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Keep The Beer Flowing!
- 1. www.vuealta.com The Vuealta Supply ChainGame
- 2. Credits • Developed in conjunction with Cranfield University • Based on a concept by Richard Saw
- 3. Your CSCO for the Day Michael Bernon Associate Professor in Supply Chain Leadership
- 4. TheNetwork Weekly Customer Demand of 10 Across the Branches Slight demand variability. We only measure service level at the branches. Factory gets perfect service from the supplier.
- 5. WhatWeWillDo Run the Game Review what Happened Redefine Strategy Simulate Improvements
- 6. GameOne:Cadence & Rules Plan (order multiples) Receive Customer Demand Customer Shipments (full orders) Delivery Receipts (full orders) Monday Tuesday - Friday Saturday The rules 1. 1-week lead time from suppliers, 0 lead time to customers 2. Order in multiples when placing POs 3. Complete orders only when shipping
- 7. Your Challenge • Current Inventory: 76 • Average Weekly Demand: 10 • Service Level: 100% • The CFO says that we needto maintain a 100% service level while reducing inventory to 46 (down 40%). • Keep that beer flowing!!!
- 8. Your Plan Phase - Overview Your Order MultipleYour Service Level to Date List of Historic Purchases inc. 0 (and whether delivered or not)
- 9. Your Plan Phase - Decision1 Confirm order of 0 If you do order …. enter the quantity you want (i.e. 2,4,6) Inventory Overdue Outbound Shipments Overdue Inbound Supply Average Weekly Demand
- 10. Your Plan Phase - Decision2 4 - 4 + 10 – 4 = 6 You would expect to open next week with 6. Confirm order of 0!
- 11. Your ExecutePhase-Overview Hide old shipmentsDecide what to ship
- 12. TooQuick! If you see this, you moved too quick! Refresh here
- 13. Your Challenge • Current Inventory: 76 • Average Weekly Demand: 10 • Service Level: 100% • The CFO says that we needto maintain a 100% service level while reducing inventory to 46 (down 40%). • Keep that beer flowing!!!
- 14. WhatHappened?
- 15. WhatHappened? Symptom Cause Solution Bullwhip / demand amplification Batching, parallel interactions Become demand driven, focus on customer demand and flow. Unexpected late deliveries Only consider demand side variability Supplier make mistakes too! You need to see it coming. Connected planning. Did not have the information to make optimal network decisions Poor communication and network visibility Connected planning Lots of inventory, poor service Poor inventory decoupling and placement strategy …. Next slide …
- 16. Simulation:Inventory Strategy 2.5 weeks supply 1 weeks supply
- 17. Simulation:Cadence & Rules Plan Receive Customer Demand Inventory Transfers Customer Shipments Delivery Receipts Monday Tuesday - Friday Saturday The news rules 1. Lead-times as per game 1 2. No order multiples 3. Partial shipments 4. Stock transfers (branches 1 to 2 and 3 to 4 only) 5. You set the target stock level, system calculates POs 6. Fill or kill / clean slate planning on suppliers, customer demand backordered 7. Total network visibility
- 18. FeedbackPlease!
Editor's Notes
- AL: Hello, I’m Antony Lovell, VP of Solutions at Vuealta I lead the apps team at Vuealta (we build pre-packaged supply chain solutions on the Anaplan platform) I have 20 years supply chain experience as a consultant and practitioner at companies With a primary focus on planning, supply chain strategy, and network optimization I will be your host throughout the series of webinars Today, I am excited that we are joined by a very special guest guest Mike Bernon Associate Professor of Supply Chain Leadership at Cranfield University Mike’s career spans 25 years of supply chain strategy and operations He is a dedicated educator and renowned presenter and has taught at academic institutions around the world, for which he has received multiple awards. His key interests are in the areas of sustainability / circular economy, supply chain 4.0, reverse logistics, supply chain strategy and supply chain improvement. Welcome, Mike, great to have you with us today. MB: Thanks, Antony. It’s great to be here.