Barilla

Barilla SPA Case Study

Executive Summary

With careful thought and reflection of our current distribution situation, I have placed a high level importance on assembling the plan and resources to phase a solution to our major distribution problem. As Director of Logistics I have been compiling data that highlights our growing inventories, higher transportation costs, higher levels of stock outs and our inability to plan our manufacturing plants to keep up to the demand fluctuations.

The plan I am seeking support for is the Just In Time Distribution (JITD) system whereby in its full implementation both at the Central Distribution Center (CDC) and Distribution Center (DC) level will allow us to anticipate our customers’ needs based on live data inputs and historical data provided by the CDC and DC themselves. The research of the proposed JITD system supports that end customers’ needs can be predicted and planned for therefore bringing scheduling order to the manufacturing line as well as providing only the products needed at the CDC and DC. This concept will reduce overall inventories in the chain as well as further reducing the transport costs.

The program will need executive support as there will need to be concessions within the group to address capital expenditure, formalized relations and cooperation with the DC’s as well as public relations initiatives to address the fears of change and in-depth discussion to reconcile our sales force future roll. Another consideration is in addressing our future direction for sales and promotion campaigns and their role in the new JITD program.

Given the extent of the problem, the competitive nature of the industry and the risk of losing market share I am strongly recommending that we adopt and support the JITD program. This is a growth opportunity that will provide a competitive advantage, lower costs and improve our service level to the end customer, thus growing our business.

Barilla SPA Case Study...