Case Study:-Just-in-Time-Distribution

Case Study:-Just-in-Time-Distribution

Question 1.

The leading causes of difficulty that resulted in the development of JITD programs were based on rectifying fluctuations in demand witnessed in Barilla’s recent distributors. The variations in order termed as Bullwhip Effect made it hard to meet actual needs for end-consumers. These JITD programs would predict existing demands to allow Barilla to attempt the production of services that would meet customer demands. Barilla’s internal functions also cause these fluctuations. The program would make Barilla become more efficient when executing operations and offer better services to their customers. Barilla lacked efficiency while offering services (Wolf & Ronald, 40). Distribution costs would be reduced when these programs get installed. The said project would help in improving the relationship between Barilla and its customers. The JITD program implementation will improve all planning procedures brought forward by Barilla for exceptional services.

Question 2.

Before implementing this program, JITD must garner all forms of acceptance from different bodies within its structure (Siddiqui, 45). Most departments would get affected by switching to JITD. For example, the sales and marketing department. Some sales representatives argue out that the system would cut-off most responsibilities of representatives. Another conflict would come in where most representatives would receive their salaries through commission. The program would result in job cuts for most sale staffs. Marketing and promotions would also get affected. This affection would prevent most distributors from taking advantage of huge discounts since Barilla would dictate the number of purchased products by distributors. Another problem would come in where JITD creates empty spaces in the warehouses of all distributors. The leading cause of these conflicts is the implementation of the JITD program. As Girgio, I would not change how the management used to work; instead, I will improvise this program and make it more efficient to suit employees and customers’ satisfaction..

Question 3.

From an individual’s perspective, JITD offers both merits and demerits. Primary challenges faced by most independent supermarkets are, therefore, focused on under/overstocking products from Barilla. With this program, frequent distributors deliveries would have greater possibilities, which results in a reduction of inventory; thus, reduction of the product cost. Another merit provided is product promotions management. In this case, Barilla would effectively determine the number of product promotions carried out by independent supermarkets. The last benefit is concerned with tracking of inventory.

As a loyal customer, one big concern would be to allow Barilla to control every supplying and forecasting of its products. However, this step might lead to some problems that include under or overstocking. Generally, the merits outweigh the demerits focusing on independent supermarkets since frequent deliveries from all Barilla’s distributors outweigh the risks of under-stocking. For effective implementation of JITD, all independent supermarkets should trust Barilla and its distributors. The JITD could turn out to be more advantageous to self-employed customers and Barilla.

Question 4.

I have the belief that this program would be feasible provided such an environment through the provision of right procedures and handling techniques were put in practice. I would target a supermarket. To convince these customers, I would explain to them that this program can effectively help them correct the Bullwhip Effect, and the delivered product won’t be charged until they get sold. The Barilla would effectively monitor all goods and replenish inventories when the supply is significantly low. These inventories would reduce the much-demanded levels, thus saving costs on space and investors for its customers.

Work cited

Siddiqui, Atiq. “Barilla SpA (A) Harvard Business Case Study: A short Reaction Paper on Supply Chain Implementation Challenges.”

Wolf, Ronald Scott. Theories and contemporary challenges of a global pasta leader: the case of Barilla SpA. MS thesis. Universidad EAFIT, 2015.