Facilitator configurable parameters are
- Vendor settings, on-time delivery, payment terms, environmental impact.
MonsoonSIM's Procurement module provides learners with a dynamic simulation of procurement operations, allowing them to experience and develop essential skills in supplier management, inventory control, and strategic decision-making. By engaging in realistic scenarios and utilizing powerful analytics tools, learners can optimize procurement processes, evaluate supplier performance, and make informed decisions to enhance efficiency, cost-effectiveness, and overall supply chain performance.
Procurement Operations:
- Focuses on managing the procurement process for acquiring raw materials, production machines, and finished goods.
- Procurement for finished goods into retail stores or warehouse (if warehouse is ON)
- Procurement for raw materials and machines only into the warehouse (if production is ON)
- Requires strategic planning to ensure a smooth supply chain and meet production and customer demand.
- MonsoonSIM only supports average costing
- Each vendor will publish their selling price, lead time and volume discount. If FOREX is in play, some vendor may publish price in foreign currency and expected to be paid in the foreign currency, hence there may incur forex gain or forex loss depending on the currency fluctuation between the expense booking day and the settlement day. Sometimes, the vendor may run out of stock to sell, in that case, learners are expected to wait or to source the products from the web market.
- When making a purchase, you have the flexibility to choose between paying in cash or utilizing the vendor's credit limit (provided this feature is enabled by the facilitator). However, it's essential to note that vendors will withhold delivery if you're unable to make the payment or if you've exhausted your credit limit. Should this occur, your Purchase Order will be put on hold. The system will display a "Days Late Due to Insufficient Funds" notification, indicating the duration of the delay for that particular order. Your PO will be automatically cancelled by the supplier after lengthy delays.
- All procurement must need approval, mimicking real life check and balance. You cannot automate or disable the approval process.
Inventory Management:
- Essential for avoiding stockouts, minimizing carrying costs, and optimizing production efficiency.
- Monitoring inventory levels, tracking consumption rates, and utilizing forecasting tools to ensure sufficient stock availability.
- Some inventories are sold the day they arrive depending on your daily sales and your stock on hand.
Quality Control:
- Able to perform quality control to verify that vendors deliver undamaged goods. This only applies of FMCG (Fast moving consumer goods) is in play.
Supplier Performance:
- Vendors vary in reliability, especially when it comes to delivery times (lead time). Players can assess vendor performance based on past purchase history. Some vendors may consistently deliver late. Knowing which vendors are reliable is essential. Pricing can also be a factor; you might still choose a late vendor if they offer better prices.
Procurement Analytics:
- MonsoonSIM provides analytics tools to analyze procurement data and performance.
- Leveraging insights to identify cost-saving opportunities, optimize supplier relationships, and enhance overall procurement effectiveness.
The Procurement module in MonsoonSIM offers learners a comprehensive simulation of procurement operations, covering supplier management, sourcing methods, inventory management, cost analysis, and risk management. By actively engaging in procurement decision-making, learners develop valuable skills in supplier evaluation, contract management, and strategic procurement planning.
Note: The complexity of this module is configurable by the facilitator. It is recommended to start with the default configuration and gradually increase the complexity as the facilitator sees fit. This allows for a customizable learning experience tailored to the participants' needs and skill levels.
