Les cls secrtes

1
The muesli game
Course material
2
The muesli game

• The product
• The distribution channel
• The simulated markets
• Demand-side
• Supply-side
• The business processes
• Strategic decisions

3
The muesli game

• The product
• The distribution channel
• The simulated markets
• Demand-side
• Supply-side
• The business processes
• Strategic decisions

4
Müesli manufacturingProduct size
1.0 KG
0.5 KG
5
Muesli ManufacturingThe Product Muesli Cereals
6
Label regulations
7
The muesli game

• The product
• The distribution channel
• The simulated markets
• Demand-side
• Supply-side
• The business processes
• Strategic decisions

8
Local market retailing sector

• 192 retailers
• 3 categories of retailers

Independent grocers
Grocery chains
Hypermarkets
122
58
12
9
(No Transcript)
10
Characteristics of channelsData from 2004
Source  HEC Montréal, The Müesli Industry, 2004
11
The muesli game

• The product
• The distribution channel
• The simulated markets
• Demand-side
• Supply-side
• The business processes
• Strategic decisions

12
The demand from Customers

• Retailers order according to the needs of their
  customers
• Customers have different preferences, each having
  a preferred recipes
• Products closer to ones preferred recipe has an
  edge
• Advertising is persuasive, it can turn your
  recipe into the preferred product
• Price matters, remember that there are other
  things to eat them mueslis
• There is uncertainty in demand

13
Final customer preferencean example
Retailer X Preference Mixed fruits

• Every retailer is characterised by few typical
  Muesli consumers.

14
Simulation Context Muesli Manufacturing
15
Market for raw materials
16
The muesli game

• The product
• The distribution channel
• The simulated markets
• Demand-side
• Supply-side
• The business processes
• Strategic decisions

17
Muesli ManufacturingThe make-to-stock business
scenario

• Planning process
• Purchasing Process
• Production Process
• Sales Process

SAP R/3
18
Muesli ManufacturingThe make-to-stock business
scenario
Automated tasks throught ERPsim
19
Muesli ManufacturingPossible features

• Capacity constraint at 25 000 boxes /day
• Setup time between different recipes at 12
  hours
• Delivery delays 3 to 6 days
• Time to day vendors 30 days
• Time for retailer to pay between 5 to 30 days

20
The muesli game

• The product
• The distribution channel
• The business processes
• The simulated markets
• Demand-side
• Supply-side
• The automated processes
• Strategic decisions

21
Strategic decisions

• Recipe product design
• Sale forecasts
• Production improvements
• Timing of production release
• Pricing
• Advertising

22
Marketing strategy
1
2
3
4
5
6
Mixed Fruit
Straw-berries
Blue-berries
Original
Nuts
Raisins
Plant A
Marketing price
Distribution channel 14 Inpedendant grocers
Marketing price
Marketing price
Marketing price
Marketing price
Marketing price
Marketing price
Distribution channel 12 Grocery chains
Marketing price
Marketing Pri ce
Distribution channel 10 Hypermarkets
Marketing price
Marketing price
Marketing price
23
Review of the major rules

• At the end of the game, raw material and finished
  good inventory will be sold out at a reduced
  price
• You may not change the recipe of a product if you
  still are carrying inventory.
• (When the simulation is not running, you are only
  allowed to run analytical transactions.)
• You may only renegotiate your bank loan with the
  bank at the end of each quarter. Interest is
  calculated quarterly and will be charged
  automatically at the end of a quarter.
• Customers do not change through out the game,
  hence you may learn from past their behaviour.
• The company displaying the highest equity value
  (shareholder capital) at the end of the
  simulation wins the game.
• You must behave ethically at any time.

24
Elements of a winning strategy

• Use the ERP system efficiently
• Do not stock out
• Note what processes are being automated and what
  processes will be performed manually in game and
  prepare accordingly.
• Delays, production capacities and liquidity
  constraints are important elements of the game
• Exploration and exploitation
• Team organization is more important than you
  think
• This is only a game!  So enjoy being a manager
  using a real-life ERP system. Ultimately, this is
  about learning not winning.