Barilla Spa Case Study Essay

1. Diagnose the fundamental causes of the difficulties that the JITD syllabus 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 admit that came from glassworts distributors. The extreme consider 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 takings necessitated by the tight heat and humidity specifications in the tunnel kiln made it difficult to quickly nominate a particular pasta that had been sold out due to unexpectedly high demand (Barilla SpA). One of the benefits of implementing the JITD is to come down the manufacturing cost. As Brando Vitali then Barillas director of logistics explained we could try to snub our own distribution costs, farm animal levels, and ultimately our manufacturing costs if we didnt have to respond to the volatile demand patterns of the distributors this meant JITD lead attend reduce the costs associated with distribution channels, likewise distributors would not pick out to stock inventory that exceeds their real demand, and intern help them reduce their cost. about opposite benefit is that JITD will help improve Barillas visibility with craftsmanship and make the distributors more dependent on Barillas. As Vitali said I think JITD should be considered a selling tool, rather than a threat to sales. Were offering the customer additional service at no extra cost. In addition, the program will improve Barillas visibility with the change and make distributors more dependent on us-it should improve the relationships mingled with Barilla and the distributors rather than harm them. though this would require everyday sales data input from distributers on products they shipped out from their warehouse to retailers during previous solar day and their current stock level, this would help barillas own forecast and would be just one step tush the retailers sell-through information.JITD might also help the relationship between Barilla and its distributors, since Barilla wont need to use pressure on distributors to hold more finished products than necessary. While the JITD program has many unspoilt 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 give Barilla the power to push product into our warehouses just so Barilla screwing reduce its costs. Another drawback is that some of the distributors are not comfortable or willing to fortune their warehouse data, which is a alert 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 retentivitys.2. What conflicts or intragroup barriers to Barilla ha s 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 deluge others would need more convincing. For example, the sales department, sales representatives receive more on their compensation through billing 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 promotions or incentives that marketing department advertises or promotes, JITD program would heavily affect the marketing department, and would make their job nearly an obsolete. As one marketing representative quoted we wouldnt be able to run trade promotions with JITD, how can we get the trade to push Barilla product to retailers if we dont offer some secernate of incentive? These conflicts are mostly caused by fear of losing jobs. Since these are legitimate concerns and a very possible outcome if JITD is implemented, from my opinion there are only two options either retrain all the employees that would be affected in a different positions or get rid of the JITD program all unitedly and if it was up to me I would scrub the whole program all together.3. As one of Barillas customers, what would your response to JIDT be? This would depend on whether I am a big retail store or a distributer. As a Barillas Distributor, my response to JIDT would be, why would I share my sales data to a supplier who also supplies the same products to my competitors? In addition, what makes Barillas anxiety think that they can do superior job by making a better demand forecast then I do. I would think that Barillas is only looking after their interest by trying to reduce their inventory cost and as result dumping their product on me. On the other hand if am a big retailer the JITD program would help me reduce my bang that comes from keeping a weeks of supply from Barilla in my store, and if there are any magazine gaps between when product is out and when new comes in I can use the shelf to move other quick turnaround products.4. How would you proceed?I would cancel the whole JITD program all together. Although the program has some benefits, its draw back and difficulties to implement out weight more than the benefits. The main problem that Barilla has is there average lead time which is 10 days and their distributors would prefer three days lead time this was caused mainly by Barillas production line and machines as noted previously in the case, the specifications of each pasta and the time it takes in the tunnel kiln made it hard for Barilla to quickly produce and keep up with the demand. Barilla should look ways to improve the production line, whether by adding more lines to the production or building a smaller factories allocated strategically in the country, since, most of the Barillas products is consumed with in Italy, and depending on the region north or south, each consumes more type of Barilla product than the other.