Barilla –Supply Chain Inventory Management
Barilla –Supply Chain Inventory Management
Barilla
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
ISSUES IDENTIFICATION 3
ENVIRONMENTAL AND ROOT CAUSE ANALYSIS 3
ALTERNATIVES AND/OR OPTIONS 3
RECOMMENDATION AND IMPLEMENTATION: 3-4
Executive Summary:
In an attempt to control inventory swings, reduce costs, and improve sales we have introduced the JITD initiative. This initiative has been a failure from the beginning and there is no point salvaging it. We need to abandon the JITD initiative and focus on a new strategy that seems like a more logical and promising approach.
Issues Identification: The issue is that distributors and Barilla’s sales team do not support the just-in-time distribution (JITD) initiative. Due to the following reasons:
• JTID is a more costly approach to manufacturing pasta because the plants cannot maximize the efficiency of their kilns.
• Distributors o strategies vary o Lack sophistication when it comes to technology and forecasting. o Do not want to give a brand they carry so much leverage over their business
• Sales staff o Are no long able to offer trade promotions o Are worried their job will become obsolete o Are worried their customers will start pushing Barilla’s competitors brands because they have excess stock of those products
Environmental and Root Cause Analysis:
Barilla is a profitable business that is simply looking to enhance the customer experience and increase profitability. Improving efficiencies through the distribution centers makes the most sense because it makes up approx. 60% of the business.
Alternatives and/or Options:
Options#1
Go ahead with the JITD initiative. This would mean finding a way to get distributors, customers, and sales staff on board to support the initiative.
Option#2
Discard the whole idea of JITD. I support this idea.
Recommendation and Implementation:
My
Barilla
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
ISSUES IDENTIFICATION 3
ENVIRONMENTAL AND ROOT CAUSE ANALYSIS 3
ALTERNATIVES AND/OR OPTIONS 3
RECOMMENDATION AND IMPLEMENTATION: 3-4
Executive Summary:
In an attempt to control inventory swings, reduce costs, and improve sales we have introduced the JITD initiative. This initiative has been a failure from the beginning and there is no point salvaging it. We need to abandon the JITD initiative and focus on a new strategy that seems like a more logical and promising approach.
Issues Identification: The issue is that distributors and Barilla’s sales team do not support the just-in-time distribution (JITD) initiative. Due to the following reasons:
• JTID is a more costly approach to manufacturing pasta because the plants cannot maximize the efficiency of their kilns.
• Distributors o strategies vary o Lack sophistication when it comes to technology and forecasting. o Do not want to give a brand they carry so much leverage over their business
• Sales staff o Are no long able to offer trade promotions o Are worried their job will become obsolete o Are worried their customers will start pushing Barilla’s competitors brands because they have excess stock of those products
Environmental and Root Cause Analysis:
Barilla is a profitable business that is simply looking to enhance the customer experience and increase profitability. Improving efficiencies through the distribution centers makes the most sense because it makes up approx. 60% of the business.
Alternatives and/or Options:
Options#1
Go ahead with the JITD initiative. This would mean finding a way to get distributors, customers, and sales staff on board to support the initiative.
Option#2
Discard the whole idea of JITD. I support this idea.
Recommendation and Implementation:
My