Barilla Case Study

In: Business and Management

Submitted By lrbroom
Words 767
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For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program; effective communication with the distributor will allow Barilla to retailers with proper stock of goods through more accurate forecasting and sales data.
The critical elements of the JITD program employ the use of distributors’ shipment data to send only what is needed to the retailer. Each day the distributor will provide information on what is shipped to retailers and current stock levels of each location; essentially the manufacturer would co-manage the inventory with the distributor. By implementing the JITD program the suppliers would receive the right amount of product due to Barilla’s ability to improve their forecasting through current sales data and provide the necessary product to the distributor. They would also be able to manage the shelf-space and material distribution through the use of vendor-created delivery schedules.
This program takes the pressure off the distributor to hold inventory they didn’t carry and increase the stock of items they already had. The JITD program would stop Barilla’s current response to the volatile market thereby reducing their inventory, distribution and manufacturing costs. It should be called the Co-Managed Inventory (CM) program instead of the JITD program as the CMI program allows both parties to collaboratively maximize supply chain efficiency . An example of this system is The Whitbread Beer Company which allowed…...

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