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Category: Case Studies

YEAR

2021

Type OF projeCt

PROCUREMENT

SAVINGS

COSTS
& PRODUCTIVITY

DIRECTED BY

Guillaume St-amour
Noémie bilodeau

OVERVIEW

CUSTOMER PrEsentation

Our client is a Quebec leader in the tool and equipment rental industry, with over 4,000 different products in inventory and nearly 50 rental locations across the province.

mandatE

The project aimed to improve the client’s expense management while ensuring greater efficiency in its supply chain. Having previously selected the desired solution, the client engaged Conseil 2.0 to implement a P2P solution, including process review and supplier management.

client'S GOAL

The client’s main objectives for this implementation were: optimizing procurement processes, increasing control and visibility over expenses, and reducing purchase processing times.

ExEcution OF THE PROJECT

Conseil 2.0 led the implementation of the P2P solution using a four-step methodology:

The first step involves establishing project governance, reviewing objectives and success criteria, and providing the project team with training and platform documentation. This includes a meeting with the project team to align expectations regarding benefits and objectives, ensuring they are successfully achieved.

During this stage, the objective was to define the desired business process outcomes. We analyzed the current processes, tools used, and company constraints to align them with best practices enabled by the P2P system. This involved designing the architecture, configuring the platform, developing integrations, and enabling suppliers.

The validation phase includes planning, drafting, and executing test scenarios, including user acceptance testing (UAT) and integration testing. It also involves planning end-user training.

Deployment involves launching the platform into production. The following steps are required:

  1. Configuring the production platform
  2. Training end users
  3. Communicating the launch to suppliers
  4. Enabling users and suppliers to operate on the production platform
  5. Providing hypercare support to resolve any issues that may arise

RESULTS

Once the project was completed, the company gained full autonomy in using and managing the production platform, positioning itself to take advantage of the many benefits of a P2P tool, such as:

  • Improved management of internal processes through automation
  • Cost reduction (resources, materials, management)
  • Decreased risk of errors
  • Ensured compliance of expenses
  • Enhanced visibility between departments through real-time data access
  • Streamlined supplier selection
  • Reduction of manual activities, allowing more time for value-added tasks
  • User-friendly interface
  • Improved transaction traceability
  • Increased collaboration between departments

Year

2022

Type of Project

Business Analysis & Project Management

Savings

Costs & Customer Satisfaction Enhancement

Directed by

Charles Mbadinga
Franck Paulet

Overview

Customer Presentation

Our client, a North American leader in renovation, offers comprehensive solutions. With a network of over a hundred stores, our client provides unique renovation services sourced from its factory in Quebec.

Mandate

Talsom and Conseil 2.0 have been primarily tasked with two aspects: upgrading the existing CRM (Customer Relationship Management) software and omnichannel transformation, particularly through integrating the CRM with the new omnichannel platform, RingCentral.

RingCentral is a unified communication platform that centralizes the management of customer calls and messages for businesses. By consolidating these interactions within a single interface, it enables companies to provide more efficient and consistent customer service while optimizing their communication processes.

Client's goal

For the company, the majority of customer acquisition is through inbound telephone calls. In recent years, new generations of customers have expressed the desire to converse via SMS and chat as well.

Previously, the company used traditional physical telephony and contracted its menus and phone lines through 4 different telephony operators.

Therefore, the company wanted to transition to virtual telephony by implementing a leading market solution: RingCentral.

By transitioning to RingCentral, the company also aimed to offer and/or improve the customer experience through SMS and chat channels.

Finally, the company took advantage of this transition to streamline its telephony contracts and reduce costs by migrating its phone lines to RingCentral.

Execution of the project

The delivery occurred in 3 phases: upgrading the Microsoft CRM, implementing a RingCentral pilot in 2 stores, and finally deploying the omnichannel solution in 45 stores across North America.

Here is the four-step methodology to achieve the client’s desired results:

Prior to these 3 phases, the project began with a comprehensive review of the impacted processes proposed by Conseil 2.0 and Talsom.

An analysis of stakeholders was also conducted to understand the project’s business priorities. Beyond the modernization of systems and the improvement of customer and sales processes, the digital/telephonic marketing aspect was identified as the primary value generator by the project.

Key point:

Upon the arrival of Talsom and Conseil 2.0, a kickoff meeting for the RingCentral implementation was scheduled within 3 weeks to start integration work. Under the guidance of Talsom and Conseil 2.0, the integration kickoff was delayed by a few weeks to complete the necessary framing work. This demonstrates that sometimes it is necessary to postpone to ensure better integration/delivery work thereafter.

The CRM upgrade was necessary to fully utilize the integration features with RingCentral. This phase did not involve process evolution or new system requirements. Therefore, we organized a comprehensive non-regression campaign and proceeded with the execution of the upgrade recipe developed in collaboration with Microsoft.

The project was delivered in waterfall mode following the traditional phases of analysis, design, development, and testing.

Some key highlights:

For many employees involved in the project, they had to learn to work in project/waterfall mode and take on roles such as business analyst, testing lead, transition lead, and change management lead. Talsom and Conseil 2.0 identified, trained, and guided these individuals, with a sense of pride in providing new career perspectives to these participants!
In parallel with this project, a PMO (Project Management Office) manager was recruited. This new PMO manager worked closely with Talsom and Conseil 2.0 to implement new practices and sustainable transformation standards for future large-scale technology transformations.

The client decided to deploy the RingCentral telephony solution in waves, within less than 4 months. As mentioned earlier, a transition manager was identified and supported by Talsom and Conseil 2.0. The initial work involved structuring the transition plan, store sequencing, and the transition recipe for each store (change management actions, physical interventions, on-site training, etc.).

Subsequently, 7 trainers were identified and traveled across North America to train stores in geographical clusters, supported by a 3-person full-time transition team.

Given this success, senior management decided to make this deployment approach a standard for large-scale transformations.

Results

The project results include the operational CRM since March 2022 and the successful deployment of the omnichannel solution in 45 stores, driving new projects focused on omnichannel and digital marketing. This modernization has not only enhanced the customer experience and profitability through improved accessibility and cost savings but has also strengthened the company’s competitive position in the bathroom modernization sector.

Year

2023

Type of Project

business analysis

Savings

Time (25-30%) and Costs (5-10%)

Directed by

Michael Muro
Driss Chabi

Laurence Krajewski
Annie De Grace

Overview

Customer Presentation

Our client, a North American leader in frozen and canned food products, is globally renowned for delivering high-quality products and services.

Mandate

Conseil 2.0 and Talsom were commissioned to support the implementation of a Transportation Management System (TMS) at various levels. This included revising and optimizing business processes, configuring the system, managing change, supporting client teams, and overseeing the project as a whole.

Client's goal

Operating with a highly manual process (consolidation of shipments, emails with carriers, paper invoicing, etc.), teams dedicated a significant amount of time to low-value tasks, making it challenging to enhance overall transportation management.

Following the implementation of a TMS, the client sought to optimize its transportation management processes. Our experts in transportation, change management, and project management made this possible, notably through:

  • Time savings for the impacted teams (up to a 30% gain), centralizing efforts on high-value tasks ;
  • Improved management and governance of transportation processes ;
  • Digitization and centralization of transportation data in a single tool, enabling in-depth analyses and quick decision-making through key indicators ;
  • Enhanced visibility of transactions and deliveries ;
  • Streamlined and efficient invoicing processes.
 

Execution of the project

Talsom and Conseil 2.0 conducted numerous interviews with various stakeholders to:

  • Understand processes and pain points at different stages of transportation management.
  • Grasp the overall implementation context.
  • Identify different populations involved and develop a change management strategy.

Here is the five-step methodology to achieve the client’s desired results:

We initially gained an understanding of existing processes by conducting around ten interviews with various impacted departments (logistics, purchasing, warehousing, customer service, and finance). We mapped the current processes (approximately 15 processes) and identified data available in the ERP, which was crucial for determining which processes could be automated with the TMS and which ones should remain manual. Subsequently, we defined the target processes once the TMS was in place, along with transition processes to anticipate impacts on the teams, assess training needs, and anticipate integration requirements between the ERP and the TMS.

We met with 40 users over 4 weeks, combining these interviews as much as possible with those aimed at targeting processes. These interviews allowed us to identify key success factors, including swift decision-making by the steering committee, adherence to project scope, timelines, and costs, as well as the designation of ‘super users’ responsible for the adoption of the TMS. Workshops facilitated a more detailed understanding of the expectations, concerns, training preferences, and preferred communication channels of each population.

These results informed a change management strategy, including a user support structure, a communication plan tailored to each project phase, a training plan, and an engagement plan specific to each group, utilizing the ADKAR model to ensure project buy-in at every stage.

We conducted sandbox tests for each warehouse, evaluating the systems developed in Microsoft 365 Business Central. Subsequently, we gathered user feedback during working sessions and made necessary adjustments in response to their comments.

We actively collaborated with the client’s teams for the configuration of the TMS and its integration with their ERP. After defining the target processes, we participated in configuring various modules and parameters of the TMS. This included the routing guide, rates, product groups, loading groups, equipment, carriers, docks, locations, and users. Once the configuration of the test environment was completed, we conducted tests before duplicating the configuration into the production environment.

The results of the population study guided training towards interactive sessions tailored to each group, utilizing a ‘train the trainer’ approach. Videos were created for the key features of the TMS, accompanied by a detailed user guide. Super users were empowered to train all users. Satisfaction and confidence rates of different populations were measured after these training sessions.

A testing schedule based on a proven methodology was established, including unit integration tests, functional tests, and end-to-end tests. Super users played a key role in executing nearly 300 functional tests. Acceptance of these tests was a prerequisite for Go-Live, ensuring that the configuration of the TMS was adequate.

During the actual deployment, we supervised the teams in transportation, purchasing, warehousing, finance, and customer service at various sites. We revalidated their understanding and mastery of the tool, remaining available for four weeks after the Go-Live to provide support to the teams, validate the correct usage of super users, and address any minor issues.

Results

Go-Live occurred on the initially planned date, and the budget was not exceeded. This was possible due to swift decision-making by the executive committee, a dedicated IT team, engaged users, rigorous project management, effective and accepted change management, and experienced consultants.

With this implementation, Talsom and Conseil 2.0 enabled their client to achieve significant savings in terms of time and resources while improving customer satisfaction. Enhanced communication and increased meeting efficiency fostered a better understanding of internal processes, resulting in long-term cost reductions.

Client visibility was strengthened with dashboards measuring carrier performance, and real-time access to notifications and alerts significantly increased customer satisfaction.

Furthermore, each resource estimates saving an average of 25% to 30% of time for transportation teams. Additionally, the implementation of a TMS typically results in transportation savings ranging from 5% to 10%, notably through automated invoice verification and correct application of a routing guide. Finally, the digitization and centralization of data enable improved management of transportation bids, which can also lead to direct cost savings on transportation expenses.

Year

2023

Type of Project

procurement

Savings

Costs
and productivity

Directed by

Guillaume st-amour

Overview

Customer Presentation

Our client is one of the global leaders in manufacturing and distributing high-quality, disposable preventive products for infection control in medical, dental, industrial, veterinary, laboratory, and health and beauty sectors. Headquartered in Montreal, the company operates in 50 countries, owns 8 fully controlled manufacturing plants across North America, Europe, and Asia, and sells its products in over 95 countries.

Mandate

The project aimed to modernize the pallet labeling system by integrating Tasklet Mobile WMS. The goal was to streamline the transmission of Advanced Shipping Notices (ASN) via EDI by providing accurate details and ensuring that labels compliant with the GS1 standard were printed on the pallets.

Client's goal

The primary objective was to prevent the imposition of penalties by the two major clients on shipments. The secondary goal was to establish a standardized process that could be used for any client requiring similar information through EDI and on pallet labels.

 

Execution of the project

Conseil 2.0 conducted multiple interviews and workshops with various stakeholders to understand processes, identify pain points, and plan the execution of the mandate.

Here is the six-step methodology to achieve the client’s desired results:

The first step involved analyzing the needs and current systems at sites in Canada and the United States. This included establishing dedicated project teams and appropriately allocating resources while ensuring the development of a synchronized schedule with clear steps to ensure effective project progression.

We implemented Tasklet Mobile WMS and set up essential hardware, including scanners and printers, in both client warehouses (Canada/USA). The project teams then conducted a thorough review of EDI and labeling systems, integrating them with Microsoft 365 Business Central.

We conducted sandbox tests for each warehouse, evaluating the systems developed in Microsoft 365 Business Central. Subsequently, we gathered user feedback during working sessions and made necessary adjustments in response to their comments.

Conseil 2.0 provided training to the staff on the new systems, focusing on the features of Tasklet Mobile WMS and the new processes integrated into Microsoft 365 Business Central. Simultaneously, we developed the necessary documentation to facilitate usage and organized knowledge-sharing sessions with the warehouse teams.

Following successful tests, we implemented the systems on a large scale in both warehouses. Subsequently, we established continuous monitoring of their performance using the tools integrated into Microsoft 365 Business Central, while regularly gathering feedback to make ongoing improvements.

Results

This successful collaboration enabled the client to successfully complete the project within the deadline, thereby avoiding any penalties. Simultaneously, we preserved and even enhanced the customer experience without observing an increase in overdue orders. The standardization of the process contributed to maintaining productivity at an optimal level. Furthermore, the adaptable EDI configuration offers the opportunity to extend these benefits to other clients with similar requirements, showcasing the flexibility and added value of the implemented solution.

Year

2023

Type of Project

Business analysis

Savings

Time, Costs
and Resources

Directed by

Carolyne Lapierre
Michael muro

Overview

Customer Presentation

Our client is a North American leader in the field of food and beverage products. It is globally recognized for providing quality services that are beneficial to the health of its consumers within the scientific community.

Mandate

Conseil 2.0 has been commissioned to reassess goals and needs with the aim of optimizing their logistical processes through the implementation of a new transport system. The client sought to evaluate various solutions with a view to implementing an innovative technological system.

Client's goal

The client wanted to reduce costs and increase operational efficiency.

 

Execution of the project

Conseil 2.0 conducted a total of 9 interviews with various stakeholders to analyze processes and identify friction points within the client’s transportation management at different stages.

Here is the 5-step methodology used to achieve the client’s defined objectives:

First and foremost, gaining a deep understanding of the client’s specific needs is essential, involving the analysis of current processes and the identification of improvement opportunities.

Nine interviews were conducted with stakeholders from transportation, warehousing, customer service, and billing. The aim was to understand their current operations, manual tasks, ERP data, and challenges, establishing a list of over fifty criteria (RTM) to assess TMS.

Targeted processes were mapped and validated with the client to anticipate future gaps. An initial financial assessment (monetary and temporal) was conducted to evaluate potential savings associated with the integration of a TMS.

A crucial step involves selecting a system that meets the client’s needs, whether from market solutions or a customized option tailored to the size and requirements of the business.

We contacted several TMS vendors, conducted demos to educate the client, and assessed each solution against the previously established criteria. After consolidating the results, we selected the best solution.

Once selected, workshops with the vendor were organized to validate use cases and define contractual terms. A RASCI matrix was established between Conseil 2.0, the client, and the integrator to clarify roles, responsibilities, and investments. This helped finalize the ROI and obtain approval from the client’s executive committee.

After choosing the TMS, it is crucial to clearly define the objectives, timelines, and responsibilities of the stakeholders.

Within the project scope, we played an active role in the configuration, design, and integration of the system. We participated in all meetings to ensure alignment between the client’s internal processes and the system’s capabilities. By identifying gaps, we proposed solutions, whether they involved adjustments to processes or the system itself.

Once all issues were resolved and development needs documented, the configuration, design, and integration phase was concluded.

To ensure the proper functioning of the system we configured, testing is essential. We guided our client through all testing cycles: unit, functional, integration, and UAT (User Acceptance Testing). We defined test cases and scripts, documented all bugs, and maintained regular communication with the development team to address issues.

Once UAT tests were complete, encompassing the entire order cycle with all stakeholders, we concluded that the system was ready for production.

Before deployment, training programs were scheduled for staff on the new TMS. We identified individuals requiring interaction with the TMS, categorized them based on their information needs, formed user groups, determined their system access, and provided live training on TMS functionality. Additionally, we supplied documentation in the form of S&OP (Sales and Operations Planning) to guide them through the system.

During real-time deployment, we provided continuous system supervision and support to users. We were available around the clock to monitor system operations and address user questions. Follow-ups were conducted to identify improvement opportunities.

Results

Conseil 2.0 enabled our client to achieve significant savings in terms of time and resources while enhancing customer satisfaction. The improved communication and increased efficiency of meetings fostered a better understanding of their internal processes, leading to long-term cost reductions.

Furthermore, we successfully minimized delays through proactive corrective measures. Our client’s visibility was strengthened with dashboards measuring carrier performance, and real-time access to notifications and alerts significantly enhanced their customers’ satisfaction, reinforcing their tracking and visibility in the maritime freight sector.

In addition, each resource gained between 25% and 30% of free time, and our client achieved savings of 5% to 10% in terms of transportation costs.

Year

2023

Type of Project

Inventory

Savings

274K$

Directed by

Afef bouguerra
Audrey Lépine

Overview

Customer Presentation

Our client is a major player in the tire distribution industry in Canada. Having experienced significant growth in recent years, the company now operates around twenty distribution centers. Due to this rapid growth, our client aims to revisit its processes and operational management methodology to adapt to the new volume of business and operational complexity it faces.

Because of the nature of the product, the client experiences significant bi-annual seasonality in its operations. Furthermore, during these peak seasons, deliveries must be completed in less than 3 hours. Product availability is therefore extremely important during the high season.

Numerous flows existed between each of the depots to ensure tire replenishment or when products from an order are not available at the relevant distribution center. All these inventory manipulations and movements have an impact on the company’s operational performance and, consequently, on product profit margins.

Mandate

Conseil 2.0 was commissioned to assess the operational efficiency of this client’s supply chain. During this mission, after reviewing the processes and analyzing historical data, Conseil 2.0 identified opportunities for improvement and defined recommendations for best practices to be implemented.

Client's goal

The customer wanted to optimize its supply chain to reduce costs while maintaining or even improving service quality. The team wanted to improve operational efficiency across the organization and implement best practices for their needs.

Execution of the project

The customer had defined shuttle routes between warehouses, enabling products to be transferred as and when required. Some warehouses were not linked by a direct shuttle route. In these cases, products would make up to 5 stops before reaching their destination. Two types of product movement exist: “Order transfer” is a product movement triggered by a customer order with at least one product stop in a warehouse during the route, while “stock transfer” is a movement triggered by replenishment (prevention) parameters. 

According to our analysis, 27% of orders were met by Order Transfers, with 32% of Order Transfers having more than one stop, and 24% of transfers concerned products later defined as “slow movers”. We therefore concluded that the number of movements needed to be considerably reduced, and that we also needed to review the strategic positioning of stock to meet demand by moving less stock between warehouses.  

Conseil 2.0 decided to implement a Pareto classification to apply a strategic positioning of stocks and reduce their movement. In this case, intelligent inventory management increases the availability of fast movers in all warehouses and reduces the number of movements and space occupied by slow movers.

As we saw earlier, there are too many transfers between warehouses, and they take place between each of them. We therefore decided to define Hubs that would be the source of central replenishment. We started with a data analysis. Among the 20 depots, we highlighted 4 major ones that would also serve as Hubs. These Hubs were identified by considering 3 criteria: warehouse capacity, strategic location and sales volume in 2022.

Using Pareto classification, we established 3 categories of items A, B and C to identify fast movers vs. slow movers. The aim of this tool within the project is to reposition stocks more judiciously. This general classification also enables us to compare warehouses and identify the particularities (geographical, demand, supply, etc.) of each one, in order to adapt the inventory management strategy.

Due to the wide variation in demand between warehouses and the high number of SKUs, we have also classified by warehouse. This makes it possible to identify SKUs that have very few sales in the depots concerned. Therefore, 3 new categories C, D and E have been added to better represent slow-mover products that will have to be handled differently. Many non-value-added movements were made on these products. Demand being highly volatile and difficult to predict, they generated more handling, which had a significant impact on profit margins.

In order to optimize the company’s service level, for which availability is very important and seasonal, while limiting non-value-added activities, we proposed a class-based inventory management method. We have removed D and E products from small depots and concentrated them in hubs. C products will be partially stored in small warehouses and the remainder will be positioned in the hubs. This will increase A- and B-graded inventories in the smaller warehouses.  

Product classification has also enabled us to review replenishment methods according to product. Fast-mover products will be replenished based on dynamic min/max parameters reviewed frequently according to the product’s season. For smaller demand products, initial replenishment at the start of the season will be carried out according to the above-mentioned stocking rules. In-season replenishment will be carried out through warehouses identified as HUBs only.

Results

  • Partial centralization of category C and complete centralization of categories D and E in the hubs. Given that these products account for only a small proportion of sales, this frees up space in small warehouses for fast movers.
  • By centralizing products and defining direct (non-stop) supply routes, the number of tire handling operations will be reduced by 990,576, the number of chain routes will be cut by 55% and this will reduce the distance transported by 15.4 M km annually. Considering that a truck emits 2.8kg of greenhouse gases (GHG) per liter of diesel consumed, our recommendations will reduce GHG emissions by 21,560 tonnes.
  • Adjustment of service levels for categories A and B (increase in stocks in local depots and consequently service quality).
  • Modification of replenishment methods by category: Adjustment of dynamic min/max parameters to consider seasonality and replenishment strategy. (Centralized or by warehouse).
  • Thanks to a balance between increasing the availability of the vast majority of products and reducing stock movements between warehouses, Conseil 2.0 was able to achieve operational savings of $724,000, as well as a significant reduction in GHGs.

Route diagram before the mandate

Route diagram after the mandate

Year

2019

Type of Project

Inventaire

Savings

3M$

Directed by

Martin Nadon

Overview

Customer Presentation

Our client is the Canadian leader in the auto glass replacement, repair and distribution sector.

Mandate

C2.0 has been mandated for a project to optimize the supply chain, more specifically in terms of demand management, purchasing and the distribution network of these warehouses.

Client's goal

Increase system usage and revalidate parameters for demand management. Ensure employee training to ensure a continued understanding of the system.

Execution of the project

C2.0 was mandated for a 16-week term. As part of the mandate, the approach proposed and adopted by the client consisted of 5 steps:

According to Pareto’s classification, we established distinct categories in order to establish adequate inventories according to the type of products and to ensure that we maintained an optimal inventory for the client’s demands.

We have adjusted the level of service in order to answer correctly to the inventory classification. Thus, we have increased the level of service for inventories classified A and B and it has been revised downward for inventories classified C or lower.

We have standardized the replenishment cycle to define the optimal reorder point calculation. This has resulted in higher inventory turns for high-volume products and also minimized orders by purchasing 3 to 6 months of inventory for low-volume items, thereby reducing product handling and reducing breakage losses.

The client had two delivery times, one contractual and one calculated. Therefore, we recommended the use of a single delivery time for suppliers, which allowed to reduce the minimum inventory level for all items. It also allowed to manage a more accurate material receipt date because suppliers deliver on time, so the additional calculated lead time that was in the system had no added value.

To optimize inventory, we set the min/max parameters based on a weekly order lead time, a safety stock that takes into account the distance between the warehouse and the distribution center, and a replenishment cycle based on the size of the warehouse.

Results

The optimization of operations that C2.0 carried out at the client’s site resulted in overall savings of just over $3,000,000.

  • Improvement of the service level and replenishment cycle for the new categories: $1,400,000 in inventory reduction.
  • Adjustment to the management of categories (Windshield and Tempered Glass): Additional inventory for the "Tempered" category of $388 000 for class A and reduction of $229 000 for classes C and less.
  • Adjustment of delivery times for all suppliers in the "Glass" category group: $1,200,000 inventory reduction
  • Modification of the inventory profile (service level, delivery time, etc.) of the warehouses for Accessories = $640K inventory reduction, representing 30% of the warehouse inventory.

We also observed, during our mandate, that the client had $1.7M in obsolete inventory, in addition to $8.3M in “excessive” inventory for a total of $10M on a $20M inventory. Thus, we suggested to the client to reduce its inventories in order to limit its costs related to its excess inventory.

YEAR

2019

Type OF projeCt

Transport

SAVINGS

600K$

DIRECTED BY

Afef bouguerra
Martin Nadon
Daniel Vendette

OVERVIEW

CUSTOMER PRESENTATION

Our client is one of the largest poultry cooperatives in Quebec. It is known for its local production and the quality of its products.

CHALLENGE

With the opening of a new distribution center and the centralization of its shipments, the client wanted to issue a transport tender to optimize its network and analyze the impact of this change.

CLIENT'S GOAL

Through this tender, the client aimed to reduce its costs and ensure that its transportation volume is covered.

ExEcution OF THE PROJECT

Conseil 2.0 based its approach on a year of historical data, taking into account upcoming changes (the new distribution center) and the client’s desire to centralize its distribution.

Historical data was used to establish a baseline with a historical cost of 6 million Canadian dollars to allow for a comparative evaluation at the end of the project to determine cost savings.

With this data, we also modeled the distribution network, defining 164 corridors (origins-destinations) and including various modes of transportation: full truckload (TL) and less than truckload (LTL).

To respond to this tender, over 140 carriers were invited to participate in the event.

To account for the new distribution center, Conseil 2.0 created corridors to model the client’s new reality.

The methodology proposed and adopted by the client consisted of 5 steps:

Adjustment of delivery times for all suppliers in the ‘glass’ category group: $1,200,000 reduction in inventory.

All qualified carriers from the RFI phase were invited to provide rates for the corridors of their interest. Conseil 2.0 ensured the validity of the submissions received during round 1 and managed communication with all carriers throughout the event.

The objective of this phase was to provide feedback to the carriers who had participated in round 1. This allowed them to be informed of their position relative to other participants and also to correct their submissions in case of errors. The feedback provided to the carriers helped maximize the savings we could achieve in the market.

In collaboration with the client, Conseil 2.0 defined various analysis and simulation scenarios to find the best solution that met the client’s needs and requirements. Examples of scenarios conducted were:

  • Cost-Based Allocation: Allocating volume to the most cost-effective submissions (Low cost, no constraints).
  • Cost-Based Allocation with Capacity Adherence: Allocating volume to the most cost-effective submissions while adhering to capacity constraints by corridors and overall carrier capacity.
  • Favoring Current Carriers: Prioritizing carriers currently active in the client’s distribution network.
  • Introduction of X% New Carriers: Assessing the impact of introducing a certain percentage of new carriers into the distribution network.
  • Exclusion of Brokers: Measuring the impact by allocating 100% of the volume only to carriers with their own fleet (asset-based).
  • Restriction on the Number of Carriers to Use: Finding the optimal balance between the number of carriers to manage and total volume coverage.
  • Ability to Assign Primary, Secondary, and Tertiary Carriers.
  • Comparison between the Current and Future Network: Conseil 2.0 provided the client with an impact analysis, allowing them to gain insights into the expected savings following the implementation of the new distribution center.

Taking into account the client’s constraints and operational and strategic reality, Conseil 2.0 was able to analyze and compare over 2000 bids to provide optimal allocations, which are the result of the optimization phase.

RESULTS

The transportation tender managed by Conseil 2.0 generated significant savings for the client. In fact, the baseline was reduced by 10%, resulting in savings of $600,000. Furthermore, in response to Conseil 2.0’s achievements, the number of carriers our client had to deal with decreased by 65%. Thanks to this reduction, the client achieved significant transportation savings and was able to maintain equally effective coverage of its shipments.

Year

2019

Type of project

Transport

savings

85M$

Directed by

Afef Bouguerra
Martin Nadon

Overview

Customer Presentation

Our client is a leading multinational retailer specializing in mass distribution. He is ranked in the Fortune 100, a ranking of the top 100 U.S. companies by revenue size.

Challenge

In a context of shortage of carrier availability, the customer was looking to ensure capacity for its network. Thus, he wanted to reduce his transportation costs, which were too high, and minimize the carrier database (the number of carriers to manage).

Client's goal

The client wanted to carry out a transportation tender in order to optimize their distribution network for their store in Canada and Mexico.

Execution of the project

Based on one year of historical data, Conseil 2.0 modeled the distribution network by defining 14,000 lanes (origin-destination) for Canada and 1,800 lanes for Mexico. The historical data also defined a baseline (historical cost) of $450M for the Canadian distribution network and $285M CDN in Mexico. The historical data was used to perform a comparative evaluation at the end of the project to determine the savings generated.

Both projects included different modes of transportation: TL, Intermodal and LTL. More than 1200 carriers were and were invited to participate in these events.

The 6-step methodology was proposed and adopted by the client:

The objective of this phase was to evaluate the carriers invited to the event. A qualitative questionnaire was sent to the carriers to find out if they met the criteria and requirements of the client. Only qualified carriers had access to the following steps.

All qualified carriers in the RFI step were asked to provide rates for the lanes they were interested in. During round 1, Conseil 2.0 ensured the validity of the bids received and supported communication with all carriers throughout the event.

The objective of this step was to provide feedback to the carriers that participated in round 1, informing them of their position relative to other participants and also to correct the bids if there were any errors on their part. The feedback given to the carriers allowed us to maximize the savings that we were able to obtain from the market.

In collaboration with the client, Conseil 2.0 defined different scenarios of analysis and simulations to find the best solution that would meet the client’s needs and requirements.

Examples of scenarios realized

  • Cost based allocation: Allocate volume to the most competitive bids (Low cost, no constraints)
  • Cost based allocation and capacity constraints: Allocate volume to the most competitive bids while respecting the carrier’s capacity per lane and overall capacity.
  • Allocation that encourages existing carriers: Encourage carriers that are currently active in the customer’s distribution network.
  • Introduction of X% new carriers: Evaluate the impact of introducing new carriers into the distribution network.
  • Exclusion of brokers: Measure the impact of allocating 100% of the volume to asset base carriers only.
  • Allocation by maximizing the use of the customer’s fleet
  • Limiting the number of carriers to be used: Finding the optimal balance between the number of carriers to be managed and the coverage of total volume.
  • Maximizing a transportation mode: Assess the impact of maximizing the use of a particular transportation mode (rail, road, power only, etc.).
  • Ability to allocate primary, secondary, and tertiary carriers

Once the analysis done, C2.0 identified the high-volume lanes that had a lot of bidding, therefore a great competitiveness, as potential lanes to go into e-auction and to obtain more savings. 150M of transportation volume was auctioned and 94 carriers participated. During this stage 5% additional savings were achieved.

By taking into account the constraints and the operational and strategic reality of the client, Conseil 2.0 was able to provide optimal allocations that were the result of the optimization and e-auction step of this auction process. During this process more than 500,000 bids were analyzed and optimized to provide the optimal result to the client.

Results

The transportation tender managed by C2.0 resulted in significant savings. Indeed, a reduction of approximately 15% was achieved for both tenders. In addition, the number of carriers was reduced by 150, going from 258 to 108 carriers, yet allowing just as effective coverage.

Transparency. Efficiency. Sustainability.

Your redefined supply chain.

© 2025 Conseil 2.0 - All rights reserved.

MAP

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7005 boul. Taschereau, suite 256,  Brossard, Québec,  J4Z 1A7

450 486-1991

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