Supply Chain Management - Networked Thinking: Win-Win or Zero-Sum Game?



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Is the cooperation between the catering industry and suppliers now a win-win situation or a zero-sum game for both? Supply Chain Management - Networked Thinking: Win-Win or Zero-Sum Game? retro

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Here writes for you: Erwin Langmann is a consultant for risk management with a focus on transport, logistics and supply chain management. Profile

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Overview

The host needs a large amount of his drink. One hectolitre costs the manufacturer 20 Euro (valued at production costs). Usually, the hectoliter is sold to the host with a net selling price of 60 Euro.

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For his part, he can earn a net sales price (without taxes) of 120 Euro at the summer party. The seller and the landlord expect sales of about 130 hectoliters.

A milkmaid calculation

Overview

"A milkmaid bill," the seller cheers inwardly, "I just have to provide 30 hectoliters for free. That costs me only 600 Euro (production costs per hectolitre times free hectolitre liter).

However, the landlord has a monetary advantage of 1800 Euro (net selling price per hectolitre times free hectolitre). This is a win-win game for both of us. At the next big event with the innkeeper, I'll get it back in quickly. "The seller is happy. The innkeeper should be too. Or?

You see what you do not see

Overview

Beginning of 19. In the 19th century, the French economist Frederik Bastiat dedicated his life to the elucidation of economic myths in works such as the Parable of the Broken Window or the Petition of the Candle Makers.

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He called his work "What you see and what you do not see." In it, he devoted himself to the thought traps in the world of economics and targeted many professional groups that were only able to assess the visible; her thoughts were not thought out in many cases.

Win-win or zero-sum game?

Overview

Maybe almost 200 years later, we have a mistake in thinking? Let's take a closer look!

The landlord actually saved 1800 Euros because he got 30 hectoliters provided free of charge by the manufacturer, which he would otherwise have had to pay for the full purchase price. But what about the manufacturer?

The bill without host

Overview

It has to bear not only its production costs of 20 Euro per hectolitre, but also the loss of the contribution margin (DB) of 40 Euro per hectolitre.

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The lost DB is the normal selling price of the manufacturer to the restaurateurs minus the promotional price. Consequently, the calculation looks as follows:

  • Visible manufacturing costs according to the cost calculation of 600 Euro (these are the money costs, which also appear in the cost calculation).
  • Invisible costs in the form of escaped DB of 1200 Euro (these are the alternative costs that do not appear in cost accounting).
  • Visible costs and non-visible costs add up to 1800 Euro.


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