Barilla Spa - Case Study

1354 WordsFeb 14, 20126 Pages
[Type the company name] | Barilla Sp(A) Case Study | | | | | Barilla JITD Case Study Just in time distribution (JITD) was designed to address the fluctuating demand of products that created additional costs in production, scheduling, and transportation. Barilla was to blame for several of these underlying problems. For example, Barilla offered transportation discounts, volume discounts, 10-12 promotions throughout the year, as well as no maximum or minimum constraints on orders. Collectively, these offers influenced how salespeople pushed items and how customers bought items. As demand increased, this flux in ordering caused longer lead times and poor customer service. To make the situation worse, a major…show more content…
For the system to work, all parties must be on board and understand how the system will benefit them personally and the organization as a whole (Douglass, 2005). Not only must everyone be on board, but everyone must be willing to withstand the interruption of production as the new strategy is launched. Giorgi Maggiali should address the issue internally first. Every department within the company must be in line with JITD or the system will fail. The sales team needs to be informed of how JITD works and how it benefits the company, the distributors, and the sales team. The promotions and incentives need to stop or be restructured since they were part of the underlying problem. Sales people need to be retrained to communicate more effectively with distributors and effectively express how JITD benefits both parties. This effort will likely require a different pay structure and responsibilities for the sales staff. The last thing Maggiali wants is for the logistics department to promote JITD to distributors, while Barilla salespeople are telling distributors it won’t work. If I were a Barilla customer, I would initially be livid at the suggestion of JITD by Barilla. I would feel threatened and insulted. No one wants to be told someone else can do their job better. However, after researching the strategy, I see the benefits of JITD. Maggiali must carefully approach the subject with his

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