Lecture Notes: The Fresh Connection - Value Chain Simulation
Overview
- The Fresh Connection is a web-based business simulation focused on value chain alignment.
- Participants make tactical and strategic decisions to save a fruit juice producer from financial ruin.
- Simulation involves a management team of four roles: Sales, Operations, Supply Chain Management, and Purchasing.
- Each decision round represents half a year; courses range from 3-6 rounds.
Simulation Interface
- My Company Screen: Central dashboard displaying KPIs.
- Top bar shows the four roles.
- Left blue column: Inbox, ranking, information, finance.
- Orange bar: Timeline from current to previous rounds.
- Yellow bar: Competitor performance.
- Right side: Alerts and KPI performance feedback.
Departmental Issues
- Sales:
- Negative ROI, low service level at 92%, high obsolete level at 8%.
- Inventory management issues leading to waste.
- Operations:
- Low production plan adherence, full inbound warehouse.
- Purchasing:
- Supplier issues with quality and reliability.
Product Details
- Assortment:
- Six products across two packaging types (1-liter carton, 0.3 iPad bottles) and three flavors.
- Customer Base:
- Three local customers: Food and Groceries, Landmarket, Dominics.
- Service level discrepancies across customers.
Contract Management
- Contracts can be adjusted every round.
- Current promise of 95% service level impacting price indexes.
- Shelf life agreements critical for inventory management.
Value Chain Process
- Raw materials sourced globally, delivered to warehouses.
- Process includes mixing, bottling, and distribution managed by operations.
- Reports show previous performance metrics.
Supply Chain Management
- Planning decisions on safety stock and production intervals.
- Inventory and service level management critical.
Financial Analysis
- ROI is the main KPI for success.
- Detailed breakdown of revenues, costs, and investments available.
Learning Outcomes
- Emphasizes strategic objectives, cross-functional collaboration, and S&OP processes.
- Tailored experiences depending on constraints and learning objectives.
Simulation Access
- Participants can enter the simulation to play all roles.
- Limited decision-making in initial rounds for practice.
Contact
These notes provide a summary of the key points from the lecture on The Fresh Connection business simulation, focusing on strategic decision-making within a virtual company's value chain.