Question

For Barilla SpA; describe JIT, and how a right balance between responsiveness and efficiency could enhance the overall supply chain performance. Any suggestions on other effective changes to the supply chain to enhance its inventory management system?

Answer 1

Just in Time or JIT approach is an inventory management approach which is to make sure the firm does least wastage and create the most effectivity as all the essential resources like the supplies, goods, labour or material are being demanded or scheduled to arrive exactly when they are being needed for the production process. The resources that would be used in the production would be brought only when they are needed or are being demanded in order to create less wastage and thus less costs for the production.

As effective as it sounds, JIT requires an accurate balance between the efficiency and effectivity of the business and also the responsiveness to the demand created in the market. Your company has to have such a good research and response team where they could accurately predict the right no. of resources provided to create the production and also when the same has to be provided. This balance helps to create a proper demand-supply analysis and the company could reduce the inventorh handling or warehousing costs to make sure the business is working smoothly and earning the right amount of profit.

Other recommendations to increase the effectiveness for the supply chain in the management are:

1. Technology: Anothe important concept for you to learn and develop in the organisation for a good and effective supply chain is the integration of various functions through technology. You have to connect various levels of function like the supplier with the production department, marketing department, sales department and also customer handling department to make sure the integration is maintained to transform the right information whenever needed. This integration of efforts helps in achieving success.

2. Communication and Feedback: Also, a continuous feedback and communication analysis also helps ensure the supply chain is working as smoothly as it should. The right products are ordered as per the demand communicated by the retailers and feedback is then given to the retailers regarding if the supply is available with the company or not. This produces less chances of uncertainity to ensure better performance.