This 2-day seminar combines supply chain strategy, planning, operations, real-world examples, and role-play simulations to experience typical issues and constraints. Participants will learn personal development elements for self-understanding versus what is required for different positions. The seminar also includes a business case to develop analytical skills for new hires.

1. D1 –THE SUPPLY
CHAIN EXPERIENCE
I N T R O D U C T I O N T O S U P P L Y C H A I N M A N A G E M E N T
THIS 2 DAYS SEMINAR COMBINES SUPPLY CHAIN
STRATEGY, PLANNING, OPERATIONS REAL-W ORLD
EXAMPLES, ROLE-PLAY SIMULATION TO EXPERIENCE TYPICAL
ISSUES/CONSTRAINTS . W E W ILL INTRODUCE PERSONAL
DEVELOPMENT ELEMENTS FOR SELF-UNDERSTANDING VS
W HAT IS REQUIRED FOR EACH POSITION. THE SEMINAR ALSO
INCLUDES A BUSINESS CASE TO DEVELOP ANALYTICAL SKILLS
FOR THE NEW HIRED.
w a j i h @ g u e n n o u n . n e t

2. “Win/Win is a frame of mind and heart that constantly seeks mutual
benefit. With a Win/Win solution, all parties feel good about the
decision and feel committed to the action plan.
Win/Win sees life as a cooperative, not a competitive arena”
-
Stephen Covey

3. About the beer Game
The origin of the supply chain game
The supply chain simulation, known as the
Beergame, was originally invented in the
1960s at MIT. While the original goal of the
simulation game was to research the effect of
systems structures on the behaviour of
people, the game can be used to demonstrate
the benefits of information sharing, supply
chain management, and eCollaboration in the
supply chain.

4. Congratulation
You are the new supply chain manager
You have been chosen among hundreds to
assure supply of goods and materials right he
way to customers. And because you are the
best, you have committed to the shareholders
that the company financials will improve by
meeting customer demand while reducing
stocks

5. How it works
What is the optimal strategy
Each item in stock costs 0.5 $ per week and
each item on backlog costs 1 $ per week. Thus
the primary aim of each sub group is to keep
their costs low.
Hence the optimal strategy is to run their
business with as little stock as possible
without being forced to move into backorder.
Players are not allowed to communicate. The
only information allowed to communicate is
the order amount.

6. Get ready for the game
Create your teams
Create at least 2 supply chains . Each one will
have to satisfy his custmer demand based on
the below MOQ.
Min order quantities are as below
Factory : MOQ = 15
Wholesaler MOQ = 10
Distributor MOQ = 5
Retailer MOQ = 1

7. Let’s start the game
Get the teams ready
1- get the order from customer
2- Deliver and satisfy the demand
3-place an order to your supplier
Track and fill on weekly basis your
playsheet
- inventory
- backlog
- order placed
Delay
Distributor
Outgoing
order
Incoming
order
Incoming
delivery
Outgoing
delivery
Wholesaler
Factory
Delay

8. How do you
feel?

9. 0
10
20
30
40
50
60
70
80
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Qtyordered Orders
Customer
Retailer
Wholesaler
Distributor
Factory

10. -200
-150
-100
-50
0
50
100
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Units Inventory
Retailer
Wholesaler
Distributor
Factory

11. 0
1000
2000
3000
4000
5000
6000
7000
8000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
$
Cost
Retailer
Wholesaler
Distributor
Factory
Supply Chain

12. PHYSICAL FLOW
INFORMATION FLOW
FINANCIAL FLOW
Moving up the supply chain from raw materials supplier to end-consumer, each supply chain participant has greater
observed variation in demand and thus greater need for safety stock. The effect is that variations are amplified as one
moves upstream in the supply chain.
Supplier You Distributor Store

13. A typical organization response would be to find
the guy in charge of the supply and blame him.
But the game clearly demonstrates how
inappropriate this response is. The result is the
same for different supply chains.
WE HAVE TO CHANGE THE STRUCTURAL
SETUP

14. Demand forecasting
Many companies forecast demand by looking
at the past demands from their own direct
customers. Since each upstream chain
member sees fluctuations in demand caused
by the bullwhip effect from downstream, that
member orders accordingly, creating further
swings for the upstream suppliers.
This can be addressed by providig access to
point of sales, VMI, or single control
replenishment

15. LeadTime
The longer the lead time is, the more
pronounced an order will be as an reaction to
an increase in forecasted demand (especially
in conjunction with updating the safety stock
levels, see above), which again contributes to
the bullwhip effect.
4 easy ways to reduce lead-time
Consolidate supply chain sources
Reduce complexity
Late stage differentiation

16. Batch strategy
Ordering full truck loads is cheaper then
ordering smaller amounts.
Furthermore, many suppliers offer volume
discounts when ordering larger amounts.
Hence, there is a certain incentive for
individual players to hold back orders and
only place aggregate orders. This behaviour
however aggravates the problem of demand
forecasting, because very little information
about actual demand is transported in such
batch orders
.And batch ordering, of course, contributes
directly to the bullwhip effect by unnecessarily

17. Even if each party acts “optimally” individually
the result is less than optimal for the whole supply chain”
Competition is now supply chain against supply chain and
Network against network

18. Wall mart!!!
Walmart’s success is partly due to the effective implementation
of the vendor-managed inventory model to stop the bullwhip
effect trough the supply chain.
In this model, suppliers access data from Walmart’s information
system, such as data on current inventory levels, sales.
Suppliers decide when to send additional goods to Walmart.

19. “It is literally true that you can succeed best
by helping others to succeed”
-
Napoleon Hill

20. SUPPLY CHAIN– Trends (1/2)
1 Move towards centralized procurement/logistics and tracking of costs
2
Better forecasting, sales and operations planning and information sharing3
Stress on real time response to customer requirements
4 Increasing pressure to reduce costs and demonstrate credible cost savings

21. SUPPLY CHAIN– Trends (2/2)
1 Working closely with suppliers to shorten Leadtimes (due to competition)
2
Complexity management (More business / Less suppliers)3
Reorganization/ Supply consolidation / Cost reduction (due to M&As)
4 E-business (doing more with less)

22. Results summary

42. Subscribe for the next webinar
wajih@guennoun.net