Fundamentals of Channel Management
This business simulation game will give your students in-depth exposure into the challenges involved in making supply chains work. The simulation focuses on the development and management of business-to-business relationships between student teams who become either suppliers or distributors within an international business setting. Your students will learn to execute a supply chain strategy and deal with the complexities and conflicts of supply chain management. They will need to balance selfishness and short-term gain with the potential for greater reward resulting from building long-term business relationships. They will learn to negotiate, cooperate, and coordinate to achieve desired ends while focusing on win-win solutions.
The channel element provides the students with a full set of supply-chain options, allowing them to make investments to speed up and better coordinate the exchanges between business partners. The outsourcing component can help business students appreciate the complexities of supply-chain management and the intricacies of negotiation.
A group of venture capitalists will provide the seed capital for your student teams to start their simulated companies. They will become either suppliers or resellers in the microcomputer industry. All firms will have limited financial resources and complete accounting responsibility. Resellers must find suppliers who can produce the goods they wish to sell to the end user market. Suppliers must approach resellers to become their sources of supply. Your students will experience the complicated process of building relationships and putting channels in place. Achieving high level of supply-chain coordination will require extensive negotiations and trust between the involved parties.
As the exercise unfolds, suppliers make tactical decisions related to factory expansions and scheduling production to supply products for one or more resellers. They will need to optimize their production process, increase contract fulfillment and improve quality and reliability of the products they produce. Resellers will select a product portfolio and advertising budget, expand their sales channels and experiment with marketing campaigns to stimulate demand throughout the world. The quality of the supply chain relationship between the student teams will be the critical element determining each team’s performance in the game.
Almost any channel management (logistics) course where there is a desire to give students experience in setting up and managing a supply chain.
4 decision rounds, with each round taking 2 to 3 hours per student.
Balanced scorecard that measures profitability, customer satisfaction, market share in the targeted market segments, human resource management, asset management, manufacturing productivity, financial risk, preparedness for the future and wealth.
Your students can compete against their peers.