Orders are placed occasionally distributors mainly on a weekly basis. Minimum and maximum of order quantities are not defined. Recommended Just-in-Time Distribution program implementation will address high demand fluctuation, stock-outs, information flows and will help to reestablish customers trust as well as decrease inventory cost and improve cash-flow.
Long lead times and recurring stock-outs undermined customer trust to Barilla. Product and packaging proliferation makes specialized plants not capable of meeting frequently changing demand without proper forecasting. Sales representatives push GOs to buy discounted product during a canvass to get a bonus.
Customers are not interested in sharing their sales data and sales representatives are afraid that their responsibilities will be diminished. Poor demand forecasting system: Sales representatives are key contacts between a company and its customers and they should be motivated to promote Barilla strategy.
Moreover, it leads to a big amount of urgent orders of small quantities of products that are not discounted at the moment. The main causes of demand fluctuation are identified as follows: High demand fluctuations result in inevitable stock-outs. Follow traditional distribution model and choose one of the following options in order to improve forecasting system: Promotion canvasses make distributors buy product that is sold with a discount rather than products most likely to be sold to the end customer.
How to gain support with sales department? Designate sales representatives to work closer with both internal and external customers in order to get more precise forecast; Increase flexibility of manufacturing process and the number of Barilla-run depots; Reduce product and packaging proliferation; Implement JITD.
Environment and Root Cause Analysis Despite being the industry leader in pasta manufacturing in Italy and one of the biggest exporters of pasta, Barilla faces two major challenges great demand fluctuation and stock-outs.
It results in 8 to 14 days order lead time despite short distance between plants, CDCs and customers. JITD feasibility is evaluated by addressing the following issues: It results in high manufacturing demand for the same product category leaving no room for operations flexibility.
In addition to customer distrust, there is an internal resistance form sales representatives fearing diminishing of their responsibilities and decrease of their incentive bonuses. It will help to reestablish customers trust as looking for their cooperation is a key to the company success.
Stock-outs mean lost sales and, eventually, lost customers. Reducing product and packaging proliferation may hurt Barilla currently strong brand image of a unique and luxury product.
Who is a target customer to implement JITD?Executive Summary of Microsoft Corporation's Annual Report; BARILLA CASE REPORT Table of Contents Executive Summary Part 1 Executive Summary Issue Identification Part 2 Fundamental Issues Part 3 Systematic Issues Environmental & Root Cause Analysis Part 4 Qualitative and Quantitative Analysis Alternatives and or.
CASE STUDY BARILLA SpA (A) Report on Supply Chain Inventory Management TABLE OF CONTENTS Executive Summary 3 Issue Identification 4 Issue Identification & Root Cause Analysis 5 Alternatives and options 7 Recommendations 9 Implementation 10 Monitor And Control 11 EXECUTIVE SUMMARY Barilla SpA (Barilla), is an Italian.
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Barilla SpA (A) Case Study Shayne MacKinnon June 23th Table of Contents Executive Summary. Page 1 Issue. Table Of Contents: Barilla Case Report And Executive Summary Essay BARILLA CASE REPORT Table of Contents Executive Summary Part 1 Executive Summary Issue Identification Part 2 Fundamental Issues Part 3 Systematic Issues Environmental & Root Cause Analysis Part 4 Qualitative and Quantitative Analysis Alternatives and or.
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our in the way of addressing our issue of volatile demand patters which result in stockouts. Barilla. Barilla SPA (A) Case Report By CHIEMEKA EZEJIOFOR Table of contents Summary Page Executive Summary 3 Issue identification 4 Root cause Analysis 5 Recommendation 6 Recommendation Implementation Plan 7 Conclusion 8 Part 1 Executive summary Barilla SPA (A), the largest producer of Pasta.Download