Barilla SpA Case Study

saltwort SpA Case Study

        Barilla SpA, the worlds biggest pasta manufacturer, has continuously experienced problems with increased costs and inefficiencies in their operation. The fluctuations in train withstand ca spendd Barilla SpAs manufacturing costs, inventory costs, and distri aloneion costs to go up. Issues that influenced the demand fluctuations are the discounts Barilla SpA offers on both determine and transportation, the compensations for sales representatives that is based on the volume of goods they sell to the distributors, and presbyopic lead condemnations between time of order and time of delivery - just to name a few.

        The idea of JITD is to will sales and inventory data to be shared on the supply chain. By doing so, Barilla SpA can use that data from its distributors to split understand the demand of its products and perform reform forecasting. The results would be lower transportation costs due to better shipment planning, increase manufacturing efficiency, reduce inventory costs, and slight monetary fund outs for its distributors. This will benefit both Barilla SpA and its distributors, but resistance from the distributors and Barilla SpAs internal opposition makes it difficult to appliance such strategy. Barilla SpAs sales representatives were afraid of losing their jobs because they tangle with the JITD in place; they will no longer be needed.



Also, it would fundamentally eliminate the current compensation system, meaning they would make less money. As for the distributors, the idea of providing sales data to others was unheard of at the time. The distributors did not trust Barilla SpA with their private information, and felt that they would lose control of their own operations if they had agreed with Barilla SpA.         

Despite of all the internal and external resistances and doubts, I still bring forward JITD is feasible for Barilla SpA, and they should continue to try and...

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