Essay on Barilla Spa Case Study.

1027 Words5 Pages
Najib abdi
DSCI 434
3/24/2011
Barilla SpA
Case Study

1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program?
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
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JITD might also help the relationship between Barilla and its distributors, since Barilla won’t need to use pressure on distributors to hold more finished products than necessary.
While the JITD program has many beneficial it also has its drawbacks. One of them is the perception that the power will be transferred to Barilla, as one of the distributors was quoted “we would be giving Barilla the power to push product into our warehouses just so Barilla can reduce its costs.” Another drawback is that some of the distributors are not comfortable or willing to share their warehouse data, which is a vital piece in order for JITD program to work. Furthermore, it might be hard for some retailers to report daily sales simply because they might not have the point-of-sale technology at their stores.
2. What conflicts or internal barriers to Barilla has JITD created? What causes these conflicts? How would you deal with them?
JITD created lot of internal barriers to Barilla; while some of the concerns are easy to overcome others would need more convincing. For example, the sales department, sales representatives receive more on their compensation through commission from their sales. JITD would cut or reduce to zero most of sales people responsibilities, which in turn will squeeze their commission, as one sale man said “Our sales levels would flatten if we put this program in place”. As noted in the case most of the sales come from the

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