Internal Conflicts - Jitd

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infrastructure to handle JITD* Increase competitor shelf space at distributor* Inability to run Trade promotions* Unsure about the cost benefitsThese conflicts occurred because sales representatives do not have enough understanding about the JITD program. Thus, there is resistance from internal for this change. To deal with this problem, firstly Maggialli should look at the JITD not as a logistics program, but as a company-wide effort. Secondly, he should get top management closely involved in this project so that other functions would be more focusing on this project as well. Moreover, he should be able to demonstrate the JITD benefits in company’s perspective, distributors’ perspective, retailers’ perspective and contribution to the whole supply chain so that every parties can understand the cost benefit of the JITD. To solve the resistance of sales and marketing team, Maggialli can make internal parties more understanding about this project by explaining the step of implementation and the JITD process. For example, he should explain to sales representatives that they still pay crucial role after the company implements this program. They can have power to control their shipments, increase sales level, adjust shipments to stock out quickly and be able to run trade promotion as usual by providing the forecast which help company grow sustainably. Furthermore, company can increase the number of SKUs since distributors have more shelf space to hold our products. Last but not least, trust is the most important thing for the JITD. Maggialli should demonstrate the trustworthiness of the JITD so that everyone can confident with it.

c. As one of Barilla’s customers, what would your response to JITD be? Why? The discussion is needed between both parties. This can bring the win-win solution. Two heads is always better than one so the critic side could be replaced with another disguised one. As a customer, we will give the company a chance to explain both the benefits and the drawbacks in order to weight which side has more effect on us. In the other hand, the company should demonstrate what we will get and if we feel that we lose something, it is the company responsibility to offer the negotiation or trade-off deal. Finally, they might find the optimization that meets both sides’ criteria. We might not know in every aspect of everything until there is someone pointing out and we would say that everything can be changed if it is rational or has enough supporting reasons. Presenting the comparison between traditional and JITD systems is the influential information that bringing out the advantages and disadvantages of each of them and eventually, this might change our mind. We think that dealing business, most of the time; it is concerning about resources and opportunities. By reducing time and cost as the managing resources factors and bringing the effective and efficient supply chain management as the opportunity factors are the good things to deal with. If the company tells enough of these, there would be no problem. So, communication is the key to solve in this case.

d. In the environment in which Barilla operated in 1990, do you believe JITD 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?

Yes, we believe that JITD program would be feasible and effective because it mainly counteract the problem of variability in demand e.g. reduce uncertainty, strategic partnerships, reduce both manufacturing costs and inventory holding costs, etc. Although Maggiali has failed in trying to convince Marconi, a fairly old-fashioned GD, we still reckon that if he can build trust among customers, this program will improve the relationships between Barilla and the customers rather than harm them. The customers who are more responsive to the JITD program would be easier for Barilla to help them develop and implement the JITD program. Just convince them positively by trying to communicate and demonstrate the JITD benefits in terms of customer’s perspective to the whole supply chain. Consequently, every party will have the same page of understanding about the cost benefit of the JITD program.