Barilla SpA

1447 Words Nov 1st, 2013 6 Pages

Barilla SpA

Part 1 – Executive Summary
The most important issue Barilla faces is the variability in distributor’s demand or order patterns even though consumer demand is relatively stable. To date, implementation of the Just in Time Distribution System (JITD) has not been successful. It has been resisted both internally and externally with distribution network. The company either can implement JITD or it should reject the strategy and develop a new one.
Rather than placing traditional orders with our factories, the distributors will instead provide us the demand information from the retail store locations. Using the data from the retail store orders, we can determine the optimum schedule upon which to base
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Part 5- Alternatives and Options

A more targeted approach to implementing the JITD system will increase the likelihood of success. Due to the high number of SKU’s we move through our supply chain, the project is considerably more complex than necessary. We should use a Pareto analysis to select a smaller number of SKU’s that account for 80% of our throughput. This will maximize the impact of our efforts, while keeping them achievable.
In order to build faith in the JITD program, both with our sales force and the distributors, we should run a pilot project with a single product line and a single distribution center. We will offer any necessary compensation to a distribution center in order to ensure full co-operation in this initiative. We expect that we will be able to increase service levels while reducing inventory levels. Once we are able to demonstrate the advantages of the JITD system, we will have a much easier time achieving buy-in with the other distribution channels.
The compensation program for our sales department needs to be modified, so as to benefit them while we achieve our strategic goals. Providing bonuses when the distribution centers achieve profit targets, inventory turn targets and target inventory levels will ensure that the sales department is working with us toward those goals.
The focus of the sales department

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