Monday, February 25, 2019
Barilla Spa Case Study Essay
1. Diagnose the underlie causes of the difficulties that the JITD syllabus was created to solve. What atomic number 18 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 demand that came from barillas distributors. The extreme demand variation strained kalis manufacturing and logistics, and made very operose for kelpwort to meet that demand.For example, as observe on the case the particular sequence of pasta intersectionion necessitated by the tight heat and humidity specifications in the tunnel kiln made it difficult to quickly produce a particular pasta that had been sold out due to unexpectedly towering demand (Barilla SpA). One of the benefits of implementing the JITD is to subvert the manufacturing cost. As Brando Vitali then Barillas director of logistics explained we could try to reduce our own distribution costs, inventory levels, and at long last o ur manufacturing costs if we didnt understand believe to respond to the volatile demand patterns of the distributors this meant JITD result help reduce the costs associated with distribution channels, likewise distributors would not hire to stock inventory that exceeds their real demand, and intern help them reduce their cost. both(prenominal) other benefit is that JITD will help improve Barillas visibility with passel and make the distributors much dependent on Barillas. As Vitali express I think JITD should be considered a selling tool, rather than a threat to gross sales. Were offering the customer additional service at no extra cost. In addition, the program will improve Barillas visibility with the trade and make distributors to a greater extent dependent on us-it should improve the relationships between Barilla and the distributors rather than harm them. Though this would select daily sales information input from distributers on products they shipped out from their storage warehouse to retailers during previous day and their current stock level, this would help barillas own prefigure and would be just one step behind the retailers sell-through information.JITD might overly help the relationship between Barilla and its distributors, since Barilla wont need to use pressure on distributors to hold more immaculate products than necessary. While the JITD program has m some(prenominal) beneficial it also has its drawbacks. One of them is the knowledge that the power will be transferred to Barilla, as one of the distributors was quoted we would be fine-looking Barilla the power to push product into our warehouses just so Barilla can reduce its costs. Another drawback is that some(a) of the distributors are not cosy or willing to share their warehouse data, which is a vital found 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 technol ogy at their stores.2. What conflicts or internal barriers to Barilla has JITD created? What causes these conflicts? How would you muckle with them? JITD created lot of internal barriers to Barilla while some of the concerns are leisurely to overcome others would need more convincing. For example, the sales department, sales representatives receive more on their compensation through commission 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 almost 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 sort 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 at that place are only two options either retrain all the employees that would be affected in a different positions or get discharge of the JITD program all together and if it was up to me I would scrub the self-coloured program all together.3. As one of Barillas customers, what would your chemical reaction to JIDT be? This would depend on whether I am a self-aggrandising 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 management 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 thei r inventory cost and as result fling their product on me. On the other hand if am a big retailer the JITD program would help me reduce my overhead that comes from safe harboring a weeks of supply from Barilla in my store, and if there are any measure gaps between when product is out and when new comes in I can use the shelf to move other quick retrogression 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 clipping 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 produ ction 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 neighbourhood north or south, each consumes more type of Barilla product than the other.