1. 1.

Barilla SpA Barilla, Voiello and Braibanti Pasta Mathan Anto Marshine P IIM Indore
Mobile: +91 7506201026 Email: pm13pmathan@iimidr.ac.in
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.