Category: Case Studies

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

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

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.

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450 486-1991

[email protected]

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