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World distribution network optimisation

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François Gagnon

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Albert Goodhue

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The business

Our client is a world leader in the design, delivery and manufacture of innovative aviation products and services for the business and regional aircraft market. The company, present all over the world, is recognized for the quality of its products and its constant desire to develop aircraft at the cutting edge of technology. The aircraft fleet in service today numbers several thousand aircraft, which requires the establishment of an after-sales support infrastructure focused on excellence.

Challenge to overcome

Over the years, the expansion of the distribution center network around the world has been decentralized and with the aim of responding to current issues that are no longer relevant. As part of a project to continuously improve our client's logistics operations, the GCL Group participated in a strategic analysis of the distribution network in place to serve existing and future clients. In this context, the GCL Group has issued a strategic proposal aimed at the complete reconfiguration of the spare parts distribution network throughout the world.

The role of GCL in the realization of this project

Global distribution network simulation (8 months):

  • From the customer service process to the review of business partnerships, the work team strategically reviewed the methods and procedures in order to improve the availability of spare parts, and consequently improve the customer service performance.
  • We evaluated the service rate and delivery times, carried out cost analyzes by "ABC Costing" activity, carried out a complete modelling of the spare parts distribution network using a segmentation analysis of the customer base.
  • We used simulation tools to formulate our recommendations.
  • Build the simulation model with all the transit volumes and the costs associated with each movement;
  • Conduct simulations to validate the model (plus or minus 5% deviation) and then use the model to simulate the identified scenarios;
  • Evaluate in detail the current operations of the service center in order to define the context, constraints and operational issues;
  • Lead and pilot the thinking affecting the growth of the company in terms of products, sales and inventory rotations and define the objectives to be achieved;
  • Carry out a detailed cost analysis for each of the proposed scenarios and present the results to management for decision;
The results

Our recommendations led to the outsourcing of operations and the strategic deployment of inventory in service centers to improve global coverage and amortize company assets;

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