Powersim Solutions is mentioned in the CIO Enterprise article about Supply Chain Management at Nestlé.
Food company giant Nestlé SA feels so strongly about the need for a supply chain perspective that it has devised a short training program for its managers from around the world at its International Training Centre in Vevey, Switzerland.
Executive Vice President and CFO Mario A. Corti expanded his awareness of supply chain strategies while CFO of Nestlé USA in Los Angeles… He has now motivated the company to teach its managers to relate supply chain decisions to the future market valuation of the company.
The program uses a modeling tool from Powersim Solutions (formerly Powersim Corp.) of Herndon, VA., that “captures some simple ideas about how goods are flowing from supplier to manufacturer to distributor to consumer,” says Bernard Teiling, assistant vice president of business process integration at Nestlé headquarters.
Over a day-and-a-half, managers simulate the next six years of supply chain management and the consequences for the company as a whole. Typical options include optimizing factory performance, increasing the flexibility of production at one or several factories with highly seasonal demand, perhaps closing another, shifting distribution centers or helping a retailer manage inventory. The complexity builds progressively.
The 2-year-old training project is now expanding into some country units of Nestlé, bringing together managers of product divisions and national markets. “In the consumer packaged-goods-industry,” Teiling says, “you succeed only if the entire supply chain functions properly.” Hence the need for managers from different departments to work together. “In the same way that an instrument panel has many variables, a supply chain is a combination of responsibilities that come together, so we have at least three people share the scenario…one may be from manufacturing another from distribution, another from sales and marketing; they need to come together to understand how they jointly create value.”
CIO Supply Chain Management Article PDF (1.7MB)