The reason for the introduction of JITD was the fluctuation of the demand. This is just the tip of the iceberg, and there are many reasons for these fluctuations. One of the important reasons for the fluctuation in demand was forecasting problems on behalf of the distributors as the lacked technical skills to anticipate demand. Not only the distributors, but, Barilla itself lacks logistic superiority causing an increase in lead time. It supplies the products to distributors with an average lead time of 10 days after receiving the orders. This lead time is quite long for demand to fluctuate. Another possible cause of fluctuation is the large number of SKUs as, only their dry products were offered in more than 800 SKUs. More the SKUs are more is the complexity
Diagnose the underlying cause of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program?
What conflicts or barriers internal to Barilla does the JITD program create? What causes these conflicts? As Giorgio Magggiali, how would you deal with these?
As one of Barilla’s customers, what would your response to JITD be? Why?
In the Environment in which Barilla operated in 1990, do you believe JITD (or a similar kind of program) would be feasible? Effective? If so, which customers would you target next? How would you convince them that the JITD program was worth trying? If not, what alternatives would you suggest to combat some of the difficulties that Barilla’s operating system faces?
Suggest a web/online strategy for the firm.
Distribution planning, Logistics, Order processing, Suppliers