Barilla Spa Case Study

Barilla SpA

Case Study

The biggest challenge facing Giorgio Maggiali and Barilla SpA is the mounting burden that fluctuations of demand have placed on Barillas’ manufacturing and distribution methods, and whether or not to implement a Just-in-Time Distribution (JITD) system for their distributers. The implementation of Just in Time Distribution would allow for a more efficient process for getting the products to the end user when and where they are needed.

Solution #1:

To implement Just in Time Distribution.

For this to succeed, Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves. The sales reps will need to “sell” their customers on this idea and to shift the mentality of their distributers away from “this is the way we have always done it” and for them to be amiable to exploring new and more efficient ways to replenish their stock.

Pro: Barilla would more easily be able to control their manufacturing process and greatly reduce production overruns and stock outs thus enable to pass cost savings onto their distributors.

Con: Resistance from the distributors to change may continue. Their distributer may ask “why is that a concern of mine?” I just want the product I want when I want it.

Con: Will incur costs to purchase or develop software needed to gather and correlate sales information.

Pro: The initial cost for software development will be offset by savings in lost sales opportunity, reductions in buybacks and an overall increase in productivity and sales. Barilla already has much of the needed data pertaining to sales to the distributers.

Con: Customers may be resistant to providing their sales and customer base data to Barilla.

Pro: Barilla SpA has always ensured the confidentiality and security of the distributer’s information. Barillas’ continued success has been and always will be tied to the success of their customers.

Solution #2:

Concentrate implementing JITD with only new distributers and any current customers who may wish to participate.

Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps.