Ford Motor Company

The Barialla SpA (A) Written case Report for the JITD Program

Module # 5

Oct 15, 2015

Table of Contents

Executive summary

Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. They are the worlds largest pasta producer and are initiating the Just in time Distribution (JITD), which is supposed to help the company to meet the demand fluctuations imposed by the company’s manufacturing and distribution system.

The current delivery system at Barilla follows the traditional way of ordering through distribution centres placing orders with the company. Instead Barialla wants to engage its own logistics organizations, which would specify the appropriate delivery quantities that would meet end customer needs and distribute the workload on Barilla’s manufacturing and logistics systems.

The Just in time Distribution has been met with significant resistance by the distributors and Barilla’s own sales and marketing organizations. After looking at all of the information provided and careful analysis of the problem I have suggested that Barilla should implement the JITD at the pilot level and once successfully implemented with positive results it should be implemented throughout in stages. I will be providing analysis and recommendations on how to increase the chances that the JITD program will work and be accepted and also consider the reasons why it should be implemented.

Introduction

Barilla started its production in 1875 as a small shop in Parma Italy. By the early 90s the company became one of the largest producers of pasta. It became a large, vertically integrated corporation with mills, plants and factories located throughout Italy. They had a wide range of products from pasta with a large variety and a large variety of packaging combinations. Their channel of distribution was broken down into two categories, dry and fresh. Their dry products consisted of dry pasta...