Learning objectives
To provide delegates with good understanding of the risks and costs of global sourcing. It reveals the importance of taking a total cost perspective of the global sourcing decision. Specifically, to enhance understanding of:
• Total landed value and the hidden costs associated with off-shore sourcing;
• The impact of extended lead-times on supply chain costs and performance;
• The need to align sourcing and supply chain design decisions with brand /product characteristics.
• How to mitigate the risk of supply chain disturbances that threaten business performance.
• The increased vulnerability of global supply chains to external disruptions.
The simulation runs for 2 days and is suitable for 8 – 16 participants.
Develops enhanced capabilities in procurement, purchasing, buying, supply chain, new product development and financial managers. Suitable for trained managers to sharpen their skills in action
Developed in conjunction with Cranfield School Of Management.
Overview of the game
• Competing teams are fashion clothing companies with 4 garments with different brand requirements and demand patterns
• Shops are supplied via a European distribution centre and 4 regional distribution centres
• Sourced globally from 8 potential suppliers - in Italy (1), Morocco (1), Romania (1), India (2), China (3)
• Suppliers have critically different characteristics that affect optimisation of plans
• Sourcing and supply chain network decisions alone affect company performance - no brand marketing decisions
• In the game, demand is weekly over 64 weeks, the game rolls forward with decisions made in 8 week segments - previous weeks become actuals (how did we do?), future weeks remain open to re-planning
• Forecast is updated every week for the remaining weeks like real life
• Must complete sourcing and supply network by real-time deadlines
• When an order is placed, goods will enter the supply chain - network routing lead times, supplier capabilities and other factors affect performance
• Consolidation and cross-docking locations are selected
• Out-of-stocks, excess inventory and obsolescence is to be avoided
• Reports cover demand forecasts, actual supply versus demand, product costs, network lead times by transport leg, inventory at locations and profit & loss
