Barilla Case Summary

Barilla is a pasta manufacturing company that enjoyed double-digit growth rates of up to 21% in the 1980s decade but, was faced with economic problems at the onset of the 1990s decade (Hammond, 1994). The root of Barilla's problems is the increased frequency of demand fluctuations and a rigid distribution system. As a result, the heads of the logistics department proposed a change in the distribution process to the "Just-In-Time-Distribution" (JITD). However, the changes in the distribution process were highly opposed by the distributors and the sales team at Barilla. With such substantial opposition, the logistics departments heads are re-evaluating the viability of the JITD distribution method.
Strategic Issues/ Problems
Fluctuating Demand …show more content…
Expanding the depo capacity will ensure the ability to compete with the large distributors. Furthermore, depos will serve as the primary centers for data collection to be analyzed at the company’s Central Distribution Centers (CDCs).
Improved Forecasting Method
The JITD process is highly dependent on forecasting, and higher accuracy of demand forecasting increases efficiency in the production process. Furthermore, better forecasting techniques will enable sales teams to undertake promotions with surety that the provided inventory is enough to meet the demand. Provision of surety will increase the trust that the sales team has in the JITD process.
Conclusion
The Barilla case provides evidence that it is challenging to institute change in an organization, especially in operations management. Despite the opposition problems faced in establishing the "Just-In-Time-Distribution" (JITD) process, the adaptation of the distribution structure in the company can help the logistics team to bypass the rigid distributors. As a result, direct distribution will enable the company to be more flexible while also saving