1. Kick off

2. Introductions
<Your name, role and position> <Your story>

3. Introduction round Who are you? Your background, company and role?
What is your experience with The Fresh Connection?

4. The program The Train-the-Trainer program covers:
How the simulation software works
Learning points of the simulation
Coaching tips for struggling teams
Available support material
How to use The Fresh Connection as a building block in training programs

5. Program example Day 1
Introductions & Kick off Round 1 of The Fresh Connection Evaluation Round 1 and introduction SC Strategy Round 2 of The Fresh Connection Lunch Evaluation Round 2 and introduction S&OP Round 3 of The Fresh Connection Break (movie clips) More about TFC Evaluation of Round 3 and introduction Sustainability Round 4 of TFC End

6. Program example Day 2
Kick off Introduction Collaboration and round 5 of TFC Evaluation Round All role settings/decisions in TFC Introduction of Risk Mment and round 6 of TFC Lunch Evaluation of Round Back office: calculate, scores, edit users, reports Intro Interaction (R&D) and round 7 of TFC Evaluation of Round 7 and Intro Interaction (CPA) Round 8 of TFC 16:00 - Evaluation of Round Wrap up End

7. The Challenge The Fresh Connection
is a producer of fruit juices
In NW Europe
suffering severe losses in the last year
because of poor performance
A new management team has been appointed
The assignment is to make the company profitable again
By making strategic and tactical choices
Simultaneously with the simulation, My Company screen, finance, kpis etc
Poor performance:
1. Unhappy customers because we do not meet promised service levels
2. Inventories either too low or too high
3. Obsolescence
4. Production costs are too high
5. Questionable supplier selection

8. The Roles Simultaneously with the simulation, role screens
VP Supply Chain
Components
Finished product
Supply
Production
Distribution
VP Purchasing
VP Operations
VP Sales
Simultaneously with the simulation, role screens

9. Assortment Two packaging types Three flavors
1L carton
0.3L PET bottle
Three flavors
Orange
Orange C-Power
Orange/Mango
Shelf life of finished products is 20 weeks
In Sales

10. The Fresh Connection’s Supply Chain
Components
pallets
Finished product
pallets
SRM
Mixing
Bottling
CRM
tankyard
Three warehouses and overflow warehouses when needed
Two stage production: mixing and bottling
Bottling line(s) and mixer(s) for all products
MtS, leadtime customers of 1 day (delivery next day)
In Operations

11. Shelf life agreement= 75%
If the shelf life agreement is 75%, the internal shelf life becomes 25%
In other words, if the customer is promised a remainder of shelf life of 15 weeks at the moment of delivery, inventory of finished products may not rise higher than 5 weeks
Finished products are NOT distributed to a customer if the shelf life agreement is violated
Shelf life agreement= 75%
Internal shelflife
Shelf life is 20 weeks
In Sales

12. Market Three customers Retailer Food & Groceries Retailer Land market
500 stores
Supply chain leader
Retailer Land market
300 stores
Discounter
Chain of gas stations Dominick’s
50 stores
Only PET bottles
In Sales

13. Contract index Price setting
You cannot negotiate directly on sales/purchasing prices
Negotiate on supply chain performance (SLA’s)
This leads to a ‘contract index’
Contract index determines the sales/purchasing price
Example (sales)
Promise
Contract index
Basic price
Sales price
Much
1.1
€ 1.5
€ 1.65
Little
0.9
€ 1.35
In Purchasing

14. Production reliability
Important elements
Leadtime
Intake time
Frozen period
Order deadline
Delivery window
Components
Finished product
SRM
Production
CRM
Delivery reliability
Availability comps
Production reliability
Service level

15. Important elements (cont)
Trade unit
Lot size
Production frequency
Trade unit
Components
Finished product
SRM
Production
CRM
Contract
index
Contract
index
Bonus and penalty
Shelf life %

16. Performance evaluation
Costs
Operational costs
Improvement projects
highest
ROI
Revenue
Price:
Customer satisfaction
Volume:
Portfolio
Investments
Working capital
Equipment
Buildings
My Company screen and Finance
1. Revenue = price x volume. Actual sales price can go up and down influenced by contract index (note, that if you do not deliver on your promises, you get penalties)
2. Sales promotions have an effect on volume, the more promotion pressure you accept, the more your volume will grow

17. The Performance (cont)
The winning score can be the average score of the ROIs from round 1 thru n (or 2 to n etc)
It can also be the weighted average score
Or the high score of any round
Round 1 2 3 … n
Weight
What does our customer want?

18. Individual scores Role Based on Purchasing Purchasing costs Operations
Operational costs
Supply chain
Stock value
Sales
Revenue

19. Quick Tour testgig3 1. Cockpit: negative ROI, all other kpis
2. Finance: revenues, penalties (solve them!), direct costs (purchasing and production), stock (overflow warehouse inbound), handling (flex manpower), investments
3. Information tab: basic pricing, unit
4. Roles on high level
testgig3

20. Additional remarks
Every round pictures half a year of TFC in a steady state. You don’t have to worry about fade in or fade out effects from one round to the next.
Out of stock is not missed sales. The Fresh Connection works with backorders to their customers. So they are delivered at a later day.
The teams are competing, but they have their own marketspace

21. The challenge Make this company profitable again
You can take x years to do so (dependent on number of rounds)
The sooner the better
The best team will get the job
6 years = 12 rounds

22. ?

23. Get Started

24. Strategy into action Levels in version 2013
Theme
Sales
SCM
Operations
Purchasing
Level 1
Reliability
Service level
Order deadline
Shortage rule
Safety stocks
# Shifts
# Pallet locations
# FTE
Delivery window
Delivery reliability
Level 2
Batches and frequencies
Shelf life
Trade unit
Lotsizing in production and purchasing
SMED
Increase speed
Level 3
Speed and quality
Payment terms
Frozen period
Intake time
Preventive maintenance
Solve breakdowns training
Raw materials inspection
Supplier selection
Quality
Transport mode

25. Extensions in version 2013 Theme Sales SCM Operations Purchasing
Extension a
S&OP
Promotional pressure
Category management
Forecasting
Production interval tool
Resource selection
Dual sourcing
Extension b
External
collaboration
Promotion horizon
VMI
Outsourcing warehouse (MCC) Inflate PET
Supplier development
Extension c
CO2 footprint
Sustainabilty
CO2 sla
Decrease of water usage
Decrease of energy usage
Decrease of start up productivity loss
Extension d
KPIs and targets
KPI selection
Extension e
Supply chain risk management
Risk events
Relaunch (horizon)
Scenarioplanner
Tracking & tracing
Quarantine
Pooling warehouse FTE
Contract duration

26. Getting started Divide roles within your team
Go to
and log in with username/password, usernames and passwords are case-sensitive
During game save new settings (deal in Purchasing and Sales)
Calculating results is done centrally by your trainer

27. Good luck!