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2. What is JITD? How is it different from the current way of doing business?

JTID stands for Just in Time Distribution. It is developed from the concept of Just in Time (JIT) manufacturing. By this method, Barilla logistic team will get the point of sales (POS) data from the distributors and based on the information for the stock needed, the team will deliver the products to the distributors.

Presently, Barilla delivered the product based on the order placed by the distributors, as per their requirements. However, the unanticipated and fluctuating demand created several problems like additional inventory at the distributors end or stockout problem. In order to solve this, Barillas director of logistics Maggiali proposed JITD concept which was suggested by former director Vitali. However, this proposal faced resistance from the sales & marketing personnel on accounts of the reason that their roles would be reduced .they also were of the opinion that the introduction of JITD might result in occupying more of the distributors shelf space and it wouldnt be possible to run trade promotions with JITD Even the distributors objected to the JITD proposal as they were not ready to provide such data and subsequently did not want to empower the manufacturers to manage their inventories.

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