The (Board) Gamer’s Guide to Supply Management Part VIII: Agricola


It’s 1671, the plague that has raged for the last 323 years has finally been overcome, and you and your spouse are a simple farming couple living in a two-room hut somewhere in (very) rural Austria. Your goal is to improve your quality of life by improving your home, expanding your fields, and multiplying your animals (to sell in the nearby markets).

In Agricola, you do this over a 14-round game where each of your family members can take exactly one action (that has not yet been taken) in a round. In this round you can acquire resources such as wood and clay, harvest your crops, acquire livestock, or expand your family. Each of these actions will need to be taken, but must be timed appropriately You cannot expand your family before you can house (and feed) another mouth (or one or more family members will have to beg), but you cannot plant and harvest more crops without more family members. As a result, some actions will almost need to be paired and you will have to plan action sequences in order to not only survive the game, but win. The winner is the player who builds the best overall farmyard (which is judged on a variety of factors which include fields, pastures, stables, crops, animals, homestead, and improvements).

In this post we will discuss the basic “family game” play, which leaves out some of the more advanced components, as you will need to master the basic game before moving on to the more advanced one. (Just like you have to master the basics of multi-round sourcing sourcing negotiations before trying to do real-time optimization-powered auctions after a multi-round RFX to qualify the final bidders.) The difference is that occupation and minor improvement cards are left out and only the major improvement cards are used.

You start the game with 2 units of food if you are the starting player, and 3 otherwise. You can get more food from the harvest that comes at the end of rounds 4, 7, 9, 11, 13, and 14. (Just like in the real world, crops take time and you can’t harvest immediately after planting.) Food is produced from raw grain and vegetables, and grain and vegetables can be converted to food one-to-one at any time. (If you have a hearth, you can convert vegetables at better than a 1 to 1 ratio.)

Each round without a harvest has four phases:

  1. Begin: Flip over a new round card that makes a new action available.
  2. Replenish: Acquire new goods and food from any previous actions that have a recurring result.
  3. Work: In sequence, each player puts a family member to work by assigning an available action to them, which they will take. The action may yield an immediate or future result.
  4. Go Home: At the end of the round, the family members have finished their assigned tasks and go home.

If the round has a harvest, there are three more phases:

  1. Field: players remove one food unit from each sown field and places it
    into their personal supply
  2. Family Feeding: each player must feed each family member who was born in this round 1 food and each other family member 2 food; a player who does not have the food has to beg and borrow food, but that comes at a cost of 3 points (think 3 food units) in the future
  3. Breeding: any player with at least 2 animals of the same type may breed 2 animals to receive exactly one additional (baby) animal of the same type, provided there is space in that person’s farmyard for the animal

The following actions are always available:

  • Extend Your Hut or Stables : you can extend your wooden hut, ore renovate your wooden hut into a clay hut or your clay hut into a stone house if you have enough reed and wood, clay, or stone to do so. Alternatively, you can build stables to keep (more) animals
  • Extend Your Family: if you have more rooms in your hut than you have family members, and less than five family members, then you can add one offspring to your family (to put to work in later rounds)
  • Tend Your Fields or Bake Some Bread: you can plow an unplowed field, sow one or more plowed fields with grain or vegetables, or (if you have a fireplace, hearth, stone, or clay oven) convert grain to food
  • Raise Your Animals: in order to raise animals, a player must fence pastures or build stables (in a pasture),

Additional actions that may become available during the game (in the form of major improvement cards) include:

  • The Well: produces extra food (as your fields are better irrigated you produce more crop that becomes food)
  • Fireplace: allows you to convert grain, vegetables, and animals to food
  • Cooking Hearth: allows you to convert grain, vegetables, and animals to food
  • Basket Weaver: allows reeds to be converted to food
  • Stone Oven: bake bread from grain
  • Cabinet Maker: makes cabinets from wood that are traded for food
  • Pottery: makes pottery from clay that are traded for food

It’s just like managing an industrial farm at the back-end of agricultural supply chains. The amount of crop you can produce depends on how many fields you have, how many people you have working those fields, and how capable you are at optimizing the output, but the amount of fields you have available and the amount of people to tend those fields depends on how many of those fields need to be used for, or grow food for, the animals you are raising to supply meat to your customers who want grain, vegetables, and meat to stock their shelves and freezers. A field can only be used for one thing at a time, a person can only do one farm task at a time, and those farmhands need to be paid and fed. You have to balance supply with demand with profit and need. If you train your people, they can be more productive, but it costs time and money to do so (and maybe they’ll quit and go work for your competitor). And if you go into debt, the interest accumulates quickly because you’re essentially borrowing from legalized loan-sharks due to your low profit margins and limited clout.

And winning isn’t just profit, it’s sustainability and depends on a number of complex factors that influence your performance over time.

Are you the best agriculture supply chain manager? Play Agricola, challenge (up to four of) your teammates, and find out!

Acquiring e-Sourcing and e-Procurement Technology: What Questions Should You Be Asking?

Join Sourcing Innovation and the doctor for the next NLPA Members-only webinar on Acquiring e-Sourcing and e-Procurement Technology; What Questions Should You Be Asking. Taking place next Wednesday, February 26, at 8:30 am Pacific, 11:30 am Eastern, and 16:30 pm GMT (London) time.

This webinar, which follows Novembers webinar on Making Sense of e- in Sourcing and Procurement, will outline the critical questions that must be asked when searching for an e-Sourcing or an e-Procurement solution.

In our last webinar, we clearly defined the sourcing and procurement cycle, indicated where each technology (e-Sourcing, e-Negotiation, e-Procurement, e-Invoicing, e-Auction, e-RFX, e-Contract, e-Payment, Procure-to-Pay, Source-to-Pay, etc.) fell, outlined what each technology did, and indicated the conditions that needed to exist for each solution to potentially be appropriate for your organization. This provided your organization with a set of questions it could ask to determine what technologies it needed to focus on as it looked to acquire new sourcing and procurement technologies to support it in its Supply Management Journey.

However, just knowing that your organization needs a solution is not enough, especially if its biggest need is a basic e-Negotiation suite that is theoretically available from over two dozen vendors. Which solution, or solutions, are right for your organization? Depending on the needs of the organization, it might be the case that only two out of twenty solutions will appropriately address the organizational needs, but unless the right questions are asked, it might look like six meet the needs and the organization will have a 66% chance of selecting the wrong solution.

That’s why the doctor of Sourcing Innovation is hosting this follow-up webinar on Acquiring e-Sourcing and e-Procurement Technology; What Questions Should You Be Asking. You’ll learn the critical questions that must be asked when searching for an e-Sourcing or an e-Procurement solution, some important questions that should also be considered for each major module, and how to structure a (multi-round) RFX for Success.

To register for this free event, login to the NLPA and navigate to the “Webinars” tab where you’ll find a registration link. Be sure to enter a valid email address as attendance details will be sent to you by email. Registration is free (as is basic NLPA membership) but attendance is limited, so sign up soon to ensure access to this event. (If you have forgotten your NLPA password, please visit the NLPA password reset page.)

See you next Wednesday, February 26, at 8:30 am Pacific, 11:30 am Eastern, and 16:30 pm GMT (London) time.

The Storm Clouds Are Coming!

Fifteen years ago, enterprise software was installed on-premise and managed locally. This required organizations with no knowledge of IT or IT management to create IT departments to manage servers and the software services that ran on them. For an organization that didn’t use software in it’s daily operations — such as a manufacturing organization that used manual production lines, an advertising agency that deals in existential image and not physical product, or a real-estate agency that only has to take listings and take cheques — it was an expensive proposition.

Then came the Application Service Providers, better known as ASPs. Using the power of the internet, these software solution providers built their own data centres and hosted the solution for their customers on dedicated machines in their own data centres. However, this solution was not optimal either, as the organization was not only paying for machines, energy, and administrators to run the software, but also paying for these through a thirdparty that added overhead and markup.

This provided an opportunity for more enterprising software delivery organizations that were able to build their applications to be multi-tenant and host multiple clients on the same platform. This reduced the number of machines, kilowatts, and system administrators that were required and thus reduced the overall operating cost. This allowed this new breed of Software-as-a-Service (SaaS) vendor to take business away from the ASPs and advance the state of the art.

But this wasn’t the end. New enterprising software delivery organizations, who realized that their expertise was software and not data centre management, decided that they could do even better if they designed multi-tenant Software-as-a-Service solutions that could be run on someone else’s platform. This would bring more economies of scale into play as not only could multiple solutions could be run on the same platform, but the platform provider could be replaced by another platform provider with a lower-cost at any time. Enter the Cloud, which, like a real cloud is ephemeral, suspended in space, and, in some cases, full of security holes.

Cloud services are ephemeral as any specific instantiation of cloud services last as long as the company behind it has the means and the desire to continue supporting the cloud services. Cloud services are suspended in space since the instantiations may move over time as the service owners switch to lower-cost and/or more secure data centres. And, with the recent revelations on the PRISM program, the cloud is full of security holes to the point where the EU Parliament has called for suspension of the multi-billion ‘Safe-Harbour’ deal over NSA spying because some cloud providers don’t, either because they don’t have the expertise or won’t spend the money, secure their part of the cloud properly.

As a result, supply chains are exposed to additional risks of disruption (if a cloud provider unplugs overnight), security breaches (as some platforms are significantly less secure than others), and privacy risks (as some governments claim the right to all data on servers on their shore that is not associated with citizens or entities of that country or that might pose a security risk under acts like the US Patriot Act).

And this is only one of 14 significant threats to the supply chain in 2014. Would you like to know what the other 13 are? If so, download SI’s latest white paper on the Top Ten Transitions To Tackle in 2014 to Tame the Tolls, sponsored by BravoSolution. (Registration Required) Or, you could just wait and be surprised as the other 13, riding on black swans, one by one, strike at each full moon. Your call.

Basware: P2P for the Global “E” Part IV

In today’s post, we continue our introduction to Basware, a Finnish provider of enterprise finance solutions that serves the global e-Commerce, P2P, and AP Automation marketplace with over 2,000 international customers that collectively do business with over 1 Million companies in over 100 countries. In Part II we discussed the AP Automation and Invoice Processing solutions, the full Purchase-to-Pay process coverage from the Procurement and AP perspective, and the full compliance with e-Commerce, Taxation and Digital Signature Requirements that they offer in over 50 countries. Then, in Part III, we discussed the Basware Commerce Network (BCN). An open commerce network that connects almost 1 Million companies in over 100 countries through 170 partner networks, the BCN currently delivers over 60 Million e-invoices per year with a combined value in excess of $420 Billion and Basware expects to be processing over 150 Million e-invoices a year by the end of 2015 with a combined value in excess of $1 Trillion dollars. Part of this increase will be as a result of Basware’s new partnership with Mastercard, which provides suppliers’ a guaranteed payment once the invoice has been approved, and an early payment option as well. In addition, buyers can have extended payment time if they need it. In addition, cross-border payments, which take over a week on average, are simplified and generally executed at a reduced cost to both parties.

Today we are going to focus on their analytics capability, called Basware Analytics. Basware built their analytics platform on top of Tableau Software‘s Data Visualization Engine, a high-performance data engine designed to allow for real-time data analysis, visualization, and reporting. Using this engine as a foundation, they focussed on designing an analytics application that was useable by the average Spend Management professional and that presented that professional with over 80% of the information across the P2P cycle that a Spend Management professional needs immediately upon log-in.

Over time, Basware has built a suite of package reports that cover 80% of a Spend Management and Finance organization’s need for process and spend visibility to drive process efficiency. In addition, they provide a suite of templates that can be easily altered in such a way that, in most organizations, users are able to build reports that quickly cover most of the reporting needs not covered out-of-the-box within a few hours of deployment, and gradually build reports, possibly with the help of Basware’s services organization, that will let them achieve the remaining 20%.

The solution was designed from an AP and Procurement perspective and in addition to standard procurement reports which include, but are not limited to, total spend, geographical spend by organization or cost centre, top suppliers, top products, invoices received, procurement KPIs, and maverick spend, there are accounts payable reports which include, but are not limited to, invoices received, invoices received with or without a contract or PO, cash flow analysis, spend by supplier analysis, AP KPIs, AP Process and Cycle Times, and AP Financial metrics. Each report allows for real-time drill down and filtering on any dimension. Because the underlying analysis engine has been built to sit on top of all invoiced spend and related P2P data, the platform can address spend visibility, supplier performance, procurement performance, contract compliance, catalog coverage, cash forecasting and management, accounts payable and invoice management. With the visibility provided, you can dive into opportunity identification, process optimization, and rationalization.

Users can access the template behind any report and quickly customize it by adding or removing available dimensions, customizing filters, and tweaking the layout. A user can select which of the available data sources1 (which have been mapped to a common schema) she wants to use, specify the dimensions of interest (to build the cube), define the default ranges and allowable filters, choose the graph types, and modify the layout. The application supports all of the standard graphs and charts, including cloud charts (which is great for looking at search term history or the most common products and/or services being bought) and tree-maps, which give a quick visual representation as to which supplier, cost centre, product, etc. is accounting for the most (maverick) spend. It’s one of few, and most effective, implementations of cloud charts and tree maps that SI has seen to date.

The user does not require any technical skills to modify the templates to adjust or create new reports. This solution is optimal for giving more people within the organization real-time access to spend and process metrics, and allows the Procurement and Finance organizations to begin their spend analysis journey immediately. (In addition, if the user needs help or wants to add custom data sources, Basware has professional services personnel in North America, Europe, and Asia Pacific and offers a broad suite of support services, including supplier activation/onboarding, in 10 languages: English, Finnish, Swedish, Norwegian, Danish, Dutch, German, French, Spanish, and Portuguese.)

1 Even though reports are limited to Basware’s data sources out of the box, the customer has an option to extend the reporting solution to other data sources through the use of other Tableau Software tools leveraged by Basware.

Optimize Your Supply Chain (and Your Company’s Worldwide Operation)


Today’s guest post is from Srini Vasan, CEO of eShipGlobal, a Transportation Management Software Company.

Our new global economy has opened the door to more opportunities than ever. Businesses have never had so many choices for products and services, or the chance to work so efficiently across borders. Technology has expanded options, as instant communication has made it possible to carry on business in three (or more) continents simultaneously. And the global nature of these innovations makes supply chain management more important than ever.

Companies are beginning to recognize the importance of maximizing supply chain efficiency and minimizing costs. In a 2012 U.S. Supply Chain Survey conducted by IDC Manufacturing Insights, 80% of supply chain managers reported that reducing their total supply chain costs was a top priority. And supply chain improvements can have positive implications across the board: A freight transportation infrastructure study by Boston Strategies International showed that a 10 percent reduction in direct transportation costs would result in supply chain improvements that could reduce companies’ overall operating costs by 1 percent.

Successful management of a global supply chain can be daunting — there are so many moving parts than ever before — but there are steps that can help your company tackle the inevitable issues and take advantage of the opportunities.

Review Your Talent Pool — Three-fifths of the supply chain management executives who responded to a 2013 PricewaterhouseCoopers’ survey said that the “acquisition or development of supply chain talent and skills” was essential to their current success. Note the word “development”. Of course your company can hire new talent, but you can also better utilize existing staff by ensuring their skills are up to date. Provide ongoing and intensive training, whether through internal education or by outsourcing training to supply chain management academies.

Focus Your Energies While Broadening Your Horizons — It’s not just training that can be outsourced. Consider your company’s core competencies. Where does your company shine? What are the tasks your managers and staff must do? Are there any that could be done more effectively out-of-house? Outsourcing can focus your staff’s energies and help them perform at the top of their game. And keeping a global perspective can be very cost-effective. According to a 2013 white paper by Fifth Third Bank (on optimizing the global supply chain), analysts report that companies can substantially lower supply chain expenses by identifying countries or regions with low-cost suppliers (and by keeping managerial staff limited).

Communicate and Collaborate — An optimized supply chain is just that, not a bunch of independent activities and functions, but a chain. All of its links — from small internal departments to large global trading partners — must communicate with each other in order to optimize efficiency. Better communication and collaboration between manufacturers, suppliers and retailers can improve everything from data-driven forecasting to inventory management.

Today’s technology can make communication easier than ever. Andrea Robinson, the UK business development manager for CargoWise, suggests that “using a single automated database ensures trading partners can communicate in a language compatible with other companies to identify common key performance indicators that provide a level of integration for shared systems and processes.”

Embrace Technology — An investment in information technology is critical for supply chain infrastructure development. IT supply chain solutions can:

  • Organize and unify supply chain processes
  • Integrate department activities
  • Enable sharing of software and information resources
  • Provide metrics that help to evaluate performance
  • Provide transparency
  • Offer customer service
  • Identify trends and changes more quickly and enable the supply chain to respond faster to both

Mobile technology can also be a supply chain game-changer. According to Ms. Robinson, “This technology can help improve field sales, merchandizing and marketing, and enable direct services to the consumer (through customized location-based coupons or services that improve employee productivity in the field). Providing information such as provenance, origin, item contents and specialized information on demand about sustainability, local content or manufacturing methodology enhances the brand and allows companies to connect directly with the consumer.”
Of course, an investment in IT is like any other. It’s vitally important to assess your needs, conduct a thorough search, and carefully choose the right solution for your company.

Plan (but keep an open mind) – IT solutions can also aid in planning, by providing information that helps to predict needs, forecast trends, and identify strengths and weaknesses within a supply chain. Companies can (and should) utilize this information to set goals, remembering to be realistic, flexible, and open to input from collaborators. “Adaptability is key!” was one of the takeaways from a recent “successful supply chain optimization by HP” on supply-chain.org, the operator of the largest IT supply chain in the world.

By following many of the steps above, HP was able to “streamline, simplify, standardize” and profit. By optimizing its global supply chain, the company leveraged scale spend and common parts; consolidated suppliers manufacturing partners and logistics providers; eliminated unnecessary or duplicate nodes; reduced the number of drivers; and decreased the number of IT processes and applications used.

HP also learned a few lessons along the way. As mentioned, the company found that adaptability is crucial, as is business continuity, especially during transformational efforts. But the most important idea behind the company’s success is also one of the simplest: Strong organizational leadership is essential. In the end, a thoughtful plan created by collaborative, creative leaders is the strongest link in an optimized global supply chain.

Thanks, Srini.