Because dry products have a quite long perishable date they could think of making bulk products, store them as bulk and on the basis of demand they can package on the demanded SKU.
Also distributors can buy as much product as they want to for meeting their demand at the discount offered by the company. This increase in safety stock from retailer to distributor and from distributor to factory is a well-known effect of the previously mentioned bullwhip effect.
Its operations are divided into seven divisions: Barilla product would then be shipped to the distributor over the course of the week that started eight days after the order was placed and ended fourteen days after the order was placed the average lead time is ten calendar days.
For the marketing department, the JITD project will lead to a redirection of its resources to key areas, such as new product launches, building brand equity, customer segmentation and differentiation.
Orders were placed only once a week — fluctuations were more pronounced.
The greater number of trucks, etc. Easier to deliver the goods and in time by properly forecasting the demand beforehand. The implementation will require funding for computers and related hardware.
This way, the inventory will automatically be monitored and the system can determine by itself if the safety stock level is reached and a new order must be placed. It will incur significant costs in data gathering, forecasting and coordination between distributors.
It would also improve operations for Barilla and their customers. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves.
However, despite the fact that Barilla offers many different types of packages, most retailers carry a Barilla product in only one packaging option or two at most.
For the sales personnel, benefits of the JITD project will be less hassle in ordering and in operation which will lead to happier customers. Hence, it is clear that available time for the last mile retailers to sell off their products gets reduced significantly.
The buyers, in turn appeared to sabotage the logistics departments. Fresh products had day shelf lives, and fresh bread, which had a one-day shelf life. Longer delivery times - took about 8 — 14 days to deliver the products. The supplier, in this case, Barilla, has to collect information from the distributor, and the distributor has to be able to collect information from the wholesaler, and then the wholesaler has to d… Popular Essays.
The lack of inventory and sales forecast information across the entire supply chain of Barilla increases the bullwhip effect. Also there is a need for increased acceptance of the program in the market, so Barilla needs to make efforts towards convincing the distributors about the benefits of the program.
The logistics people seemed most willing to try the JITD program when Maggiali approached them in Overall, the salesforce should be incorporated into the JITD for ensuring its smooth functioning and should be incentivized accordingly.
This will streamline the information flow, reduce uncertainty in demandreduce the lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost.
Fresh Bread very short shelf-life bakery products 6. As very little data is observed, the estimates of the mean and standard deviation of customer demand are not regularly modified. Also this pilot at the DO will be used to be presented as a winner and a sign of gained efficiency and added value.
The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase.
Barilla Pasta 2. Voiella Pasta 3. Braibanti Pasta 4. Bakery Products (medium to long shelf-life bakery products) 5. Fresh Bread (very short shelf-life bakery products) 6.
Barilla should implement the JITD program in phases, on a region by region basis. It should start with the local customers, which would minimize the resources required and. Barilla Case Study Phil Kaminsky [email protected] David Simchi-Levi (JITD) with Barilla’s distributors.
Maggiali needs to look at JITD not as a logistics program, but as a company-wide effort; Get top management closely involved.
The JITD program would be introduced to predict actual demand so that Barilla could attempt to produce the exact amount of products to meet customer’s demands. The large fluctuations in demand are due to a number of factors. HOW BARILLA MAKES THE PASTA: Pasta is made from a mixture of water and semolina flour.
Semolina is grown specifically for the director of the HRC Workplace Equality Program. "Barilla is an example of the transformational the JITD program centralizes demand information and decision making, thereby lowering costs.
Barilla needs to go ahead with the slow process of buy-in from its major supply chain partners (with technology support & subsidies from Barilla) through a focused sales and marketing program (with incentives to staff) to get the JITD program implemented.
May 01, · Supply Chain Management presentation on the Pasta Manufacturer Barilla SpA.Barilla pasta and jitd program