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  • As One of Barilla's Customer, What Would Your Response To JITD Be? Why?

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    Samuel Moses
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    As a distributor for Barilla, I would have the following concerns about implementing JITD: 1. It would increase Barilla's control over distributors and shift the balance of power towards Barilla. Distributors could see this as Barilla trying to monopolize the supply chain. 2. Distributors would lose control over their inventory levels, which could cause issues if economic conditions or other problems cause fluctuations in demand. 3. Sharing detailed warehouse data could reveal sensitive information to competing distributors, undermining our competitive position. 4. Implementing JITD may require hiring additional sales staff or overburdening current staff to provide daily data reports to Barilla.

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    Barilla SpA 3Q

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    As a distributor for Barilla, I would have the following concerns about implementing JITD: 1. It would increase Barilla's control over distributors and shift the balance of power towards Barilla. Distributors could see this as Barilla trying to monopolize the supply chain. 2. Distributors would lose control over their inventory levels, which could cause issues if economic conditions or other problems cause fluctuations in demand. 3. Sharing detailed warehouse data could reveal sensitive information to competing distributors, undermining our competitive position. 4. Implementing JITD may require hiring additional sales staff or overburdening current staff to provide daily data reports to Barilla.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    139 views4 pages

    As One of Barilla's Customer, What Would Your Response To JITD Be? Why?

    Uploaded by

    Samuel Moses
    As a distributor for Barilla, I would have the following concerns about implementing JITD: 1. It would increase Barilla's control over distributors and shift the balance of power towards Barilla. Distributors could see this as Barilla trying to monopolize the supply chain. 2. Distributors would lose control over their inventory levels, which could cause issues if economic conditions or other problems cause fluctuations in demand. 3. Sharing detailed warehouse data could reveal sensitive information to competing distributors, undermining our competitive position. 4. Implementing JITD may require hiring additional sales staff or overburdening current staff to provide daily data reports to Barilla.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 4

    7/30/2012 8:48:00 PM 3. As one of Barilla's customer, what would your response to JITD be? Why?

    Distributor Response to JITD Increase Distributors dependence on Barilla shift in power towards Barilla Distributors might think Barilla Spa is trying to take entire control over them and trying to bring monopoly in supply chain If it is left for Barilla to decide how much we need and how much should be shipped to us, we will lose control of our inventory- Due to this reason they might
    procrastinate the implementation procedure or refuse the implementation of new program

    Inventory Issues (Time of fluctuations in economy or any distributor problem) Some times distributors intentionally orders more inventory if they have more money in hand or due to fluctuations in economy or may be due to changing prices of the product- If it happens Barilla will provide more inventory to us? Data sharing problem Concern over the linkage of data to the competitive distributors-Thus distributors unwilling to share warehouse data. They may provide inappropriate date to the company-How Barilla can over come this? How it can gain the distributors trust? Sales force problem-Will barilla provide its own sale force for providing daily data calculation? To implement this model distributors have to recruit new sales force or burden the existing force to calculate all the data every day and give it to the company How Barilla can convince the distributors by not hurting their feelings? This might even cause a problem with the distributors by implementing this method Barilla is indirectly telling the distributors that the previous methods followed by the distributors were entirely wrong although it is correct it might hurt feelings of the distributors. Forceful implementation or implementation with out consensus of distributors might result in: If Barilla forces its distributors without convincing them might push competitor products with increased shelf space

    Trade promotion If Barilla implement this model if would be difficult for it to run Trade promotions Distributor retaliation If the distributors retaliates Barilla by asking it to improve its services first (i.e. to reduce lead-time) later they can consider implementing this model if they unable to reach Barillas expectations in sales-What the company will say for this?

    Main issue is how they can win trust from distributors in implementing this model? If they can answer this question most the problem is solved

    7/30/2012 8:48:00 PM

    7/30/2012 8:48:00 PM

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