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 challenge
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 Simulation –
The Supply Chain
Supply Chain
Components Finished product
Supply Production Distribution
Purchasing Operations Sales
SCOR model as basis
Plan
Plan Plan
Source Make Deliver Source
Deliver Make Deliver Source
Return Return Return
Source Make Deliver Return Return Return
Suppliers’
Supplier
Return Return Customer Customer’s
Supplier Customer
Internal or External Internal or External
Your Company
Source: Adapted from Supply-Chain Council (SCC)
Experience
“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.
Key Challenges
• 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
Performance evaluation
Costs
Operational costs
Improvement projects
highest
ROI
Revenue Investments
Price: Working capital
Customer satisfaction Equipment
Volume: Buildings
Portfolio
Individual scores
Role Based on
Purchasing Purchasing price
Operations Operational costs
Supply chain Stock value
Sales Revenue
Quick Tour
Learning
with TFC
Learning by experience
a lasting learning effect
Learning effect
listening seeing experiencing
10% 25% 80%
Training approach
- Real Life
- Business Simulations (micro cycle)
Experience
elsewhere
- Exercises
- Workshops
Apply
- Break-outs - Feedback
- Coaching Macro cycle Reflect - Evaluations
- Discussions
- Presentations
Conceptualize
- Models & Tools
- Presentations
- Case studies
Klabbers, The Magic Circle, Principles of Gaming & Simulation, 3rd Ed, 2009
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
Creating
alignment in the
value chain
SCRM S&OP
• Cross
functional
CO2
(carbon
trade offs
footprint) • Strategy into
action
(level1,2,3) External
Colla-
boration
KPIs
SC fundamentals
(e-learning/classroom)
- 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 action
Levels in version 2013
Theme Sales SCM Operations Purchasing
Service level # Shifts
Delivery window
Level 1 Reliability Order deadline Safety stocks # Pallet locations
Delivery reliability
Shortage rule # FTE
SMED
Batches and Shelf life Lotsizing in production
Level 2 frequencies Trade unit and purchasing
Increase speed Trade unit
Intake time
Preventive
maintenance Supplier selection
Payment terms
Level 3 Speed and quality Payment terms Frozen period Solve breakdowns
Quality
training Transport mode
Raw materials
inspection
Extensions
in version 2013
Theme Sales SCM Operations Purchasing
Promotional pressure
Production interval Resource selection Dual sourcing
Extension a S&OP Category management
tool
Forecasting
Outsourcing
External Promotion horizon VMI
Extension b collaboration VMI warehouse (MCC) Supplier development
Inflate PET
CO2 sla Decrease of water
usage
CO2 footprint Decrease of energy
Extension c Sustainabilty usage
Decrease of start up
productivity loss
Extension d KPIs and targets KPI selection KPI selection KPI selection KPI selection
Tracking & tracing Contract duration
Supply chain risk Risk events Quarantine Supplier development
Extension e management Relaunch (horizon)
Scenarioplanner
Risk events Dual sourcing
Pooling warehouse FTE Risk 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
The Fresh Connection, a global experience 21
y
y
Legend
Partners
Partners in
development
Contacts
Some companies that
have participated
Abbott DuPont Shell
Lamb-Weston Nucletron Huntsman
Akzo Nobel DHL Stork
Loders Croklaan Nutricia Infor
Apple Diebold TNT
Logica Philips International Flavors
Bosch DSM and Fragrances
GKN QuinTech Tyco
Canon FloraHolland KLM
NACCO Rockwell Unilever
Capgemini Henkel Kodak
Nestlé SCA UPS
Corporate Express Heineken Kuehne + Nagel
NIKE Schenker Walt Disney
Deloitte Herbalife International Astellas
For a complete list go to www.thefreshconnection.biz
Example education
• MIT • TU Stuttgart
• Georgia Tech • IMM Ahmedabad
• VU University Amsterdam • VU University Brussels
• RSM Rotterdam • University of Würzburg
• Vlerick School of Mgt • Copenhagen Business School
• Stellenbosch University • TU Hamburg-Harburg
• University of Western Sydney • Lund University
• Curtin University • University of Verona
• EADA Barcelona • Kühne Logistics University
• WU Wien • University of Twente
• Arts & Metiers ParisTech • LaSalle University, Barcelona
• University of Sao Paulo • 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
