Barilla Spa

BARILLA SPA

BY

EXECUTIVE SUMMARY

As the head of logistics in the largest producer of pasta in the world I can’t hide my disappointment regarding the implementation of the JITD. We have been at it for more than two years and the program can’t get traction both internally and with our distributors. What we have been doing wrong in this implementation process is that we forgot to educate those involved up and down the chain. So before we even start looking at changing order numbers we have to come up with an education strategy that will stem internally and then extend to our distribution network. It is imperative that we speak with one voice and that the message we take to our customers remains the same. We have failed to communicate the benefits to the stakeholders and this is what we must do first and foremost. We have a couple of distributors who are willing to try JITD and I believe that if we move quickly with our internal affairs we can get the program going in a few short weeks.

ISSUES

There is very little control over the ordering process and everyone involved all the way down the line is being reactive rather than proactive. If we look at the ordering pattern Vs sales it is obvious that our distributors are on the shy side. They have the habit of placing large orders following very small ones; one can conclude this practice is to remedy stock out situations. It is deeply rooted in the process of our customers and we have to change their culture, but before we can do this we will have to change our own optics-mainly our sales department- so we can be more effective in a sensitization campaign.

Our sales reps have to do more than just sell; they have to become consultants who can show their customers how to be more cost efficient therefore raising their level of customer service and become part of their customer’s success. That would certainly strengthen the relations and build trust. We would probably have a leg up on the...