MANUAL FOR INSTRUCTORS

THE FRESH CONNECTION

Manual for instructors

Involvation Interactive B.V.

Prinsenlaan 3
3732 GN De Bilt
The Netherlands
Tel +31 30 221 77 66
Fax +31 30 221 78 66
www.thefreshconnection.biz
info@thefreshconnection.biz

Content of this Manual

Summary
Introduction: this manual

1 THE FRESH CONNECTION

Content of The Fresh Connection

Winning The Fresh Connection

Levels and extensions of The Fresh Connection

Learning dynamics and the learning cycle

10

Individual Learning paths: E-learning modules

12

TOPIC S

VIC E

PRES IDE NT

PU RCHA SIN G

Purchasings scope of decision making

13

Relevant theoretical frameworks

14

Relevant literature and references

15

TOPIC S

VIC E

PRES IDE NT

SU PPLY

Supply Chains scope of decision making

16

Relevant theoretical frameworks

17

Relevant literature and references

18

TOPIC S

VIC E

PRES IDE NT

SAL E S

Sales scope of decision making

19

Relevant theoretical frameworks

20

Relevant literature and references

21

TOPIC S

VIC E

PRES IDE NT

CHA IN

OP ERATI ON S

Operations scope of decision making

22

Relevant theory and frameworks

23

Relevant literature and references

23

Summary
The Fresh Connection is a web- based Value Chain Management learning
environment built around a cross functional business simulation. Participants
are making strategic and tactical decisions in the value chain of The Fresh
Connection, a virtual producer of fruit juices.
As this virtual company is suffering severe losses, a new management team has
been appointed.
Four participants take up a role in this new management team as either Vice
President Purchasing, Vice President Sales, Vice President Operations or Vice
President Supply Chain.
The team has the task to realise the highest possible Return on Investment
(ROI) for the Fresh Connection.
The Fresh Connection takes the full scope of the value chain into account and
covers major value chain topics and trade-offs.
Per role the following topics are included in the scope of decision making:
- Vice President Purchasing: Supplier Management and Total Cost of
Ownership
- Vice President Sales: Demand and Portfolio Management
- Vice President Operations: Capacity and Production Management
- Vice President Supply Chain: Inventory Management and Planning
Participant take decisions in their functional area only, so adherence to the
chosen value chain strategy, cooperation and aligning decisions are key factors
to successfully play The Fresh Connection.
Besides the internal collaboration, external collaboration with suppliers and
customers is an important element of The Fresh Connection.
The learning philosophy of The Fresh Connection is learning by experience as
participants are implementing their value chain strategy in the simulated
environment of The Fresh Connection.
Main observations and experiences are:

The Fresh Connection is an active and inspiring way of teaching

and learning;

Participants experience what it is like to deal with conflicting

interests and trade offs that exist within the value chain area in a
complex situation with many variables;

The experience creates a steep learning curve. Participants learn

from decisions made as the simulation shows the impact of
decisions taken.

The Fresh Connection is very suitable for team building and for
getting insight into group processes.

Introduction

Introduction: this manual

This introduction explains the goal, the usage and the
content of this manual.
This manual has been developed to give insight into the value chain topics and
learning dynamics of The Fresh Connection. This document will be distributed to
instructors who are active in the area of Higher and Academic Education
intending to use The Fresh Connection in their curriculum.
In this manual relevant theoretical frameworks and literature suggestions are
presented. In combination with the exercises and materials of the Standard Script
Education which has been developed for The Fresh Connection, instructors can
integrate The Fresh Connection in an existing course or design a new course
based on The Fresh Connection.
Structure of this manual:

Chapter 1 presents the content of the Fresh Connection. A special emphasis is

given to the different levels and extensions of The Fresh Connection In this
chapter also the learning cycle which has been designed for using The Fresh
Connection will be presented in combination with the available learning materials
and exercises which can be used to enhance the understanding and learning
experience.
In chapters 2 to 5, the relevant value chain topics and main theoretical
frameworks will be presented for each functional area.

Chapter

The Fresh Connection

This chapter deals with the content and structure of The
Fresh Connection and the different functional roles in
The Fresh Connection. Also the different levels and
extensions of The Fresh Connection will be discussed.
This chapter concludes with the learning cycle which has
been designed for The Fresh Connection and the
learning dynamics.

Content of The Fresh Connection

The Fresh Connection is an web- based Value Chain Management experience
built around a
cross- functional business simulation.
Teams of four participants representing the functional roles of Vice President
Purchasing, Vice President Sales, Vice President Operations and Vice President
Supply Chain go through a number of rounds of The Fresh Connection.
The goal of the team is to achieve the highest Return on Investment by making
tactical and strategic changes in the value chain of The Fresh Connection, a
virtual producer of fruit juices.
The Fresh Connection takes the full scope of the value chain into account and
covers major value chain topics and trade-offs. Per functional role, the
following topics are included in the scope of decision making:
-

VP
VP
VP
VP

Purchasing: Supplier Management and Total Cost of Ownership

Sales: Demand and Portfolio Management
Operations: Capacity and Production Management
Supply Chain: Inventory Management and Planning

Participant take decisions in their functional area only, so adherence to the chosen
value chain strategy, cooperation and aligning decisions are key factors to
successfully play The Fresh Connection. The figure below shows the decision
making scope per function:

In chapters 2 to 5 the scope of decision making of each individual area will be

discussed in further detail.

The main learning of The Fresh Connection for participants are:

 Value and Supply Chain Management is not only the responsibility of

one functional area or manager, it is teamwork;
Coordinated decision making is critical; functional silos need to be
broken down !
A strategy is necessary to have a common direction;
A structured process (S&OP) is necessary to translate strategy into
action
The quality of the value chain has a big impact on the companys
profitability;

The right management information is very important;

Internal and external collaboration is key to success.

Winning The Fresh Connection

he winning team is the team that creates the most profitable value chain.
Profitability is measured by means of the Return on Investment (ROI). The
figure below shows the factors used in calculating the ROI:

* Customer satisfaction is calculated from flexibility, reliability, moqs,

leadtimes, offered shelf life,

Levels and extensions of The Fresh Connection

The Fresh Connection is a value chain learning environment which can be
configured to specific learning needs, depending on the learning objectives, the
level of the audience and the available time.
The main learnings of The Fresh Connection are the need to break down
functional silos and to coherently translate the chosen Value Chain Strategy into a
set of tactical decisions, i.e. Strategy into Action.
Depending on
the learning objectives, different themes can be added on top of these main
elements as represented below:

In the figures on the next page, the decisions per level and per theme are
displayed. It is possible to increase the level of complexity per round by adding
new decisions and extensions. But it is also possible to play two or more levels
on the same level before adding new decisions and themes.

Based on our experience with many In Company trainings and the use of
The Fresh Connection by many universities, business schools and
universities of applied sciences worldwide*, we would like to advise to
follow the following principles in designing a course / workshop / training:
Buildup complexity gradually to enable the participants to manage
complexity before increasing complexity by adding new decisions;
The minimum number of rounds that is needed to get the
participants in a good learning curve and to create a good
understanding of the interrelationship between decisions is three
rounds;
Before adding themes, we advise that participants first play three
rounds in the first three levels of The Fresh Connection to
experience the need to breakdown functional silos and to translate
their strategy into action.

For references: www.thefreshconnection.biz

Learning dynamics and the learning cycle

The Fresh Connection offers a value chain learning experience based on the
philosophy of learning by experiencing as depicted in the figure below. By
publishing the results per round, participating teams can compare their results
and KPIs to competing teams which enhances the competitive element of The
Fresh Connection.

To enhance the learning experience it is important that the learning cycle is

completed and participants also reflect on their decisions and decision making
process, next to the instructor offering supporting literature and lectures to put
the decisions and themes within the relevant theoretical framework. In this way
the participants can link theoretical frameworks to practice and apply their insight
in the value chain learning environment of The Fresh Connection according to the
model presented below:

To further enhance the learning effect and create a deeper understanding of

Value Chain Management and the value chain concepts in The Fresh
Connection, we have designed a Standard Script Education..
In this Standard Script Education we have created a standardised script for the
use of The Fresh Connection in a course. Inbetween the rounds we have
designed a number of exercises and learning materials to enhance the
understanding and learning experience for the participants.
These exercises and learning materials have a modular structure, which means
that the order of topics and exercises can be changed, that certain items can
be left out and that materials can be added at will.
The building blocks of the Standard Script Education can therefore be used as
a basis for designing a course. We also added an estimation of the time spend
for students per exercise (this time spend excludes reading relevant literature
and further supporting lectures on Value and Supply Chain Management).
Below the setup of the Standard Script Education is given, including the topics
and exercises inbetween. The underlying files and materials will be send over
separately per your request.

Individual learning paths: the E-learning modules

As described before The Fresh Connection is played in teams of four participants.
To also allow individual learning paths and / or allow participants to already
practice the fundamentals of Value and Supply Chain Management in preparation
of the team experience, we also developed E-learning modules around The Fresh
Connection. Each of the E-learning modules is linked to a functional role in The
Fresh Connection. Therefore there are four E-learning modules of The Fresh
Connection:
-

Supplier Management (Vice President Purchasing)

Demand Management (Vice President Sales)
Capacity Management (Vice President Operations)
Inventory Management (Vice President Supply Chain)

In the E-learning modules of The Fresh Connection, the relevant concepts and
tools for each functional area are explained followed by a number of exercises
and questions related to the concepts and tools. Next to that, also exercises in
the value chain learning environment of The Fresh Connection have been
added. So participants are taken through the learning environment of The
Fresh Connection by means of questions and information they have to look up.
These exercises are followed by an integration assignment where the
participants have to demonstrate they have gained the needed insights and
knowledge. After passing this integration assignment, the participant plays
three rounds of The Fresh Connection in the specific functional role of the
module taken as show in the figure below:

Chapter

Topics Vice President Purchasing

In this chapter a number of topics will be presented that
are in the Vice President Purchasings scope of decision
making. The Vice President Purchasing needs to make
decisions in relation to these topics. These topics are
supported by the main relevant theoretical frameworks
and a number of literature suggestions and references.

Vice President Purchasings scope of decision making

In the figure below the area in which the Vice President Purchasing needs to make
decisions is presented. The Vice President Purchasing is responsible for taking
decisions in the area indicated below in blue:

Relevant theory and theoretical frameworks within The Fresh Connection in

relation to the function Vice President Purchasing are the following:
Supplier Relationship Management, Supplier Selection and Supplier
Collaboration

 Total Cost of Ownership

Negotiating Supplier Reliability, Trade Units and Payment terms
Single versus Multiple Sourcing
Buyers view versus supplierss view

Relevant theoretical frameworks for the VP Purchasing

Framework A. van Goor, M. Ploos van Amstel en W. Ploos van Amstel: Value
Density and Packaging Density

Supplier Relationship Management by Kraljic

 Buyers view versus suppliers view

Relevant literature for the VP Purchasing

Kraljic, P., Purchasing must become Supply Management, Harvard Business
Review, September- October 1983
Liker, J.K. and Choi, T.Y. , Building Deep Supplier Relationships, Harvard
Business Review, December 2004
Echtelt, F.E.A. van, Wynstra, F., Weele, A.J. van, Duysters, G, Managing
supplier involvement in new product development, a multiple-case study,
Journal
of
Product
Innovation
Management
25 (2008): 180-201

 Baily, P. , Farmer, D. , Jessop, D. , Jones, D. , Purchasing Principles and

Management, Prentice Hall, ninth edition, 2005
Carr, L. and Ittner, C. , Measuring the Cost of Ownership, Cost
Management, 1992
Degreave, Z. and Roodhooft, F. , Effectively selecting suppliers using Total
Cost of Ownership, Journal of Supply Chain Management: a global review of
purchasing and supply, 1999

Chapter

Topics Vice President Supply Chain

In this chapter a number of topics will be presented that
are in the Vice President Supply Chains scope of
decision making. The Vice President Supply Chain needs
to make decisions in relation to these topics. These
topics are supported by the main relevant theoretical
frameworks and a number of literature suggestions.

Vice President Supply Chains scope of decision making

In the figure below the area in which the Vice President Supply Chain needs to
make decisions is presented. The Vice President Supply Chain is responsible for
making decisions in the area indicated below in blue:

Relevant theory and theoretical frameworks within The Fresh Connection in

relation to the function Vice President Supply Chain are the following:
Inventory Management, safety stock settings for components and finished
products

 Production management: fixed period and production intervals

Determining lotsizes for Purchasing

Relevant theoretical frameworks for the VP Supply Chain

The Supply Chain Strategie, M.L.Fisher
Characteristics for different supply chains
Cost efficient supply chain:
focus on costs
Objective
Reliability against lowest cost
Capacity
Maximum utilization: push
driven
Inventory levels
Minimal inventories within the
chain
Lead times
Reduce when leading to lower
costs
Cooperation
Based on costs, reliability and
quality
Product and chain
Design at minimal cost
design
Organization
Centralized

Market-responsive supply chain: focus op

responsiveness
Responsiveness: quick response
Buffer capacity in the chain: pull driven
Smart inventories in the chain; substitute inventory
for information
Aggressively reduce lead times
Based on velocity, flexibility and costs
Modular design / postponement
Decentralized ICT driven

Source: W.Ploos van Amstel, based on M.L. Fisher What is the right supply
chain for your product ?

Outcome Driven Supply Chains, S.Melnyk

Collaborative Planning, Forecasting & Replenishment (CPFR, source

www.vics.org)

 The layer model by A. van Goor

SCOR model, Supply Chain Council

Relevant literature for the VP Supply Chain

Fisher, M.L. , What is the right supply chain for your product ?, Harvard
Business Review, March-April 1997
Melnyk, S. et al, Outcome-driven supply chains, MITSloan Management
Review, 2010
Christopher, M. , Logistics and Supply Chain Management, creating valueadded networks, Prentice Hall, 2005
Chopra, S. and Meindl, Supply Chain Management, Pearson Education,
third edition, 2007

Chapter

Topics Vice President Sales

In this chapter a number of topics will be presented that
are in the Vice President Sales scope of decision
making. The Vice President Sales needs to make
decisions in relation to these topics. These topics are
supported by the main relevant theoretical frameworks
and a number of literature suggestions.

Vice President Sales scope of decision making

In the figure below the area in which the Vice President Sales needs to make
decisions is presented. The VP Sales is responsible for making decisions in the
area indicated below in blue:

Relevant theory and theoretical frameworks within The Fresh Connection in

relation to the function Vice President Sales are the following:
Negotiating service level agreements (service level, shelf life agreement,
order deadline, trade units)Allocation policy in case of shortage / shortage
rule

 Pareto / ABC analyses as basis for customer differentiation

Managing demand variability by negotiating promotional pressure and
promotion horizon
Collaboration with customers: VMI, collaborative forecasting, on-shelfavailability

Relevant theoretical frameworks for the VP Sales

Customer priority setting / ABC analyses (on turnover, volume, margin, et
cetera)

Competitive strategies (Porter)

 Market growth strategies (Ansoff)

Relevant literature suggestions for the Vice President

Sales
Wallace, Thomas, F. , Sales & Operations Planning, Wallace & Co, third
edition, 2008
Global Commerce Initiative and Capgemini, 2016 Future Supply Chain,
2007
Kralingen, R. van en Jansen, M. , The end of traditional mass brands,
brandchannel.com

Chapter

Topics Vice President Operations

In this chapter a number of topics will be presented
which are in the Vice President Operations scope of
decision making. The Vice President Operations needs
to make decisions in relation to these topics. These
topics are supported by relevant theoretical frameworks
and a number of literature suggestions.

Vice President Operations scope of decision making

In the figure below the area in which the Vice President Operations needs to make
decisions is presented. The VP Operations is responsible for making decisions in
the area indicated below in blue:

Relevant theory and theoretical frameworks within The Fresh Connection in

relation to the function VP Operations are the following:
Setup times and Single Minute Exchange of Die (SMED) techniques
Lean Manufacturing / Kaizen / 5 S model / TQM / TOC
Capacity management and Product(ion) Planning

 Layout of production processes (line production vs functional setup vs

multiple skilled workers)
Make or buy in the area of warehousing
Conventional versus a fully automated warehouse

Relevant theoretical frameworks for the VP Operations

Balloon model, Theeuwes en Adriaansen

Relevant literature for the VP Operations

Adriaansen, J. , Towards a well-balanced, agile company, Every Angle,
August 2005

Slack, N. , Chambers, S. and Johnston, R. , Operations Management,

Prentice Hall, 5th edition, 2007