Barilla SpA Case Study Essay

saltwort holiday resort, the worlds biggest pasta manufacturer, has continuously undergo problems with increased costs and inefficiencies in their operation. The fluctuations in necessary have caused saltwort health clubs manufacturing costs, inventory costs, and distribution costs to go up. Issues that operated the demand fluctuations are the discounts glasswort resort hotel offers on some(prenominal) price and transportation, the compensations for gross revenue representatives that is based on the volume of goods they sell to the distributors, and long lead measure between time of order and time of delivery just to take a few.The idea of JITD is to kick gross sales and inventory data to be shared along the supply chain. By doing so, saltwort resort hotel arsehole use that data from its distributors to break away understand the demand of its products and perform better forecasting. The results would be lower transportation costs out-of-pocket to better onus plann ing, increase manufacturing energy, melt off inventory costs, and less stock outs for its distributors. This volition re change shape two barilla resort and its distributors, but resistance from the distributors and Barilla SpAs internal opposition makes it difficult to implement such strategy. Barilla SpAs sales representatives were afraid of losing their jobs because they felt with the JITD in slip they departing no longer be needed. Also, it would essentially eliminate the stream compensation system, meaning they would make less money. As for the distributors, the idea of providing sales data to separates 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 concur with Barilla SpA.Despite of all the internal and external resistances and doubts, I lock in think JITD is feasible for Barilla SpA, and they should continue to try and implement it due to the large savings and increased efficiency that JITD exit flirt to both Barilla SpA and its distributors. In order to succeed, Barilla SpA mustiness influence its distributors that the JITD strategy go out work, and that it is also effective to everyone.Before exhausting to convert the distributors, I believe Barilla SpA must convince its sales representatives first because they are the ones the distributors talk to the most, and can have an influence in a distributors decision. An example of that is the Macaroni GD in the case, where its sales representative had some influence on Macaronis decision. Barilla SpA must communicate to its sale representatives that even with JITD in place, they will still be needed. Their responsibilities will be changed from trying to sell utmoster(prenominal) volumes to selling the JITD idea and to maintain a good relationship with the distributors. The sales representatives will be the first ones to dish up solve any problems that the d istributors has, and they will be involved in other logistic responsibilities that the JITD will require. Also, convince them that the more money the company saves, the more the company will pull ahead therefore a higher bonus can be given over to employees. This may change Barilla SpAs sales representatives lore to Pro-JITD.As for the distributors, there are a few ways that will help Barilla SpA convince them that JITD will be beneficial for everyone. Instead of trying to convince the distributors just by talking to them and carnal knowledge them about JITD, Barilla SpA should develop some kind of an abbreviation that they can show the distributors just how it can benefit them. Show them the high costs and cons of the current strategy, and compare it to the costs savings that JITD will bring across the supply chain.Next, Barilla should implement JITD in a name of the Barilla-owned regional warehouses first. Since they own the warehouses, they will be able to test JITD with th em. later on a period of time, Barilla can use the information gathered to show the distributors (only if it was successful), that the implementation of JITD is a good thing. Showing the distributors the improved efficiency and cost savings that resulted from it may help win them over.One other thing that Barilla SpA can do to gain its distributors authorisation to agree to the JITD program is signing some kind of a contract. It will be an agreement between Barilla SpA and its distributors that Barilla SpA willbasically guarantee the positive results of the JITD program. If the JITD does not work, and in turn cause the distributors to lose money due to increased costs incurred by the distributors or increased stock outs (which leads to lost of sales), then Barilla SpA will be responsible to pay them that amount. This will show the distributors that Barilla SpA is confident that this JITD program will benefit the distributors, and will help convince the distributors to sign up for JITD.The JITD strategy will result in less fluctuation in demand, and allow Barilla SpA to reduce costs and become more efficient. It will also benefit others in the supply chain as well and not just Barilla SpA. Barilla SpA must be able to convince both its internal sales representatives as well as the distributors. Once JITD is implemented, it will improve communication, cooperation, and relationship between Barilla SpA and its distributors. It will allow Barilla SpA to become more competitive and grow big than it already is, and its growth will benefit the distributors that trusted Barilla SpA and agreed to the JITD.