Barilla Spa Case Report Essay

Words: 1997
Pages: 8

Executive Summary

As per our conversation last week I would like to revisit the idea originally brought to life by Brando Vitali before he was promoted to head one of our company’s new divisions overseas. In order to address the issue which will be a direct result of introduction of JIT Distribution system, I would like to present the issues and my recommendations to you before our meeting with Marconi’s executives to discuss JITD proposal. As the meeting is scheduled for the of November I would like to hear your thoughts on JITD before the end of this month so I can make appropriate changes to address any issues you might foresee as a direct result of our proposal.
The decision to adopt the Just-in-Time Distribution will most likely
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Sales executives are clinging to the idea of promotion based strategy which the old-fashioned distribution system is based around. This is not a good sign as efforts to reduce costs should be made from all aspects of the Supply Chain Management. Executives should be concerned with efficiency of their supply chains from different tiers of suppliers all the way thru different tiers of their customers until the product reaches its ultimate user. Barilla executives are not looking for ways to reduce waste within their distribution channels as it’s not even clear how they measure success of their sales force. Barillas distribution network is only based around relationships, not necessarily around efficiency of their supply chain. They should be looking at ways to eliminate waste, even if it means “leaning out” their sales force and only keeping those who truly perform well. Staff will always resist change as it is uncertainty that scares everyone when new ideas are introduced within an organization, especially if it might put their job security on the line. Once the internal issues are addressed and the new philosophy starts taking precedence they can effectively communicate JITD to their DO channels. Sales reps would be successful at communicating the ideas and benefits of JITD system to the buyers of the Organized Distributors. Those buyers would then facilitate the flow of this information from the bottom to the top of the organization before a