Summary of Barilla Spa
Summary of Barilla Spa
Barilla Spa is the world’s largest producer of pasta based in Italy and founded in 1875. It is experiencing a constant change on its production because of variation in order patterns of distributors. It results in operational inefficiency and increase in cost. The only solution to this problem is the implementation of Just in Time Distribution (JITD). The new system eliminates huge variation in manufacturing and production. It has centralized information and data transparency exists between Barilla and distributors. Forecasting and Production is the basis of actual sales data provided by distributors. This results in increased operational efficiency less stock-out among distributors. The concept of JITD improves the relationship between suppliers and customers.
In order to resolve the internal resistance arising from sales and marketing, top management is involved which represents the benefits of the JITD in figures. Emphasis upon the role of sales team is laid, which is of great significance in JITD. It plays an important role in its implementation. It represents the benefits of involved parties, it discusses in detail to control the external resistance. With the immediate implementation of JITD, Barilla will become stronger producer of pasta. Its implementation will increase the growth rate of company because of increased business efficiencies and reduced costs. Barilla is implemented on the Distribuzione Organizzata (DO) where functions of sales representatives are in command over others. The key factor behind the success of implementing JITD is sale representatives. Successful meetings arranged between Barilla and DO weekly monitors its status.
JITD also faces some of the problems. Non-cooperation of customers is one of the factors. Many customers do not share detailed sales with the company so they can have power over order placements. Moreover, employees of sales and marketing department are afraid of losing their positions in case of JITD is implemented. Centralized barilla spa solves all of these existing issues.
