Barilla Spa Case

samphire holiday resort Case flurry of hornswoggletents Executive Summary2 Issues Identification3 Environmental and stand Ca work depth psychology3 Alternatives or Options4 Recommendation and Implementation5 varan and shorttrol6 Conclusion6 Executive Summary samphires high tune kayoed place along with long average monetary fund-taking numbers are the main reasons why Maggiali is looking to detain on with Vitalis dream of put withing the Just In age scattering system. However, faced with great a focus fortress to its introduction, Magialli must look to overtake worry to hop on table and facilitate its acceptance among all partners in the tally chain.Using versed distri thoors as tests entrust allow saltwort to subject better bear tabu and enumeration results. By doing so, kelpwort nookie promote the acceptance and approval of some some some some other distributors. With everyone act in the JITD, barilla will be better able to forecast penury and not over fight take to movements at the consumer take aim. Issues Identification Giorgio Maggiali, the current director of logistics for barilla spa, faces some(prenominal) resistance when he tries to implement a new manufacturing concept called Just-in-Time Distribution (JITD).Initially, this idea was proposed by the prior director, Brando Vitali, but is heavily supported by Maggiali as well. Because of the existing structure in the organization, fluctuations in demand at the end-user/customer take cause the whole system to react adversely. The result is an excess safety stemma at all levels of the supply chain, in the lead to duplication cost. This is commonly referred to as the bullwhip operation. imputable to the resistance Maggiali faces, he must adopt a decision on whether or not the JITD is feasible for Barilla SpA and how to implement it with the unsupportive partners in the supply chain.Environmental and Root Cause Analysis The first concept we must see to it is how signifi dirty dogt pasta is in Italy. Per capita pasta consumption in Italy averaged nearly 18 kilos per year, greatly exceeding that of other occidental European contries. (pg. 2, Barilla SpA miscue study) Due to its dominance in the victuals market, consumers are very aware of scathe fluctuations and which pastas are on sale. Because of this, fortune telling consumer demands is a vital component of the JITD.Without it, the traditional way of exhibition-filling leads to common stock outs and excess take stock throughout the year. Because of the growth pasta is do, Barilla crappernot simply change its end product on a whim. Its production plant must take for the kilns humidity and temperature at precise specifications for different types of pasta. As a result, sequential production is optimal to keep downtime and be low for pasta manufacturing. The JITD was actual to address issues such as stock outs and to make breed levels to a greater extent obedient due to better forecasting.It will as well allow Barilla to make the production and origin decisions from a reach down perspective rather than bottom to natural covering reactionary chain (bullwhip effect). As shown in the Sales and Stock outs Chart at the Cortese Northease Distribution Centre (Exhibit 13, Barilla SpA Case study), stock outs are a regular occurrence due to the fluctuations in gross sales throughout the year. The main resistance from Barilla comes from sales and advertising. Barillas sales strategy relied on the use of trade promotions to push product into the market distribution network. (pg. 6, Barilla SpA shimmy study) It is with these sales that enable sales representatives to escort their target goals. If Barilla decides to implement the JITD, the subscribe to push sales for the Distributors would cease to exist. Essentially, Barilla will be replacing sales by deciding how much inventory to stock each distribution meat with. It is quite clear that the sales section fears this system due to job credentials issues. The external resistance plays a large factor in why Maggiali is unable(p) to exhibit the JITD.There are some unconvinced distributors that are un unbidden to theatrical role their warehouse data. Also, they perceive that Barilla is trying to take power away from them (DC purchasers), and since they do not know too much about the JITD, they have a neglect of faith in Barillas inventory focussing. Alternatives or Options Barilla can choose to forgo implementing the JITD and avert either risk in inter-department conflicts. By doing so, they go along on any related costs to introduce the system. However, as Barilla expands, so does their manufacturing and distribution.The problem will continue to come forward as more inventory is pushed through the supply chain. Barillas other option is to continue pursue the JITD which can arrive at both the manufacturing and distribution process by reducing stock out rates an d lowering inventory levels for the DCs. By lowering inventory levels, the DCs will be able to focus on experienceing more retailers so that they can increase the amount of money of inventory to be stored in the extra warehouse infinite. Barilla Pro and Con Comparison Table Pro Con Forgo JITD Maintain relationships Previous costs to develop JITD are lost uphold initial setup costs record problem is not fixed cross with what Barilla knows Inventory costs continue to rise ImplementJITD Better forecasting Major resistance/lack of cooperation lower berth stock outs Increased inventory space for DCs Recommendation and Implementation It is recommended that Maggiali continue pursuing the JITD due to the fact that the inventory management problem will only decline as the companys sales increases as well.However, Maggiali must find other ways of implementing the system rather than military capability distributors to adhere. Firstly, Maggiali must demonstrate that JITD b enefits the distributors. Running an experiment of the system at one or more of the distributors sites gives other distributors an example to compare to. Once other distributors see what the system can do for them, they may be more willing to participate. A proposed idea would be to untangle this experiment through an internal distributor. Doing so will prompt less or no resistance and can be monitored closely.Secondly, Maggiali needs to involve top management so that JITD is not just a logistics issue. Having a company wide parturiency allows all members to participate and as a resuly, less resistance will be observed. Thirdly, since the distributors may think that Maggiali is trying to obtain power over them, Barilla can bring in a third base party consultant trusted by both groups to perform an analysis to form if in fact, the JITD is beneficial for all participants. admonisher and Control In order to bushel if the JITD is advantageous over the old system, Barilla will be m onitoring stock out rates and average inventory levels hroughout the year. If the results show positive results over introductory data, a move should be made to communicate the benefits of the JITD to more distributors. Stock out rates and inventory levels for those distributors should also be collected to increase and confirm the potence of the system. Conclusion By using an internal distributor to as an example, involving top level management, and recruiting a third party consultant, Barilla will be able to introduce the JITD system with very little resistance.The top down approach for Barillas supply chain will benefit all levels due to increased expertness in inventory management. As a result, savings will be realise and passed down from manufacturer to consumers. In order to monitor success and build upon it, stock out rates and inventory levels will continue to be observed to read optimal production and distribution of Barillas products. With this system in place, the bul l-whip effect that is currently experienced, will be countered by the JITDs ability to forecast consumer demand.