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Fresh Connection Business Simulation

The Fresh Connection is a fruit juice producer that is suffering losses and needs to become profitable again, so a new management team has been appointed to oversee sales, purchasing, supply chain, and operations using a business simulation to make strategic and tactical decisions that require cross-functional collaboration and alignment in order to succeed. The simulation aims to provide a real-life experience for participants to learn about the importance of strategy, teamwork, collaboration, management information, adaptability, and how decisions impact profitability across the supply chain.

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huy
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330 views14 pages

Fresh Connection Business Simulation

The Fresh Connection is a fruit juice producer that is suffering losses and needs to become profitable again, so a new management team has been appointed to oversee sales, purchasing, supply chain, and operations using a business simulation to make strategic and tactical decisions that require cross-functional collaboration and alignment in order to succeed. The simulation aims to provide a real-life experience for participants to learn about the importance of strategy, teamwork, collaboration, management information, adaptability, and how decisions impact profitability across the supply chain.

Uploaded by

huy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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What is The Fresh Connection?

A learning experience built around a cross


functional business simulation.
The Challenge
The Fresh Connection is a producer of fruit juices:
• Suffering severe losses in the last year
• Performing poorly across all functional areas

A new management team has been appointed:


• VP of Sales
• VP of Purchasing
• VP of Supply Chain
• VP of Operations

The assignment is to make the company profitable again:


• Strategic choices such as low cost, best product, or market focus
• Tactical choices such as customer contracts and supplier selection
Simulation and Reality

Real life experience within a simulated environment:


• Success is not the responsibility of one function; it takes
teamwork
• A strategy is necessary to have a common direction
• Internal and external collaboration is a key to success
• The right management information is very important
• The organization must be adaptable to changing situations
• Decisions have a direct and big impact on profitability
The Supply Chain
VP Supply Chain

Components Finished Product

Supply Production Distribution

VP Purchasing VP Operations VP Sales


The Products

• Two packaging types


– 1L carton
– 0.3L PET bottle

• Three flavors
– Orange
– Orange C-Power
– Orange/Mango

• Shelf life of finished products is 20 weeks


5
The Theme

Creating alignment:
• Between functional departments
• Between strategy and execution
• Between echelons in the supply chain
Key Topics

• Business strategy
• Functional trade-offs
• Customer contracts
• Investments
• Supplier selection
• Performance measurements
• Risk management
Challenges

• Communication
• Decision making
• Alignment
• Consistency
• Cooperation
• Get out of the box and experiment
• Learn and have some fun
Shelf life
Shelf life after packaging is 20 weeks

• For example, if the shelf life agreement to customer is 75%,


then the internal shelf life becomes 25%.
• In other words, the customer is promised a remaining shelf life
of 15 weeks at the moment of delivery.
• Thus, any inventory older than 5 weeks may not be shipped
and needs to be scrapped.

Internal
Customer portion
portion
Individual Scores
Role Performance Measure

Sales Net revenue

Operations Operational costs

Supply Chain Inventory turns

Purchasing Component cost


Overall Performance
Costs
Operational costs
Improvement projects

ROI
Revenue
Investments
Price and volume
Working capital
Customer satisfaction
Equipment & buildings
Portfolio
Logging In

The Fresh Connection

• Login:
• Password:

Let’s look around!


TFC Round 1
Report to Board of Directors

1. Results
2. What Worked
3. What Didn’t
4. Improvement Plans

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