The benefits of Barilla includes effective decision making related to delivery and improvement in demand forecast in order to meet the needs and demands of consumers. The workload is distributed on the logistics system and manufacturing and distribution center inventories could be minimized. The drawbacks include the loss of incentive by the sales workers due to the flat seat. The trade promotions are difficult to manage with JITD.
b. The trade promotion will be difficult, and the bonus of sales workers will be eliminated after implementation.
I will provide the opportunities for sales and personnel marketing which impacts the program and provide a new way for sales and trade promotion.
c. I will accept the program happily because the implementation of the program enables us to smooth out the effect of the bullwhip effect and minimize the cost of inventory and warehouse space.
The stages of a supply chain can be improved through getting new ideas and customer data which help to take an effective decisions so that the optimized chain can be developed. The advancement in technology alleviates the effect.
b. Express delivery
It reduced the lead time which reduces the variability in the supply chain and enhances the effect.
c. Collaborative Forecasts
It helps in attaining the supply chain's global optimization which helps to alleviate the effect.
d. Everyday low pricing
It helps to attract a large number of customers which helps to estimate the demand by the manufacturer and it reduces the effect across the supply chain (Bozarth et al., 2016).
e. Vendor managed inventory
It helps to reduce the cost by knowing the estimated demand and mitigate the risk which alleviates the bullwhip effect.
f. Supply contracts
It helps in the long run for achieving global optimization which alleviates the effect.
1. It enables to win the confidence of customer which improve the sales.
2. It develops the situation of win-win for the customer and local dealer.
3. It minimizes the effect of a bullwhip.
1. It minimizes the level of service.
2. The risk of customer loss arises.
3. The lead time will be increased.
1. The sharing of information minimizes the time of order processing which reduced the lead time.
2. The cross-docking can be used to reduce the lead time.
3. The involvement of the optimal distribution design of the network leads to reduce lead time.
4. Vendor management inventory involvement.
5. Involvement of accurate forecast due to a decrease in the horizon of a forecast (Christopher et al., 2016).
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Bozarth, C. B., & Handfield, R. B. (2016). Introduction to operations and supply chain management. Pearson Higher Ed.