Case Postmortem [Barilla] [ARR]
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Barilla Postmortem
Questions & Answers
Group Questions:
Q: How long will it take to implement the JITD system? Do you see it having any short-term or
long-term benefits?
A: The JITD system will take quite some time to be implemented by Barilla because we need to
build up enough inventory data and understand the demand needed by each retailer in order to
be accurate in the future. Short-term benefits will be non-existent because this will take time,
but long-term benefits will improve the forecasting system greatly and have a great impact on
overstocking and understocking for the future.
Q: How will you continue with your sales and marketing teams when implementing the JITD
system?
A: Our recommendations to keep our sales and marketing teams intact will be to change our
sales program. We plan on having sales reps in stores in order to promote Barilla products
more. They may take offense to the JITD idea at first, but in due time they will see that we are
not trying to put their jobs in jeopardy whatsoever.
Q: Why do you recommend Barilla to start JITD with smaller DOs and supermarkets? They
usually cannot afford expensive systems such as VMI.
A: Because it would be easier to build good relationships with smaller businesses, and Barilla
will cover the cost of upgrading the inventory management system. Once we get some
businesses on board, we can convince more people to accept the JITD system.
Audience Questions:
Q: How do you think JITD can eliminate the bullwhip effect in the current distribution system?
however, some of the salespeople’s job and incentive strategies need to be redesigned.