Barilla Jitd

In: Business and Management

Submitted By Jasani
Words 712
Pages 3
Executive Summary: In 1998 Giorgio Maggiali director of Logistics was planning to implement JITD program at Barilla one of the most popular pasta brand in Italy and Europe with annual sales of 19.94 Billion UD.
JITD distribution ideas was developed to meet and exceed the demand supply of Brailla brand fresh and dry products by streamlining a forecast based supply management system. Barilla’s total product range comprises of 75% dry and 25 % for fresh products having 21 days and 12-18 months of shelf lives respectively.
Barilla’s has two main distribution centres CDC, northern distribution in Pedignano and Southern Distribution in outskirts of Naples. Fresh products moved quickly through distribution centre and only three days’ worth of fresh products inventory was typically held in each CDC as compare to a month’s worth of dry product inventory. Fresh bead didn’t flow through CDC having one day shelf life.
Nearly two third of dry products from CDC were destined for supermarkets via distributors.
JITD is solely focus on dry products which is 75% of Barilla’s production. With this process they were trying to get real-time inventory from distributors which help them to maintain their production stocks in CDCs.
These kinds of program need agreement with both parties Brailla and buying distributions which is a challenge of its kind where buyers were not willing to provide these types of information with different reasons.
JITD program was also criticized internally at Barilla by Barilla’s sales team and they found this system will eventually dilute the effectiveness of sales force.
No doubt this will help Barilla to meet their market requirements and this program need strong will to implement and make sales force to understand the needs, may compensate inside sales by rewards. They can offer rebate to those customers who are willing to participate in…...

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