1760 words, 8 pages

Intro Sample...

PART 1: Executive summary
My decision is to continue the just in time distribution (JITD) program. This program will have a gradual roll out approximately one year in duration. There are both internal and external challenges that must be addressed if we’re to expect a successful program. First internally our sales force must see the benefit of the JITD program. They must understand that the existing pricing strategy, ordering process and lines of communication only add to bullwhip, and to remember that the customer is the person purchasing our products to take home to their family. After we have an internal understanding that Barilla is carrying too much inventory, lead times are too high, and the customers are... View More »

Body Sample...

Operational Inefficiencies
Barilla has operational inefficiency, these inefficiencies drive costs upwards. Examples of these are high inventory, an average of 7% stock-outs throughout the year, and too many sku’s. Considering CDC’s carry 1 month of inventory and the distribution centres carry 2 weeks and the supermarkets carry 10-12 days this shows us an average of 2 months of inventory up and down the line at any given time. The stock-outs translate into backorders, lost sales and worse of all lost customers. This will have a significant impact on the bottom line.

Organizational Deficiencies
Barillas supply chain culture is an issue, Distributors have full control of their orders and the distributors indulge in gaming by ordering different quanties in different periods both the distributors and supermarkets enjoy too much autonomy. The communication lines between all parties are nonexistent. And the misunderstanding that revenue is based on sales alone.

PART 3: Environmental and Root Cause Analysis
Barilla SpA is an Italian based company and is the world’s largest pasta manufacture. Barilla has 35% of the market in Italy and 22% of the market share in the rest of Europe. Barilla is highly vertically integrated and because of this Barilla contents with supply chain issues at both ends of manufacturing. There is no sophisticated forecasting tools use in Barilla despite the fact they have computerized ordering systems. There are several different ordering methods with (inconsistent amounts being ordered) this throws the supply chain system out of control. The ...

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