efficient and on time delivery to customers which increase the customer satisfaction too.

Barilla, the leading pasta manufacturer in Italy, faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains, why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”, i.e. that demand variability increases when moving up the supply chain. Several factors enforce this Bullwhip Effect, e.g. high lead times, poor demand forecasting, and batch ordering. In this report we will point out, that exactly those aspects can be identified as the underlying reasons for Barilla’s problems. In a

In the effort of keeping with the extremely unpredictable demand the production cost may rise dramatically as a result of diseconomies of scale. In addition the set up cost for producing different products in the production line is heavy and Barilla has an enormous product line of different products. The production plant in Pedrignano is big and technologically advanced but at the same time the pasta production is a complicated process and especially the drying of different types of pasta required precision in temperature and humidity levels that could not be changed

The new sales force will also have to be able to; create new working relationships, develop new business, create a personal atmosphere for customers, and promote new business. After the sales force creates new business, the team must be able to retain these newly established customers. They will have to create small, obtainable, measurable goals for themselves in order to create and sustain new business. The salespeople will have a sales quota of thirty units per month and the commission will go up in increments of ten percent after

One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics, and made very hard for Barilla to meet that demand. For example, as noted on the case “the specific sequence of pasta production necessitated by the tight heat and humidity specifications in the tunnel kiln made it difficult to quickly produce a particular pasta that had been sold out due

It is expected that during a period of four months, the company will sell about 333 lbs. to each of the thirty stores in Jalisco. These stores mainly focus on selling quality products and food, the customers are middle to high class, and most of them are educated about

Enabling the SMS, Financial Viability, Cost, Technical Support Offerings, Overall functionality, Architecture Compatibility, Platform Portability, Web functionality ?to go?, Manufacturing Experience, Training approach

Barilla’s products are divided into Fresh products and Dry products. The demand for these two distinct kinds of products is quite different, and the order, shipment and delivery methods for them are also various.

* Thorough market survey – The company structured its R&D division and outsourced the market survey to Nielson Bases. The survey took into consideration both- the market potential as well as behavioral considerations.

Because of the way Barilla’s manufacturing process works, demand fluctuations have a significant impact on the company’s operations. Tight heat and humidity specifications in factory tunnel kilns require very specific sequences of pasta production, which means Barilla has limited flexibility in ramping up (or ramping down) the production of pastas experiencing unexpected demand levels. Furthermore, because of extremely high holding costs, it is simply not economically viable for Barilla to maintain substantial finished goods inventories to guarantee fulfilling distributors’ fluctuating order quantities.

The Modern Trade channel in Mexico reached a market share in value terms of 33.1% (Barilla, 2016c). The strategic position of the central American state enabled Barilla to reach one of the most potential countries: Brazil. In this territory Barilla reached a 5% market share, an increase of 1% from last year, and opted for a dedicated packaging layout catching the Brazilian growing interest in the “Made in Italy” food products, especially in Brazilian metropolis (i.e. San Paolo’s market share rose to 19%, a 3% increase from 2014) (Barilla, 2016c).

There are two ways of distribution channel used by Ferrero. The first one is through distributors and the second one is through bulk buyers. The accessibility of the products offered by Ferrero has become very easy by involving two distribution channels. Customers can find Kinder Joy very quickly in the market. For examples, supermarkets, mini-markets, grocery stores and etc. Besides that, the brand also has its own company's website which is one- brand site that allows customers to shop online. For example, nowadays people prefer to shop online to bring them conveniently and buy whenever they