1. Operate a Logistics Company (Case Study 3) (Overview and first 3 Runs)
EGN Enterprise Systems Collaboration Fall, 2011

2. Learning Objectives Gain the experience of running a logistics company
Learn to use process management as a competitive edge.
Learn to use the ERP system to support business strategies
Appreciate the concepts and benefits of enterprise systems systems integration

3. Logistics Game Each team consists of up to 4 members.
Each team operates a logistics company selling dairy products.
Using standard reports, each team makes business decisions in order to optimize the profitability of its operations.

4. Dairy Products

5. Business Environment Design
Each company owns a main warehouse which receives and stores products ithas purchased from a dairy cooperative.

6. Products Details

7. The Market’s Preferences
Each region has unique preferences related to the products it wishes to purchase from your company. Preferences change every game.

8. One Price List in Distribution Channel 16
You will need to set-up prices for your products. The price for each product will be applied to all 3 regions.

9. Cost : 100 € per regional tranfer
Transportation Fees
You will have to manage transportation fees with care in order to maximize your company’s profits.
Cost : 1000 € per PO
Cost : 100 € per regional tranfer

10. Logistics Strategy
You must determine a logistics strategy in order to make your products available for sales through your regional storage location. OR

11. A Push Logistics Strategy
A Push strategy specified the quantity of each product to be delivered to each area and the number of days between deliveries.

12. A Pull Logistics Strategy
A Pull strategy specifies the target quantity for each product in each area and the number of days between deliveries.

13. Rules of the Game
Each round will last 10 days (a bit more than one minute per day)
No initial inventory for each product.
End-of-round inventory is carried over to the next round.
You may sell a product only if the stock is available through your regional storage location.
You are competing against other teams.
Your objective is to maximize profits.

14. Rules of the Game
There are warehousing costs whenever the company’s total inventory exceeds 4,000 boxes. The cost is 100 € per day for each additional 100 boxes exceeding 4,000.
Market size: About € 6,000 per company per day.
Lead time from suppliers: 1 – 3 days
Lead time to customers: 1 – 3 days

15. Major Business Activities
Plan for independent requirement for each finished product (MD61)
Run MRP (MD01)
Covert purchase requisitions to purchase orders (ME59N)
Transfer stock (ZMb1B)
Maintain prices for each products (VK32)
Check reports
Purchase order report (ZME2N)
Inventory report (ZMB52)
Summary sales report (ZVC2)
Sales report (ZVA05)
Financial statement (F.01)

16. Major Business Activities
Make sure that the regional warehouses have the required stock needed to meet demand while reducing the delivery, purchase order numbers, and warehouse cost.
To excel, each company must have a good strategy; departments must coordinate their efforts efficiently, respond to market requirement/changes quickly, and use the ERP system effectively.

17. Game layout
10 days
15 min
Round 1
Round …
Round 8

18. Job Aids (1/2)

19. Job Aids (2/2)

20. Login information Client will be provided by the instructor Login:
logistics_$#
Where $ is your team letter
And # is your number
Password: ERPSIM
You will have to change your password the first time you enter

21. SAP Menu & Navigation
Show some navigation. Begin by changing the settings to view the transaction codes. Browse the SAP menu to illustrate the depth of the system.
Top Menu: Extras / Settings / Display technical names

22. Logistics Game: Round 1
15 min
10 days

23. Participant’s job aid & Menu

24. Forecasting
First Screen
Second Screen

25. Execute MRP

26. Convert purchase requisitions into purchase orders

27. Track purchase orders

28. Logistics Transfer Planning

29. Stock in material overview

30. Maintain Prices for DC 16 16

31. Check sales summary report

32. Check financial statement

33. Logistics Game: Round 1
15 min
10 days

34. The Logistics Game: Round 1 (10 days)
Now start the simulator for 10 days

35. Logistics Game: Round 2 - 8
15 min
10 days