Just in Time Distribution Essay

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Just-In-Time Distribution and Barilla SpA

Anybody who knows something about business had heard the term Just-in-time (JIT) inventory. It involves producing only what is need, when it is needed. The principle of Just in time is to eliminate sources of manufacturing waste by getting the right quantity of raw materials and producing the right quantity of products in the right place at the right time.(1) In this way, manufactures receive parts and materials “just in time” to meet the day’s manufacturing quota with hardly any extra.(3)
JIT is a manufacturing management method developed in Japan during the 70’s to meet customer demands. The individual most credited with the
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One study showed that the average benefits accrued by US manufactures over 5 years from using the JIT system were extraordinary. There was 90 percent reduction in the manufacturing cycle time, 70 percent reductions in inventory, 50 percent reductions in labor costs, and 80 percent reductions in space requirements.(2) All these benefits affect the channel relationship in some way and will benefit the end user, whether it’s the cost of the product or the quality.
Now that I’ve given a little overview on the JIT system, I want to talk about a new concept that a company called Barilla SpA wanted to try called, Just-in-time Distribution (JITD). But before I talk about JITD I want to tell you a little about the company.
Barilla SpA was founded in 1875 when Pietro Barilla opened a small shop in Parma, Italy. Connected to the shop was a small laboratory that Pietro used to make the pasta and bread products that he sold in his store. Eventually over the years, the company grew and was handed over to Pietro’s grandchildren, Pietro and Gianni. Over this time, Barilla evolved from the small
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