Distribution Game PierreMajorique LGER Jacques ROBERT Gilbert BABIN

Distribution Game Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN Robert PELLERIN Bret WAGNER Version : July 2013 Copyright © 2013 HEC Montréal ERP Simulation Game © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

About ERPsim Lab • The mission of ERPsim Lab is to conduct research, development and transfer in the field of serious games in information technology. • It has created ERP business simulations that are used in more than 170 universities worldwide and, through its commercial arm, Baton Simulation Inc. , in many large corporations. © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

What is ERPsim ? Automated by ERPsim Sales & Marketing Automated by ERPsim Procurement & Production Automated by ERPsim Planning Automated by ERPsim © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca Full Cash 2 Cash Business Cycle

Introduction to the distribution game

ERP Simulation Games: Pedagogical objectives • To show the ERP system supports business strategies • To develop a hands-on understanding of the concepts underlying enterprise systems • To experience the tangible benefits of enterprise integration firsthand • To develop technical skills at taking decision using an enterprise software © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Distribution game • In groups of at most 4 to 5 participants, each team operates a bottle distribution company. • Using standard reports, participants have to make business decisions to ensure the profitability of their © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

German market • You are a wholesaler distributor • Your customers are small retailers in North 45 retailers Germany West • 6 products (boxes of 12 x 1 L and 40 retailers 24 x 500 m. L) • 3 areas with distinct marketing accounts South 38 retailers • One distribution channel : 18 • Market size of about € 6, 000 per company per day • The market is very competitive and © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

6 products Product Code Product Description Units in box Cost of boxes $$-B 01 1 L Clear. Pure 12 bottles 11. 99 $$-B 02 1 L Spritz 12 bottles 14. 99 $$-B 03 1 L Lemon Spritz 12 bottles 16. 99 $$-B 04 500 m. L Clear. Pure 24 bottles 16. 99 $$-B 05 500 m. L Spritz 24 bottles 19. 99 $$-B 06 500 m. L Lemon Spritz 24 bottles Pricing is national but you have more granularity for marketing as you 22. 99 can market your 6 products differently. You do not manufacture your products yourself but you have a strong relationship with a single supplier who charges you a stable price throughout the simulation. Pay attention to cannibalization and keep in mind that market reports are published each 5 simulated days. © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Game layout 20 min 20 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca 20 min 20 days

Rules of the game • Each round will be of 20 days (1 min per day) • ERP Sim automates some functions to free participants to focus on decision making • It takes 3 days to your supplier to deliver the ordered goods. • All customers pay their invoices 10 days after delivery • Make sure to save your changes • End-of-round inventory is carried over to the next round • You can sell a product only if you have it in stock • Cost of boxes is the only cost that you have (no warehouse cost, etc) • Team organization is fundamental • A well-thought business strategy is a must • You compete against the other teams and importers • You should not sell under-cost at any time during the simulation • Your objective is to maximize profit but you must behave © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

SAP Navigation

ABC of Enterprise systems • An enterprise system is build around an integrated database • A system such as SAP contains tens of thousands data tables • When a user creates, changes or views data in the system, he or she performs a transaction • Data changed or created by one user can be exploited by all other users (ex. reporting, tracking, execution of orders, etc. ) • All transactions are traceable, transactions with financial impacts can be reversed, never erased © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

User interface • Users interact with the enterprise system through transactions. • A large number of pre-programmed transactions exist in SAP • Each transaction has a transaction code – one can call a transaction if one knows the transaction code • The SAP menu allows to browse and find the desired transaction • One can create a user menu or a list of favorites with the commonly used transactions © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

SAP Menu & Navigation Extras / Settings / Display technical na © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Reports and queries • Reports and queries are transactions that allow users to view existing data • A typical query is performed as follows: • In the first page of the transaction, you must enter the selection criteria for the query (ex. Company code, product code, etc. ) • Then, click on to execute the query • A table containing the requested data will appear • The display and layout can sometimes be modified © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Entering new data • Some transactions are designed to change or create new data (change forecast, release purchasing orders, change sale price, etc. ) • The interface varies according to data required by the system • The system will not allow you to save information if all the compulsory fields have not been filled • You must save/release/confirm before exiting the transaction © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Other useful buttons • Use the navigation buttons to go back or get out of a transaction • You can open up to 6 sessions. Click on to open a new session • Delete , search , select all , view , enter. © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Participant’s job aid © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Let’s get started! • Set up teams: • Max 4 to 5 persons : User 1 to User 4 or User 5 • It is important that only one persons fulfils one role. The records will be blocked otherwise. If change is simultaneous, the last change will be taken into account. • Typical roles are: • • • Sales Manager (Sales process) Marketing (Marketing Process) Planner (Planning Process) Business Analyst 1(Analyses reports and provides advices) Business Analyst 2 (Analyses reports and provides advices) • Up to 26 companies : A to Z • Log in using user name and password by your instructor. © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Login information Client will be provided by the instructor Login: $# Where $ = Team (from a to z) # = User (from 1 to 9) Password: ERPSIM (capital letters) You will have to change your password the first time you enter © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Distribution Game: Round 1 20 min 20 days

Cost, inventory & initial pricing Material $$-B 01 $$-B 02 $$-B 03 Name $$-B 04 $$-B 05 $$-B 06 1 L Clear. Pure 1 L Spritz 1 L Lemon 500 m. L Spritz Clear. Pure 500 m. L Spritz 500 m. L Lemon Spritz Size 1 L 1 L 1 L 500 m. L Number of bottles in package 12 12 12 24 24 24 Cost € 11. 99 € 14. 99 € 16. 99 € 19. 99 € 22. 99 Initial price € 14. 99 € 17. 99 € 19. 99 € 22. 99 € 25. 99 Initial stock 1, 000 1, 000 © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

The Distribution Game: Round 1 (20 Days) • You need to manage the price of your 6 products and invest in marketing. • What do you need to know in order to make that decision ? • You need to know how to : • Maintain price list • See available stock • Monitor sales orders • Monitor competitors • Water is a non-perishable product. Thus, any unsold items will be carried-out to be sold during the next round. • There is no warehousing cost © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Participant’s job aid & Menu © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Maintain Prices for DC 18 © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Marketing expenses © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

On marketing • Enter your daily marketing budget for each product and for each region • The impact of marketing in one region depends on your share of all marketing expenses in this region • Marketing induces customers to find your product “more desirable” • The daily marketing budget can be changed at any time © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Stock in material overview © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Check sales order report © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Check summary sales report © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Check market report © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

The Distribution Game: Round 1 (20 days) We start the simulator for 20 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Distribution Game: Round 2 20 min 20 days

It’s time to replenish ! • You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold. Material $$-B 01 $$-B 02 Name 1 L Clear. Pure 1 L Spritz $$-B 03 1 L Lemon Spritz $$-B 04 $$-B 05 $$-B 06 500 m. L Spritz Clear. Pure Lemon Spritz Initial forecast 1, 000 1, 000 Replenishmen t lead time Up to 3 days Up to 3 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Participant’s job aid & Menu © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Execute MRP © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

After the MRP run © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Convert purchase requisitions into purchase orders © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Track purchase orders © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

The Distribution Game: Round 2 (20 days) We start the simulator for 20 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Distribution Game: Round 3 20 min 20 days

It’s time to replenish ! • You need to replenish. Change your forecast to adapt the replenishment levels to your needs • What do you need to know in order to make that decision ? Material $$-B 01 $$-B 02 Name 1 L Clear. Pure 1 L Spritz $$-B 03 1 L Lemon Spritz $$-B 04 $$-B 05 $$-B 06 500 m. L Spritz Clear. Pure Lemon Spritz Initial forecast 1, 000 1, 000 Replenishmen t lead time 3 days 3 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Participant’s job aid & Menu © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Forecasting © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

The Distribution Game: Round 3 (20 days) We start the simulator for the last 20 days © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Planning of the ERP Sim session Phase Duration Round 1 20 minutes (Playing) Debrief 15 minutes (Strategy Revision) Round 2 20 minutes (Playing) Debrief 15 minutes (Strategy Revision) Round 3 20 minutes (Playing) Break 10 minutes Strategy wrap-up 25 minutes Final results & Debrief 15 minutes Presentation of the strategy of the Winning Team 10 minutes © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca

Scores Team Ranking in ERPSim (50%) Winning team 20 Team 2 19 Team 3 18 Team 4 17 Team 5 16 Team 6 15 Team 7 14 Team 8 13 Team 9 12 Teams 10 & 11 11 Strategy (50%) This grade will be based on the pertinence of your strategy © Léger et al. 2013 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim. hec. ca