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Internal Resistances

Essay by   •  April 14, 2013  •  Essay  •  242 Words (1 Pages)  •  1,190 Views

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Internal resistances were for reasons that included:

* Barilla went along with huge advertisement and promotion which would be left to little with JITD.

* The sales representatives feared that adjusting the supply process to the new system would be difficult.

* The incentives of the sales men would be eliminated with JITD as the demand and the amount to distribute will be known.

* The sales representatives would lose the influence that they owned with the distributors completely.

* They would lose their earlier relationship with the distributors.

* The sales and marketing department feared if Barilla had the infrastructure to meet the JITD approach.

* With products supplied with the demand, there would be less products of Barilla on the shelves of the distributors compared to the competitors. This would be an advantage to the competitors.

* This approach was opposed by the managers of Do's as they would not be able to utilize their storage facilities with the adoption of JITD system.

External resistances were for reasons that included

* The distributors feared from sharing their financial information with Barilla.

* The entire control over the supply would be transferred to Barilla if they forecasted the demand for the entire market.

* The distributors are specialized in inventory controlling and have been doing the same for a long time; hence they doubted the inventory control management system of Barilla.

* The distributors feared that Barilla wanted to dump the inventory and the carrying cost associated with it on them and hence reduce their expenses.

* The distributors will be forced to be more dependent on Barilla.

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