1. Distribution Game

2. About ERPsim

3. ERPsim Lab: Development team
Research team
Prof. Pierre-Majorique Léger, Ph.D., Director ERPsim Lab (HEC Montréal)
Prof. Gilbert Babin, Ph.D. (HEC Montréal)
Prof. Jacques Robert, Ph.D. (HEC Montréal)
Prof. Robert Pellerin, Ph.D. (École Polytechnique de Montréal)
Prof. Bret Wagner, Ph.D. (Western Michigan University)
Technical team
Jean-François Michon, M. Sc. (HEC Montréal)
Arnaud Paquet, BAA. (HEC Montréal)

4. What is ERPsim ? Automated by ERPsim Automated by ERPsim
Sales
Automated by ERPsim
Procurement
The game provides a complete overview of the full cash-to-cash cycle of a distribution company including planning, procurement and sales. The simulator will automate some of the transactions in the process, allowing you to focus on the more strategic decisions and transactions.
Automated by ERPsim
Planning
Automated by ERPsim

5. Introduction to the distribution game

6. ERP Simulation Games: Pedagogical objectives
To show how 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

7. Distribution game
In groups of 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 operation

8. German market 6 products (boxes of 12x1L and 24x500mL) North
3 areas with distinct marketing accounts
One distribution channel : 18
Market size of about € 6,000 per company per day
North
45 retailers
West
40 retailers
South
38 retailers

9. 6 products Product Code Product Description Units in box Cost of boxes
1L ClearPure
12 bottles
11.99
$$-B02
1L Spritz
14.99
$$-B03
1L Lemon Spritz
16.99
$$-B04
500mL ClearPure
24 bottles
$$-B05
500mL Spritz
19.99
$$-B06
500mL Lemon Spritz
22.99

10. Game layout
20 days
20 min

11. Rules of the game Each round will be of 20 days (1 min per day)
End-of-round inventory is carried over to the next round
You can sell a product only if you have it in stock
You compete against the other teams and importers
Your objective is to maximize profit

12. SAP Navigation

13. 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

14. 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 favourites with the commonly used transactions

15. SAP Menu & Navigation Extras / Settings / Display technical names
Show some navigation. Begin by changing the settings to view the transaction codes. Browse the SAP menu to illustrate the depth of the system.

16. 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

17. 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

18. 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

19. Participant’s job aid
The job aid describes the set of transactions that must be performed by the participants.

20. Let’s get started! Set up teams:
Max 4 persons : User 1 to User 4
Up to 26 companies : A to Z
Log in using user name and password by your instructor.

21. 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

22. Distribution Game: Round 1
20 min
20 days

23. Cost, inventory & initial pricing
Material
$$-B01
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
Name
1L ClearPure
1L Spritz
1L Lemon Spritz
500mL ClearPure
500mL Spritz
500mL Lemon Spritz
Size 1L
500mL
Number of bottles in package 12 24
Cost
€11.99
€14.99
€16.99
€19.99
€22.99
Initial price
€17.99
€25.99
Initial stock
1,000

24. The Distribution Game: Round 1 (20 Days)
You need to maintain 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

25. Participant’s job aid & Menu

26. Maintain Prices for DC 18

27. Marketing expenses

28. 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

29. Stock in material overview

30. Check sales order report

31. Check summary sales report

32. Check market report

33. The Distribution Game: Round 1 (20 days)
We start the simulator for 20 days

34. Distribution Game: Round 2
20 min
20 days

35. It’s time to replenish !
You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold.
Material
$$-B01
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
Name
1L ClearPure
1L Spritz
1L Lemon Spritz
500mL ClearPure
500mL Spritz
500mL Lemon Spritz
Initial forecast
1,000
Replenishment lead time
Up to 3 days
Note to instructors: In Round 2, we propose that students do not change the forecast – and do it only in the 3rd and final Round.

36. Participant’s job aid & Menu

37. Execute MRP

38. After the MRP run

39. Convert purchase requisitions into purchase orders

40. Track purchase orders

41. The Distribution Game: Round 2 (20 days)
We start the simulator for 20 days

42. Distribution Game: Round 3
20 min
20 days

43. 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
$$-B01
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
Name
1L ClearPure
1L Spritz
1L Lemon Spritz
500mL ClearPure
500mL Spritz
500mL Lemon Spritz
Initial forecast
1,000
Replenishment lead time
3 days
Note to instructors: In Round 3, you introduce the concept of forecasting.

44. Participant’s job aid & Menu

45. Forecasting

46. The Distribution Game: Round 3 (20 days)
We start the simulator for the last 20 days

47. Debriefing