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Distributors were unwilling to share their warehouse data with Barilla as they were not confident of Barilla's Inventory management system. Distributors need to be motivated that it is easier to share information regarding a few SKUs rather than all the SKUs at one time.
Distributors were unwilling to share their warehouse data with Barilla as they were not confident of Barilla's Inventory management system. Distributors need to be motivated that it is easier to share information regarding a few SKUs rather than all the SKUs at one time.
Distributors were unwilling to share their warehouse data with Barilla as they were not confident of Barilla's Inventory management system. Distributors need to be motivated that it is easier to share information regarding a few SKUs rather than all the SKUs at one time.
Its a inventory concept managed by vendors. Distributors will provide Sales data of different SKUs and final decision of shipment of product and its timing would be decided by Barilla. Advantages of Just in time distribution: Since JITD uses customer input, the market demand is easily available. Use of this data will reduce manufacturing cost and form the market demand data a planned production planning can be implemented Current fluctuating demand could be controlled and served in an efficient manner and cost effectively It would reduce the inventory levels of distributers thus reduce the corresponding inventory holding costs by this distributers will get a higher margin The distributors can have improved fill rates with the retailers which will ultimately reduce their inventory and inventory holding costs Problems in implementing Just in time distribution: Sales representative of Barilla feel that with the implementation of JITD their responsibilities would come to an end and the incentives which were previously used to be given to the sales representatives on achieving sales target will no more be given No trade promotions based on order volume could now be provided and could lead distributor to push competitors products instead of Barillas products A little delay in order delivery in response to stock-outs would drastically affect the sales. In absence of Barillas product an empty shelf space at the distributor and retailers end could lead to promotion of competitors product The distributors were unwilling to share their warehouse data with Barilla as they were not confident of Barillas Inventory management system JITD could result well for Barillas problem if the following steps were taken Implement JITD system with some distributers on trial basis and on its success convince other distributors showing the positive results Convince distributers that It is easier to share information regarding a few SKUs rather than all the SKUs at one time Sales representative can work as an integral part of JITD and contribute in collecting the data required for forecasting as they are more in contact with distributers. They need to be motivated that their responsibilities are not diluted JITD is going to decrease the inventory cost bear by distributers to we can convince them that with this implementation they will get a better margin on sales