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Words: | Submitted: Tue Nov 16 2004
... explained that the retailers do not have the extra capacity to store inventory because the limited shelf space is already being filled with the introduction of new products. From the distributors' point of view, they too are feeling a need to add more inventory of items they already stocked and to add new items; however, they want to do so on their own terms. One of the reasons why the distributors are resisting the JITD changes is because they fear losing control of managing the stock. This is important to the distributors because of the reward system that is currently in place. The distributors are making their order decisions by determining the best advantage of the trade promotions rather than focusing on the needs of the retailers. The distributors would rather see Barilla reduce their lead delivery time to 36 hours rather than the existing 10 days. The distributors ...
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