How to Write a Summary of an Article? Barilla Spa Case Study Barilla SpA Barillais an Italian largest pasta manufacturer in the world manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been facing huge variability in demand which is straining the manufacturing and distribution network of the company.
The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase. On the other hand when the demand decreases it will be expensive to store the excess inventory.
A problem at one point in the supply chain will be translated to other points as well leading to bull whip effect. Longer delivery times - took about 8 — 14 days to deliver the products.
Longer transportation time — transport only full truck load. Orders were placed only once a week — fluctuations were more pronounced. Benefits of JITD program: Predict the demands better with proper forecasting.
Easier to deliver the goods and in time by properly forecasting the demand beforehand. Reduces the cost of storing excess inventory. Reduces the product backlog during the time of increasing demand. Can efficiently manage transportation cost. Co-ordinates the entire supply chain. Drawbacks of JITD program: No system is currently existent to properly forecast the demand.
It will be expensive to setup the system. Sales promotion goes out of picture.
Takes the purchase power away from the retailers. Internal barriers for executing JITD: Sales force had problem with executing JITD program for following reasons: Fear of job security among sales force. Distributors were worried about the JITD program for the following reasons: Excess inventories can be pushed by Barilla.
Since the purchasing power was not with them anymore. Distributors thought it would be one sided. Too much power with the manufacturers. Barilla needed the purchase data for forecasting the demand and the distributors and retailers do not have the incentive to do that.
Collaboration between the players in the supply chain was not available to properly execute the JITD program.
How to overcome internal and external barriers: Provide incentives to the sales force to sell the JITD idea to the distributors.The answers in this report relate to the questions given in the document “Case 2: Barilla SpA”Question 1: What are the underlying causes of the difficulties that the JITD program was created tosolve?1A.
Search Results for 'barilla case' Barilla Case Barilla SpA (A) Executive summary Barilla SpA is an Italian pasta manufacturer, which to be precise it s the world’s largest pasta producer.
May 01, · Supply Chain Management presentation on the Pasta Manufacturer Barilla SpA. BARILLA CASE STUDY. Causes that led to the JITD idea: Fluctuating demands from the retailers and the burden it caused on the company’s manufacturing and distribution system.
The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase. Executive Summary: In 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 .
In JITD program Barilla’s own Logistics organisation will specify delivery quantity to distributor whereas normal process is reverse. Related Essay Paragraph: Case Analysis of Barilla Spa ; Barilla Pasta and Jitd Program ; Barilla: Just-In-Time Distribution System ; Free Essay Samples.