MonsoonSIM Analysis
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Monsoon Simulation (MonsoonSIM) is a business simulation game that leaner can get knowledge and understanding of how business enterprise is run with ERP concept.
Assignment:
- Analysis MonsoonSim from competition during classroom.
- Game set up: 5 teams (Axis, Noname, Random Click, Shiba Inu, and THE FRAME) with 35 days
- Only Warehouse&Logistic, Retail sales, Marketing, Accounting, Procurement and Planning model are selected (this time does not have production, maintenance, wholesales, HR)
Objective:
- Analysis strategy of winner team (My team got 2nd winner. 😢😭😰)
How to start analysis:
- After completion, I think it should start from Top view analysis.
To understand market overview, all team strategies, etc.
Brief information from overview analysis:
- The market share of 3 products are not much different (37.92% for apple, 31.51% for melon, and 30.57% for orange)
- Bangkok has outstanding demand (89.89%), ~10% for other cities
- Demand has significate increased after date 33
- Forecast demand and Real demand are big different but same direction
- Location strategy
- Random Click, Shiba Inu, and THE FRAME select 3 location
- Noname and Axie select 2 location
- Axie is not selected Bangkok - Unit sold of Noname is highest 88,618 but Shiba Inu has highest profit
- Only 3 teams have positive profit (Noname, Random Click, and Shiba Inu)
- The summary is also shown in top right corner of presentation
How do Shiba Inu win?
- After understanding the overview picture, this page will find out the root cause. Why do Shiba Inu win?
- The high profit comes from 2 causes (high revenue and low expense)
Moreover, high revenue consist of 1) high volume and 2 high margin
- 1st figure shows the time series of profit (focus only 3 positive profit teams). Winner = Shiba Inu, Noname got 2nd winner because they have significate profit increasing in last day.
- In terms of revenue, Noname has the best Topline when compare with other teams because they have highest sale volume (88,618) with highest selling price (28.67).
- Shiba Inu has significate cost control. They do not spend too much money on marketing but they use low price strategy to maintain market share. However, it is not the major cause to get winner.
- Shiba Inu also have excellent inventory movement especially apple. I think this is the major cause that they can gain profit more than other teams
- Note: Although Noname has only 2 warehouse locations, they have higher rental expenses than others due to over warehouse capacity.
- Date 24 onward, Shiba Inu use low price strategy to maintain market share.
- Noname has significate high profit in last day because they select proper Media (Media B) for apple. The sale volume of apple of Noname has outstanding high when compare with others. However, the money, that Noname spend, do not generate significate high for other products
Key highlight (for short game):
- To be the winner, we cannot focus only on revenue or expense. We have to focus on both.
- Location strategy is very important. BKK = ~90% of total demand !!!
- For revenue, we have to balance volume and pricing.
- Marketing strategy is very important → Reducing selling price or Promoting via media.
- Media selection → Some media good for apple, some media good for melon
- Accuracy of forecasting → Manager inventory for sell - For costing, sizing of warehouse is very important. (not too big or too small), Media testing (if sell volume does not increase after promote, we should find new one)
- Moreover, inventory turn over rate is the key.
My team are only beginner of this game. However, I think it is good game that we can learn how business run.
Please feel free to contact me, I am willing to share and exchange on topics related to Data Science and Supply Chain.
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