Leadership in Logistics, a Québec Perspective
Logistics in Quebec, What ’s Up
Globally, the last decade has been marked by the emergence of Logistics. Many companies, often industry leaders, have identified the potential of logistics as a key to increase competitiveness and profitability. Companies in Québec are not different. Locally, large multinationals, but also small companies, PME (Petite Moyenne Entreprise) as we call them, forced to compete in a global market have been quick to respond and adopt logistic projects. As a result, the logistics community has grown rapidly. Via this editorial and with the help of my logistician peers I will present you with some of these companies, their challenges and their initiatives. I will also report on the activities of the associations, universities and government to support and enhance the development of logistics in Quebec. In fact, since Quebec has a strong “savoir faire” and a lot of potential in logistics, I shall share with you “What’s Up” in logistics in Quebec.
As an introduction to this editorial and in order to set the tone of “What’s Up,” let us have a look at the feel and position of logistics in Quebec.
The state of Logistics in Quebec
At the last Council of Logistics Management (CLM) conference in Montreal in April 2002, Mr. Jacques Roy, professor at l’École des hautes études commerciales (HEC), was invited to present the result of a study conducted for the “Institut de formation en gestion du transport et de la logistique du Québec (IFGTL)” and sponsored by the Quebec Ministry of Finance. The study was realized with the participation of professors from Quebec universities: Université du Québec à Montréal (UQAM), University Laval and HEC.
The objective of the study was to identify the major trends and best practices in logistics, to outline the current training program offered and to define the needs and requirements, as well as to propose means to improve logistics management and training. The methodology adopted included a literature review, many personal interviews with logistics executives and a comprehensive logistical survey.
Major trends and Best Practices
Globalization, E-business and reverse logistics are the major trends with increased customer requirements as the leading trend.
Among the best practices, the use of information and communication technologies are at the top of the list, followed by partnership, performance measurement, customer relationship management and knowledge management. Large companies are implementing practices such as: VMI, Partnership, Just In Time and Continuous Replenishment. They also make an extensive use of systems such as ERP, WMS, MRP, DRP. Information system implementation projects have been key priorities for the last few years, however, “On Time Delivery” seems to be the major challenge for most companies. With only 61% of manufacturers reaching the 95% mark for “On Time Delivery,” wholesalers and retailers are struggling to serve the increased customer requirements.
The survey respondents are quite satisfied with the way their company manages logistics activities. They have seen growing commitment of top management for logistics projects and they believe it will continue, as more emphasis is put on the logistics deliverables.
The logistics function is emerging in the organization. In the majority of companies we find a vice president or director of Logistics, and this holds true for 82% of large companies.
Training needs for current and new logisticians
In the 90’s, formal logistics training was rather rare, if it existed at all in Quebec. For that reason many logisticians with different backgrounds (technician, engineer, BAA, MBA) have learned on the job. It is not the case anymore. Even though it is not yet well known by the industry, training programs are developing rapidly with strong focus on these programs by colleges and universities in order to meet the newly growing requirements. As a result, qualified graduates in logistics are entering the market.
Moreover, some companies are developing cooperative initiative with academic establishments to enhance programs in the field of logistics. Such initiatives are very beneficial to all: students, universities and industries.
Summary of findings
• Companies in Quebec have identified the potential of logistics as a key to increase competitiveness and profitability. The trends and best practices identified are similar to those found throughout industries in North America.
• Logistics is emerging rapidly in Quebec, but is still somehow misunderstood, especially in the smaller company (PME).
• The integration of logistics activities is more advanced in the larger company
• Existing academic programs are adequate… but still not well known.
• In order to satisfy their current and future needs in logistics, companies will hire hundreds of college and university graduates.
Recommendation and Call to Action
Quebec is very well positioned to play a significant role in logistics in North America. To start, the industry has demonstrated leadership, undertaking many key initiatives to enhance operational efficiency. Subsequently, the academic community has developed training programs to prepare future qualified logisticians and finally the logistics associations and governments are supporting the effort.
The study concluded with the following recommendations:
• To increase Logistics awareness in Quebec
• To publicize existing educational programs
• To develop financial assistance for Logistics training for smaller companies (PME)
• To support research in Logistics
• To promote alliance between industry and academic establishments in the field of Logistics.
Many thanks to Jacques Roy, professor at HEC, for his collaboration with this article.