Barilla Business AnalysisINTRODUCTIONBarilla SpA (Barilla), is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has experienced widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific pasta production sequence is used that minimizes incremental changes in oven temperature in order to keep production changeover costs low and product quality high. This process unfortunately makes production insensitive to changes in forecasted demand. To address this problem, Brando Vitali proposed a Just-in-Time distribution (JITD) model, which is a continuous replenishment strategy whereby the responsibility for determining shipping quantities to distributors would shift from distributors to Barilla. Such a system would lead Barilla to push its pasta to suppliers based on demand forecasts. The implementation of a JITD system should have the effect of reducing channel costs, improving distributor service levels for Barilla, as well as improving service and reducing distributor inventories. PROBLEMS Barilla has encountered significant problems in implementing the JITD model. What prevents Barilla from effectively implementing a JITD system are: 1) internal opposition from sales staff; 2) lack of consent from the distributor resulting from fear of loss of power; 3) the inability to collect the necessary information; and 4) the traditional Italian system of commercial promotion. EVALUATION CRITERIA The main decision that falls to Barilla is not whether Barilla should apply the JITD model, but whether it can be applied. The benefits of introducing a successful system are numerous to an individual… middle of paper… would make more sense as information would be more available. However, because it is an internal part of the distribution chain, its success may be less convincing to skeptical distributors. We therefore suggest that JITD targets depots first, then GDs and DOs last. Conclusion: The JITD system has the potential to substantially reduce costs if implemented correctly. To do this, Barilla should start implementing JITD within its own warehouses and expand with pilot projects with distributors. The above analysis discussed a variety of methods by which to make such an implementation more feasible than in the past. However, that list is in no way conclusive. In the long term, ideas such as reducing the number of SKUs and reorganizing distribution channels should also be explored as they can also lead to substantial cost savings.