Barilla SpA, an Italian producer who trades with his retailers primarily through third-party agents and suppliers, experienced highly uneven demand trends from its suppliers during the latter part of 1980s. this case demonstrates an offer to resolve the issue by installing a continuous replacement system, through which the task of deciding and predicting the shipment quantitates would fall on Barilla’s shoulders instead of the suppliers’. Illustrates facilitation and challenges that were experienced within different operational departments at Barilla’s as well as with the suppliers who were contacted with the proposed offer.
Diagnose the underlying cause of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program?
What conflicts or barriers internal to Barilla does the JITD program create? What causes these conflicts? As Giorgio Magggiali, how would you deal with these?
As one of Barilla’s customers, what would your response to JITD be? Why?
In the Environment in which Barilla operated in 1990, do you believe JITD (or a similar kind of program) would be feasible? Effective? If so, which customers would you target next? How would you convince them that the JITD program was worth trying? If not, what alternatives would you suggest to combat some of the difficulties that Barilla’s operating system faces?
Suggest a web/online strategy for the firm.