TFC Set Up

The Fresh Connection immerses its participants in turning around a manufacturer of fruit juices.

Faced with declining performance, the management team must get the company back on track as soon as possible. It is a high-pressure environment in which effective supply chain management is the key to success.

The management team has four roles:

  • VP Purchasing: Responsible for selecting the right suppliers and agreeing SLAs with suppliers, including possible collaboration options.
  • VP operations: Must decide on capacity in warehouses and production areas and approve investment in bottling lines and mixers. Can introduces various improvement projects. Has the ability to outsource outbound warehousing.
  • VP Supply Chain: Manages inventories (safety stock and lotsize settings), production intervals and the frozen period of production.
  • VP Sales: Agrees SLAs with customers, manages the product and customer portfolio, forecasts demand and can introduce collaboration concepts.

 

Every decision a participant makes has trade-offs, both within and across roles, so participants will only succeed if they align all the disciplines. As the simulation evolves it becomes clear that a supply chain strategy is essential for success – and that the strategy must be implemented be deployed to functional levels and below to be effective. Winning is about generating the best ROI for the business while still managing your own team’s Key Performance Indicators and targets.