1. © The Delos Partnership 2007 page 1 Learning how the supply chain works The Supply Chain Visibility Simulation

2. © The Delos Partnership 2007 page 2 The Supply Chain Exercise Objectives: Demonstrate the role of Customer Service in the Supply Chain Demonstrate impact of different functions and their relationships How to improve Supply Chain performance Objectives: Demonstrate the role of Customer Service in the Supply Chain Demonstrate impact of different functions and their relationships How to improve Supply Chain performance

3. © The Delos Partnership 2007 page 3 The Supply Chain Exercise Your Brief: You are the supply chain decision makers responsible for delivering superior supply chain performance Your Brief: You are the supply chain decision makers responsible for delivering superior supply chain performance

4. © The Delos Partnership 2007 page 4 The Supply Chain Exercise Objectives: Maximise Customer Service Minimise Cost Objectives: Maximise Customer Service Minimise Cost Measures: Back Orders Inventory level & Factory Utilisation Measures: Back Orders Inventory level & Factory Utilisation

5. © The Delos Partnership 2007 page 5 The Supply Chain Exercise Customers Market 1Market 2Market 3Market 4 Warehouse A Warehouse B Hub Factory Direct Shipment market Hub Factory

6. © The Delos Partnership 2007 page 6 Supply Chain Exercise – opportunity to review learning points [can be repeated if required] Is this a robust Supply Chain What went wrong? What changes would you make to meet the BAT guiding principles? Lessons Learnt? What actions are required to improve Customer Service and/or account management in BAT ?

7. © The Delos Partnership 2007 page 7 The Supply Chain Exercise Major Messages Communication is key Different policies will affect supply chain performance Customer service for each market is achieved through the right use of tools and processes. Performance measurement is there ot help improve the processes.