GCL Group
Logistics & Supply Chain Consulting

Merger and acquisitions

Merger and acquisitions

Our client is a leader in the pharma industry and specializes in managing mergers and acquisitions.

Always prioritizing growth and with the vision of climbing in the global pharmaceutical elite, our client’s strategy pushes him to constantly review his operations model. The most recent, and arguably the largest, acquisition was an ophthalmologic company and it was this new player within our client’s divisions that pushed him to question his global logistics strategy.

GCL group was mandated to conduct an “insource vs outsource” analysis in which our client required assistance to determine if using a 3PL could be beneficial instead of internalizing all operations. One important notion that needed to be factored in was the presence of multiple divisions, which each had their respective operations based in different parts of Canada and that used different information systems.

  • Meeting with all stakeholders, analysis of internal processes and study of the distribution network;
  • Building all possible scenarios and conduct costs, performance and feasibility analysis;
  • Selection of the optimal long term scenario, which is the one that maximized flexibility and return on investment. In this case, the best option was to externalize all operations to an expert 3PL;
  • Operational project management, finance reviews and IT management;
  • Creation of multiple committees in order to accelerate and facilitate decision making and execution;
  • Integration of systems (WMS, ERP and EDI) between our client, the 3PL and all clients;
  • Remodelling of customer service activities, finance department and support system;
  • Move plan per division within a defined timeframe;
  • Orchestrating the move for all divisions to the 3PL;
  • Performance audits using multiple KPI and key success factors and conclusions on positive aspects as well as ones that required improvement.

CHALLENGES

  • Multiple distinctive divisions located in different parts of Canada and using different IT systems;
  • Managing international exports, reworks, kitting and displays;
  • Logistics transition occurring at the same time as IT implementations;
  • IT and operational reluctance to change;
  • Data precision was questionable;
  • Working with an international 3PL brought complexities that were unaccounted for because of processes that were set in stone.

ADDED VALUE

  • Identification of scenarios that had not been identified initially by our client;
  • Operational expertise regarding the industry’s best practices;
  • Creation of a budget and schedule that were clear and thorough;
  • Our client’s 3-5 year plan was integrated into the project;
  • Implementation of budget tracking tools;
  • Experience in the transition to a 3PL and the management of the externalized operations.