Barilla Jitd Essay
In 1998 Giorgio Maggiali director of Logistics was planning to implement JITD program at Barilla one of the most popular pasta brand in Italy and Europe with annual sales of 19.94 Billion UD.
JITD distribution ideas was developed to meet and exceed the demand supply of Brailla brand fresh and dry products by streamlining a forecast based supply management system. Barilla’s total product range comprises of 75% dry and 25 % for fresh products having 21 days and 12-18 months of shelf lives respectively.
Barilla’s has two main distribution centres CDC, northern distribution in Pedignano and Southern Distribution in outskirts of Naples. Fresh products moved quickly through distribution centre and only three days’ …show more content…
Buyers were not ready to implement a forecast based system and found that it would be a liability and they fear that Barilla will influence into their business decisions.
Environment & Root cause analysis
1. Buyers are not ready to buy this idea and consider it as worthless.
2. Some buyers find this practice is not safe as they are passing their information to manufacturer.
3. Buyers do find it difficult to implement due to lack of technical resources, systems to generate forecast.
4. Not a lucrative offer to implement for byers (distributors).
Alternatives & Options
1. Address this issue internally by convening sales force and protect their interest. Sales force can turn the table around if the talk positively.
2. Push this implementation for top management.
3. Engage with other small distributors to create a prototype scenario.
4. Engage with chain stores to provide this information.
Barilla CEO M. Manfredi should be convinced and should push this plan via sales force to promote this idea. An internal consensus should be develop before approaching customers.
A detailed multilevel plan should be developed to target buyers based on the capability and interest.
A concrete reward program should be presented to buyer who joins the program.
Government and private sector should be involved to…