Submitted by: Submitted by lararowland
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Category: Business and Industry
Date Submitted: 11/03/2010 01:36 PM
Barilla SpA (A)
Module 1
Brian Fleming
Lara Buthfer
October 7, 2010
ISSUES
Barilla SpA’s customers are changing the way they stock their shelves, and can no longer
Carry the large orders being supplied to them by manufactures. Barrila needs to look at
an alternative approach to order fulfillment, and find a way to take costs out of their
distribution channel without compromising service.
ALTERNATIVES
Barilla could continue to use their current order process system. Which is not helping the
Customer, as they are being left with high levels of inventory. Or they can change the
current ordering system, and implement a new “Just In Time Distribution” system that
can offer the customer an additional service at no charge and lower the amount of
inventory at store levels.
RATIONALIZE
The sales and marketing organizations believe a “Just in time Distribution” system will
take away their job responsibilities if the system is put in place, sales levels will flatten,
and they run the risk of not being able to adjust our shipments sufficiently or quickly to
changes in selling patterns and increased promotions.
The distribution centers believe that they can improve their own inventory and service
levels and others that the system will give too much control to Barilla.
RECOMMENDATION
The “Just in time Distribution” should be considered a selling tool and improve Barilla’s
visibility with the trade and make distributors more dependent on Barilla. To implement
the new process the basic idea for the approach needs to be discussed with the
distributors and get one aboard to run a trial of the “JITD” to see the effectiveness of the
system in progress and from their they can make the decision how to further implement
the “JITD” system.
EXSECUTIVE SUMMARY
My decision is to implement the new “Just In Time Distribution” system to Barillas
distributors. This will increase customer satisfaction,...