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Barilla - Supply Chain Inventory Management

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Barilla - Supply Chain Inventory Management

Barilla

TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
ISSUES IDENTIFICATION 3
ENVIRONMENTAL AND ROOT CAUSE ANALYSIS 3
ALTERNATIVES AND/OR OPTIONS 3
RECOMMENDATION AND IMPLEMENTATION: 3-4

Executive Summary:

In an attempt to control inventory swings, reduce costs, and improve sales we have introduced the JITD initiative. This initiative has been a failure from the beginning and there is no point salvaging it. We need to abandon the JITD initiative and focus on a new strategy that seems like a more logical and promising approach.

Issues Identification: The issue is that distributors and Barilla’s sales team do not support the just-in-time distribution (JITD) initiative. Due to the following reasons:
• JTID is a more costly approach to manufacturing pasta because the plants cannot maximize the efficiency of their kilns.
• Distributors o strategies vary o Lack sophistication when it comes to technology and forecasting. o Do not want to give a brand they carry so much leverage over their business
• Sales staff o Are no long able to offer trade promotions o Are worried their job will become obsolete o Are worried their customers will start pushing Barilla’s competitors brands because they have excess stock of those products

Environmental and Root Cause Analysis:

Barilla is a profitable business that is simply looking to enhance the customer experience and increase profitability. Improving efficiencies through the distribution centers makes the most sense because it makes up approx. 60% of the business.

Alternatives and/or Options:

Options#1
Go ahead with the JITD initiative. This would mean finding a way to get distributors, customers, and sales staff on board to support the initiative.

Option#2
Discard the

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