Page count 1 page words. Sales Representatives Incentives based on the amount of the products that they sold to the distributors. The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained Hammond, 3. The JITD system has the potential to substantial reduce costs if it is implemented correctly. Demand fluctuations Bullwhip effect.
Barilla and the distributors can work as a team and plan on different issues. The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat to their sales. How would you convince them that the JITD program was worth trying? The program could decrease their inventories and improve their delivery rate to their stores. Master’s or higher degree. A limited time offer! After convincing the in-house sales team that the JITD program was worth trying, Barilla should focus on convincing the outside companies that the program would work for them.
The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained Hammond, 3. I would also give the factory the time it needed to change production runs to fill the orders.
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A limited time offer! This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. As the s progressed, Barilla jiyd been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the company see Exhibit 12 Cost of having to hold high inventory.
MBA Case Analysis & More Barilla Spa
Check it out goo. They resisted the program for fear of the program threatening their sales levels. Barilla supplied its distributors between 8 and 14 days after it received their stuey, the average lead-time being 10 days. Once this is brought under control, many other problems will be solved.
Barilla Spa Case Study
They could respond to the ultimate demand from the end-consumerby using the consumers input to produce orders Hammond, 8. This approach was clearly not working. In the environment in which Barilla operated indo you believe JITD or a similar kind of jit would be feasible?
The volume discounts that were offered to the distributors jjtd truck load quantities and multiple truck load purchases of pasta would also cease to exist with the JITD program.
Other distributors and retailers were carrying too much inventory. How would you convince them that the JITD program was worth trying?
How about receiving a customized one? This step is critical, as this is where the opposition to the JITD program stems from. Pasta production is very different from a Toyota plant that makes five models and can shift, based on demand i.
An overwhelming opposition between Barilla and its distributors continued for over jird years. Production sequencing based on type and size of facilitymade it cost prohibitive to change-over product runs or mix multiple types. The top management will be concerned about the added responsibility of predicting demand on Barilla without any guarantee of cost reduction.
The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat to their sales. This was xase problems as the sales reps would try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods. Politics in the Guilded Age Essay. They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8.
Barilla has been facing huge variability in demand which is jitv the manufacturing and distribution network of the company. They will be concerned about the loss of control in deciding their inventory levels. The entire relationship between the sales representatives and distributors appears to weaken with the JITD program, as the sales representatives lose their traditional areas of influence and the ability for distributors to control their inventory is taken away.
These following are some of the causes of this fluctuating demand that must be addressed: Page count 1 page words. They have overinvested in making their facilities efficient at producing like types and sizes of pasta, which made it cost and schedule prohibitive for them to changeover production runs to meet variations in demand.
Bachelor’s or higher degree. Sorry, but downloading is forbidden on this website. As a distributor, I feel inventory management is my job.