DD
STORY OF HOW WE STAYED IN THE MIDDLE
Team ERPSIM
First off, let us introduce ourselves:
Araceli Santos
BriAnna Taylor
Tyler Ailshie
Maddison Cox
INTRODUCTION:
WHO ARE WE?
TEAM DD
Order of Presentation:1. Overall Financial Situation2. Sales3. Charts and Data4.Additonal Capacity5. Area6. Pricing7. Team Strategy8. Conclusion
Competition Ranking: 8th
FINANCIAL SITUATION
1 2 3 4 5 6 7 80
50000000
100000000
150000000
200000000
250000000
Bank Cash Account per Quarter
Total
Quarter
Euro
s
Team Finances:• Liquidity was
steady throughout quarters; never in the red
Overall profitability:• 5.8 MILLION EUROS • 19.5 MILLION TOTAL
SALES
INVESTMENTS:• MARKETING: 1 EURO
PER PRODUCT • SET UP TIME
REDUCTION: 5.3 HOURS
NET INCOME VS REVENUE
1 2 3 4 5 6 7 80
100000000
200000000
300000000
400000000
500000000
600000000
Revenue Versus Net Income
Sum of Net Income/LossSum of Calculated Revenues
Quater (Day 30)
SALES
1 2 3 4 5 6 7 80
100000
200000
300000
400000
500000
600000
700000
800000
900000
Overall Sales on Products
1kg Mixed Fruit Muesli1kg Nut Muesli1kg Original Muesli500g Blueberry Muesli500g Raisin Muesli500g Strawberry Muesli
Quarter Round
net
inco
me
• Our total sales as a team was one of our major strengths
• We ranked third out of all teams in total sales• € 19,547,904.55
• Top Selling Products• 1Kg Nut Muesli• 1Kg Mixed Fruit Muesli• 1Kg Original Muesli
ADDITIONAL CAPACITY
1 2 3 4 5 6 7 80
50000
100000
150000
200000
250000
300000
Production Quantity per Quarter
1kg Mixed Fruit Muesli1kg Nut Muesli1kg Original Muesli500g Blueberry Muesli500g Raisin Muesli500g Strawberry Muesli
Quarter
Qua
ntit
y
• Addition capacity was NOT used.
• We decided against additional capacity.
• We realize it might actually have been what we needed
AREA: COMPARISON BETWEEN TEAMS IN THE WEST
1 2 3 4 5 6 7 8WE
0
50000
100000
150000
200000
250000
300000
350000
Total Units Sold For Teams D and L in the West Per Quarter
DD LL
Quarter Per Team
Uni
ts S
old
• Had products that were 500g as well as products that were 1kg.
• We had an advantage against Team LL until Quarter 4
• In quarter 8, we surpassed Team LL
PRICING• EVEN THOUGH WE HAD VERY HIGH SALES,
WE WERE NOT AS PROFITABLE AS WE WOULD HAVE LIKED
• OUR TEAM STRUGGLED IN CONTAINING HIGH PROFIT MARGINS FROM OUR PRICING• GROSS MARGIN % - 50.423
• RANKED 9TH • NET MARGIN %- 30.104
• RANKED 8TH• QUARTER 4 PRICES WERE INCREASED AND
HAD A NEGATIVE IMPACT ON OUR SALES • FURTHERMORE, AS LONG AS THE PRICES
WERE KEPT BELOW THE MARKET PRICE, THE HIGHER THE VOLUME OF MUSELI SOLD
4.24
4.34
4.49 4.6
5.43
4.23
4.26
4.27
4.32
4.34
4.35
4.45
4.49
4.55
3.35
3.55
3.65
4.15
4.17
4.32
4.35 4.6
4.74
3.35
3.45
3.55
3.65 3.7
3.74
3.85
3.95
3.99
4.02 3.7
3.8
3.81
3.93
3.95
3.97
3.99
3.35
3.39 3.4
3.47
3.55 3.7
3.79
3.98
3.99
4.13 3.1
3.11
3.15
3.31
3.35 3.4
3.79
3.98 4
4.05
4.25
3.12
3.16
3.33
3.45 3.5
3.53
3.89 3.9
3.99 4
1 2 3 4 5 6 7 8
0100002000030000400005000060000700008000090000
100000
Pricing for 1kg Nut and 500kg Strawberry Per Quarter
1kg Nut Muesli 500g Strawberry Muesli
Pricing per Quarter
TEAM STRATEGY: OUR THREE STEP PROCESS
1.What was our goal?
We tried to be Walmart
(Walmart strategy: Low Prices, High
Variety)
2. How did we make ourselves different?
• Produced 1kg and 500 g boxes to enhance variety
3. Invest, Invest, Invest!
Marketing Execution:• 1 Euro per product
Investment: • Set up time reduction
was at 5.3 hours
CONCLUSION• OVERALL, WE REALIZED WE COULD NOT KEEP UP WITH
DEMAND. • OUR PRICES WERE TOO LOW, PROFIT MARGIN NOT HIGH
ENOUGH • ADDITIONAL CAPACITY SHOULD HAVE BEEN INITIATED.
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