Barilla –Supply Chain Inventory Management
TABLE OF CONTENTS
ENVIRONMENTAL AND ROOT CAUSE ANALYSIS
ALTERNATIVES AND/OR OPTIONS
RECOMMENDATION AND IMPLEMENTATION:
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.
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. •
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 •
Are no long able to offer trade promotions
Are worried their job will become obsolete
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:
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.
Discard the whole idea of JITD. I support this idea.
Recommendation and Implementation:
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