The Fresh Connection
Feb 25, 2016
The Fresh Connection
What is The Fresh Connection
• Learning experience on supply / value chain management
• Webbased simulation
• Blended with training program
• Tactical/Strategic level
• Cross functional team
• Professionals and students
The Fresh Connection is a producer of fruit juices• suffering severe losses in the last year• poor supply chain performance
A new management team has been appointed consisting of four roles
• Sales management• Purchasing management• Supply chain management• Operations management
The assignment is to make the company profitable again• By making strategic and tactical choices
The challenge
The Simulation –The Supply Chain
Finished productComponents
Supply Production Distribution
Supply Chain
Purchasing Operations Sales
SCOR model as basis
ReturnReturn Return
Return Customer’sCustomer
Deliver
Suppliers’Supplier Supplier
Internal or ExternalYour Company
Customer
Internal or External
SourceDeliverMakeDeliverMakeSource Source
Plan
Return ReturnSource
Return
DeliverMakeReturn
Plan Plan
Source: Adapted from Supply-Chain Council (SCC)
“The Fresh Connection” gives a real life supply chain experience within a simulated environment:
• SCM is not only the responsibility of one function or manager, it is teamwork;
• Coordinated decision making is critical;• A strategy is necessary to have a common direction• How to translate strategy into action• The quality of the supply chain has a big impact on the company
profitability• The right management information is very important;• Internal and external collaboration is key to success.
Experience
• Team / leadership challenges• Communication & decision making• Alignment / consistency• In- and external collaboration• Get out of the box, experiment & learn
• Important supply chain topics • supply chain strategy• sales & operations planning (S&OP) • demand management• inventory management • operations management • supplier management
Key Challenges
highestROI
RevenuePrice:
Customer satisfactionVolume:Portfolio
CostsOperational costs
Improvement projects
InvestmentsWorking capital
EquipmentBuildings
Performance evaluation
Individual scores
Role Based onPurchasing Purchasing price
Operations Operational costs
Supply chain Stock value
Sales Revenue
Quick Tour
Learning with TFC
Learning by experiencea lasting learning effect
Learning effect
listening seeing experiencing
10% 25% 80%
Reflect
Experience
Apply
elsewhere
Training approach
Klabbers, The Magic Circle, Principles of Gaming & Simulation, 3rd Ed, 2009
Macro cycle
Conceptualize
- Real Life- Business Simulations (micro cycle)
- Feedback- Evaluations- Discussions- Presentations
- Models & Tools- Presentations- Case studies
- Exercises- Workshops- Break-outs- Coaching
The Fresh Connection configurations
• The business simulation is highly configurable• # of rounds, decisions per role• # of entities (components, end products, suppliers, customers)• language (now Dutch, English or German)
• A simulation can be:• static: during the rounds the content does not change, however
difficulty levels can be set• dynamic: context changes and events can occur in certain
rounds• Simulations can also be customer specific by including or
excluding content elements or events
Modules around TFC
• Cross functional trade offs
• Strategy into action
(level1,2,3)
S&OPSCRM
CO2 (carbon
footprint)
External Colla-
boration
SC fundamentals (e-learning/classroom)
Creating alignment in the
value chain
KPIs
- Inventory mgt- Capacity management- Demand management- Supplier relation mgt
Themes around creating alignment
Creating Alignment in the Value Chain
1. Strategy into action2. Sales & Operations Planning3. Strategy into KPI’s and targets4. External Collaboration5. Supply Chain Risk Management6. Managing the carbon footprint
Strategy into actionLevels in version 2013
Theme Sales SCM Operations Purchasing
Level 1 ReliabilityService level
Order deadlineShortage rule
Safety stocks# Shifts
# Pallet locations# FTE
Delivery windowDelivery reliability
Level 2 Batches and frequencies
Shelf lifeTrade unit
Lotsizing in production and purchasing
SMEDIncrease speed Trade unit
Level 3 Speed and quality Payment terms Frozen period
Intake timePreventive
maintenanceSolve breakdowns
trainingRaw materials
inspection
Supplier selectionPayment terms
QualityTransport mode
Extensionsin version 2013
Theme Sales SCM Operations Purchasing
Extension a S&OPPromotional pressureCategory management
ForecastingProduction interval
toolResource selection Dual sourcing
Extension b External collaboration
Promotion horizonVMI
Outsourcing warehouse (MCC)
Inflate PETVMI
Supplier development
Extension c CO2 footprintSustainabilty
CO2 sla Decrease of water usage
Decrease of energy usage
Decrease of start up productivity loss
Extension d KPIs and targets KPI selection KPI selection KPI selection KPI selection
Extension e Supply chain risk management
Risk eventsRelaunch (horizon) Scenarioplanner
Tracking & tracingQuarantineRisk events
Pooling warehouse FTE
Contract durationSupplier development
Dual sourcingRisk events
Trackrecord
History
• Since 2008– 10,000+ professionals – from 500+ companies – in 25+ countries – 5,000+ students– from 40+ universities– In 20+ countries
learned with The Fresh Connection.• Global Challenge for professionals: 250 teams, 17 countries• Incorporated in several incompany training programs• Incorporated in several university learning programs
21The Fresh Connection, a global experience
yy
Legend
Partners
Partners in development
Contacts
Some companies that have participated
Abbott DuPont ShellLamb-Weston Nucletron HuntsmanAkzo Nobel DHL StorkLoders Croklaan Nutricia InforApple Diebold TNTLogica Philips International FlavorsBosch DSM and FragrancesGKN QuinTech TycoCanon FloraHolland KLMNACCO Rockwell UnileverCapgemini Henkel KodakNestlé SCA UPSCorporate Express Heineken Kuehne + NagelNIKE Schenker Walt DisneyDeloitte Herbalife International Astellas
For a complete list go to www.thefreshconnection.biz
Example education
• MIT• Georgia Tech• VU University Amsterdam• RSM Rotterdam• Vlerick School of Mgt• Stellenbosch University• University of Western Sydney• Curtin University• EADA Barcelona• WU Wien• Arts & Metiers ParisTech• University of Sao Paulo
• TU Stuttgart• IMM Ahmedabad• VU University Brussels• University of Würzburg• Copenhagen Business School• TU Hamburg-Harburg• Lund University• University of Verona• Kühne Logistics University• University of Twente• LaSalle University, Barcelona• University of Wageningen
More info
For more information• contact [email protected] • e-mail [email protected] • visit our business partner website at
www.thefreshconnection.eu• educational organizations can visit
www.thefreshconnection.org• for an example of an open competition website
please go to www.thefreshconnection.biz • Join us at The Fresh Connection