1. Enterprise Systems Collaboration Logistics Game
Valeria Balseca
Sales & Marketing Manager
Claudia Prada
MM Manager
Jhonattan Polo
CEO

2. 1. Cumulative profit and revenues

3. 2. Sold Quantities & Revenue - TOTAL

4. 2. Sold Quantities by Product
Highest: Milk
Lowest: Cream

5. 2. Revenue by Product
Highest: Cheese
Lowest: Yoghurt

6. 3. Revenue for each product and area in each company
COMPANY PP
COMPANY QQ
COMPANY RR

7. 4. Profit for each product and area in each company
COMPANY PP
COMPANY QQ
COMPANY RR

8. 5. Revenue for each area and company. 6
5. Revenue for each area and company. 6. Profit for each area and company
NO was the most profitable area for all companies
Company RR dominates profits in NO and WE areas
Company RR dominates revenues in NO and WE areas
NO was the most profitable area for all companies

9. 7. Price Changes

10. 7. Price Changes

11. 7. Price Changes

12. 7. Price Changes – Standard Deviation
Company PP had high price variation for Cream, Yoghurt, Cheese and Butter.
Company QQ was not the most variable in any product.
Company RR had high price variation for Milk and Ice Cream

13. 8. Procurement

14. 8. Procurement

15. 8. Procurement

16. 8. Procurement

17. 8. Procurement

18. 8. Procurement

19. 9. Purchase Orders
Overall, company PP had higher number of P.O., followed by company RR.
Company QQ had less number of P.O. placed

20. 10. Purchase Orders Total Costs
Company PP placed more P.O. followed by company RR
The quantities are about €400,000.00

21. 11. & 12. Total numbers and Total $ of Purchase Orders

22. 13. Average Cost of P.O.

23. Company PP Company QQ Company RR
14. Inventory Changes
Main Warehouse
Company QQ had good inventory management in regards to level and replenishment frequency.
Did not affect the number of days without of stock
Company PP Company QQ Company RR

24. Company PP Company QQ Company RR
14. Inventory Changes
North
All the companies had lower inventory levels of milk and Ice cream than the rest of products
Company PP Company QQ Company RR

25. Company PP Company QQ Company RR
14. Inventory Changes
South
Companies PP and QQ maintained lower inventory levels than company RR in all products.
Company PP Company QQ Company RR

26. Company PP Company QQ Company RR
14. Inventory Changes
West
Company PP Company QQ Company RR

27. 15. Days Out of Stock Main Warehouse
Company RR had the highest number of days without stock for all products, followed by company QQ.
Company PP placed P.O. more frequently than the others.

28. 15. Days Out of Stock
North

29. 15. Days Out of Stock
South

30. 15. Days Out of Stock
West

31. 16. Warehouse Cost

32. 17. Shipping Costs
This cost includes the transportation to the main warehouse and to each distribution center in the regions.

33. 18. Interest Expense

34. 19. & 20. Cash Flow and Days w/out Cash

35. 21. Correlation Price and Profit
Positive
Correlation

36. 21. Correlation Price and RevenueNo
Correlation

37. 21. Correlation: Inventory vs. RevenueNo
Correlation for PP and RR
Negative correlation for QQ

38. 21. Correlation: Inventory vs. ProfitNo
Correlation for PP and RR
Negative correlation for QQ

39. 21. Correlation No
Correlation

40. 22. Credit Rate
For the size of the company, the highest credit rate given is A.
During this simulation, no company was downgraded in credit rate
Company PP had negative cash balance and they paid interest for the bank loan

41. 23. Strategies Company PP Company QQ Company RR Price
Avg. market except cheese. Under cost.
High variability.
Avg Market. Except milk and yoghurt.
High variability
Avg Market. High variability
Margin
Low Margin
6.4%
High Margin
9.5%
Average Margin
8.7%
Revenues
Average Sales
High Sales
Inventory
High inventory levels
Fast replenishment: did not run out of products
Low inventory levels without running out of products
Slow replenishment: ran out of products
Procurement
30 P.O. Placed
€61, on average
18 P.O. Placed
€58, on average
23 P.O. Placed
€52, on average
Warehouse Costs
High warehouse expenses
€ 5,350
Low warehouse expenses
€ 0
€ 4,650
Shipping Costs
High shipping cost
€ 18,300
Average shipping cost
€ 10,650
€ 10,950

42. 24. & 25. Lessons Learned & Experiences
The company must analyze demand and determine the best operation strategy
Push? Pull?: we chose to push the inventory to have more control on transportation and warehouse costs.
Equilibrium between order frequency and total inventory
Do not incur in excessive transportation or warehouse costs
Update the price in a timely manner to push for sales.
Oversee total inventory
For planning purposes: the quantities in the P.O. depend on planned independent requirements.
Do not exceed total capacity of the company (main and regional warehouses). In case this happens, push for sales reducing prices.

43. 26. Best Strategy
Take in consideration the lead times, between purchasing a product and the actual delivery time.
Monitor sales and adjust prices at all times. Therefore, the company can respond to the market requirements quickly.
Identify the Region in which one specific product is having highest sales.
Always keep track of total inventory to not exceed the warehouse limits and to not run out of stock.
Communicate at all times with team members.