Barilla Case Study
As one of the largest company in Italy that manufactures pasta, Barilla has done so much to meet the expectations of their customers. In Italy, Barilla makes sure its products reach the consumers through third party distributors (Simchi-Levi, et al, 1). However, these distributors are unreliable. They often make Barilla suffer many cost penalties. Most of the distributors do not have constant or regular orders. These irregularities is due to transport costs, variations in consumer demand, long order that take long to be met and other causes of demand fluctuations (Simchi-Levi, et al, 1). After a long dilemma, the company’s Executive Director of Logistics, Mr. Brando Vitali, came up with an idea of Just –In –Time- Delivery system (JITD) (Kannan, 2). The major concern that this system was meant to solve is the timing in distribution processes.
The distributors were asked to share their sales details with Barilla so that they could determine the best way of sending orders to ensure the demands of the people are met appropriately without compromising the fate of the company and that of the distributors. In addition, Barilla Company would be in a position to have a rough estimate on the number of products the distributors could handle and would have a better timing in delivering them when needed(Kannan,2). In such a case, Barilla will be in a better position to determine the sequence of distribution much better than their distributors.
JITD was considered the best solution because it would look into a number of things for example, awful anticipation of the future by the distributors, nature of promotion, cost of production, cost of transportation and many more(Kannan, 3). By allowing Barilla to know their (distributors) sales record, it would help in enhancing demand management, planning that is collaborative and increased aggregate demand to have smooth running of the company (Kannan, 4).
In order to persuade barillas customers to try the JITD systems, Maggial should talk to the distributors and persuade them to try the system. In this case, they should not sign a contract or agreement, but put the idea on probation (Khan, et al, 4). This would help in building a company- distributor relationship that allows trust to prevail. In addition, Maggial should prove to the customers that power would not be shifter to Barilla but it would be on both ends.
Maggali has to have a good understanding of what JITD is all about. With this understanding, it will be easier to sell the idea to the customers.
The customers need to know that their need will be met. In order to do this, Maggiali should come up with hard evidence showing instances of where, when and how JITD worked. With this, the customers will be more willing to take up the idea because they would be assured if it’s success.
Maggiali should also seek to know what it is the customers want. With the knowledge of what the customers want or expect, Maggiali will be able to phrase or model the plan to fit the needs of the customers. If JITD is in line with their want, they will be more likely to take up the idea. Customer participation would also be encouraged so that they can feel that their views are being heard.
The JITD system would be successful if it manages were to solve the problems of distribution problems resulting from demand fluctuation. This means that high implementation expenditure will be incur particularly while training those in charge of making the system work (Khan, et al, 5). It will take time for the workforce involved to adopt but if done appropriately the system would benefit both Barilla and their customers.
Works Cited
Kannan,Vijay. The Barilla Case. n.d .Web. 28 Oct. 2012.
Khan, Muhammad et al. “Barilla SpA” case analysis. 2010. Web. 28th Oct. 2012.
Simchi-Levi David, Philip Kaminsky and Edith Simchi-Levi. Barilla case study. newpaltz.edu. n.d. Web. 28th Oct. 2012.
Uah.edu.Barilla SpA (A) Case Study. 2010. Web. 28th Oct. 2012.
