Barilla Case Study

PART 1: Executive summary

My decision is to continue the just in time distribution (JITD) program. This program will have a gradual roll out approximately one year in duration. There are both internal and external challenges that must be addressed if we’re to expect a successful program. First internally our sales force must see the benefit of the JITD program. They must understand that the current pricing strategy, ordering process and lines of communication only add to bullwhip, and to remember that the customer is the person purchasing our products to take home to their family. After we have an internal understanding that Barilla is carrying too much inventory, lead times are too high, and the customers are facing too many out of stock situations, all of these problems affect the bottom line. We can then bring our distributors on board. With the implementation of the JITD program the current pricing strategy will be replaced with an every-day low price. We will see true supply demands as opposed to trade promotion volume discount demand which has never reflected true customer demands. Distributors will be able to free up much needed space, reduce shelf time etc. Barilla will be able to provide a clearer common goal for both internal employees as well as external partners, each participant in logistics, sales, buyers, distributors, will have a common goal and objectives to achieve those goals. The resistance to change and having people move out of their comfort zone will be addressed, With the implementation of the JITD all parties throughout the Barilla family will be included from concept to inception this will give them the better understanding of the program, this will allow them to see the true gains everyone can expect with JITD adoption. The JITD program is a good decision that allows Barilla to steadily build an environment of trust that will ensure cooperation and provide benefits for all our partners, but most importantly it will benefit the...