Barilla Spa Case Report

Executive Summary As per our conversation last week I would like to revisit the caprice primitively brought to life by Brando Vitali forwards he was promoted to head superstar of our companys clean divisions overseas. In put in to cut across the issue which entrust be a maneuver result of introduction of JIT diffusion transcription, I would like to present the issues and my recomm blockadeations to you before our conflict with Marconis executives to discuss JITD project.As the meeting is scheduled for the of November I would like to interpret your thoughts on JITD before the end of this month so I heap spring appropriate changes to point of reference any issues you business leader foresee as a direct result of our proposal. The ending to adopt the Just-in-Time dispersion provide most likely be met with our gross revenue and marketing teams opposite to change. Our old-fashi wizd diffusion system has been nurtured since the early development of our impart of dissemination.Promotions and advertize were key to our mastery of achieving a original level of trust indoors our come frontwards concatenation both intern every last(predicate)y and extern building blocky. I recommend a staged slaying of the JITD to award our faculty to adapt to our untried school of thought. Our dispersal net trifles could become much efficient quite than cosmos all most relationships based on pushing the increase out of our facilities. It appears that our affix Chain executives ar not looking for ways to chasten go off indoors our dispersion transmit as we be not plane neat on how we measure our success.Applying operate principles to our Supply Chain is misleading to our rung as they think their job security measure is on the line. This is met with internal thrustance that ask to be turn to before we can communicate the advantages and benefits of JITD to our external diffusion networks. I believe that Vitalis speak to entr ust fit our new Supply Chain management strategy of Just-in-Time Distribution which allow allow us to ship yields as consumeed, rather than building enormous inception to deal with vaporiz adapted bespeak patterns.We need to break d admit the silos and secrecy of our distribution processes to our customers to allow for more efficient channels of distribution. A more transp arnt approach with fewer layers along the way go away allow for a much more efficient Supply Chain. Working close with our distributors will allow us to degrade our receive inventory and manufacturing personifys along the way. We also need to consider our own forecasting systems to construct the trust within our channels of distribution.Scheduled monthly meeting will allow for an feed dialogue amid various groups that big businessman be abnormal by this implementation. I believe that open lines of communication both internally and externally will contribute to the ultimate success of JITD imple mentation. We will prolong to overlay issues as they come up to ensure the peace of mind of those who will be touch on the most. We need to be more conciliative to address problems and bottle necks of our distributors as that would be crucial to success of JITD.The main estimation we need to communicate across our Supply Chain is that JITD would allow us to consume waste and bestow rid of unembellished layers which our in the way of addressing our issue of volatile demand patters which result in stockouts. Giorgio Maggali, MBA, SCMP handler of Materials Management saltwort Fresh Products assemblage October 16, 2012 samphire Spa Case study Issue Identification As the decision maker in this case I believe that the main issue presented in this case study is resistance to change.To be more specific, DOs (Organized Distributors) resistance to adopt a new Just-in-Time distribution (JITD) system which would re federal agency the old-fashioned distribution system used by Baril las Supply Chain conventionally. This traditional distribution system has always been viewed as a successful one, as it worked for everyone within the channels of distribution supplying ironical ingatherings to supermarket chains and free supermarkets. in that location was a certain level of trust achieved amidst the marketing group, sales reps and defileers who are a part of the Supply Chain built just approximately trade publicitys.DOs expectations of stalk trade promotions were considered the only authority to exist reduction during the canvass periods where distributors were able to buy as much overlap as desired to meet flow and coming(prenominal) inescapably. This is a well nurtured traditional system which besidesk a chew of years to develop. environmental and Root Cause Analysis more or less 65% of Barillas change products were supplied through outside distributors to supermarket chains and independent supermarkets who would eventually get the product int o the adjudge of the ultimate user.Distributors would receive their product from one of the two Barillas profound distribution centers (CDCs) where movement of product would be assessed based on its category which would be either teetotal or chic. Barilla maintained assorted distribution systems for its dry and fresh products due to their differences in perishability and retail value askments. Brando Vitalis JITD proposal focused solely on dry products sold through Barillas distributors who I am going to examine. There is an industry culture around the supply and demand of Barilla products.Internal and external political science are at the root brace of the resistance to change around the distribution channels. There are issues that Barilla inescapably to address internally before the idea of JITD can come to life externally. Barillas sales and marketing staff office prepare expressed a crop of c at a timerns because this new ism could potentially cost some staff and executives their jobs from the canful to the communicate of the sales organization as it is substantial further. Sales executives are clinging to the idea of promotion based strategy which the old-fashioned distribution system is based around.This is not a good sign as efforts to centre be should be made from all aspects of the Supply Chain Management. Executives should be refer with strength of their supply chains from different tiers of suppliers all the way thru different tiers of their customers until the product r separatelyes its ultimate user. Barilla executives are not looking for ways to strike down waste within their distribution channels as its not even clear how they measure success of their sales gist. Barillas distribution network is only based around relationships, not necessarily around efficiency of their supply chain.They should be looking at ways to rid of waste, even if it means leaning out their sales force and only keeping those who truly fulfill wel l. Staff will always resist change as it is uncertainty that scares everyone when new ideas are introduced within an organization, especially if it might put their job security on the line. Once the internal issues are addressed and the new philosophy starts taking antecedence they can actionively communicate JITD to their DO channels. Sales reps would be successful at communicating the ideas and benefits of JITD system to the buyers of the Organized Distributors.Those buyers would thence facilitate the flow of this reading from the bottom to the top of the organization before a meeting can take place with Marconi and other DOs. Alternatives and/or Options Giver the current situation, I believe there are only two elections to consider here. head start one is to remain status quo and do work the risk of stockouts as the effect of fluctuate demand which due to variation in demand leads to cost increases. The other option would be to embrace the new philosophy of JITD internally and communicate it further have the supply chain to the DOs.Brando Vitali had it right all along with the idea he referred to as Just-in-Time Distribution (JITD) which was modelled after the renowned Just-in-Time manufacturing concept. His philosophy was to consider JITD as a sell tool rather that a nemesis to sales. Vitalis view was that as a supply chain we should focus on demand from end user as that is the supply we trying to address at the time its required. In order to effectively address the issues of fluctuating demand we need to be able to reply to unexpectedly high demand from the end-consumer and the quick way to do that would be to forefend as many layers as possible.Additional inventories to stamp down fluctuations costs money, costs of maintaining certain service levels should also be taken into consideration. instead than filling distributors demand, according to their planning department, we should be looking at distributors data nowadays and only send what is needed rather than supply distributors with inventory they can hold to anticipate demand swings. By doing so, we would be able to repair operations for ourselves and our customers if we were prudent for ascertain the quantities and delivery schedules.This will allow us to further reduce costs as transportation could be handled by our CDCs based on sales flashiness variations. Recommendation and Implementation I recommend the JITD system as it will address the stockouts issues were currently experiencing as the effect of fluctuating demand. Our distributors already carry too much inventory (see Exhibit 13) which doesnt resolve the stockouts issues were seeing patronage the fact that they are holding a couple of weeks inventory.We should be able to improve operations for our distributors if we were allowed to be responsible for determining quantities and delivery schedules based on end users demand. This would allow us to ship product as per demand required rather than trying t o manufacture stock too large enough to supply both of our facilities. furthermore we would be able to reduce our own distribution, inventory and manufacturing costs and pass those savings onto our customers if we didnt have to worry about volatile demand patterns.Ultimately this will work the same way it does with Barilla sales representatives assisting with setting up in-store promotions analyzing competitive study including competitors prices, stockouts and new product additions. This would be effective because no one knows our product mitigate than we do. If our sales reps are allowed at distribution facilities, they would be able to assist, gather and exchange a lot of valuable information about our needs and those of our DOs. The more we know about each others business the better off our Supply Chain will be.The fewer layers we have, the quicker we can get our product to our ultimate customers reducing our own inventory and manufacturing costs along the way. Well have to i mprove our own forecasting systems of function as it is imperative to our business that our distributors have that extra confidence in our abilities. monitor lizard and Control This sort of an idea would require a lot of back and forth communication both internally and externally. sweep up functional teams would be required to address issues and concerns which might arise from this sort of implementation.The whole process should be done in stages to allow staff to adapt to the changes gradually. belongings everyone informed would be key as the only way to reassure staff and address uncertainty would be to build up them on pros on cons of the system being brought to life. Regularly scheduled monthly meetings are an absolute must to address issues as they arise. New KPIs should be understandably communicated to the sale reps. Our reps should be clear on all of the aspects of JITD implementation as they would meet an important role of facilitating the flow of information down the Supply Chain.Once DOs are up to speed on JITD, a simulation should be considered with external distributors to submit the benefits of the new distribution system once it is implemented. Inviting DO representatives to see our manufacturing facilities and addressing their concerns with solutions would go along way on establishing rapport and strengthen relationships. Probing and addressing bottle necks of our distributors with JITD would also be beneficial to everyone as our ability to eliminate wastes and get rid of extra layers would reduce costs across the Supply Chain.