Gcl Group Corporate Brochure

GCL GROUPLogistics Consulting

www.gclgroup.com

Traceability

Reactivity

Control

Effectiveness

Knowledge

Globalisation


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


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


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.


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


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 •


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


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.


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


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.


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 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 •

Gcl Group Corporate Brochure

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