ERPsim Distribution Game
To: Dr. Shirley Stretch-Stephenson
Group C H
Members: Iris Huang
Yuankai Wang (GS)
After 2 trial rounds of ERPsim distribution game, our group got rank 2 out of 4 groups (actually climbing from rank 3 to 2). So everyone in the group is fully confident about the real game running in the upcoming week. After several discussions, we settled down our objective as the first seller of products 1L&500ml ClearPure bottled water. But the result coming from real running game is really out of anyone’s expectation. And the truth that we got rank 3 on Net Income ranking is some kind of shock on everyone’s mind. From my point of view, though, it is a great opportunity for us to look into all the operations and strategies we used, analyze all the rights and errors we made, discuss all the situation each member got into, perfect our knowledge and experience background on SAP ERP system. It is a failure, at the same time, is also a givengift. In this report, we will analyze the whole market as well as our company’s performance throughout the game. By comparing ourselves to the market, to the competitors, the differences will unveil the reasons: which part we did right, which part we made errors. Following the market analyze is our initial group objectives and strategy. Then we use section “discrepancy” to show the differences between our results to the objectives. After that, we analyze the whole group performance during the game by integrating the reports from each member. For results analysis section, we conclude all the problems we were facing and all the errors we made. Last but not the least, is the summary summarize concluding the whole reportvaluable lessons we got from this ERPsim game.
For the whole market, we will use several charts below to show the market demands in different termsperspectives. By products:
Chart 01: Total sales revenue for each product after 3 quarters From the chart 01, we can clearly see that the 1L & 500mL ClearPure are the major products on the market. They totally took 79.35% market share of bottled water, within this 79.35%, 1L took 42.46%, and leaves 500mL occupied 57.54%. So the 500mL ClearPure is the best product in this distribution game and 1L ClearPure follows closely. It is the same story when you check the quantities of each product sold on market in chart 02. By Areas:
Chart 02: Total sales revenue for each area after 3 quarters From chart 02, we can conclude that the area has highest demand for bottled water is North area due to its highest sales revenue of $796622.67, followed by West and South areas. By Competitors:
Chart 03: Sales performance of each group in every quarter
From the chart, we discovered all the groups as internal competitors in the classroom only took 54.05% market share of the whole market. The rest 45.95% has gone to those external competitors: bottled water importer companies. Due to we didn’t have the total sales revenue for each quarter of the whole market, it is impractical to draw any conclusion on the performance of us our company quarterlyfor each quarter. But from the chart, all the teams together here has a relatively steady contribution to the market throughout 3 quarters. And under this condition, we can start to compare the performance of each team in every quarter.
Group Objectives and Game Roles Review
Our goal is to be the No. 1 distributor on sales of the product ClearPure bottled water (including 1L and 500ml) in Germany. The operational objective is keeping the inventory turnover rate of ClearPure as fast as we can. That means we should keep adjusting our B-01 and B-04 products’ price according to plan and having a steady stock level on these two products. Financial goal is keeping the gross margin over...