These strategies heavily influenced the demand. They would look at data provided by the distributors and make decisions based on their forecasts Hammond, 8. The system needs to adjust to the JITD program by manufacturing to meet that demand without building up large inventories which is what they are trying to avoid. Ideas such as reducing the number of SKUs and rearranging distribution channels should also be explored in the long term as they can also result in substantial cost savings. The key to making this effort successful was to obtain the inventory and sales data for Barilla to accurately forecast the demand for their products. A limited time offer!
This strategy could be eliminated with the JITD program. The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat to their sales. They have overinvested in making their facilities efficient at producing like types and sizes of pasta, which made it cost and schedule prohibitive for them to changeover production runs to meet variations in demand. They need included as equitably as possible in balancing their system to respond to fluctuating demand. The buyers, in turn appeared to sabotage the logistics departments. Their plants are not designed to quickly shift from making linguini to macaroni, from spaghetti to capellini, etceteras. The temperature and humidity in the kiln had to be precisely specified for each size and shape of pasta and had to be tightly controlled to ensure that quality was maintained Hammond, 3.
If properly implemented, the JITD program would be feasible in the environment in which Barilla operated in It seems that allowing them to push their products into my warehouse would reduce their own expenses and not mine.
The JITD program would also allow distributors and retailers to carry more variety with fewer inventories. Pasta production is very different from a Toyota barklla that makes five models and can shift, based on demand i. Implementing the JITD is a good idea for a number of reasons.
Customer service Barilla has no visibility when it comes to plan and forecast in order to meet the customer demand.
The fluctuation demand bzrilla lead to overtime shifts in order to meet the demand, higher inventory of raw materials and frequent capacity adjustments, as well as higher transportation costs which all increase the overall cost of the product. Over 30 successfully finished orders. Master’s or higher degree. They felt their relationship with the distributors would be weakened and considered the JITD program a huge threat to their sales.
Get your custom essay sample. What are the benefits and drawback of this program? This strategy could be eliminated with the JITD program.
Barilla Spa Case Study
Once this is brought under control, many other problems will be solved. Politics in the Guilded Age Essay. We will write a custom essay sample on Barilla Spa Case Study specifically for you. How would you convince them that the JITD program was worth trying?
There would be no brilla for them to place an order and with a week or more of delay before it to be delivered. It would also be beneficial to provide these retailers with handheld computers so their orders would go directly to the distributor or Barilla warehouse thus allowing Barilla to obtain near real-time usage data.
However, such a list is in no way conclusive. They need included as equitably as possible in balancing their system to respond studdy fluctuating demand.
Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia
A limited time offer! They could convince the 6 independent retailers of the value in the Jite program when they ordered new equipment.
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This would eliminate Barilla scrambling to meet demand swings from the distributor. What causes these conflicts? Barilla supplied its distributors between barrilla and 14 days after it received their orders, the average lead-time being 10 days. Stkdy mentioned bariola discussed a variety of methods by which to make such implementation more viable than it was in the past.
The logistics people seemed most willing to try the JITD program when Maggiali approached them in Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes. They resisted the program for fear of the program threatening their sales levels. Barilla could also demonstrate to the distributors how the JITD program would work and save them money.
Would it be effective?