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Customer List |
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General Motors
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Sandia National Labs
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US Navy
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Sand Finance
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IBM SBC Communications
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BellSouth
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Ziff-Davis
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U.S. Dept. of Energy
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Dupont
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Dow Chemical
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Eli Lilly & Co
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Case Studies: Nestlé
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Training and Development- Supply Chain Analysis |
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"We believe the collaboration between SAP and Powersim to provide business simulation
software will enable Nestlé to make more intelligent decisions about allocation
or our resources. Simulation of dynamic business scenarios based on real world data
in our SAP solution will improve our decision making through the use of alternative
business scenarios and likely outcomes."
Bernard Teiling
AVP Business Process Integration
Nestlé SA, Vevey, Switzerland
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The Challenge
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Supply chain knowledge is becoming more and more critical to ensure competitive
supplies of goods and services, especially for large companies dealing with a complex
network of suppliers, customers, distributors and consumers. All parties in the
chain need to have a particularly good grasp of how their individual activities
work together and affect the performance of the whole supply chain. At Nestlé, Key
Performance Indicators (KPIs) provide the standard metrics for measuring supply
chain performance. Nestlé launched a new initiative to communicate the value and
use of KPIs to line managers. |
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The Solution
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Nestlé used Powersim technology to develop a simulation model representing the operations
of a fictional firm, "OK Company", and incorporated this learning environment within
a supply chain workshop at Nestlé's International Training Center in Vevey. The
OK Company Simulation puts workshop participants in charge of factories and distribution
centers in three different regions. During the course of six simulation years, participants
face a number of decisions relating to production capacity, distribution center/factory
closures, product range, and cycle times. At the end of each year, users can view
a variety of reports showing KPIs (such as inventory turns, stock cover, and service
level) and other financial/operational metrics for different products and regions. |
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The Results
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Currently, about 250 people participate in the OK Company Simulation annually. Nestlé
and Powersim engaged in an effort to deploy the OK Company Simulation on the Web
allowing the model to reach a wider audience.
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