Is JITD the solution for the problem on hand?

Just In Time Distribution:

Its a inventory concept managed by vendors. Distributors will provide Sales data of different SKUs and
final decision of shipment of product and its timing would be decided by Barilla.
Advantages of Just in time distribution:
Since JITD uses customer input, the market demand is easily available. Use of this data will
reduce manufacturing cost and form the market demand data a planned production planning
can be implemented
Current fluctuating demand could be controlled and served in an efficient manner and cost
effectively
It would reduce the inventory levels of distributers thus reduce the corresponding inventory
holding costs by this distributers will get a higher margin
The distributors can have improved fill rates with the retailers which will ultimately reduce their
inventory and inventory holding costs
Problems in implementing Just in time distribution:
Sales representative of Barilla feel that with the implementation of JITD their responsibilities
would come to an end and the incentives which were previously used to be given to the sales
representatives on achieving sales target will no more be given
No trade promotions based on order volume could now be provided and could lead distributor
to push competitors products instead of Barillas products
A little delay in order delivery in response to stock-outs would drastically affect the sales. In
absence of Barillas product an empty shelf space at the distributor and retailers end could lead
to promotion of competitors product
The distributors were unwilling to share their warehouse data with Barilla as they were not
confident of Barillas Inventory management system
JITD could result well for Barillas problem if the following steps were taken
Implement JITD system with some distributers on trial basis and on its success convince
other distributors showing the positive results
Convince distributers that It is easier to share information regarding a few SKUs
rather than all the SKUs at one time
Sales representative can work as an integral part of JITD and contribute in collecting the
data required for forecasting as they are more in contact with distributers. They need to
be motivated that their responsibilities are not diluted
JITD is going to decrease the inventory cost bear by distributers to we can convince them
that with this implementation they will get a better margin on sales