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1. Barilla Spa
Barilla SpA is a company founded in 1875, in 1988 giorgio Maggiali was trying to implement the Just in time distribution system which he thought would be an optimal way to conduct inventory replenishment for its distributors and thus increase customer satisfaction. The advantage of using this new system is that it responded more correctly to demand fluctuations, lowered stock-out levels, decrease inventory levels needed in the warehouses, increased the level of services and consequently it translated to customer loyalty and satisfaction.
Even given the above-mentioned advantages in the usage of JITD, there were internal and external resistances in implementation. Barilla’s customers resisted change since they were comfortable with their traditional ordering system in which they exerted more control. Both forces were against Barrila’s sending any shipment that were needed based on previous shipment data and forecasts. In consequence sales people were afraid of their sales flattening, lack of direct input and dependency of the system. From their distributors selling the idea was difficult after all, they weren’t getting a listening ear. However it is my belief that this system if implemented can be useful to all member in the supply chain, by reducing the wild cyclical demand of inventory levels and increase customer satisfaction. Given this assessment, I will provide methods that Barrila can use to deal with both internal and external resistance.
In the early stages of any improvement, specially those involving IT there will be resistance to change, since it will change the organization’s culture and status quo. From the customer side they will not jump into any process that significantly takes control from them without a quantitative and qualitative prove that such process works and significantly will improve, sales, revenue, level of service etc.
The first step Barrila has to take into