• Author / Uploaded
• Rahul Kalra

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Strategic  Supply   chain  Management   The  Fresh  connection  game  analysis  

  DELHOMME  Vincent  –  u0968054  

Executive  summary         The  fresh  connection  game  that  was  taking  place  at  the  University  of  Huddersfield  gives  to   the  Logistics  student  a  real  vision  of  what  logistics  operation  can  be  in  a  simulation  game.  As  David   Leach   stated:   “The   Fresh   Connection   has   been   a   really   valuable   addition   to   our   final   year   programme,   enabling   students   to   experiment   with   supply   chain   theory   and   techniques   developed   during  their  studies.”  This  report  will  be  an  analysis  of  the  strategic  management  undertake  by  the   “hudd  -­‐  Team  28”  that  has  been  participating  the  game.     The  participants  of  the  game  were  to  endorse  the  following  position:   ü

ü   ü   ü

Purchasing  Director,  in  charge  of  the  supplier  selection  regarding  to  lead  time  and  Supply  chain   requirement     Supply  Chain  Director,  in  charge  of  planning  and  logistics  decision  regarding  forecasting   Operation   Director,   in   charge   of   warehouse   management   and   bottling   and   mixing   line   of   production   Sales  Director,  in  charge  for  customer  contract  and  demand  forecasting  

The   selection   of   strategy   was   the   responsibility   of   the   CEO   in   charge   of   the   coordination   between  the  different  services  in  order  to  achieve  a  positive  return  on  Investment.     The   report   will   review   the   strategy   of   the   team   and   the   implication   with   the   competitive   environment.   It   will   also   deal   with   a   financial   analysis   based   on   theory   and   effective   choice   taken   by   the  team,  explaining  the  reason  and  the  possible  improvement  that  lead  to  the  final  round  position   and  finally  explain  in  which  extent  the  final  round  decision  could  be  improved  to  sustain  and  achieve   a  higher  performance  ratio.                  

 

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Contents   Executive  summary  ................................................................................................................................  1   Introduction  ...........................................................................................................................................  3   A)   Team  strategy  alignments  with  competitive  strategy  ...................................................................  4   a)  

Main  strategy  .............................................................................................................................  4  

1)   Efficient  strategic  management  process  ...............................................................................  4   2)  Responsive  strategic  management  process  ..............................................................................  5   b)   Supply  chain  Strategy  within  the  Game  .....................................................................................  5   B)   Final  Round  analysis:  effect  of  supply  chain  strategy  on  financial  performance  ...........................  7   a)  

Analyse  of  the  financial  statement  ............................................................................................  7  

b)   Effect  on  the  financial  statement  ..............................................................................................  9   C)   Sustainable  improvement  and  recommendation  ........................................................................  13   a)  

How  to  sustain  a  high  level  of  efficiency?  ................................................................................  14  

b)   Long  term  strategy  to  achieve  best  in  class  performance  .......................................................  16   Conclusion  ...........................................................................................................................................  17   Bibliography  .........................................................................................................................................  18                        

 

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Introduction       Strategic  management  within  a  logistics  and  supply  chain  management  company  has   to  deal  with  several  component  of  the  supply  chain.  Supply  chain  management  is  the  management   that  takes  place  within  the  supply  chain  with  the  aim  to  link  all  of  the  chain  link  that  composes  the   supply  chain.  From  the  purchasing  activities  to  the  sales  going  through  the  operations  and  the  supply   chain,  several  strategies  could  have  been  undertaken.     The   CEO   of   the   company   has   to   take   decision   regarding   what   to   focus   on   (based   on   forecasting   and   demand)   and   to   whom   (selection   of   customer   by   priority   or   delivery   organized   to   every   customer   without   any   regards   to   their   demand)   and   also   through   paying   attention   to   put   together  all  the  information  given  by  the  different  departments.  

Purchasing  

Supply   chain  

Operabons  

Sales  

  The   above   process   scheme   is   showing   the   interconnectivity   between   the   different   departments  within  the  supply  chain.  The  communication  process  between  the  different  entities  is   one  of  the  capital  issues  that  company  have  to  faces.     Within   the   fresh   connection   games,   the   aim   of   the   strategy   was   to   improve   the   return   on   investment  of  the  company  by  applying  two  types  of  strategy  based  on  two  types  of  characteristic:   efficiency,  flexibility.  According  to  Fisher,  the  two  types  of  strategy  that  are  used  within  the  supply   chain  management  have  different  uses  that  can  correspond  to  different  types  of  product.   With  a  difference  in  terms  of  product  life  cycle  between  the  Functional  and  the  innovative   products  from  3  months  to  a  year  for  the  innovative  product  to  more  than  2  years  for  the  functional   product.  In  the  fresh  connection  game,  the  products  were  perishable  so  identify  into  the  innovative   product  section.            

 

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A) Team  strategy  alignments  with  competitive  strategy    

a) Main  strategy     According  to  Ballou,  Supply  chain  strategy  has  three  objectives  to  realise  from  cost  reduction   to   capital   reduction   through   service   improvement   (Ballou,   2004).   During   the   Fresh   Connection   Game,  two  type  of  strategy  could  be  undertaken  to  reach  these  objectives.  According  to  the  demand   scope,   the   supply   chain   can   be   drive   through   either   a   cost   or   time   oriented   strategy.   According   to   Porter,  competitive  advantage  is  a  core  point  of  competitive  strategy  (Porter,  1998),  where  it  could   be  reach  through  cost  leadership  position  or  differentiation  position  within  the  market.   1) Efficient  strategic  management  process       The  strategy  based  on  efficiency  was  linked  to  the  direct  costs  (purchasing  and  production   costs)   that   could   affect   the   market.   “The   lower   the   direct   costs,   the   higher   the   efficiency   scores”   (The   fresh   connection   game,   2012).     According   to   Fisher,   the   efficiency   strategy   can   also   be   called   the  lean  supply  strategy  where  the  reduction  of  waste  lead  to  the  reduction  of  costs.  The  aim  of  this   strategy   is   to   make   sure   that   the   value   created   and   the   cost   are   minimised   via   the   elimination   of   waste  (Jonsson,  2008).     “An  efficient  supply  chain  is  distinguished  by  longer  production  lead-­‐times,  high  set-­‐up  costs,   and  larger  batch  sizes  that  allow  the  efficient  firm  to  produce  at  a  low  unit  cost.”                 (Taylor  R.  Randall,  2003)     The   efficiency,   if   it   is   the   target,   that   the   company   try   to   reach   has   to   implement   several   leverage  to  influence  the  different  department  of  the  supply  chain  to  get  in  touch  with  each  other  in   order  to  create  several  connection  that  will  enable  the  company  to  make  cost  reduction.  This  cost  

reduction   could   have   several   faces,   from   shelf   life   reduction,   to   the   reduction   of   permanent   employees  or  via  a  better  selection  of  the  supplier  and  lead  to  implement  an  efficient  supply  chain   strategy.   The  principal  aim  of  an  efficient  supply  chain  management  have  also  to  deal  with  continuous   replenishment   to   make   sure   that   the   order   could   be   fulfill   without   falling   into   storage   disruption   (Christopher,   2004).   In   the   case   of   efficient   supply   chain   management   the   competitive   advantage   can  only  be  translated  as  a  value  advantage  where  the  company  is  not  necessary  seeking  for  a  high   productivity  advantage  but  foe  a  high  level  of  service  that  will  help  to  earn  the  customer  loyalty,  and   then  set  up  a  long-­‐term  partnership.          

 

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According   to   Fisher,   the   two   types   of   strategy   that   are   used   within   the   supply   chain   management  have  different  uses  that  can  correspond  to  different  types  of  product.   “Functional   products   requires   an   efficient   process;   innovative   products,   a   responsiveness   process”        

 

 

 

 

 

 

(Fisher, 1997)  

The  product  life  cycle  does  have  an  impact  on  the  demand  that  customer  makes.  To  answer   this  demand  the  efficient  supply  chain  management  strategy  does  anything  to  maximise  the   reliability  of  the  delivery  to  ensure  a  long  term  partnership.  While  on  the  other  side  the  responsive   strategic  management  is  trying  to  achieve  a  high  level  of  reliability  through  an  adaptable  supply   chain  and  the  reduction  of  stock  out.     2)  Responsive  strategic  management  process       On   the   other   side   the   strategy   based   on   responsiveness,   that   have   clear   goals   which   are   applied   the   main   principle   of   the   logistics.   The   Goal   of   Responsive   supply   chain   strategy   is   to   deliver   to   the   customer   what   they   want,   when   they   want   it   and   at   the   right   price.   This   strategy   helps   to   build  a  strong  customer  loyalty  offering  a  high  level  of  reliability  at  any  time.   “A  responsive  supply  chain  is  distinguished  by  short  production  lead-­‐times,  low  set-­‐up  costs,   and  small  batch  sizes  that  allow  the  responsive  firm  to  adapt  quickly  to  market  demand,  but  often  at   a  higher  unit  cost.”               (Taylor  R.  Randall,  2003)     According  to  many  strategic  management  studies,  the  responsive  strategic  management  has   to  set  up  it  functioning  according  to  the  forecasting  to  match  customer’s  needs.  The  company  has  to   make   sure   that   product   is   available   at   all   time   to   ensure   that   customer   demand   even   when   the   demand  is  fluctuating,  are  always  met.     The   principal   goal   of   the   Responsive   supply   chain   is   to   ensure   a   quick   response   into   the   logistic  stream.  According  to  Fisher,  this  strategy  has  quicker  reward  when  investing  into  it  because   this   type   of   strategy   has   been   built   to   create   a   high   return   on   investment   through   the   implementation   of   high   level   of   reliability   and   so   on   the   customer’s   loyalty.   This   responsiveness   enables   the   company   to   set   up   competitive   advantage,   through   strong   customer   focused   management   and   a   capital   reduction   that   can   be   translated   to   the   minimization   of   investment   along   the  supply  chain  and  only  seeking  for  the  reduction  of  stock  cost.   The   responsive   strategy   is   based   on   the   Just   in   time   concept   where   the   customer   demand   are   leading   the   whole   logistics   process   and   help   to   avoid   obsolescence   of   stocks.   The   reduction   of   this  cost  and  the  responsiveness  of  the  company  then  lead  to  service  level  improvement  that  has  for   effect  a  higher  customer  loyalty  (Christopher  &  Peck,  2003)    

b) Supply  chain  Strategy  within  the  Game      

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The  aim  of  our  supply  chain  strategy  was  to  reach  the  stage  of  the  integrated  supply  chain   with  the  main  goal  of  achieving  a  high  level  of  efficiency  through  the  reductions  of  costs.  Along  the   Fresh   connection   game,   the   “Hudd   Team   28”   had   for   goal   to   achieve   an   efficient   supply   chain   strategy  in  order  to  implement  a  long  term  partnership  with  their  customer.  This  strategy  has  been   implemented  along  several  decisions  taken  by  the  CEO  of  the  company  through  the  different  service.   On  the  supply  chain  side,  the  main  goal  was  to  reach  the  lower  level  of  obsolescence  of  the   component  as  well  of  the  finished  product.  Several  issues  rose  from  the  miscommunication  between   the  different  fields  of  operation  during  the  early  round.     However   the   final   difference   between   the   two   last   round   have   shown   that   an   efficient   strategy  could  make  changes  on  the  long  term  basis  ,  with  a  difference  of  +18,37%  in  the  ROI.  That   allows   the   team   to   end   up   with   a   positive   result.   Through   the   reduction   of   cost   on   the   different   department   the   team   has   managed   to   reduce   stock   cost   and   handling   cost.   Moving   from   a   cost   reduction  to  capital  reduction  also  act  on  flexible  manpower  and  enables  the  company  to  finish  the   competition  with  a  positive  operating  profit.   Within  the  supply  chain  department,  the  reduction  of  the  stock  cost  and  handling  cost  has  to   be   handled   by   the   safety   stock   management.   The   relationship   between   customer   management   undertaken  by  the  sales  department  and  the  supply  chain  management  affect  the  decision  that  has   to  be  taken  in  order  to  maximise  the  efficiency  of  the  company.                          

 

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B) Final  Round  analysis:  effect  of  supply  chain  strategy  on  financial   performance     a) Analyse  of  the  financial  statement     A   financial   analysis   is   made   out   to   identify   the   different   area   where   a   company   is   either   profitable   or   efficient.   The   financial   analysis   is   generally   used   to   determine   if   the   company   is   sustaining  for  investments.  Measuring  profitability  and  efficiency  can  be  done  through  various  ratios   calculation  (Ryan,  2008).     1. Financial  Statement  along  the  6  Round  of  the  Fresh  Connection  game:  

  2. Ratios  analysis:  

   

 

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 The  following  chart  is  showing  the  ROI  (return  on  investment)  of  the  Hudd  –  team  28  along   the  6  Round  of  the  game:  

ROI   5,00%   0,00%   1  

2  

3  

4  

5  

6  

-­‐5,00%   ROI   -­‐10,00%   -­‐15,00%   -­‐20,00%  

 

In   order   to   implement   an   effective   strategic   management   along   the   supply   chain   the   company   has   to   use   leverage   to   act   on   their   ROI,   this   different   leverage   has   been   evaluated   through   ratios  that  enable  the  company  to  monitor  and  control  it  growth  over  the  game  period.   The  last  round  played  by  the  Team  28  has  been  the  most  profitable.  This  could  be  attributing   to   a   better   management   of   the   different   department   and   an   increase   in   communication   between   the  services.      

                     

 

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b) Effect  on  the  financial  statement       The   ration   analysis   that   has   been   undertaken   using   the   financial   statement   has   been   separated  between  two  different  areas:  the  profitability  ratios  and  the  efficiency  ratios.   1. Profitability  Ratios:    

Round   Operation  margin  /  net  profit  ratio  (%) Grossprofit  ratio  (%) Operating  ratio  (%) ROI  (%)

1

2

Profitability  Ratios -­‐8.99% 40.35% 59.65% -­‐6.86%

-­‐26.38% 36.61% 63.39% -­‐15.92%

3

4

5

6

-­‐22.57% 38.31% 61.69% -­‐15.34%

-­‐9.21% 37.57% 62.43% -­‐7.33%

-­‐22.82% 31.43% 68.57% -­‐18.03%

0.34% 40.32% 59.68% 0.36%

 

Financial   ratio   that   has   to   be   calculated   is   linked   to   the   efficiency   of   every   department   that   compose   the   supply   chain,   according   to   the   revenue   they   generated   and   the   cost   they   had   put   in   place  to  maximise  the  revenue  (Atrill  &  McLaney,  2008).     Assessing  the  profitability  through  a  logistics  company  is  dealing  with  several  variables  such  as   customers’  expectations,  cost  reduction  and  capital  utilisation.     The   previous   profitability   ratios   show   that   the   return   on   investment   of   the   companies   went   through  a  deep  hole  to  finally  come  out  positive,  showing  that  the  team  has  been  more  profitable  on   the  last  round.  The  principal  goal  of  the  Team  28  has  been  to  achieve  an  efficient  strategy  more  than   a  responsive  strategy  that  will  have  led  to  a  more  profitable  return  on  investment.  Along  the  game   the  strategy  undertaken  was  to  set  up  at  a  minimum  level,  the  production  cost  through  influencing   the  permanent  employee  and  by  using  the  production  line  the  most  effectively  in  all  field  of  area.     Along  the  Supply  chain  department  the  principal  issue  encounter  at  the  first  round  was  a  high   level  of  raw  material  and  finished  product  obsolescence,  which  influence  the  cost  of  goods  sold  and   affected  the  operating  margin.  As  the  profitability  ratio  table  is  showing  the  ROI  has  been  affected   between   round   1   and   round   6   but   the   gross   profit   ratio   reflecting   a   marked   improvement   in   cost   management.                

 

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 The   net   profit   ratio   and   the   ROI   shows   a   utilization   of   the   capital   and   the   revenue   has   been   correlated   to   each   other,   where   investment   affected   the   revenue   in   a   way   that   machinery   and   software   investment   have   been   contributing   to   the   increase   of   revenues.   The   operating   ratio   that   shows   the   cost   of   goods   sold   compare   to   the   revenue   is   creating   value   along   the   supply   chain   by   controlling  the  cost  engaged  into  the  production  and  the  revenues  that  it  creates.   The   gross   margin   profit   represents   the   difference   between   sales   over   the   cost   of   sales,   it   represent  the  real  profit  that  been  made  from  products  sales  after  putting  cost  of  production  away   (Perret,  et  al.,  2007).   80,00%  

Profitability   Ra/o  

60,00%  

Operabon  margin  /  net   profit  rabo  (%)  

40,00%  

Grossprofit  rabo  (%)  

20,00%  

Operabng  rabo  (%)  

0,00%   1  

2  

3  

4  

5  

6  

ROI  (%)  

-­‐20,00%   -­‐40,00%  

 

      2. Efficiency  Ratios:      

    The  efficiency  ratio  show  that  the  earning  of  the  company  compared  to  the  capital  that  has   been   employed   has   been   for   enhancing   the   utilisation   of   the   supply   chain.     An   enhanced   effectiveness  by  adapting  the  means  of  production  to  demand,  and  a  better  management  of  storage   cost,   but   also   a   better   management   of   sales   and   purchases.   Each   department   within   the   company   can  manage  his  own  efficiency  related  to  the  revenue  (Atrill  &  McLaney,  2008).   The  production  ratio  show  that  production  cost  have  been  enhanced  through  the  different   round  leveraging  on  the  employment  while  the  Stock  ratios  is  showing  an  considerable  improvement   along  the  game  period  regarding  at  the  difference  between  round  1  and  6.  

 

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The   cost   reduction   has   been   effective   regarding   the   “Overflow   raw   materials   warehouse”   and  “Overflow  finished  goods  warehouse”  that  has  been  reduce  by  28%  and  33%.  The  cost  of  scrap   product  has  also  been  improved  with  a  reduction  of  18%.  The  stock  ratio  that  calculate  the  relation   between   stock   cost   and   revenues   show   that   the   control   over   the   supply   chain   management   will   made   the   company   more   effecting   by   influencing   a   reduction   of   cost   and   generating   operational   incomes.   Regarding  the  contract  cost  that  has  been  run  over  the  game  period,  the  improvement  has   been  total  with  a  perfect  management  that  led  to  a  0.00%  over  consecutive  period.     30,00%  

Eficiency   ra/o  

25,00%  

 

Producbon  (%)   20,00%  

Distribubon  (%)   Administrbon  (%)  

15,00%  

Stock(%)   10,00%  

Handling(%)   Contract(%)  

5,00%   0,00%   1  

2  

3  

4  

5  

6  

  The  prioritisation  of  customer  has  also  help  to  the  reduction  of  cost  and  taking  more  detail   on  quality  product  expectations.                    

 

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updated via fur supply chain. Fig. 2 illustrates only the two the product cha extreme types of product characteristics; in the real-world there is a wide spectrum of products house (2002). Th ing the classificat withThe  varying degrees of functional and fashionable supply   chain   management   that   has   been   undertaken   by   the   team   28   has   shown   that   an   characteristics. Furthermore, these efficient   strategy   is   based   on   a   long   term   perspective,   even  characteristics if   the   product   sold   in   the   game  Study are   short   is that th life  are cycle  not and   a  frozen responsive  in strategy   be   more   accurate   (Brealey,   et   amature l.,   2009).     The   following   table   interpretation ag timewill  because as products is  giving  the  position  that  Team  28  has  trying  to  reach  and  it  actual  position:   at the strategic through their product life cycles the customer   many concurren at the tactical le assigned to their Functional Products Innovative Products latter problem w paper which is an Efficient (2001). Special e Supply Match Mismatch Chain impact of the manufactured ite The classificat initially propose Responsive Supply (2000) following Mismatch Match Chain plus their indus industries. They of the model ma lise the relevan Fig. 2. Matching supply chains with product characteristics (Source: Fisher, 1997). Country in-sourc                      

 

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C) Sustainable  improvement  and  recommendation       According   to   Taylor   R.   Randall,   Ruskin   M.   Morgan,   and   Alysse   R.   Morton   within   a   Journal   of   product   innovation   management,   the   supply   chain   strategy   that   are   seeking   for   competitive   advantage  are  more  likely  entering  the  market  within  an  responsive  based  strategy  to  then  continue   on   the   efficient   model,   to   guarantee   a   competitive   advantage   and   to   set   up   a   loyalty   regarding   customers  to  then  offer  them  efficient  strategy  (Taylor  R.  Randall,  2003).     The   following   scheme   is   showing   the   relation   between   the   supply   chain   leverage   and   their   impact  on  the  ROI  of  a  company:    

                                 

 

 

 

 

 

(Christopher,  2004)  

 

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a) How  to  sustain  a  high  level  of  efficiency?     Supply   chain   has   to   be   seen   as   a   whole   not   only   as   multiple   part   that   interact   once   in   a   while.  Within  the  supply  chain  management  the  different  services  has  to  monitor  their  activities  to   determine  if  their  sector  is  doing  good.   The   previous   ratios   that   have   been   calculated   in   the   previous   section   help   to   monitor   the   supply  chain  strategy  profitability  and  efficiency  that  led  to  maximise  the  ROI.  The  following  graph  is   showing  the  evolution  of  the  competitiveness  over  the  time:    

  (Christopher, 2004)   Though  several  strategies  a  company  can  appraise  and  maintain  a  high  level  of  competitive   advantage   amongst   their   competitors.   Benchmarking   which   could   be   defined   as   continuous   improvement  and  measurement  of  the  product  prices  and  process  along  the  supply  chain  is  one  of   the  examples  of  the  supply  chain  management.     Yet,   to   manage   with   an   efficient   supply   chain   the   company   has   to   monitor   their   price   advantage,  product  differentiation  and  price  competitiveness.  The  utilisation  of  ratios  such  as  ratios   linked   to   the   cost   could   be   used   to   sustain   and   enhance   business   in   a   way   that   they   are   able   to   calculate  the  part  of  the  costs  that  is  combusted  into  the  revenue.       However  financial  analysis  has  limit  and  could  only  give  proof  that  the  company  is  doing  well   or  not,  Supply  chain  directors  and  other  member  of  the  company  have  to  find  out  what  the  ratios   are  saying,  they  are  only  consequences  helping  to  find  the  cause.        

 

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The   implementation   of   agile   or   lean   strategy   will   depend   on   the   nature   of   the   product,   depending   on   the   lead-­‐time   and   on   the   demand   characteristics.   The   Team   28   has   adopted   a   lean   strategy  in  order  to  reduce  to  it  minimum  the  costs  generated  along  the  supply  chain.   Moreover  the  lean  management  strategy,  based  on  the  cost  reduction  process  has  it  limit.   And  the  future  of  the  fresh  fruit  company  will  be  to  transform  it  strategy  into  a  hybrid  strategy  or  an   agile  strategy.   As   comparison   to   Air   transport   market,   improving   the   supply   chain   is   making   the   whole   participant  of  it  working  together  through  dedicated  IT  tools,  through  an  increase  in  communication,   in  order  to  implement  a  high  level  of  responsiveness  while  a  fruit  industry  as  played  during  the  game   should  more  focuses  on  planning  and  optimisation.                                          

 

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b) Long  term  strategy  to  achieve  best  in  class  performance     In  order  to  ensure  a  long  term  strategy  that  will  help  to  achieve  best  in  class  performance,   the   team   28   will   have   to   ensure   that   IT   process   has   been   put   in   place   to   reduce   the   miscommunication  that  had  been  happened  along  the  game.   A   plan   of   action   for   future   and   long-­‐term   expansion   along   the   game   would   be   to   implement   continuous  replenishment  along  the  stock  purchasing  methods  that  will  allow  either  the  purchasing   and  the  supply  chain  to  predict  and  respond  to  the  needs  of  the  customer  with  more  accuracy  and   will  establish  between  the  different  service  a  natural  communication  process (Gattorna, 2006).     On   the   sales   department   perspective   it   will   be   appropriate   to   more   to   focus   on   customer   prioritization,   through   technics   such   as   ABC   methods   and   to   implement   accurate   forecasting   to   reduce  the  margin  of  error  that  the  production  line  have  to  deal  with.     The  supply  chain  department  will  have  to  rely  on  forecasting  and  purchasing  to  implement   an   accurate   replenishment   of   the   stock   by   working   closer   with   the   operations   in   charge   of   warehousing  spaces  and  could  seek  every  waste  that  could  have  been  made  in  order  to   increase  the   lean   management   accuracy.   The   implementation   of   six   sigma1   strategy   oriented   will   also   lead   to   a   reduction  of  cost  through  waste  elimination  with  a  continuous  improvement  scheme.  

    The   implementation   of   system   such   as   continuous   replenishment   or   the   calculation   of   reorder  point,  EOQ  (Economic  order  quantity),  would  have  a  greater  impact  on  the  management  of   the  supply  chain  efficiency  by  avoiding  stock  out  and  obsolescence (Jonsson, 2008).                                                                                                                               1

“Six  sigma  is  a  philosophy  of  doing  business  with  a  focus  on  eliminating  defects  through  fundamental  process   knowledge.  Six  sigma  methods  integrate  principles  of  business,  statistics  and  engineering  to  achieve  tangible   results.”  (Six  sigma  system,  2012)  

 

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Conclusion       The  fresh  connection  game  was  an  interesting  and  stimulating  competition  where  each  one   of   the   participants   could   deal   with   the   different   position   within   a   fresh   fruit   company.   Such   simulation   of   management   allows   student   to   be   able   to   see   how   a   company   is   working   in   time   consuming  environment  and  where  able  to  organise  themselves  around  the  company  objectives  and   positions.     Strategic  supply  chain  management  enclose  a  wide  range  of  strategic  issues,  about  how  to   run  a  business  in  ad  equation  to  which  product,  to  the  demand  and  to  the  internal/external  factors.   Businesses  are  restraint  to  two  main  qualities:  time  and  costs;  and  strategy  are  in  line  with  them  by   trying  to  enhanced  or  reduce  them  to  make  company  prosperous  and  competitive  amongst  others.     As  stated  in  Strategy  analysis  and  practice  book,  the  example  of  Wahaha  company  show  that   the  management  strategy  within  a  small  soft  drink  company  can  actually  compete  with  giant  of  the   industry  such  as  Coca-­‐Cola  company  and  PepsiCo (John, et al., 2005).     The  strategy  is  the  art  of  taking  advantage  of  organisation  of  the  structure  and  acting  on  the   external  factors  to  valuate  the  company  assets  at  their  best.                                  

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