1. Kick off

2. 2 An introduction to The Cool Connection TCC is a new web based learning experience that connects the physical and financial supply chain Participants form a Team consisting of four roles that need to manage a personal care production company called The Cool Connection As a new management team, the participants need to balance the constraints and manage the interdependencies of the physical and financial supply chain The team has to turn TCC around to a profitable company The participants will have to work closely together as a team to make strategic and tactical decisions Under uncertain market conditions, the team has to negotiate with their suppliers, customers, banks and credit insurers 2 What is The Cool Connection? What is the objective?

3. 3 33 Supply Chain Management manage production facilities and the warehouses optimize inventory levels handle inbound and outbound Purchasing define purchasing strategies negotiate with suppliers decide on payment terms with TCC's suppliers Sales define TCC’s marketing strategies negotiate with customers decide on payment terms with TCC's customers Finance forecast working capital needs and arrange external finance negotiate with banks and credit insurers manage credit limits TCC’s customers The Cool Connection The Cool Connection management team consists of four roles

4. 4 The Cool Connection has to negotiate with business partners  There are four groups of partners that TCC needs to cooperate with 44 1.Customers (buyer): TCC’s customers are both retailers and specialty shops 2.Suppliers: TCC sources its components from a wide range of suppliers 3.Banks: TCC relies on a limited number of banks for its payments requirement and external funding 4.Credit Insurer: TCC receives credit protection on its customers from a selected Credit Insurer Bank Credit Insurer Customer Supplier TCC

5. 5 55 Managing the interdependencies between the physical and financial supply chain Sales Purchasing Supply Chain Finance Cash/Loan Production/Inventory Components Payables Finished products Receivables Physical Supply Chain Financial Supply Chain

6. Individual & Team Development We Learn & Develop We Work Together We Experience Team competitive simulation environment strategic and tactical level decision making optimise finance & business performance manage the company in a team of 4 roles collaboration will be rewarded with substantially better performance drawing out key challenges and issues in Team Dynamics and Decision Trade Offs growth as a team Individuals Feeling Thinking Doing Watching

7. Components and Production Process BottleJarTexaponLiposomePreservatives Lemon drops Ice drops CoolClassic Lemon 10.05 0.002 CoolClassic ICE10.05 0.002 CoolGuy10.05 0.0020.003 CoolCondition1 0.040.0030.002 CoolCare10.0280.001 Five Finished Products made from Seven Components Components Inbound warehouse Mixer & Bottling Outbound warehouse Finished products Production set-up within TCC

8. Giga-Mart Germany 1000 stores MediStore Poland 600 stores Buns 'n Braids United States 200 stores Chique Fantastique France 80 stores Samantha's Netherlands 15 stores Omorose Egypt 400 stores Customers come from all over the world

9. Contract index Price setting You cannot negotiate directly on the sales price Negotiate on performance offer (SLA’s) This leads to a ‘contract index’ Contract index determines the sales price Example (sales) Same applies for suppliers and banks PromiseContract indexBasic priceSales price Much1.1€ 1.5€ 1.65 Little0.9€ 1.5€ 1.35