The company needed to convey a simple idea about how goods are flowing from supplier to manufacturer to distributor and consumer.
A supply chain is a combination of responsibilities that come together. In the consumer packaged-goods industry you succeed only if the entire supply chain functions properly; one person may be from manufacturing, another from distribution, another from sales and marketing. These people need to come together to understand how they jointly create value.
The Powersim Approach
We designed and created a simulation-based training course for this company. The course adreses financial and strategic aspects of the firm’s multinational supply chain; in particular, the impact of production, distribution, and pricing decisions on the company’s economic profit.
The course comprised two business training simulations. Each was concerned with the revenues and costs from two product lines: one of frozen dairy products and the other of dry grocery goods. The first simulation allowed users to manage a set of factories and distribution centres. The second simulation was a multi-player simulation that focused on optimising inter-market supply situations.
The Powersim Solution
Powersim software allows, through the course, the development of mid-level managers understanding of financial and strategic aspects of the firm’s multinational supply chain.
The Lesson Learnt
Both simulations contributed to participant understanding of the dynamic effects over time of management decisions. The company puts around 200 managers through the course each year.