Essay About Barilla Spa And Barillas’ Manufacturing
Essay, Pages 1 (986 words)
Latest Update: October 12, 2021
Barilla Spa Case StudyBarilla SpACase StudyThe biggest challenge facing Giorgio Maggiali and Barilla SpA is the mounting burden that fluctuations of demand have placed on Barillas’ manufacturing and distribution methods, and whether or not to implement a Just-in-Time Distribution (JITD) system for their distributers. The implementation of Just in Time Distribution would allow for a more efficient process for getting the products to the end user when and where they are needed.
Solution #1:To implement Just in Time Distribution.For this to succeed, Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves. The sales reps will need to “sell” their customers on this idea and to shift the mentality of their distributers away from “this is the way we have always done it” and for them to be amiable to exploring new and more efficient ways to replenish their stock.
The company recently unveiled a program to reduce its cost of delivering goods, which was also implemented before the beginning of the year, and which has taken on new importance after its success in India last year.
The new program is called Just (or Just in Time) Distribution.
The goal of Just (or Just in Time) Distribution is to produce goods and to provide services that are as low cost and affordable as possible. It is also a step backwards in the development paradigm and leads to a new paradigm for the future.
To find a suitable way to generate and deliver services for the most common items in your market basket, your competitors might use a system of delivery and delivery is one step closer to the goal of just (or Just in Time)) Distribution. Your company will have to develop an approach which allows you to deliver high quality products to customers with low cost and minimal disruption. The only way through which you can achieve just (or Just in Time) Distribution, is by building innovative products that people with lower costs are willing to pay much more for and with minimal disruption.
This is where this new program will take its unique approach. The main component of Just in Time Distribution to achieve just (or Just in Time) Distribution is that it provides customers with high quality products that can be delivered cheaply; it provides access to high quality services from within the company. One of the biggest advantages of just (or Just in Time) Distribution is that it requires a company to focus its resources on the lowest cost of delivery. Just in Time Distribution, it becomes a necessary part of that
The company recently unveiled a program to reduce its cost of delivering goods, which was also implemented before the beginning of the year, and which has taken on new importance after its success in India last year.
The new program is called Just (or Just in Time) Distribution.
The goal of Just (or Just in Time) Distribution is to produce goods and to provide services that are as low cost and affordable as possible. It is also a step backwards in the development paradigm and leads to a new paradigm for the future.
To find a suitable way to generate and deliver services for the most common items in your market basket, your competitors might use a system of delivery and delivery is one step closer to the goal of just (or Just in Time)) Distribution. Your company will have to develop an approach which allows you to deliver high quality products to customers with low cost and minimal disruption. The only way through which you can achieve just (or Just in Time) Distribution, is by building innovative products that people with lower costs are willing to pay much more for and with minimal disruption.
This is where this new program will take its unique approach. The main component of Just in Time Distribution to achieve just (or Just in Time) Distribution is that it provides customers with high quality products that can be delivered cheaply; it provides access to high quality services from within the company. One of the biggest advantages of just (or Just in Time) Distribution is that it requires a company to focus its resources on the lowest cost of delivery. Just in Time Distribution, it becomes a necessary part of that
Pro: Barilla would more easily be able to control their manufacturing process and greatly reduce production overruns and stock outs thus enable to pass cost savings onto their distributors.
Con: Resistance from the distributors to change may continue. Their distributer may ask “why is that a concern of mine?” I just want the product I want when I want it.
Con: Will incur costs to purchase or develop software needed to gather and correlate sales information.Pro: The initial cost for software development will be offset by savings in lost sales opportunity, reductions in buybacks and an overall increase in productivity and sales. Barilla already has much of the needed data pertaining to sales to the distributers.
Con: Customers may be resistant to providing their sales and customer base data to Barilla.Pro: Barilla SpA has always ensured the confidentiality and security of the distributer’s information. Barillas’ continued success has been and always will be tied to the success of their customers.
Solution #2:Concentrate implementing JITD with only new distributers and any current customers who may wish to participate.Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps.
