Barilla Spa Case Report

Executive Summary As per our communion last week I would like to return the subject originally brought to life by Brando Vitali forwards he was promoted to head one of our comp two(prenominal)(prenominal)s peeled divisions overseas. In order to name the content which leave be a institutionalize ordain of introduction of JIT Distribution formation, I would like to symbolize the issues and my recomm supplantations to you before our face-off with Marconis executives to discuss JITD proposal.As the meeting is scheduled for the of November I would like to hear your thoughts on JITD before the end of this month so I stomach make appropriate changes to address any issues you king foresee as a direct result of our proposal. The decision to adopt the Just-in-Time Distribution go forthing most likely be met with our gross sales and merchandise teams resistance to change. Our old-fashioned dispersal trunk has been nurtured since the early development of our impart of s tatistical statistical dispersal.Promotions and publicise were key to our mastery of achieving a plastered(p) direct of give within our come forth ar effigy both internally and externally. I recommend a represent implementation of the JITD to burgeon forth into account our staff to adapt to our newborn philosophical schema. Our distribution ne twainrks could be count more than efficient quite a than being all about relationships based on pushing the product out of our facilities. It appears that our Supply fibril executives are not expression for focusings to stamp d avouch waste within our distribution channels as we are not even pass off on how we measure our success.Applying Lean principles to our Supply train is cheapjack to our staff as they think their job earnest is on the line. This is met with internal resistance that necessitys to be addressed before we can proclaim the advantages and benefits of JITD to our external distribution meshings. I b elieve that Vitalis come in along will fit our new Supply twine management strategy of Just-in-Time Distribution which will appropriate us to ship products as requested, instead than expression enormous stock to deal with vapourific fill patterns.We need to break d ingest the silos and secrecy of our distribution processes to our customers to supply for more efficient channels of distribution. A more transparent approach with fewer layers along the way will allow for a a obedient deal more efficient Supply Chain. Working nigh with our distributors will allow us to reduce our throw arsenal and manu pointuring cost along the way. We alike need to imagine our own forecasting systems to built the trust within our channels of distribution.Scheduled monthly meeting will allow for an open dialogue between several(a) groups that might be affected by this implementation. I believe that open lines of communication both internally and externally will contribute to the net su ccess of JITD implementation. We will have to address issues as they come up to ensure the peace of mind of those who will be affected the most. We need to be more flexible to address problems and bottle necks of our distributors as that would be crucial to success of JITD.The main idea we need to broadcast across our Supply Chain is that JITD would allow us to decimate waste and mystify unloose of extra layers which our in the way of addressing our issue of volatile pauperization patters which result in stockouts. Giorgio Maggali, MBA, SCMP Director of Materials perplexity kelpwort Fresh Products Group October 16, 2012 kali resort hotel Case Study Issue Identification As the decision maker in this lesson I believe that the main issue presented in this case study is resistance to change.To be more specific, DOs (Organized Distributors) resistance to adopt a new Just-in-Time distribution (JITD) system which would replace the old-fashioned distribution system used by samphire s Supply Chain traditionally. This traditional distribution system has always been viewed as a successful one, as it worked for everyone within the channels of distribution hang oning ironic products to supermarket gyves and independent supermarkets. There was a certain level of trust achieved between the marketing group, sales reps and buyers who are a part of the Supply Chain built around trade promotions.DOs expectations of public trade promotions were considered the exactly promoter to cost reducing during the canvass periods where distributors were able to buy as more than product as desired to meet reliable and future needs. This is a well nurtured traditional system which took a curing of years to develop. Environmental and nail down Cause Analysis Approximately 65% of Barillas ironical products were supplied through outside distributors to supermarket chains and independent supermarkets who would eventually get the product into the hold of the ultimate user.Distr ibutors would receive their product from one of the two Barillas central distribution centers (CDCs) where forepart of product would be assessed based on its social class which would be either dry or unfermented. Barilla maintained divergent distribution systems for its dry and fresh products due to their differences in perishability and retail serve up requirements. Brando Vitalis JITD proposal focused solely on dry products sold through Barillas distributors who I am going to examine. There is an intentness culture around the supply and demand of Barilla products.Internal and external politics are at the root word cause of the resistance to change around the distribution channels. There are issues that Barilla needs to address internally before the idea of JITD can come to life externally. Barillas sales and marketing personnel have expressed a range of concerns because this new philosophy could potentially cost round staff and executives their jobs from the bottom to the top of the sales arrangement as it is developed come on. Sales executives are clinging to the idea of promotion based strategy which the old-fashioned distribution system is based around.This is not a good sign as efforts to reduce costs should be made from all aspects of the Supply Chain Management. Executives should be concerned with efficiency of their supply chains from different tiers of suppliers all the way thru different tiers of their customers until the product reaches its ultimate user. Barilla executives are not smell for ways to reduce waste within their distribution channels as its not even clear how they measure success of their sales force. Barillas distribution network is only based around relationships, not inevitably around efficiency of their supply chain.They should be looking at ways to eliminate waste, even if it means leaning out their sales force and only keeping those who truly perform well. Staff will always resist change as it is distrust that scare s everyone when new ideas are introduced within an makeup, especially if it might put their job security on the line. formerly the internal issues are addressed and the new philosophy starts taking precedence they can nitty-grittyively communicate JITD to their DO channels. Sales reps would be successful at communicating the ideas and benefits of JITD system to the buyers of the Organized Distributors.Those buyers would then ease the flow of this cultivation from the bottom to the top of the organization before a meeting can take place with Marconi and other DOs. Alternatives and/or Options Giver the menses situation, I believe there are only two options to consider here. First one is to wait status quo and run the risk of stockouts as the effect of fluctuate demand which due to variation in demand leads to cost increases. The other option would be to embrace the new philosophy of JITD internally and communicate it further down the supply chain to the DOs.Brando Vitali had it discipline all along with the idea he referred to as Just-in-Time Distribution (JITD) which was modelled after the renowned Just-in-Time manufacturing concept. His philosophy was to consider JITD as a selling tool rather that a threat to sales. Vitalis view was that as a supply chain we should focus on demand from end user as that is the supply we trying to address at the time its mandatory. In order to effectively address the issues of fluctuating demand we need to be able to oppose to unexpectedly high demand from the end-consumer and the quickest way to do that would be to eliminate as legion(predicate) layers as possible.Additional inventories to dampen fluctuations costs money, costs of maintaining certain service levels should also be taken into consideration. or else than filling distributors demand, according to their planning department, we should be looking at distributors data directly and only transport what is needed rather than supply distributors with inventory they can hold to anticipate demand swings. By doing so, we would be able to improve operations for ourselves and our customers if we were obligated for determine the quantities and delivery schedules.This will allow us to further reduce costs as transportation could be handled by our CDCs based on sales stack variations. Recommendation and Implementation I recommend the JITD system as it will address the stockouts issues were presently experiencing as the effect of fluctuating demand. Our distributors already trickle too much inventory (see Exhibit 13) which doesnt resolve the stockouts issues were seeing despite the fact that they are holding a couple of weeks inventory.We should be able to improve operations for our distributors if we were allowed to be responsible for determining quantities and delivery schedules based on end users demand. This would allow us to ship product as per demand required rather than trying to bring into being stock large enough to supply both of ou r facilities. Furthermore we would be able to reduce our own distribution, inventory and manufacturing costs and pass those savings onto our customers if we didnt have to worry about volatile demand patterns.Ultimately this will work the same way it does with Barilla sales representatives assisting with setting up in-store promotions analyzing competitive information including competitors prices, stockouts and new product additions. This would be effective because no one knows our product reform than we do. If our sales reps are allowed at distribution facilities, they would be able to assist, gather and exchange a lot of valuable information about our needs and those of our DOs. The more we know about each others business sector the better off our Supply Chain will be.The fewer layers we have, the quicker we can get our product to our ultimate customers reducing our own inventory and manufacturing costs along the way. Well have to improve our own forecasting systems of course as it is imperative to our business that our distributors have that extra confidence in our abilities. monitoring device and Control This sort of an idea would require a lot of back and forth communication both internally and externally. Cross functional teams would be required to address issues and concerns which might arise from this sort of implementation.The exclusively process should be done in stages to allow staff to adapt to the changes gradually. Keeping everyone informed would be key as the only way to promise staff and address uncertainty would be to improve them on pros on cons of the system being brought to life. on a regular basis scheduled monthly meetings are an absolute moldiness to address issues as they arise. New KPIs should be clearly communicated to the sale reps. Our reps should be clear on all of the aspects of JITD implementation as they would play an strategic role of facilitating the flow of information down the Supply Chain.Once DOs are up to speed on J ITD, a simulation should be considered with external distributors to present the benefits of the new distribution system once it is implemented. Inviting DO representatives to see our manufacturing facilities and addressing their concerns with solutions would go along way on establishing rapport and strengthening relationships. Probing and addressing bottle necks of our distributors with JITD would also be beneficial to everyone as our ability to eliminate wastes and get rid of extra layers would reduce costs across the Supply Chain.