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Essay text:
This was a radical change from the current and more traditional supply-chain setup where the distributors were not sharing any data and could place orders at will. Vitali's proposal came under severe criticism from not only the distributors but also Barilla's own Sales and Marketing department for an array of reasons.
Main reasons for fluctuating demand:
Promotions: The use of promotions in the form of price, transportation, and volume discounts was the main strategy to sell more products to the distriutors.
Sales Reps: The compensation system in place at Barilla for Sales reps, made them to push more products into the pipeline during promotional periods and not able to sell sufficient quantities during non promotional periods created wide variation in demand patterns...
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