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

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 action

2. Sales & Operations Planning

3. Strategy into KPI’s and targets

4. External Collaboration

5. Supply Chain Risk Management

6. 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 s.hoogervorst@involvation.nl • e-mail info@thefreshconnection.nl • 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