Prevent Disruptions 12 Group Learning Experience 14 References 18 1 . Executive Summary SCM Globe is an interactive supply chain design and simulation tool that allows users to simulate supply chain operations. This paper will describe the various elements the team undertook to achieve the deliverables outlined in the course, involving: 30-days of successful operations, lowered transportation costs within the supply chain, lower operating costs across the supply chain, and the application of supply chain strategies that yields the best performance for the operations.
The group for this simulation is made p of five individuals, Greenish Williams, Feline Ray-Content, Charles Archer, Cyrus Which, and Michael Carination. We all completed several rounds of 30, day operations, individually, while testing out different methods and techniques for supply chain efficiency.
Our report will span four sections addressing 1) an initial interpretation of the Supply Chain Simulation, 2) a description of simulation stoppages to the supply chain, 3) a description of how the group resolved supply chain simulation problems, and 4) a description of how customer relations management and open ammunitions could resolve supply chain management problems and prevent disruptions. At the conclusion of these simulation specific sections the group will individually recount their learning experience and how their participation contributed to group synergy. . Initial Interpretation of Supply Chain Simulation This section of the report describes the group’s initial finding related to the situation presented in the Cincinnati Seasonings simulation. Most classes simply deal with theory and some case studies. Here you have an opportunity to make decisions in a real-life simulation exercise. You will robbery experience real life frustration and tension, as do individuals working in a supply chain. Use this section to describe your experiences in a professional manner.
The business environment is closely related to the Cincinnati seasoning simulator; it is possible to associate the simulation exercise to different systems applied in an organization setting like the supply chain management system. An organization’s supply chain process and strategy it is not possible to be achieved as an isolated operation. In order for the product to reach the hands of the actual consumer, there is a series of tepees that have to be executed. It is crucial that the supply chain process is done with the most accurate coordination possible in order to achieve the final objective.
Through this process we can relay the profitability of the product mentioned. The supply chain management its based on components that enable the process in order to be successful. And the SCM globe simulator give us the a perfect association Of a real life process, since these following components, products, facilities, vehicles and routes, are key in order to succeed at the Cincinnati seasoning project. Not running the emulator for the time desired will not allow the company to achieve the goals objectives and will cause not only loose of sales but relationships concerns among supply partners.
It is key on real life to deliver a product in the right place to the correct market, in the right moment, in the right quantity and also at a right price, well this is what Cincinnati simulator instructs about. Overall every component of the process could be considered to relay on each other. First It is fundamental to have a product generating demand within a specific target market. While the product generates demand consequently titivates companies to invest in manufacturing the product. At this point is where facilities come into consideration.
Based upon product demand a production structure and distribution strategies are developed; the focus is for each facility to function productively, maximizing profits, avoiding unnecessary expenses (lowering cost), or avoid lost of sale due to lack of correct planning tactics. Once the product has been manufactured it is crucial to deliver to the locations where the consumers will purchase the product. Consequently, a delivery system is developed where vehicles of remonstration and routes of distribution are implemented.
The objective is to have an ideal rotation system for this product within the distribution channels; having the product always available to consumers, maintaining profit margins at its maximum level and to avoid “stock-outs”. The processes formed by the previously mentioned components are part of a superior process; where a small change in demand impact the number Of products that need to be manufactured. Once that number changes, the total number of products to be delivered varies, affecting the distribution system directly by lettering hours and dispatch rate consistency.
Certainly generating any change within the components will consequently affect all of the others, whether it is economic, logistics, or quality standards. Indeed an accurate communication system must be established among all the supply chain process participants. Independently to the fluctuation among the product demand, the changes made by the production must accordingly adjust with facilities, delivery systems, and routes of distribution. Adapting to these possible changes generates opportunity towards a sustainable competitive advantage and profit minimization. . Description of Simulation Stoppages to Supply Chain The Cincinnati Seasonings simulation provided us with several opportunities for operational management development. The next few paragraphs will provide a record of the problems our group encountered while running the simulation. We first ran the simulation for 30 days, next we added the two cities as suggested by the SCM Globe guide and ran for 30 days. The first error occurred on day 2; not enough storage capacity in Ft. Wayne store. We increased the Max storage from 850 to 1400.
There were several other changes initially attempted to get the simulation to run for 30 days. We decreased the on hand products from 800 to 80, additionally we increased the delay between departures from 8 hours to 12 hours. The next error we encountered was on day 6; not enough goods for spicy cube in Louisville store. We increased the on hand from 500 to 1500. We decreased the delay between departures from 10 hours to 4 hours on truck 4. One final change that was made before we ran the simulation again for the third time was to increase the volume from 60 to 80 units.
The next error occurred on day 7; not enough storage capacity in Seasonings Factory. We increased the Max storage from 3,000 to 12,000. That allowed the simulation to run up to day 21 where we encountered another error; not enough goods for spicy cube in Louisville store. This was a previous error we encounter in the simulation so we were determined to address this problem once and for all. We increased the on hand from 1500 to 3000. Additionally, we decreased the delay between departures from 22 to 6 hours. The next error occurred coincidentally at day 21; not enough goods for spicy cube in Seasonings DC.
We decided to decrease the delay been departures from 1 2 to 3 hours. We had another error at day 28; not enough storage capacity in Indianapolis tore. We increased the Max storage from 1000 to 1300. We also decreased the on hand from 300 to 150. Our final error occurred on day 28; not enough storage capacity in Ft. Wayne store. We increased the Max storage from 1400 to 1550. All of the group decisions were made to get our simulation to run for 30 days. As a team, we moved forward with the suggestions Of the SCM Globe guide to add additional cities to the supply chain.
According to the guide it states, “the challenge this week is to add more stores to the supply chain. Two more big customers have started selling your product and you deed to arrange for adequate deliveries of product to meet demand from these customers. ” “You need to support new stores in Chicago, IL and Columbus, OH. The UP Sales of Cincinnati Seasonings sends you an email with the information you need to start planning how you will handle these new stores. ” The guide supplied the settings that were suggested to run the simulation for the thirty days.
New Store; Daily Demand; Amount On-Hand Storage Capacity: Chicago-?100, 300, and 5001 Columbus-?30, 60, and 300 Kansas City 300 and 500 SST. Louis 250, and 400. The first City to expand with on our simulation was Chicago, IL. We followed the suggested settings outlined in the SCM Globe guide and we began the simulation. At day 9 an error occurred; not enough goods at the Chicago store. One issue that we had to decide as a team was what size truck to use for the Chicago route. We decided to use a large truck because the demand was 100 a day. The storage level was set at 1500 units.
We decided to increase the levels to 3000 units. Surprisingly, we encountered the same error; not enough goods at the Chicago store. We all agreed We have to find a Way to get goods to the store to keep the simulation running. The delivery for the store needs to be addressed. We feel that the delay time of 2 hours may be the solution. The issue turned out to be that the route was not set up correctly with the product to be dropped. With a few adjustments we fixed that problem. We removed the route and reset it and tried it again. We ran the simulation and an error occurred at day 12; not enough goods at the Seasonings DC.
We decided to increase the on hand from 5000 to 8000 and ran it again. The simulation ran to day 21; so we decided to look at the truck from the factory to the DC and saw the delay time was 8. We decreased the delay time to 4 hours and ran it again before increasing the on hand a second time. Day 24; There were not enough goods at the DC. Because we encountered this error we decided to address the delay time and make it every 2 hours from the factory to keep the DC stocked. We fixed it with that change and the simulation ran for over 30 days.
Moving forward, the guide says “as you move on to the Columbus Store, you see they haven’t gotten an exact address yet, they just say the store will be in the northwest side of the Columbus metropolitan area near the 1-270 expressway. ” That is exactly what our team id; we found an area in that location and sat the store there. The guide stated, “Now you need to assign vehicles and routes to support these stores. You need to decide if you can support them with existing vehicles and routes or if you need to add new vehicles and routes. ” As a group we had to decide if we were going to use an existing vehicle and route or make up a new one.
Based on our assessment we saw that truck 4 goes near the city of Columbus but it was set as a medium size. We decided that we should use a large truck. Also we had to take into account the delay time for the overall trip; we set the Ella time at 10 hours and because the demand was for 30 units we set our drop off amount to 40. Upon the initiation of the simulation, the day count moved up steadily. The simulation made it up to day 27 and then encountered an error brought on to the fact that there was not enough spicy goods at the Indy store.
When we looked at the Indy store we saw that the Max storage was at 1300 units. We decided that instead of increasing the storage area, which would also increase cost, we would decrease the delay time from 10 to 8 hours for the truck. That changed worked and we ran the emulation successfully for the 30 days. 4. Description of How Group Resolved Supply Chain Simulation Problems One problem related to the modern supply chain is stoppage. Any time the supply chain stops it costs the company money. These delays may become more prevalent as the supply chain gets more complicated.
When a company is operating its supply chain across state lines, like the supply chain set up in the SCM Globe simulator, there lies a chance of problems arising. Team one ran the simulator as a group on four separate occasions. During these simulations, we ran into a few of the aforementioned problems. These were mostly related to not having enough goods or having a shortage of storage capacity. We based our reaction to the problems on the situation and managed to find a way to keep the supply chain moving. On team one’s first running of the simulator, we had the expected issues.
The first error team one encountered was a storage capacity issue in the Fort Wayne store. To solve this problem we bumped up capacity at the Fort Wayne store to 1550. Our next error came on the sixth day of operating the simulator. This error was indicating that we had run out of Spicy Cubes in the Louisville store. The roof decided that the deliveries are not able to keep up with customer demand. To solve this issue we upgraded the Cincinnati – Louisville vehicle to a large truck and increased capacity to 100 units. Upon running the simulator again we managed to go until day eight before an error developed.
This error was based on running out of storage capacity in the Seasoning factory. To solve this issue the group made an alteration to the truck making the factory DC trip. First we upgraded the truck from a medium to large size, and then we upped capacity from 30 units to 1 10 units. We kept the truck running on the eight-hour delivery schedule. Our next error occurred on the twenty-first day. This error was a result of us not having enough goods in the Louisville store. To solve this problem we increased our on hand inventory from 1 500 to 3000. On team ones second meeting and operating of the simulator we encountered just one problem.
On the twenty-seventh day we did not have enough goods for Spicy Cube in the Seasoning DC. We resolved this issue by increasing the quantity on hand from 4000 to 5000. This allowed us to run for the full thirty days. During team ones third and forth running of the simulator e were instructed to add two more stores to the operation one store in Chicago and one store in Columbus. We decided to add the stores one at a time and then get the simulator to run for 30 days and then add the other store. After adding the Chicago store we encountered an error on the ninth day. We did not have enough goods at the Chicago store.
To solve this problem we increased the storage capacity of the Chicago store by 3000 units, which gave us a total of 4500 units. This enabled us to operate another day with out an error. On day ten we had the same error, which was not enough goods at the Chicago store. This error was due to the fact that the truck delivering the goods was not actually stopping at the Chicago store. Corrections were made to the route and the simulator ran for 12 days until an error occurred. Again the error was not enough goods at the Chicago store. We ran the simulator again without any changes and it produced another error, but this time at thirteen days.
The error that occurred was not enough goods at the Seasoning DC. To solve this issue we increased the on hand at the Seasoning DC from 5000 units to 8000 units. Our next error happened at day twenty-one and it was the same as the previous error. This error was fixed by decreasing the delivery time from eight hours to four hours and the simulator went for twenty-four days. The error listed this time Was not enough goods at the Seasoning DC. We discussed the possible options for this error and we decided whether to increase on hand capacity at the DC from 8000 units to 10000 units, or reduce delay time from four hours to two hours.
In the end we reduced the delay time and the simulator went past thirty days. On group one’s fourth meeting and running of the simulator we added the Columbus store. After we added the store we ran the simulator and managed to encounter an error. This error was not enough goods for Spicy Cubes in the Indianapolis store. We discussed reducing the delay time from ten hours to eight hours. We also discussed increasing the maximum storage at Indianapolis from 1300 units to 1500 units. In the end it was decided to reduce the delay time to eight hours and we managed to pass the 30-day mark. 5.
Description of How Customer Relations Management and Open Communications Could Resolve Supply Chain Management Problems and Prevent Disruptions One of the objectives in this course is to learn about and gain an appreciation of how important it is to have clear and open customer elation’s’ management (CRM) throughout the life of the relationship (life cycle of the product or service). It is equally important to employ various communication (negotiation) strategies to continually improve the supply chain. If you were a consultant what would you suggest to individuals in the various points of the supply chain?
What about prior to making a commitment(s)? In this section provide a brief description of how you think communication (negotiations) would take place between the suppliers and customers in the Cincinnati Seasonings supply chain. These would include individuals in the factories, warehouses, stores as well as those responsible for transportation. If you were a consultant what would you suggest to individuals in the various points of the supply chain? Customers Relations Management (CRM) is a strategy for managing all your company’s relationships and interactions with your customers and potential customers.
It was designed to assist in a number of areas throughout a supply chain including the improvement of profitability, customer satisfaction, and generated lead production. Each of these play big roles in determining whether your organization will be successful or fail. The CRM paves a way for relationships with individual people throughout one’s organization and beyond into the expected target market. My approach as a consultant would be to get the organization from where they are now to where they would like to be by making necessary changes through the supply chain.
My recommendation would be for each level of the organization to adapt to the CRM model if one is not currently being used. Having a CRM in place allows organizations to keep track of customer interactions; tracking progress and steps needed to close deals. This is important because without the CRM model an organization could identically miss out on valuable business opportunities through a loss of data/trends and lack of structured communication channels for internal and external customers. How you gather, manage, and use information will determine whether you win or lose. ” Bill Gates What about prior to making a commitment(s)? One of the most important ways to maximize on potential deals is through the preparation measures used prior to making the commitment. According to studies from an interview conducted by the NOR (National Resources Institute) on preparation, sixty-two percent of the interviewers admitted they pent less than an hour preparing before negotiating.
In a different survey sixty-eight percent of the interviewees suggested that there was a possibility through better preparation they could have sealed a better deal. (Susan Preston, 2013). As a consultant I would suggest a company thoroughly prepare for the deal through researching the potential client, understanding their company’s own latitude in which the organization has to bend if negotiations get tight, and studying a SOOT analysis for the other party. The party following these steps are setting themselves up for a significantly higher verbal success rate.
Provide a brief description of how you think communication (negotiations) would take place between the suppliers and customers in the Cincinnati Seasonings supply chain. In the end customers and suppliers have the same goal; therefore it is important that both are working together in the supply chain. Suppliers and customers must work together to establish a healthy relationship to ensure maximum profits. In the case of the Cincinnati Seasonings supply chain both parties should be meeting up to share new trends and information.
Having these meeting and open lines of immunization will allow information to flow easily amongst both parties and to all stores in the region. Abrupt changes by either party should be shared as soon as possible to avoid any disruptions. There were times in the simulation where changes had to be made quickly regarding product shortages not sharing this information with suppliers would only create more errors and higher unexpected cost in the long run.
Throughout the simulation experience there were multiple errors surrounding lack of product at different locations across the Ohio region, it would be wise of the customers o provide each of the suppliers with a proposed business model as far in advance as possible; this way supplier are able to account for any priorities or intricate details in the life cycle they may have previously missed. One of the assignments in the simulation was to add additional stores. It would be important for customers to share future developments with suppliers as far in advance as possible as well.
Communication about how and when new developments will take place are very important for customers to communicate with suppliers because it gives suppliers the chance to develop additional services and technologies if any are needed to accommodate the new expansion. 6. Group Learning Experience How did the group members feel about such things as: the assignment, the simulation experience, using forecasting techniques, working with others, doing research, exchanging ideas, discussing topics/theories presented in class, etc.?
Cyrus “Wow! ” what a great group learning experience. From the onset of our group formulation, we hit the ground running. Had personally worked with two team members in a group from a previous course and met another member from a previous course as well. The forum for effective communication was instantaneous and it has helped us to make productive decisions. The assignments were oddly challenging in particularly in a group format. I think the group assignments were not really a good group idea.
The simulation was a neat project and learned a lot from the simulation, but it was not practical to run the simulation as a group when the members of the group were in an online format. The positive aspect that outweighed the negatives were working with others. I liked all of my peers in the group and everyone contributed to the whole project. Conducting research using the Alvin Sherman Library was as expected. I used that resource during my master’s program and felt very comfortable with it. Greenish Overall, I really enjoyed this class and thoroughly appreciated the supply chain simulation.
My experience with the simulation has opened my eyes to the various obstacles one may face throughout the life cycle of a supply chain. Before this class had only acquired book knowledge of running an efficient supply chain. Through the simulation in this class I was able to put some of the previous objectives learned to use as well as learn a ton of new strategies ND intricate details needed to run a supply chain successfully. I appreciated the support from the manual very much, which I was able to use as a reference for possible suggestions if I encountered errors as I made my way through the simulation.
Using the forecasting techniques was also extremely helpful especially with the expansions like adding additional stores throughout various parts of the assigned region. Without this resource I would have more than likely not have a great understanding of why and how to select the appropriate settings when making changes in the supply chain. Group projects have always been something I enjoy because it gives me the opportunity to collaborate and gather many great ideas on class assignments.
Our group leader assigned weekly live chat sessions to share ideas on the best ways to overcome errors in the simulation in a cost effective manner. We also as a group ran the simulation a number Of times each making suggestions as we went to enhance the efficiency of the supply chain. The simulation in my opinion is not an assignment that could have been completed by just one person. By working with my group members I was able o gain some hands on experience on how it will be in the real world through communication and collaborative efforts. M grateful for the collaborative efforts of all of my group members and the efforts that were put in to running the Simi ululation. Being part of the simulator project experience has allowed me to identify the difference of this course from all the other courses have completed. The course has a high quality of content comparing it with other courses have taken in the past. The environment seem and felt as if it were a real work environment, not as if it was not only a course where you had to obtain a DOD letter grade in a project to pass.