gcl group corporate brochure
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GCL group company profile overviewTRANSCRIPT
GCL GROUPLogistics Consulting
www.gclgroup.com
Traceability
Reactivity
Control
Effectiveness
Knowledge
Globalisation
GCL GROUPLogistics Consulting
Trends• Traceabil ity • Reactivity • Control • Effectiveness • Knowledge • Globalisation •
CONTROLThe nature of competition differs in all sectors.Direct competition between businesses leavesroom for research on how to best manage infor-mation fluctuations all along the supply chain.The increasing refinement of supply chain soft-ware technologies offers the possibility ofimproving integration and productivity. The moreintegration, the higher the client satisfaction,the shorter the total duration of the cycle, andthe less errors. In many cases it also allows us torealize savings whilst maintaining absolute con-trol over commercial activities and logistics. EFFECTIVENESSMarket globalization and the advent of e-com-merce have transformed the nature and struc-ture of logistics functions. The best distributionsystem wins the game. Given the speed at whichtechnology is changing, businesses must period-ically renew their equipment and software inorder to remain competitive. They absolutelymust remain on the cutting edge of technologyto be able to consolidate the various supplychain components and accelerate the flow ofinformation.KNOWLEDGELogistics sector contributors and suppliers oflogistics services must have a vast knowledge oftransportation, warehousing and internationalgoods transportation regulations with whichthey must comply. Governments modify theirregulation and compliance procedures and thesechanges influence logistics activities.Logisticians must therefore adapt rapidly to newenvironments. Transport services deregulationand technological progress have brought on animprovement in logistical systems and growth inproductivity.GLOBALIZATIONLogisticians must know and understand interna-tional systems of trade and logistics as well asoverseas regulation systems and ethical codes.They must also possess linguistic competenciesand cultural awareness in order to successfullydeal with worldwide partners within the supplychain. Similarly, they must be expert users oftechnology and be capable of formulatingstrategies that allow them to draw a competitiveadvantage from technology.
Economic borders are crumbling, trade is skyrocketing, information is being transferred at the
speed of light, everywhere you look things are changing drastically. To stay ahead of the game, many
organizations are reviewing and revamping their entire Supply Chain. It is no longer enough to
make a quality product and sell it at a competitive price. Today, you have to go beyond what cus-
tomers expect. You have to do more with less. And faster than ever before.
Many new demands are being made with regards to rationalization and productivity, custom
manufacturing and the production of smaller lots, just-in-time delivery, improved customer service
combined with lower costs, etc.
From raw materials to finished products, the problem is almost always the same: how to opti-
mize the movement of products and reduce processing time to meet customer demands more effi-
ciently.
Creating shareholder value through increased net profits and better capital cost allocation is
part of our daily challenges as we provide our clients with solutions to improve efficiency, reduce
order management costs or improve asset utilisation. GCL Group’s sophisticated analysis and man-
agement techniques can help your company eliminate processes throughout your supply chain
which have no added value for your customers.
TRACEABILITY
Real time information becomes imperative for businesses concerned with improving efficiency
while optimizing customer service levels. Today’s consumer demands a wider range of products,
requiring complete traceability on delivered goods. Integrating partners in the development and
manufacture of the products requires operational precision indicating the origin, the transforma-
tion, the component assembly and subset composition. The information and its availability on
shared technological platforms becomes essential in following products along the supply chain.
Information standardization and the introduction of electronic microchips containing information
unique to the product will grant businesses absolute control and security while pursuing optimum
profitability.
REACTIVITY
The technological revolution and the Internet are changing the structure of baseline sales
costs, purchasing, the supply chain and distribution channels. The classic obstacles of time and
infrastructure that once closed this sector to certain businesses hold less and less importance. What
counts today is speed of execution rather than size. The Internet allows numerous enterprises to
integrate within virtual collaboration networks linking manufacturers, clients, brokers, agents, dis-
tributors, suppliers and wholesalers, for the ultimate advantage of the end user. The networks make
it possible to raise customer service levels, productivity and financial profitability while reducing the
total length of the cycle, repairs and returns.
Overview ofimportant trends
Optimal Integration
of the Supply Chain
GCL GROUPLogistics Consulting
Supply Chain
Our client is a world leader in thedesign, provision and manufacture of innovative aeronautic products and servicesdestined for the regional and commercialaircraft markets. The company has a global presence and is renowned for the quality ofits products and its constant devotion todeveloping aircraft on the cutting edge oftechnology. Today, its active fleet includesseveral thousand aircraft and thus requires afirst-rate post-sales support infrastructure.Over the years, the expansion of the distri-bution centre network across the world wasconducted in a decentralized manner, amethod no longer valid to meet today’schallenges.In the framework of a project centringon the continuous improvement of ourclient’s logistics operations, GCL Group wasinvolved in a strategic analysis of the distribution network in place to serve existing and future clients. GCL Group carried out a strategic study targeting acomplete reconfiguration of the spare partsdistribution network across the world. Fromthe customer service process to the reviewof business partnerships, the project teamstrategically revised its methods and practices in order to improve the availability of its spare parts and consequently better its customer serviceperformance. To do this, we evaluated service levels and delivery times, performedanalysis of activity-based costing (ABCCosting), and completely modelled the spareparts distribution network backed by ananalysis of client segmentation. We usedsimulation tools to support our recommendations. Finally, our recommenda-tions led to the outsourcing of operationsand the strategic deployment of inventory inthe service centres in order to optimizeglobal coverage and amortize the company’sassets.
Presentation of a real-life corporate case:
Spare parts
- Aeronautics
• Traceabil ity • Reactivity • Control • Effectiveness • Knowledge • Globalisation •
In a global market, it is crucial to distinguish oneself from the competition; more and more,
customers are basing their choices on customer service over cost and quality. Supply chain
management provides them with this tool for competitiveness. Company directors with foresight
have realized that supply chain management affords them an overview of their business affairs
which guides them in strategic decisions and helps them to identify client-related problems. The
supply chain is the backbone of the business. It consists of a process that links all physical activities
from purchasing and manufacture to distribution and customer service.
All these elements must be managed in concert. Good practices involve balancing and
managing compromises. Cost reduction in one sector can increase costs in another. Reducing the
number of warehouses for example, can lead to a rise in transportation costs and have an impact on
customer service if not adequately managed. Satisfying client demands can only be achieved thanks
to a structured cost management process. Today’s shareholders exert constant pressure on
businesses to reduce operation costs while offering better service levels.
SUPPLY CHAIN OPTIMIZATION IS GOVERNED BY THE FOLLOWING PRINCIPLES:
Chain-wide performance measures: Implementing channel-spanning performance indicators.
Measuring order fulfilment and customer profitability between partners;
Customized logistics network: Implementation of a logistics network to serve specific customer
segments, requirements and geographical regions. Client segmentation and analysis of individual
profitability, adaptation of a strategy to balance service with profitability;
Activity-based costing: Precise process mapping of logistics operations. Identification of cost
and resource drivers. Business modelling, benchmarking of model. Development of decision models
to perform product costing, client costing and sensitivity analysis;
Collaborative forecast planning: Integration of planning processes through the entire supply
chain. Sharing of sales and forecasting information through initiatives like Vendor Managed
Inventory. Challenging the current manufacturing and transformation locations to reduce the
demand variation sensitivity. Postponement of the ultimate transformation point in the supply
chain;
Strategic sourcing: Performing ‘make or buy’ analysis of non-core activities. Development of
partnerships with principal suppliers. Supply models, analysis of purchasing policies, algorithms,
forecasting and demand methods;
Purchasing practices: Analysis of demand pattern and suppliers’ practices to minimize product
handling. Implementation of drop-shipment practices and ordering quantity re-evaluation.
Implementation of total cost practices to incorporate warehousing costs into volume deals.
Establishment of supplier performance program;
Integrated technology: Recognizing that information required to enhance the supply chain
resides outside the company. Facilitating data exchange through e-commerce.
The impact of new regulations, the rise in operational costs and the pressure of financial per-
formance lead companies to re-evaluate their distribution methods. From the supply of raw mate-
rials to the delivery of the finished product, organizations’ transportation and distribution networks
are more and more being considered an important part of the total logistics cost. The control and
optimization of transportation and distribution operations allow companies to remain competitive.
Visionary leaders have realized that optimal configuration of their logistics network enables them
to remain highly reactive, which guides them in their strategic decision-making process, and assists
with identifying problems or responding to customer issues. The configuration of the distribution
network, along with the optimization of the transportation process, is indisputably the most impor-
tant factor influencing the logistics performance of an organization.
All these elements must be integrated and managed skilfully. Good practices require proper
balancing and managing tradeoffs. The reduction in costs in one sector of activity can increase costs
in another. The reduction in transit times, for example, can lead to the increase of transportation
costs and have an impact on customer service if not managed adequately.
THE FOLLOWING PRINCIPLES GOVERN THE OPTIMIZATION OF THE DISTRIBUTION AND TRANSPORTATION NETWORK:
Strategic Assessment of Distribution Networks: Optimization of manufacturing centre
positioning, optimization of distribution centre roles and positioning. Assessment and effect of
transportation methods, simulation of distribution networks. Selection of optimal algorithms to
reduce operational costs while optimizing the level of customer service;
Network Inventory Deployment: Analysis of inventory control practices, review of performance
and inventory coverage, segmentation and specialization of distribution centres, simulation of
service levels. Recommendation to improve responsiveness to customer’s requirements and reduce
logistics costs;
Assessment of Transportation Strategies: Organize transportation (roles and responsibilities),
assessment of optimization tools, transportation procedure deployment, transportation capacity
optimization, minimizing empty loads. Development of reverse logistics optimization strategies,
establishing performance indicators and follow-up of transportation operations;
Optimization of Private Delivery Fleet: Optimization of delivery routes using simulation
software. Selection of optimal algorithms to reduce travelling, costs and working hours while
minimizing the number of routes;
Assessment of Transportation Practices: Analysis of transportation practices (carrier selection,
rate, and frequency). Recommendations to improve responsiveness to customers’ requirements and
reduce transportation costs.
High-performanceStrategic Configuration of the Distribution Network
Effective Organization and Execution of Transportation
GCL GROUPLogistics Consulting
Transportation and Network
Our client is an important producer,carrier and distributor of electricity in NorthAmerica, building infrastructures for elec-tricity production and transportation, andexploring other sources of energy. Created in1944 by the Quebec government, its soleshareholder, the company supplies electrici-ty to more than 3.5 million customers inQuebec. It also contributes its expertise forthe benefit of its clients all over the worldand, backed by a team of seasoned experts,offers a broad variety of services in the ener-gy sector.
Within the framework of a projectfocusing on Continued Improvement of
Logistics Operations, GCL Group wasinvolved in a series of projects to complete-ly revise the company’s distribution network.Using GCL Group’s extremely powerful mod-eling tools; we began by modeling the com-pany’s network and then used the model toformulate various scenarios for networkoptimization. We thus studied concepts ofsite specialization, variation in delivery fre-quencies, modification of storage policiesand others factors in order to define an opti-mal solution. The network model, backed bya detailed economic analysis, allowed us torecommend consolidation of the networkinto two principal sites, specialization ofstores, development of a concept of satellitewarehouses of various sizes and optimiza-tion pole yards. The recommended scenariois currently in the process of being imple-mented and should generate substantialsavings for the company.
Presentation of a real-life corporate case:
Public utility
- Electricity
• Tra ceab i l i t y • Rea c t i v i t y • Con t r o l • E f f e c t i v ene s s •
The importance and strategic role of the logistics function, is a source
of constant concern for world class organizations. This forces companies to
constantly re-evaluate their productivity level, their use of assets and their
level of understanding regarding their overall operations. The optimization
of logistics operations combined with performance re-evaluation allows
logisticians to remain competitive. Visionary company directors have real-
ized that keeping their logistics activities on the cutting edge of technolo-
gy enables them to remain highly reactive and integrated, guides them in
their strategic decision-making process and helps them to identify prob-
lems and respond to customer needs. Logistics efficiency gives companies a
leading edge and position from which they can better meet increasing cus-
tomer demands. It consists of a combination of activities that revolve
around the distribution centre including inventory management, labour
efficiency, financial performance and operational flexibility.
All these activities must be integrated and organized in order to offer a
reactive, secure, complete service while minimizing operational expenses.
Good practices equal proper balance and management of compromises.
Cost reduction in one sector can cause an increase in another. Inventory
level reduction, for example, can ultimately lead to deterioration in cus-
tomer service, if not managed adequately. In the same way, an inefficient
operation can have a negative impact on a company’s commercial efforts.
THE FOLLOWING PRINCIPLES GOVERN THE OPTIMIZATION OF LOGISTICS OPERATIONS:
Organizational Analysis: Assessment of organizational structure and
interrelation of departments. Review of organizational issues (power strug-
gles, irritants and communication problems). Brainstorming with employees
to establish cause-effect diagrams;
Operational diagnosis: Conduct short initial study to provide clients with
an outside evaluation of their operation. Implementation of the logistics
function in the company. Audit established working methods. Recommend
and document new processes;
Customer Service: Analysis of customer service organization and its role
within the company. Evaluation of procedures, recommendations, and
implementation of key performance indicators;
Inventory Diagnosis and Strategy: Diagnosis of inventory practices,
systems and control mechanisms. Analysis of inventory levels, rotation,
excess and obsolete stock. Analysis of storage strategies and product
positioning related to overall inventory velocity. Analysis of inventory control
practices. Recommendation on control systems to reduce discrepancies,
variations and inventory losses. Development of procedures to ensure
proper inventory control. Audit of operations to ensure application of
inventory control procedures;
Facility Design and Optimization: Analysis of current operations, capaci-
ty, stock levels, transactions, working procedures and productivity.
Definition of design parameters. Development of applicable technologies
and operational constraints scenarios. Recommendation of an optimal solu-
tion based on cost/benefits analysis. Optimization of operations based on
available locations, storage and material handling equipment. Utilization of
state-of-the-art technologies to support industry trends. Optimization of
product positioning to reduce travelling and increase productivity;
Development of operational standards: Detailed analysis of working
methods and processes. Development of time standards for each specific
activity based on engineering methods. Benchmarking of standards with
world class industries;
Support and Concept Implementation: Establishment of proposed
concepts following an operational analysis. Supplier and project manager
selection, contingency plan and product removal;
Reverse logistics: Introduction to reverse logistics flows. Implementation
of returnable containers throughout the supply chain. Management of cores
and returns.
Precise and Effective Logistics Execution
GCL GROUPLogistics Consulting
Logistics
Our client is one of the biggest producers anddistributors of chemical and related products world-wide. The company, strongly diversified, possessesinstallations across the world. It is renowned for thequality of its products, its research and developmentas well as its environmental consciousness.Within the scope of this project to reorganize
logistics operations for the Toronto region, GCLGroup was involved in a series of projects comprising:the diagnosis of overall logistics performance, thedevelopment of short-term recommendations, provid-ing guidelines for performing an intensive exercise inorder to estimate future sales, product lines, orderprofile, inventory turnover, assistance in the establish-ment of design criteria, developing scenarios for opti-mizing productivity, space utilization and increasedinventory control, a financial analysis of the developed
options and recommendations for the company’s man-agement committees.GCL Group was also contracted to implement therecommendations. In particular, the development ofguidelines for acquiring equipment, selecting suppliers, developing an implementation schedule,supervising the installation of new equipment and lastbut not least performing a full post-implementationaudit.
• Tra ceab i l i t y • Rea c t i v i t y • Con t r o l • E f f e c t i v ene s s • Know l edge • G l oba l i s a t i on •
Presentation of a real-life corporate case:
Chemical
More and more organizations recognize the need for establishing a permanent logistics
function to improve their customer service. Along with this recognition, managers realize the
complexity of the issues and discover that logistics information management is at the centre of
logisticians’ concerns. Information management is essential when undertaking customer service
improvement through better product availability or personalized delivery. In all cases information
will be at the centre of each decision. Consequently, business leaders today work together to set up
IT tools for capturing and managing information.
There are usually three main avenues logisticians can take to manage distribution centres:
firstly the internal development and adaptation of IT solutions with new desired features; secondly
there is the integrated software (ERP) approach which will offer a very integrated but limited func-
tional coverage; and finally the integration of specialized software packages. The optimization of
integrated logistics processes generates considerable savings. These savings cannot however be
achieved without appropriate management of information, resources and costs. The popularity of
logistical information systems has grown in recent years in order to meet the requirements of
today’s logistics managers. Analyzing and setting up the available systems can sometimes prove to
be a difficult task.
OUR OFFERING FOR INTEGRATION OF LOGISTICS INFORMATION SYSTEMS IS GOVERNED BY THE FOLLOWING PRINCIPLES:
Functional Analysis: Analysis of business processes. Establishment of functional requirements
based on optimal processes, development of specifications, operational impact study, cost/benefit
analysis of the logistics information system implementation, organization and training of the
resources, presentation to top management;
Software selection: Definition of requirements and establishment of an evaluation grid.
Identification and evaluation of potential suppliers. Selection of optimal solution based on
pre-established parameters. Vendor information analysis, pre-qualification and selection;
Software integration: Establishment of optimal business processes, detailed functional analysis
for development, analysis and tracking of specific required development, testing of specific
developments and training on the new software. Loading of operational data and assistance in
start-up.
In addition to these basic services, GCL Group is currently setting up a laboratory with various
partners (information systems, equipment, printers, conveyers…) in order to test and contribute to
the adoption of RFID in Canadian enterprises. This laboratory should be operational at the
beginning of the year 2005 and will allow businesses to test their equipment in an industrial
environment with their own products.
Integration of Logistics
Information Systems
Minimizing Risk
GCL GROUPLogistics Consulting
Logistics Information Systems
Our client is the world’s leading pharmaceutical company, with its headoffice in New York. Its mission is to discover and to develop medicines and otherinnovative products to improve the qualityof life for human beings and animals. In June of 2000, our client acquiredWarner-Lambert and became the numberone pharmaceutical company in the world.On April 14th, 2003, by concluding theacquisition of Pharmacia, it became one ofthe most important global companies formarket capitalization and strengthened itsdominant position on the principal pharma-ceutical markets. The combined revenue of products andoperations reached 45 billion USD in 2002.In 2003, the company dedicated approximately 7 billion USD to research anddevelopment worldwide, more than anyother pharmaceutical company.Due to the significant increase in logis-tics flows following the integration ofWarner Lambert, the company in questiondecided to put in place a warehouse man-agement system (WMS) on the cutting edgeof technology. This system would assurethem control, traceability and efficient dis-tribution of products in high demand. In thecourse of this project, GCL Group wasinvolved in a series of projects touching on:• Needs analysis;• WMS and TMS vendor research; • Preparation of invitations to tender;• Analys is o f the submiss ions and recommendations;• Management of the implementation of the selected software;• Preparation of the functional analysis;• Identification of the specific requireddevelopments;• Configuration of the warehouse and themanagement of the required changes;• Preparation of invitations to tender for RF equipments; • Analysis and selection of the RF equipmentsupplier;• Development of test scenarios; • Tests of the selected functionalities;• System validation according to pharmaceutical industry standards;• Assistance during system start-up; • Participation in the training of employees.
Presentation of a real-life corporate case:
Pharmaceutical
• Tra ceab i l i t y • Rea c t i v i t y • Con t r o l • E f f e c t i v ene s s •
The increasing complexity of activities linked to
supply chain management and logistics places
enormous pressure on the knowledge of today’s
logisticians. The impact of globalization requires
managers to have knowledge of international
transportation and regulation; the desire to
constantly reduce operation costs as a first priority
necessitates automated procedures on the cutting
edge of technology; the complexity associated with
the motivation and management of human
resources demands strong communication skills.
Over the last decades, human resources
management has faced many challenges in order to
increase business productivity and competitiveness
in an ever changing environment. One of the most
important challenges is to manage business
restructuring while maintaining and increasing
human resources’ confidence in senior manage-
ment, as well as their mobilization to realize greater
challenges.
Our objective is to maintain a constant
commitment to developing a tight and harmonious
link between each group of people involved in the
project and the project itself. We align our actions
with the aims of your new management software
and in relation to the predictable reactions to your
human resource changes.
Consequently, the reengineering of procedures
requires tailored training programs in order to
ensure greater success, and increase personnel pro-
ductivity and motivation. Timely and continuous
training constitutes without a doubt a means for
organizations to perform and remain on the cutting
edge of industry best practices.
THE FOLLOWING PRINCIPLES GOVERN OUR RESOURCE TRAINING
AND COACHING OFFERING:
Change management: Change planning and
preparation, transition management, change
management. Contribution to the creation of
teams, assignment of roles and activities, as well as
team and individual performance indicators;
Evaluation of workforce competencies: Revision
of roles, responsibilities, communication processes,
identification of conflicts and under-performance,
evaluation of positioning and competencies,
development of training needs;
Follow-up and transfer of knowledge
(coaching): Establishment of coaching objectives,
implementation of a follow-up procedure, process
documentation, development of task descriptions,
process for candidate selection;
Course content development: Definition of
course objectives, identification of target audience,
communication modes and frequencies, detailed
documentation of content, training support, related
material, evaluation.
Training and Coaching
GCL GROUPLogistics Consulting
Training and Coaching
Our client whose head office is based inToronto, Ontario, is the country’s leading distributor of beverages and food products andservices. Indeed, close to 99 % of Canadians areconsumers and have bought one of their productsover the last year ; on average, 21,9 millionCanadians consume at least one product permonth. This company employs over 7100 people inCanada. Besides its Canadian head office inToronto, our client possesses 16 sales outletsacross the country. It operates 20 plants and biscuit factories in Ontario, Québec and BritishColumbia, as well as 15 distribution centres inOntario, Québec, Alberta and British Columbia.While undertaking a process for optimizingthe logistics efficiency of the Chambly factory, thisimportant food distributor called on GCL Group todevelop and drive a companion project coveringthe implementation of a more effective logisticsfunction. This companion project followed an
exhaustive diagnosis of logistics operations thatprincipally highlighted a need for coaching andtraining. Over the course of a year, GCL Group wasthen involved in the coaching of the personresponsible for logistics activities. The Chamblyfactory is uniquely complex due to the range ofproducts manufactured there. As such, one of thefactory sections operates constantly throughoutthe year and supplies juice to the North Americanmarket. The other section of the factory operatesseasonally to can a variety of vegetables.During the course of the mandate, we contributed to increasing recognition of the logistics function within the organization, resourcedevelopment, space redevelopment, implementingnew technologies, reengineering of processes,development of performance indicators and roleand responsibility changes that allowed the inte-gration of the whole logistics chain.
Presentation of a real-life corporate case:
Foods
• Traceability • Reactivity • Control • Effectiveness • Knowledge • Globalisation •
For over 20 years we have been offering our clients a team of qualified consultants made up of
project managers and experts possessing in-depth knowledge as well as different areas of profi-
ciency (industrial engineers, operational research and operations management specialists) con-
stantly seeking to increase this knowledge with further training.
Our multidisciplinary resources allow us to provide our clients with an unsurpassable team pos-
sessing the knowledge and experience necessary to meet their requirements. Our presence in North
America and Europe as well as the numerous projects we have realized around the world over the
course of the last few years impart us with the vision and unique understanding of world class prac-
tices.
Having successfully completed thousands of mandates for different sized companies, we are
proud of our innovative approach. Our research and development efforts provide our clients with
an expertise always on the leading edge in areas of performance evaluation, procedure simulations
and decision models.
TURNED TOWARD THE FUTURE, OUR CONSULTING GROUP HAS SET ITSELF THE MISSION TO:
8 Recommend and integrate creative solutions of value to the supply chain process;
8 Stimulate the development of its resources through collaboration, improvement of competen-
cies and involvement in the functioning of the organization;
8 Develop unique partnerships with our clients, based on quality, and innovative and appropriate
solutions.
In order to remain competitive in a merciless market, we invite you to join the hundreds of sat-
isfied clients that continue to call on our services and in this way remain among the businesses cited
as examples of best practices.
Reaching for world class recognition.
The GCL Group team.
View of GCL Group’s development
GCL GROUPLogistics Consulting
GCL GROUP
Montreal:
3100 Côte Vertu, Suite 240
Saint-Laurent, Québec
H4R 2J8
Telephone: (514) 733-3000
Fax: (514) 733-3439
Toronto:
5230, Glen Erin Dr. Suite 89
Mississauga (Ontario) L5M 5Z7
Telephone: (416) 525-1606
Fax: (905) 821-2384
Europe:
13 René Boylesve Ave
France 75016
Telephone: + 33 (0) 1 42 24 74 68
Fax: + 33 (0) 1 46 47 77 01
Internet: www.gclgroup.com
• T r a c e a b i l i t y • R e a c t i v i t y • C o n t r o l • E f f e c t i v e n e s s • K n o w l e d g e • G l o b a l i s a t i o n •