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    Barilla Spa

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    Nithyapriya Veeraraghavan
    1. The document discusses objectives of Barilla, distributors, and salespeople regarding inventory management and sales of Barilla pasta. It also proposes solutions to address all parties' objectives. 2. It suggests implementing JITD (Just-In-Time Delivery) as a pilot project with willing distributors to gain credibility. A joint venture ownership of sales data is proposed to assure distributors of their independence. 3. Salespeople's jobs could be redesigned with new KPIs related to inventory reduction and accurate data collection to motivate them. Barilla should take a long-term partnership approach and have multiple contact points with distributors.

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    Barilla Spa

    Uploaded by

    Nithyapriya Veeraraghavan
    60 views2 pages
    1. The document discusses objectives of Barilla, distributors, and salespeople regarding inventory management and sales of Barilla pasta. It also proposes solutions to address all parties' objectives. 2. It suggests implementing JITD (Just-In-Time Delivery) as a pilot project with willing distributors to gain credibility. A joint venture ownership of sales data is proposed to assure distributors of their independence. 3. Salespeople's jobs could be redesigned with new KPIs related to inventory reduction and accurate data collection to motivate them. Barilla should take a long-term partnership approach and have multiple contact points with distributors.

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    1. The document discusses objectives of Barilla, distributors, and salespeople regarding inventory management and sales of Barilla pasta. It also proposes solutions to address all parties' objectives. 2. It suggests implementing JITD (Just-In-Time Delivery) as a pilot project with willing distributors to gain credibility. A joint venture ownership of sales data is proposed to assure distributors of their independence. 3. Salespeople's jobs could be redesigned with new KPIs related to inventory reduction and accurate data collection to motivate them. Barilla should take a long-term partnership approach and have multiple contact points with distributors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views2 pages

    Barilla Spa

    Uploaded by

    Nithyapriya Veeraraghavan
    1. The document discusses objectives of Barilla, distributors, and salespeople regarding inventory management and sales of Barilla pasta. It also proposes solutions to address all parties' objectives. 2. It suggests implementing JITD (Just-In-Time Delivery) as a pilot project with willing distributors to gain credibility. A joint venture ownership of sales data is proposed to assure distributors of their independence. 3. Salespeople's jobs could be redesigned with new KPIs related to inventory reduction and accurate data collection to motivate them. Barilla should take a long-term partnership approach and have multiple contact points with distributors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1. 1.

    Barilla SpA Barilla, Voiello and Braibanti Pasta Mathan Anto Marshine P IIM Indore
    Mobile: +91 7506201026 Email: [email protected]
    2. 2. Roll No: 2013PGPM036 Barilla SpA | 2 Barilla, Voiello and Braibanti Pasta
    CONTENTS 1) Define objectives of Barilla/distributors/salespeople 3 Objectives of Barilla
    3 Objectives of Distributors 3 Objectives of Sales people 3 2) Propose a solution that will
    address objectives and be acceptable to all parties. 4 Distributors 4 Sales people 5
    Barilla 5
    3. 3. Roll No: 2013PGPM036 Barilla SpA | 3 Barilla, Voiello and Braibanti Pasta 1) Define
    objectives of Barilla/distributors/salespeople Objectives of Barilla  Reduce the overall
    inventory at CDC.  Reduce the lead time for delivery.  Reduction in erratic demand. 
    Increase in sales of the pasta. Objectives of Distributors  They need control on
    managing their inventory.  Don't want to closely linked to Barilla as that would allow
    barilla to push their products.  Distributors don't wish to incur the additional overhead
    cost involved in reporting inventory figures to barilla. Objectives of Sales people 
    Increase the sales during promotion as their incentive is based on that.  Ensure
    distributor always holds stock of barilla products, so that competitors could not enter in. 
    Predicting rise in stock outs due to strike and other interruption in production.  Accurate
    prediction of demand during high fluctuations.
    4. 4. Roll No: 2013PGPM036 Barilla SpA | 4 Barilla, Voiello and Braibanti Pasta Sales
    people had following concerns with JITD  They will lose power because functioning of
    sales and marketing will be narrowed due to automated control over inventories.  Flat
    sales structure will take away the bonus of the sales people.  Sales representative
    feared reduction in responsibilities like reduce in the need for sales promotions. 2)
    Propose a solution that will address objectives and be acceptable to all parties.
    Distributors  Credibility needs to be gained before enforcing any idea to distributors.
    First implement JITD as a experiment (i.e. Pilot Project) with distributors like Marconi who
    agreed to sell their data. Collect the results like Average Inventory levels, Days Inventory
    turnover, Daily shipment to DC, Stock out ratio and " Daily sell through" to retail stores for
    month. Successful results will add credibility to JITD proposal.  Distributors need to be
    convinced with the win-win concept. a) To gain trust and convince distributors that their
    independence is not in jeopardy, Barilla could propose a joint venture with Barilla and the
    distributors as shareholders that control the sales data from the distributors. By becoming
    joint owner of this data both parties can benefit without the distributors losing some of
    their independence.
    5. 5. Roll No: 2013PGPM036 Barilla SpA | 5 Barilla, Voiello and Braibanti Pasta b) Barilla
    could ask an SCM consultant trusted by both Barilla and the customer to give their
    opinion. c) If the DOs or GDs do not want to share data, offer a closely working Barilla
    representative to be present at DO or GD premises who monitors the inventory and sales
    figures and advises on the ordering (similar practice is currently performed in
    supermarkets) Sales people  The sales team needs to be persuaded of the value of this
    selling tool - JITD. The reward structure for salespeople could be reorganized, for
    example some of their KPI’s could be related to reduction in inventory, getting accurate
    data from stores about sales. The jobs of the salespeople could be redesigned to
    introduce more job commitment from sales; ideas to design satisfaction into the job could
    include job enlargement (larger number of tasks and more variety), job enrichment
    (greater autonomy), job rotation, empowerment and team-working. Barilla  Company-
    wide view should be adopted that the relationship with distributors is a long-term one, a
    partnership should be managed accordingly i.e. joint learning, sharing successes,
    sharing and aligning long term expectations, and having multiple points of contact
    through formal and informal channels.
    6. 6. Roll No: 2013PGPM036 Barilla SpA | 6 Barilla, Voiello and Braibanti Pasta  For really
    skeptical distributors on information sharing, develop and roll out a “Barilla Demand
    Forecasting System” where DOs and GDs can order based on the outcomes of the
    forecasts. However this will still not fulfill all the required information for Barilla to flatten
    the demand, both Barilla and the distributor will benefit from better forecasted orders and
    decreased inventory.  Build trust by looking for strategically aligned relationships with
    individual DOs and GDs. Explore and propose how Barilla can help its distributors to
    meet their strategic objectives developed models.

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