Buy custom Barilla spA, Just in time distribution
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1287 |
Essay's paper body
It also led to production scheduling difficulties and high labor & transportation costs to satisfy the high ordering during promotional periods. Finally the cash flows were also uneven.
Reasons for stiff opposition to JITD by Distributors:
The pasta industry distributors were not yet prepared for such an sophisticated information sharing process...
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The distributors were not ready to share their sales data to Barilla and were not aware of the benefits of supply chain collaboration through collaborative forecasting and planning. The distributors were sacred of the negative implications of sharing the sales data thinking of the loss of control over ordering process would make them loose competitive advantage over Barilla through adjustin their order quantities through their own forecasting & planning for attaining the profit margins, and Barilla would push their products and cut down their costs...
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