Supply Professional April 2020

APRIL 2020

ENGINEERING SUCCESS Kia Razmjouyan on using your experience Covid-19

Air cargo update Industry 5.0 Modex 2020 The Honda Pilot

PM 43096012

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VOL.62 No.2 APRIL 2020 SUPPLYPRO.CA COVERING CANADA’S SUPPLY CHAIN

@SupplyProMag

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facebook.com/supplyprofessional linkedin.com/company/supplyprofessional

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COVER: NADIA ZHENG PHOTOGRAPHY

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FEATURES

ALSO INSIDE

7 MODEX 2020 Highlights from the MHI Annual Industry Report at the biannual conference.

13 AIR CARGO UPDATE The latest coronavirus may mean a bumpy ride for air cargo.

4 UP FRONT

8 CORONAVIRUS AND THE SUPPLY CHAIN Dealing with the fallout of Covid-19.

14 INDUSTRY 5.0 What will the next industrial revolution look like?

6 IN THE FIELD

10 PROFILE Kia Razmjouyan’s journey from engineering to procurement.

5 BUSINESS FRONT

30 THE LAW

16 CANADA’S SMART COMMUNITIES Smart technology is helping municipalities and transportation.

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Fleet Management

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UP FRONT

AN ESSENTIAL SERVICE The world has been turned upside down in a very short time. From mandatory social distancing, mass layoffs, to closing factories and offices – all on a global scale – no human endeavour has escaped unaffected from the global pandemic brought about by the SARS-CoV-2 coronavirus and COVID-19, the illness it causes.

Our system of global supply chains is taxed by grounded flights, shuttered borders, states of emergency and other knock-on pandemic effects. Supply chains will therefore face hard choices in the not-todistant future.

And yet, this has all shown just how vital supply chains are to daily life. It’s easy for consumers to forget that when life runs smoothly. But a crisis like the current one brings the essential nature of supply chains into more stark relief.

The situation has shown supply chains to be an essential service. It has also shown the importance of resilience. When the most disruptive phase of the pandemic is behind us, many supply chain organizations will think deeply about how their operations function and what risk management protocols must be in place to protect them from future calamities.

In this issue, our contributors discuss the virus’s effects on the supply chain from a variety of perspectives. In his Business Front column on page 5, Michael Hlinka envisions “radically different” future supply chains – a world in which those supply chains are brought closer to home.

We look on page 8 at steps that supply chain organizations can take to mitigate the effects of the virus, both now and into the future. Among these steps are to consider serious strategy changes in the longer term, including a more diversified approach to sourcing.

On page 13, Christian Siviere discusses the impact of COVID-19 on air cargo. Siviere also envisions shorter supply chains, along with partnering with suppliers to keep stock closer to home becoming more common.

Finally, on page 30, our contributor to The Law column, Paul Emanuelli, discusses public procurement operations and how to deal with the stimulus spending recently announced in response to the pandemic.

And while this will all cost a lot, there are sources saying Canada can afford it. Some economists also contend the economy may bounce back quicker than one would think. Supply chains have the potential to emerge more resilient than before.

So how are you coping? Is your organization planning a major rethink? What changes are we likely to see? Let me know. You can reach me at michael@supplypro.ca or 416-441-2085, ext. 110. Happy reading and and stay safe!

MICHAEL POWER, Editor

EDITOR MICHAEL POWER 416-441-2085 ext 110, michael@supplypro.ca PUBLISHER ALEX PAPANOU 416-441-2085 ext 101, alex@supplypro.ca DESIGN Art Direction ROY GAIOT Design Consultation BLVD AGENCY CUSTOMER SERVICE/PRODUCTION LAURA MOFFATT 416-441-2085, ext 104, lmoffatt@iqbusinessmedia.com ASSOCIATE PUBLISHER FARIA AHMED 416-441-2085 ext 106, faria@supplypro.ca EDITORIAL ADVISORY BOARD LORI BENSON Procurement Compliance, L&D, Engagement and Knowledge Lead | Business Enablement, Ernst & Young LLP THOMAS HUDEL Manager, Purchasing and AP, Esri Canada Ltd. WAEL SAFWAT Procurement Director, Black & McDonald SHERRY MARSHALL Senior Manager, Meetings, Travel & Card Service, PwC Management Services KIRUBA SANKAR Director, Corporate Social Responsibility—RBC Global Procurement JEFF RUSSELL Purchasing Manager, ABS Machining iQ BUSINESS MEDIA INC. Vice President STEVE WILSON 416-441-2085 x105 swilson@iqbusinessmedia.com President ALEX PAPANOU

PUBLICATION MAIL AGREEMENT NO. 43096012 ISSN 1497-1569 (print); 1929-6479 (digital) CIRCULATION Mail: 302-101 Duncan Mill Road, Toronto, Ontario M3B 1Z3 SUBSCRIPTION RATES Published six times per year Canada: 1 Year $ 99.95 CDN Outside Canada: 1 Year $ 172.95 USD Opinions expressed in this magazine are not necessarily those of the editor or the publisher. No liability is assumed for errors or omissions. All advertising is subject to the publisher’s approval. Such approval does not imply any endorsement of the products or services advertised.

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BUSINESS FRONT—BY MICHAEL HLINKA

HOME GROWN GOODS BRINGING THE SUPPLY CHAIN BACK TO NORTH AMERICA I don’t know if you recognize the name Steve Bannon. He had his proverbial 15 minutes of fame because of the work he did on Donald Trump’s 2016 campaign.

The primary reason why Bannon hitched his wagon to the Trump horse was because of Trump’s promise to bring manufacturing back to America. Bannon had for years talked about the “supply chain,” a term that all of you reading this column are very familiar with. Right now, it runs through China. However, in the wake of the coronavirus crisis – and it is an economic crisis as much as a medical one – we will be seeing a radically different supply chain in the near future.

I’m writing this column in late March. North America’s attention is appropriately focused on arresting the spread of the virus.

My guess is that by the time you’re reading this column, we will have turned the corner on this pandemic in North America. Yet the world will never be the same. In the wake of 9/11, we looked at airplane travel differently. In the wake of COVID19, globalization will be seen in an entire new light. The US will understand that national security is not only about who has the most atomic bombs and aircraft carriers; it’s equally about being economically self-sufficient.

NORTH AMERICAN VULNERABILITY Here’s where we found ourselves earlier this month. North America was vulnerable because of its inability to make necessary drugs and produce basic medical equipment. We had relied on China for that, believing that it would always be there for us. This was always a naïve belief, and we see this with 20/20 hindsight. Moreover, it is a fact, a non-racist fact, that the pan-

demic started in China before spreading out to the rest of the world. When things calm down a bit and the public really understand the culpability of Chinese authorities, there will be sufficient public outrage to spur public policy to make sure that North America is never this vulnerable again.

Bottom line: The North American supply chain is going to be brought back home, by hook or by crook. And it will happen sooner than you think, because I believe that the presidential candidate in 2020 who convinces the public that he’s the guy who can do it, wins the election hands-down.

It will likely be a two-pronged approach: massive stimulus spending, a type of domestic Marshall Plan, coupled with tax breaks to multi-national corporations like the Apples and Johnson & Johnsons, to convince them to bring hiring and value creation within the borders of North America.

And there has never been a better time to bring necessary industry back to North America because of fast-developing robotics. If we do it right, within 10 years manufacturing output in North America will have doubled, even while the number of people working in that sector will be slashed in half. That, by the way, is the definition of productivity, and on the back of that productivity boom it is entirely possible that we will be moving to a higher standard of living and better quality of life. And we will truly be more secure because we will no longer rely on anyone else to provide us with the necessities of life.

You may have noticed that I have been using the terms “North America” and “we.” Canada’s political leadership should make it very clear to whomever is President that we are very happy integrating

our country into a unified supply chain that links the US and Canada. There is no need to include Mexico, as we have no particular national interest in dealing with that nation that we don’t have with countries like Brazil or Ghana or Sri Lanka.

INTO THE FUTURE Here’s what the supply chain should look like in 10 years. There should be a strategic plan in place to ensure that North America is completely self-sufficient in the basics of life. That includes food, energy and vital industries. We should be producing the steel we need on this continent. No need to import from anywhere else. We should be producing the pharmaceuticals we need within this continent. No need to import from anywhere else. We should be producing the smart phones we need within this continent.

And this new regime should be protected with prohibitive tariffs that effectively make it impossible for any other country to upset the North American apple cart.

This will require tremendous social change. We will not be able to afford the luxury of prolonging the adolescences of our young with useless college and university degrees. It might mean pushing back retirement age – at least for the next few years, until robotics kicks in full force. But compared to what we’re living through right now, all of this seems like a small price to pay. SP

Toronto-based Michael Hlinka provides business commentary to CBC Radio One and a column syndicated across the CBC network.

“My guess is that by the time you’re reading this column, we will have turned the corner on this pandemic in North America.

Yet the world will never be the same.”

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IN THE FIELD—BY LISA FENTON

EMPLOYEE WELLBEING HOW TO PROMOTE WELLBEING IN A BUSY SUPPLY CHAIN ENVIRONMENT What will our future work environment look like? Going forward, our professional landscape will demand continuous learning within tight timeframes, the removal of barriers to that learning and empowering employees to take charge of their own professional education.

Challenges in this landscape will include developing digital dexterity, as well as employing advanced analytics and artificial intelligence.

Effective supply chain mana­ gers deliver results. They are tech­ nically competent, have built their credibility, can understand and execute strategies, work to develop future supply chain leaders, try new things, are eager learners, share others’ accomplish­ments, strive for better visibility, engage stakeholders and gain buy in and support from senior leadership in a safe and respectful environment.

In the future, the supply chain manager and their teams will face additional challenges in a virtual environment to capitalize on opportunities.

Our employees’ overall health and wellbeing is impacted by their duties, expectations, stress levels, environment and sense of purpose. Our purpose equals years of experience and investment towards goals and a healthy work-life balance. Supply chain managers and their teams work in such fast paced, dynamic and changing environments that it requires a strong focus to achieve all of their initiatives. If we can help our employees reduce stress and improve their working relationships, it in turn facilitates their wellbeing. If employees view the initiatives as perks, their job satisfaction will increase.

THE POWER OF STRATEGIES Having strategies and tools that help you handle rejection, be 6 APRIL 2020

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decisive, non-judgemental, set intentions and remain aware will be the key to you and your team’s success. How are you going to stay focused without getting stressed out and overwhelmed? Think of the three types of mindfulness that will enable you to pay attention to present your best self. Those three types are basic, body sensations and sensory. Knowing this will give you perspective, creativity and gratitude which enables you to focus less on what’s missing and more on opportunities.

What is going to help us regulate our emotions, decrease our stress, anxiety and depression? Mindfulness will increase our focus and allow us to observe our thoughts and feelings without judgement. Mindfulness steps include: Practicing during routine activities by zeroing in on those activities and make them more interesting.

Practicing when you wake up and set the tone for the day. Let your mind wander and keep it short.

Practice while you wait.

Pick a prompt to remind you to be mindful.

Learn to meditate.

SUPPORTING WELLNESS Why is it so important for you to continue to practice mindfulness?

When you do, your best self shines through since you are more efficient, better integrated into the environment, less distractible and have improved focus.

The following statistics support wellbeing initiatives and encourage us to explore and implement it within our workplaces. According to research conducted by the Society for Human Resource Management, 75 per cent of employers indicated that their companies offered some type of wellness program,

resource or service to employees.

For every dollar that is spent on the program, the company saved $3.27 because of reduced healthcare costs.

A new survey by Virgin HealthMiles Inc. and Workforce Management Magazine, found that an overwhelming 77 per cent of employees think that employee wellness programs positively impact the company culture.

Research suggests that employers save on average $5.82 in lower absenteeism costs for every dollar spent on employee wellness programs. The Virgin HealthMiles workforce survey found that about 87 per cent of employees said they consider health and wellness when choosing an employer.

Why do so many companies support mindfulness training?

Benefits include the fact that it facilitates emotional intelligence, enhances understanding of colleagues’ motivations, boosts resilience, improves focus and makes one more balanced and well rounded. Ideas and activities to support wellness and mindfulness include: Provide guided meditation sessions to help employees sleep better, improve metabolism, lose weight, reduce stress and aging, increase mood and cognition, increase patience, communication and analytical thinking. Exercises could include creating a list of things they are thankful for to increase gratitude.

Short two-minute impromptu competition such as dancing.

Fitness challenges, either individual or shared to promote team building.

Tools for employees to discover their purpose through engagement, ownership and coaching.

Opportunities to develop friendships through social events.

Lisa Fenton is supply chain manager at Rapala VMC Corporation.

“Supply chain managers and their teams work in such fast paced, dynamic and changing environments that it requires a strong focus to achieve all of their initiatives.”

These and other activities help to reduce stress, anxiety and depression while releasing oxytocin, which helps to calm the centre of the brain.

Our future work environment will compel us to anticipate trends, pivot quickly to take advantage of opportunities, provide appealing workplaces and challenge our ability to attract and retain employees. The vision will always include dynamic changes and challenges in an employee-centric landscape. SP SUPPLY PROFESSIONAL

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BY MICHAEL POWER

nologies identified as the drivers of the next generation of supply chain, Prest said.

The technologies covered in the report are: robotics and automation; sensors and automatic identification; predictive analytics; artificial intelligence; Internet of Things; inventory and network optimization; autonomous vehicles and drones; wearable and mobile technology; cloud computing and storage; blockchain; and 3D printing.

SUPPLY CHAIN’S DIGITAL MINDSET INDUSTRY REPORT FOCUSES ON TECHNOLOGY AT MODEX 2020 Most supply chain executives view the digital supply chain as the dominant model in the next five years, according to the results of the 2020 MHI Annual Industry Report.

The results were presented at the MODEX 2020 conference at Atlanta’s Georgia World Congress Center, March 9-12. Overall, the show had 894 exhibits over 355,790sq-ft. While registration for the show totalled 33,460 – eight per cent higher than last year – actual attendance was 49 per cent less than that due to COVID-19 travel restrictions. That put the show’s attendance on par with MODEX 2016.

This was the seventh consecutive year that MHI has completed the report in partnership with Deloitte Consulting, said MHI’s chief executive officer, George W. Prest, during a panel discussion about the results. The report surveys over 1,000 manufacturing and supply chain professionals and contains an overview of 11 tech-

ADOPTION RATES A key point in the report is whether companies have adopted the technologies that the report focuses on and if not, when do they expect to do so, said the panel’s co-moderator, Thomas Boykin of Deloitte Consulting.

For example, cloud computing and storage has the highest adoption rate, with 59 per cent of respondents noting they’ve adopted some aspect of it, he noted. The expectation is that percentage will grow to 81 per cent over the next one to two years and 90 per cent in the next threeto five-year period, Boykin noted.

The adoption rate for robotics and automation is 39 per cent but will hit 68 per cent in a year or two, and 72 per cent in three to five years. Another technology, predictive analytics, is at 28 per cent and it will rise to 82 per cent over three to five years.

“Another interesting aspect of the report every year is the degree to which companies expect these technologies to impact the supply chain,” Boykin said. “As in the past seven years, survey respondents continue to believe that these innovations have the potential to disrupt the supply chain and create a competitive advantage.”

Robotics and automation, for example, jumped from fifth place last year to first place this year, with 67 per cent of respondents believing the technology has the potential to disrupt or create competitive advantage, he noted. As well, 50 per cent of respondents plan to invest $1 million or more on these technologies in the next two years.

“What the findings of the report made clear is that data and

“Another interesting aspect of the report every year is the degree to which companies expect these technologies to impact the supply chain.” technology are what’s driving and will empower the supply chain of the future,” Boykin said. “But it’s no single technology alone that will do that.”

DATA AND TALENT While data is valuable when dealing with these disruptive technologies, we don’t yet have a good roadmap for how we evaluate that data, said panelist Randy Bradley, assistant professor of information systems and supply chain management, Haslam College of Business at The University of Tennessee.

The data doesn’t need to be perfect, but only good enough to show an organization which direction it should take.

“There’s not a scarcity of data but there’s a scarcity of good data,” Bradley told the audience.

The real question involves the rate of technology adoption, said

Rick Faulk, CEO of Locus Robotics, who also sat on the panel. Businesses getting the best results aren’t the ones thinking about incremental improvements to the business, like 10 or 20 per cent. Rather, the ones looking at changing the state of the business will see superior outcomes.

Change leadership is also important, Faulk said. “We talk about data, but it’s not just capturing that data,” he said. “It’s the mentality to use that data in constructive ways.”

Sharing best practices, continuous improvement and project management are also keys to success, he noted.

With regards to finding the best talent to handle these changes, fellow panelist Arpana Brahmbhatt, US industry solutions – manufacturing, at Microsoft, recommended approaching universities, which often search for industry partners. This can provide external talent with at least some industry specific knowledge.

As well, Brahmbhatt said, reskilling and upskilling remain valuable sources of talent.

“I would not underestimate tapping into people who would want to be those leaders, who look at it as a career progression path for them,” she said.

For his part, Prest offered suggestions for getting started. For example, appoint a C-suite champion and create a socially responsible brand to attract a future workforce. Implement a dual mentoring program to pair younger, digitally savvy employees with seasoned professionals. Finally, establish a corporate culture in which it’s OK to fail.

“Innovation comes from failure,” Prest said. “I think that’s what we should keep in mind – failure is the opportunity going forward.” SP

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BY MICHAEL POWER

VIRAL DISRUPTION

DEALING WITH THE COVID-19 PANDEMIC The coronavirus crisis has evolved so quickly it’s tough to keep up, much less to predict the effects in the weeks and months to come. As of press time, more than 210 countries and territories have reported COVID-19 cases, the disease caused by the coronavirus. Yet supply chain professionals must look to the future as they gauge how to deal with the situation and grapple with the aftermath. This article offers tips for handling this current supply chain landscape.

While this is not the first or last disruption to global supply chains, unpredictable logistics mean a proactive approach is needed to keep business running, says Sri Laxmana, vice-president, global ocean product, C.H. Robinson. It’s important to understand how limitations on imports will affect inventory and shipping cadence, Laxmana says. Talk to your freight-forwarder about production planning and forecasting.

“Look ahead to determine your transportation needs as demand is expected to surpass available capacity in the coming weeks,” Laxmana notes.

As well, consider the variables when planning for production, including: What will production look like and has there been discussion with vendors and factories?

How do inventories compare to sales projections?

What plans exist to deal with potential worker shortages in China or demands not met?

How will backlogs be dealt with?

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Is there enough air capacity to address decreased passenger flights?

Is an expedited ocean or sea-air option being looked at as a backup?

The backlog in China is an example of the importance of a diversified supply chain, Laxmana notes.

“Additional sourcing options are not always easy to find and keeping up with the sheer demand and quality controls can be a challenge,” he says. “Connecting with a global supply chain expert to vet reliable options is important to help ensure success.”

The pandemic has highlighted the need for supply chain transparency, says Patrick Etokudo, general manager at Sherritt International Corporation. Knowing the environment, predicting what’s coming and avoiding or mitigating risk is key, Etokudo notes. But many supply chains remain reactionary and COVID19 has exposed this. Among Etokudo’s advice is to stay informed; thhis will allow supply chain managers to take protective steps. As well, understand the supply chain and review goods and services to determine the criticality of each.

Determine and review consumption patterns for goods critical to the business’s operations and ensure their supply, Etokudo suggests. Engage key suppliers regularly while determining what their business continuity plans are. He also advises shortening supply chains by sourcing locally or regionally, even as a plan B.

“This is important as the transportation industry is not immune to COVID -19 and a shortage of drivers and operators is a real concern,” he says.

If possible, consolidate shipments and aim for full truckload (FTL). This improves load ratio and therefore cost per unit, as well as minimizing interactions among employees.

While “normal” may look quite different post-pandemic, Etokudo suggests building a business continuity plan, or enhancing an existing one, once the worst is over to secure critical supplies and cover critical supply chain positions or employees.

Identify and analyze risks, he says. Develop a register of risks, assign risk ownership and manage a mitigation program. Identify and take advantage of favourable rates and terms, then negotiate and lock in contracts at those terms and rates, Etokudo says. Keep any cost reductions implemented during the pandemic.

The supply chain interruptions that riskmethods, a risk mitigation and prevention company, are dealing with are substantial, says its chief customer officer and managing director of North America, Bill DeMartino. This affects end-to-end supply chains down to the availability of consumer products, especially those requiring parts originating from the most affected areas like China and Italy.

“We’re seeing a 44-per cent rise in Force Majeure risk and a 38-per cent increase in production shutdowns,” says DeMartino.

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“Look ahead to determine your transportation needs as demand is expected to surpass available capacity in the coming weeks.”

“The production shutdowns have an obvious impact on supply availability and jobs.”

Risk surrounding Force Majeure may mean suppliers can’t fulfil contracts, he says.

Financial risks relating to supplier and manufacturer viability will eventually spike as small- to mid-sized suppliers risk folding.

DeMartino agrees on the importance of visibility. The sooner you see what’s happening, the sooner you can react and mitigate the exposure. While surveying your entire supply chain to assess the disruption and potential threats may sound daunting, DeMartino

notes it’s critical as a lack of visibility makes it tough to prioritize mitigation efforts.

“Longer term, businesses should be considering serious strategy changes, including diversifying their approach to sourcing to not be overly reliant on single suppliers, countries or regions,” he says.

After taking steps to ensure employee safety, organizations should follow government mandates and guidelines surrounding how to deal with the pandemic, says Peter Bolstorff, executive vice-president of the Association for Supply Chain Management (ASCM).

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Communicate with employees – as well as stakeholders such as vendors – about what the company is doing to mitigate the impact.

Halt discretionary spending and try to have enough cashflow on hand for at least three months, Bolstorff says. Next, look at your cash conversion cycle while considering receivables, days of supply plus inventory and days of supply minus payables days. Check if you have supply chain disruption insurance and use the policy as needed.

After recovery, continue to make risk management a priority, he stresses. Create response plans and let your supply chain team and stakeholders know what those plans are while updating them when necessary.

“Supply chains can prepare for and mitigate future global disruptions with a demanddriven strategy, sensing changing customer demand and adapting planning and production while pulling from suppliers,” Bolstorff says.

“A demand-driven strategy is necessary to keep a supply chain robust and resilient by focusing on the flow, not the cost. A robust supply chain can absorb a huge hit and keep moving forward. A resilient supply chain bounces back quickly.” SP

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ENGINEERING SUCCESS

KIA RAZMJOUYAN ON PUTTING STRATEGY INTO PROCUREMENT For Kia Razmjouyan, procurement is anything but a dry, rules-bound profession. It requires creativity, for example, in dealing with suppliers, says Razmjouyan, who is a procurement specialist – distributed hardware and tubes, at Pratt & Whitney Canada. That creativity in turn helps to spur innovation.

“You’ve got to be creative or you’ve got to have very good knowledge of the parts that you’re buying,” says Razmjouyan. “It’s not just about what you’re asking your suppliers to do. It’s sometimes about asking the right questions. ‘What does your R&D department focus on right now? What kind of research activities are you doing right now? What is the next generation of your product? Where are you going?’”

These and other strategic questions are the kinds of inquiries that procurement specialists should routinely make when talking to clients, he notes. The field is about more than simply pushing suppliers to drive down costs.

These are among the lessons that Razmjouyan has picked up during more than a decade in the field across multiple sectors. While Razmjouyan is a mechanical engineer – having earned a Bachelor of Engineering from Azad University in his native Iran – he has 10 APRIL 2020

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been working in procurement for about 13 years. He started his career in the manufacturing sector and automotive industries.

GETTING STARTED Razmjouyan began his career at Azin Khodro Industrial Group in 2004, an automotive parts manufacturer, where he worked as a project engineer and manufacturing engineer. His first foray into procurement came while working on a lean manufacturing project. Razmjouyan realized that a specific cutting machine for a production line could help to realize the project’s goals. The realization led to a series of negotiations with a foreign company to get the machinery.

“If we could buy that piece of equipment, we could improve our cutting process and it could result in zero waste of our production, and a specific sector in production,” he says.

A full-time procurement position arrived after a chance conversation at a party, where he got a tip about a job opportunity in the field.

Without knowing the job title or even who he was applying to, Razmjouyan forwarded his resume. He was hired as a procurement specialist in 2006 after a quick interview process at the company, which turned out to be Iran Khodro,

branded as IKCO, an Iranian automaker headquartered in Tehran. The company produced 688,000 passenger cars in 2009 to service the country’s booming automotive demand.

Until then, he hadn’t worked in a fulltime procurement role, Razmjouyan says.

But several years as a project manager in operations and manufacturing gave him an understanding of the elements comprising the price of parts and what drives part quality. He also realized the criticality of delivery time.

Then, in 2010, he landed a job as an operations manager with Taknam Food Industries, a role that still allowed him to keep his hand in procurement. He also became responsible for managing 40 people from different backgrounds.

“That helped me to improve my leadership skills,” he says. “Thanks to that two years of experience as an operations manager, I understood that leadership in procurement is pretty important. It’s about how powerfully you can motivate your suppliers to drive change. That was the other thing that I learned in that two years of experience in operations. Today, I’m using that in my procurement career.”

During that period, beginning around 2008, Razmjouyan founded a side-business with an Italian partner to begin importing hydraulic parts from Italy and reselling them in Iran. The experience, he notes, taught him about inventory.

Razmjouyan’s final position in Iran was at Bahman Group, a vehicle manufacturer. He worked for the company until 2014 before deciding to relocate to Canada, landing first in Montreal.

And although he started in Quebec, his first job offer was as an engineer in Alberta.

But yet another chance encounter changed his plans. Just 20 days before leaving for Alberta a stranger he met in a park suggested Razmjouyan give procurement a try, despite his concerns that imperfect language skills in English and French might be a barrier.

The encounter fortified his resolve to submit more resumes while he waited out the last 20 days before heading to Alberta.

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PHOTO: NADIA ZHENG PHOTOGRAPHY

BY MICHAEL POWER

PHOTO: NADIA ZHENG PHOTOGRAPHY

“It’s not just about what you’re asking your suppliers to do.

It’s sometimes about asking the right questions. ‘What does your R&D department focus on right now? What kind of research activities are you doing?’”

“I was like OK, in 20 days I’m leaving Montreal and I’m going to start my career as an engineer again, but at least I can try, I have this resume,” he says. “I sent that resume to only four companies. Two or three days later the second one called me. They set up an interview a week later. In the second interview I got hired.

It was pretty quick.”

The job was as a procurement specialist at MEDISCA, a pharmaceutical company, where he began working in 2014. An advantage of the job, Razmjouyan now notes, was that he could apply all his engineering knowledge to the position. Engineers have a deep understanding of what they’re involved in purchasing, and the field provides the ability to innovate – something that Razmjouyan stresses procurement can benefit from.

“I would strongly recommend more engineers come to procurement,” he says. “We really need that sort of expertise in the procurement function today. I see how I’m creating value by using that knowledge with my suppliers.”

By 2017, Razmjouyan had developed a business idea for a procurement skills-sharing platform, a sort of marketplace for procurement professionals. Procurement professionals he told supported the notion, and he quit his job in December of that year to pursue his new idea.

He pitched his vision to an entrepreneurship accelerator and incubator program called District 3 Innovation Center, attached to Concordia University, which accepted it and put it in their program. Razmjouyan worked on the idea for

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several months, developing a business model and calling it Project Mathy X. But ultimately, he decided to halt the project as the timing simply wasn’t right, realizing that he needed a stronger network to get it off the ground.

VOLUNTEERING He then got a job offer in 2019 at Pratt & Whitney Canada, his current employer, where he is now a procurement specialist. The company is an aerospace manufacturer with global service operations. Pratt & Whitney’s aircraft engines are widely used in both civil and military aviation. Its global headquarters, where Razmjouyan works, is located in Longueuil, near Montreal.

Pratt & Whitney has about 10,000 employees worldwide and 6,000 in Canada.

“Now it’s been a year that I’m working in the aerospace industry and I’m pretty happy,” he says. “Most of the knowledge that I gained since 2003, after I graduated from university, I’m using in my career. I love it.”

While Razmjouyan maintains that the procurement role is far from simply tactical, cost savings remain an important part of the field.

One of his career highlights illustrates this importance. In 2007 and 2008, Razmjouyan was able to save as much as 400,000 Euros out of his purchasing portfolio. In the mid-2000s, the air pollution in Iran was so bad, the country decided to transform the public transportation system’s fleet from diesel fuel to compressed natural gas, or CNG. At the time, Razmjouyan was tasked with purchasing parts for CNG fuel systems, including high-pressure tanks. Most manufacturers’ capacity was booked and prices were skyrocketing due to that demand. Razmjouyan convinced engineers involved in the project to approve the part he wanted and to negotiate with an appropriate supplier for a suitable price.

“We had a very good negotiation with the Korean supplier to drive down the costs,” he says. “It was a combination of engineering and procurement job.”

In Montreal, Razmjouyan also began volunteering with the Persica Management Quality Association, or PMQA, a non-governmental organization that uses space at Concordia University, although it’s headquartered in Toronto.

Each Saturday, he coaches immigrants on procurement and how to advance their careers in Canada. The first two hours of the day’s instruction are devoted to teaching Six Sigma.

There is also an hour and 45 minutes of procurement coaching. His title with the organization is coordinator of volunteers.

“We also read their resumes and give them comments on how to improve their resume or job-hunting skills,” Razmjouyan says. “In the 12 APRIL 2020

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“Not just in supply chain management, but in all fields and areas, we are going to see a huge improvement thanks to the diversity from the immigrants that Canada has welcomed every year.”

future, we’re planning to rent a place; some community centres offer space to NGOs. Now we’re in the registration process based on the number of candidates. We’re going to run the classes in a better place with a bigger space. That’s what I do and I’m going to keep doing that. I’m going to expand that part in the future.”

He also plans to one day run his own procurement consulting company.

OUTSIDE INTERESTS Razmjouyan considers himself an avid hiker and climber, although he hasn’t been able to pursue that passion during his four-plus years in Canada. In Iran, a rugged country of plateaus and mountains, he would often hike for five or six hours straight – a pastime he misses.

“Maybe I’ll have to do skiing?” he says.

“Hiking was my passion, I love it. I also love people; I love being able to help them actuate their dreams. This is what really resonates with me.”

When giving advice to procurement practitioners, Razmjouyan urges them to become more strategic. Some organizations focus largely on the operational side, getting wrapped up in the daily, tactical functions, he notes.

But that’s not what the field needs in the future. For example, his own company Pratt & Whitney, along with others, has worked to separate the buying function from more strategic roles. Buyers, for example, are responsible for the more tactical functions on a day-to-day basis: placing purchasing orders, ensuring suppliers receive those purchasing orders, processing the orders in a timely way and so on. Others can then focus on more strategic functions.

Procurement must also work to be more efficient, Razmjouyan stresses, and Lean/Six Sigma and data analysis are key skills for the future. Without more efficiency, procurement can easily wind up viewed merely as a cost. But

in reality, procurement is one of a company’s most valuable elements in terms of creating value, he notes. For example, within a com­pany with revenue of $1 million, 50 per cent of that revenue is normally the cost of material acquisition. If that company saves five per cent of its material acquisition costs, its profits can be increased by 25 per cent, or five times more than the amount of the cost decrease.

Another way to realize value is through customer satisfaction. For example, if a customer is totally satisfied with a part you delivered to them, and therefore continues to place orders in the future, that creates value even if it is not easily visible on the balance sheet. “(Companies) really need to make sure procurement is efficient, and they should not see procurement as a cost centre,” Razmjouyan says.

“They have to know how to drive procurement to create value. They have to lead procurement or hire good managers. It depends on what kind of strategy they’d like to choose.”

As with many successful procurement practitioners, Razmjouyan credits past and present mentors with helping him achieve his current level of success in the field. Among them, he points to his current manager Daniel Di Liello, who hired him at Pratt & Whitney, noting Di Liello is “one of the great leaders in procurement.”

The second mentor Razmjouyan notes is Ross Saheli, his former manager at IKCO. Not only did Saheli explain the importance of being strategic in procurement, but also of why ethics in the field is so important. “With the amount of dignity and integrity that he showed in his job, he was always very inspiring to me,” Razmjouyan says.

One of the factors he has most enjoyed in his time in Canada has been the diversity he’s observed in the procurement field, Razmjouyan notes. In his current role, he is able to work with colleagues from France, Algeria and Egypt, to name a few places. Each of these professionals brings with them their own experiences, which helps to make the work environment all the more interesting. In the coming decades, he says, Canada sits poised to benefit from a huge opportunity as it absorbs talent from all over the world.

“Not just in supply chain management, but in all fields and areas, we are going to see a huge improvement thanks to the diversity from the immigrants that Canada has welcomed every year,” he says. “I’m one of them and I appreciate it. I appreciate the opportunity.” SP

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BY CHRISTIAN SIVIERE

TURBULENCE AHEAD? THE AIR CARGO INDUSTRY IN THE AGE OF COVID-19

A few decades ago, air cargo, along with ocean containers, became one of the enablers of globalization, as more and more products were exported and imported internationally: industrial goods, consumer goods, high value merchandise, spare parts, perishables, fashion, you name it. Originally, passenger aircrafts carried this cargo in their bellies, together with baggage.

Then pure cargo aircrafts were developed, the most popular being the Boeing 747, which, although production is now being phasedout, is still considered the “queen of the skies” for cargo, thanks to its ample payload (almost 140 tons) and ease of loading (side-loading and nose-loading). These planes carry cargo both on the upper deck (or main deck) and on the lower deck (the belly). Combi aircrafts, which have a partition permitting the transport of a mixed load of passengers and freight on the upper deck, became popular in the 70s and 80s, and still do for remote destinations. The air cargo market

had grown steadily and without overcapacity issues, up to the 2008 financial crisis.

The 2008 collapse of the subprime mortgage market in the US, Lehman Brothers’ demise and the global financial crisis put the air transport industry on its head.

IATA, the International Air Transport Association, estimated that the industry saw a US$280-billion loss of revenue over the decade.

Air cargo was particularly impacted, as many companies cut transportation budgets and switched to slower (and cheaper) transport modes when possible. Improved controlled-atmosphere ocean containers also began to attract more perishable commodities that may otherwise have stayed with air cargo. IATA pinned at 22 per cent the decline in freight tonne kilometers during the global financial crisis and airfreight volumes were still feeling the effect 10 years later. The downturn in passenger demand was not as deep, so airlines began to focus more on passengers than on freight. Many carriers phased-out their freighter or combi equipment then, to carry cargo only in the bellies and this trend continues today.

During previous crisis like the SARS outbreak in 2003, which had a devastating impact on Southeast Asia, the air transport industry had recovered relatively quickly. Until the coronavirus crisis, one of the main challenges the industry faced was the “trade war” between the US and China. The impact of this on air cargo, combined with slowing economies and rising political uncertainties, brought down demand, particularly in the AsiaPacific region but also elsewhere.

“As fewer options become available, prices shoot up and it’s not clear what tomorrow will look like or how this will play out.”

For example, in August 2019, air freight volumes were down 3.9 per cent, marking the tenth consecutive month of year-on-year decline, the longest period since the 2008 global financial crisis.

While this was happening to traditional air cargo, e-commerce growth reshuffled the cards, first for the benefit of integrators like DHL, FedEx, UPS and others, who made it possible for online trade to prosper. Then Amazon invested in cargo planes and to start handling their own shipments, competing against those integrators. As air cargo became essential to e-commerce, the industry fragmented between the traditional airlines focusing mainly on passengers, pure cargo airlines and integrators.

This was coupled with industry consolidation in each sector.

ROUGH SKIES Then came the coronavirus crisis.

Covid-19 and the virus responsible for the 2019-2020 pandemic originated in Wuhan, Hubei Province, China. It was first detected on November 17 2019. The information was suppressed and the situation recognized only in January 2020.

Economic activities and the daily life of millions are affected, as are governments, companies, businesses, manufacturers, wholesalers, retailers and all their supply chain partners, carriers and service providers. Aviation had undoubtedly been one of the sectors most impacted, as we have witnessed borders and air spaces closed on short notice, flights drastically reduced or cancelled. Many airlines have grounded planes and laid off staff, not just as an immediate cost saving measure but by force, since people are not flying anymore. Cargo flights are not affected the same way and in principle, they continue to operate normally. But since about 50 per cent of air cargo worldwide is carried in the belly of passenger planes, shippers of air cargo are hugely impacted by this situation.

What is the likely outcome of all this and how can we try to mitigate our losses? As fewer options become available, prices shoot up and it’s not clear what tomorrow will look like or how this will play

Christian Siviere is president at Solimpex.

out. Many airlines could go out of business if governments don’t bail them out. Europe’s largest regional airline, Flybe of the UK, went under in early March. Will governments have the means of keeping airlines afloat until the pandemic is under control and economic activity starts again? Or will this result in a reshuffle, with established airlines disappearing and new ones popping up, like Google Air or Facebook Air, maybe the only businesses that still have lots of money?

On a more serious note, we will likely get clues from China.

Economic activity there is slowly getting back to normal, while we are just beginning to experience the crisis, so it’s fair to say that they will be two to three months ahead of us and we can learn from this.

In the meantime, for companies to prepare for the “day after,” several strategies will likely emerge.

Reshoring or nearshoring will likely be one of them, as shorter supply chains, by definition, are less risky and more resilient. Partnering with suppliers, to keep stock closer, although not a new concept and used in many industries, will gain importance. Alliances with several freight forwarders and service providers who have enough clout and access to space, will be an important element too. Lastly, integrators could be the ones playing a big role in the future, since they have huge fleets of cargo planes that will be ready to take off and fly our cargo in the post-coronavirus world. SP SUPPLYPRO.CA 13

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BY MICHAEL POWER

BEYOND INDUSTRY 5.0 HOW CLOSE ARE WE TO THE NEXT INDUSTRIAL REVOLUTION? There’s little doubt that traditional manufacturing and their supply chains are changing rapidly through digital transformation. Technologies such as robotics, 3D printing, autonomous vehicles, artificial intelligence (AI) and others are putting pressure on organizations to adapt or be left behind.

The change appears so rapid and exhaustive that many now refer to this point as Industry 4.0, or the fourth Industrial Revolution.

The first Industrial Revolution, beginning in the 1780s, focused on mechanization and using machines powered by water and steam.

About 100 years later, the second such revolution arrived through the adoption of mass production and assembly lines. Automation, or so-called Industry 3.0, arrived around 1970 and used electronics and computers.

Today, Industry 4.0’s focus is on technologies such as connected devices, data analytics and AI to automate industrial processes even further. Looking to the future, the 14 APRIL 2020

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next stage has already been dubbed Industry 5.0, which will focus on personalization and cooperation between humans and machines.

But how relevant is the distinction between these recent revolutions? Is the concept of Industry 5.0 much different from that of 4.0? And when can we expect the shift to happen?

Industry 4.0 has focused on using technology in manufacturing, along with how to connect devices, using that connection to gather and analyze data, says Peter Bolstorff, executive vice-president for the Association for Supply Chain Management (ASCM). In other words, Industry 4.0 is all about the digitization of the supply chain.

In the future, Industry 5.0 will focus not only on the ways in which humans interact with technology but how companies can use that interaction to boost personalization down to the individual consumer, Bolstorff says.

“That’s really how we framed our view of Industry 5.0 in the future – personalization,” he says.

“But the question that remains is, ‘personalization of what and how?’”

There’s been no wholesale shift from 4.0 to 5.0 yet, Bolstorff notes. There are instances of 5.0 among some organizations, while others are still catching up from globalization (which kicked off in about 1980 and is referred to as Industry 3.5). Industry 5.0 won’t arrive in a flash, he says. Rather, innovative organizations will push for change while many others will follow their lead.

“I think we’re solid in 4.0 and you’ve got 10 to 15 per cent of the companies really wanting to continue to innovate,” Bolstorff says.

Companies are now trying to establish frameworks that allow them to focus their digital capabilities and investments on what they think will help them financially as well as benefit customers, says Bolstorff. The most important discussion surrounding that technology adoption is deciding what business problem needs to be solved, rather

“Define the problem or opportunity, focus on a particular digital capability and pilot so that you can learn quickly and adapt if necessary. The absolute thing not to do is to go big bang.” than which specific technology must be adopted. Whether it’s improvements to productivity, service or increased growth, start by framing the problem or opportunity that you want to address, Bolstorff advises. Next, decide where the focus of the improvement will be in terms of process.

“Where’s the biggest win?

Once you focus on that – let’s just say you’re going to focus on synchronized planning – just realize that to become a synchronized planning organization, there are connections to other things,” he notes. “Define the problem or opportunity, focus on a particular digital capability and pilot so that you can learn quickly and adapt if necessary. The absolute thing not to do is to go ‘big bang.’”

DRIVEN BY DATA As connectivity ramps up, data is often cited as an enabler to Industry 4.0 and the eventual transition to the 5.0 model. That data is also critical to the development of the Internet of Things (IoT), which will lead to a more technology driven environment for supply chain and manufacturing alike.

Data governance is critical to identifying, capturing, sharing and using information about products within these environments, says Peter Zalinski, supply chain

architect and product manager of identification solutions at Barcoding. IoT acts as a data source that can, for example, add event notifications to a system and report those events, he says.

Automated data collection and IoT provide real-time updates and location information for assets.

This creates a trail of events that not only help in making better decisions but also in automating other activities.

“IoT and automatic data collection free up scarce human resources that are better spent adding value to the supply chain through transformative work rather than gathering data points,” Zalinski says.

As well, GS1 Standards, which provide a common language to identify, capture and share supply chain data, are therefore fundamental because they support interoperability for identification, electronic data exchanges and event-based notification and tracking, he says.

“Join the GS1 Standards organization and begin the journey towards good data stewardship and digital transformation,” Zalinski advises.

As the changes brought about

by Industry 4.0 and into Industry 5.0 unfold, Zalinski recommends staying aware of cybersecurity issues and preparing to manage the data flow that comes with increased IoT infrastructure. As we move towards Industry 5.0, organizations can expect to see more data in motion, closer standards compliance and greater interoperability among IoT providers, he says.

WHAT ABOUT PEOPLE? Often, debate surrounding Industry 4.0 and its progression to 5.0 can leave out what the human interaction with technology will be, says Professor David A. Johnston, director, Master of Supply Chain Management Program, Schulich School of Business in Toronto.

The discussion can confuse technology with the actual information that people need to process in order to get business done, SUPPLY PROFESSIONAL

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as well as relationships with customers and suppliers.

“A lot of what we’re dealing with has to do with basic data management and being a datadriven supply chain, which means we make our decisions based on information that we’ve collected meticulously and accurately; then we make the best decision that maximizes some potential outcome,” he says. “A lot of that is what underpins what they would call Industry 4.0.”

Often, the technology associated with this represents some form of IoT that lets organizations collect information for use in decision making, Johnston says. The decisions often involve the management of resource allocation like logistical routing or the optimal scheduling of plant manufacturing.

At the moment, many organizations use bits and pieces of a decision-making system based on information processing that systematizes data collection for parts of their business, Johnston says.

Currently, there are few organizations that are fully living up to the ideal of Industry 4.0. Some of the technology and concepts associated with the next phase, Industry 5.0, remain less clear.

“It’s pretty broad,” he says.

“Everybody’s kind of playing with some very speculative concepts and technologies – usually something like man-machine interface comes into that.

Augmented reality comes into that. There seems to be this idea that somehow Industry 5.0 has some sort of human working with cybernetic interface.”

But even in the future, supply chains will presumably be built for people, Johnston says. Humans must eventually interpret what other humans want into something that machines can do. At some point, people must also determine when the system shuts on and off as it becomes desirable, like the circuit breaker in an electrical system.

Will the role of humans in Industry 5.0 therefore be to decide what is made, when operations must start and stop, and so on?

While it’s early in the game, Johnston notes, people still have a significant role in Industry 4.0, the current step in industrial progress. We tend to lump together developments into waves or trends, such as Industry 4.0, 5.0 and so on. But Johnston cautioned that while some organizations may

be looking to “chase the bleeding edge,” most are not yet anywhere near that edge.

“We’re talking about having these integrated data flows between Internet of Things devices, allowing us this end-to-end transparency and coordination,” he says. “The reality is, people in the supply chain are dealing with each other, and some of them are still using fax machines and spread sheets.”

It’s perhaps still too early to tell where developments in technology will take manufacturing and supply chain. Certainly, the role of technology and connectivity has already enhanced and altered many functions and will continue to do so. Technology moves fast, and those in the field would benefit from keeping their eyes on these developments as they unfold. SP

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BY MICHAEL POWER

INTELLIGENT DESIGN

SMART TECHNOLOGY MAY CHANGE HOW CITIES AND SUPPLY CHAINS INTERACT A human driver takes a truck eastbound out of Toronto to a hand-off parking lot along the 401 Highway. From that point, the truck then drives itself, without being directly piloted by a person, towards Montreal where it stops at another handoff parking lot, similar to the first one, close to that city. The vehicle waits until a second human driver takes control and drives the truck into the city of Montreal. Eventually, artificial intelligence (AI) will allow such vehicles to travel warehouse to warehouse by themselves.

These are just some of the developments that could be in store for the worlds of supply chain and transportation as technology advances, says Barrie Kirk, executive director of the Ottawa-based Canadian Automated Vehicles Centre of Excellence (CAVCOE). Long-distance trucking will eventually migrate to connected and automated vehicle (CAV) technology, enabling scenarios like the above.

“Given the shortage of long-distance drivers, which will get worse, this technology will be a big benefit to the trucking companies,” Kirk says.

Municipalities around the world are using so-called smart city technology – including big data and Internet of Things (IoT) sensors, robot16 APRIL 2020

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ics, geospatial technology and others – to gather data in areas like traffic congestion, energy use and air quality. Transportation and supply chains will be among the areas affected by these advances, Kirk says.

Volvo, for example, is already testing “Vera,” an electric truck with no cab that it hopes to use in ports, factories and similar environments in which logistics is key, Kirk notes. Vera is controlled and monitored via a control centre and can potentially make transportation safer, cleaner and more efficient, the company says. The vehicle will form part of an integrated solution to transport goods from a logistics centre to a port terminal in Gothenburg, Sweden. The aim is to implement a connected system consisting of several Vera vehicles monitored by a control tower.

“The vision is to increase the speed and range so that Vera can travel further on regular highways,” notes Kirk.

Local goods delivery (right to the front door) will also eventually switch to autonomous trucks, he says. Ford Motor Company, in collaboration with Agility Robotics, for example, has created a two-legged robot named “Digit” that can make home deliveries. The robot can walk, go up and

down stairs and carry packages of up to 40lbs.

Digit can get parcels from a driverless, autonomous vehicle and deliver them to front doors.

SAFETY AND TRAFFIC FLOW While these scenarios sound as if they were pulled from science fiction, the two main advantages of such technology are improved safety and a resulting reduction in the number of collisions, traffic deaths and injuries, as well as improvements in the flow of traffic. At the same time, one of the biggest challenges is the cost associated with deploying the technology on roads, and related infrastructure.

“It will be financially impossible to deploy this on every highway, arterial, urban road and rural road across the country,” Kirk says.

“The trend will be to be selective, such as using the technology in high-density urban areas.”

There are two key strategies associated with smart city technology: infrastructure-based and vehicle-based, Kirk says. One example of the infrastructure approach can be found at the L5 CAV test site in Ottawa. This is a 1,866-acre, fenced and gated plot of land managed by Invest Ottawa. It includes 16km of paved road, smart traffic intersections and a combination of pedestrian crosswalks, one-way traffic lanes, streetlights and other approximations of urban life.

The area also includes high definition cameras, sensors for temperature, humidity, atmospheric pressure, wind, motion, acoustics, road pavement temperature (for icy conditions) and a private cellular network provisioned for the entire site, including the new 5G system.

The facility is designed as a proving ground for the pre-commercial development and advancement of CAV technology.

“The other approach is to equip vehicles with sensors for weather – especially road weather – and to share that information with other vehicles,” Kirk notes. “This is especially useful for fleet operators who have vehicles which can be simultaneously providers and users of information.”

Early versions of these technologies are already in use, he says. A well-known example SUPPLY PROFESSIONAL

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“Given the shortage of long-distance drivers, which will get worse, this technology will be a big benefit to the trucking companies.” is the equipment fitted to emergency vehicles that allow them to communicate with traffic signals, switching them to green. This allows the vehicles to reach an incident quickly. And while testing for communications between signals and private cars is underway, commercial rollout is likely a few years away, Kirk says.

REAL-WORLD APPLICATIONS Supply chain and transportation companies are increasingly keeping their eyes on these developing technologies. Windsor-based Laser Transport Inc., for example, has been monitoring potential projects that use smart technology, says its CEO Adam Pernasilici.

One of the undertakings is a pilot project that involves traffic flow at the US border and Huron Church Road in Windsor, the main thoroughfare approaching the Ambassador Bridge to Detroit, Michigan, which carries

over a quarter of the $700 billion in goods traded annually between the US and Canada.

The Institute for Border Logistics and Security (IBLS) and the City of Windsor are working on the pilot, which uses Miovision TrafficLink along Huron Church Road to gather data and optimize traffic along the corridor.

Smart traffic signal technology can provide traffic engineers data to find small changes that can make a big difference in traffic flow. The signals give information including travel time between signals and classification of vehicles at each signal while also providing alerts of congestion in the area.

“They were reasonably successful,” says Pernasilici of the pilot. “The outcome was a 20-per cent increase in flow within a couple of weeks.

As a cross-border carrier, we’re crossing the bridge dozens of times a day. If you’re telling me you’re going to get a 20-per cent increase

in efficiency multiplied across all of the trucks that are crossing, that’s absolutely massive.”

For Pernasilici, such advances offer opportunities to move away from silos towards a cooperative ecosystem for transportation and logistics.

Trucking is often slow to adopt new technology, he says. The industry can be inefficient, running empty miles. Idling trucks can have a negative impact on a company’s carbon footprint.

“How do we fix that? I think the answer is in smart cities and mobility,” he says.

Just across the border from Windsor, the city of Auburn Hills, Michigan has partnered with German automotive technology supplier Continental to create a Smart City Mobility and Transportation Hub to test and improve traffic flow, reduce pollution and increase safety at two of the city’s intersections. Among other things, the hub uses sensors and software integrated into the city’s infrastructure to communicate potential dangers to approaching connected vehicles and pedestrians. There’s a wrong-way driver (WWD) detection system that warns of a vehicle headed the wrong way. Smart technology is also collecting information about location and movement patterns for pedestrians and vehicles.

“On a macro level that’s a big play – they’re turning a geographic area into a competitive advantage,” he says. “Who doesn’t want to live in an area where it’s easier to commute, or the air quality is better, or it’s easier and more cost effective to do business?”

As smart technology advances, early adopters and those that participate in pilot programs will be the ones best able to gain a competitive advantage, Pernasilici says. Those left behind will have a major learning curve.

“My advice would be, don’t get left behind because it’s moving quicker than we can follow,” he says. “You’ve got to get your foot in the door somewhere.”

For his part, CAVOE’s Barrie Kirk advises that the past is often a poor guide to the future.

Technology used in smart communities, roads and CAVs are very disruptive and the past 20 years won’t forecast the next two decades very well.

Don’t assume the future will be a linear extrapolation of the past. Today, we’re at a similar point in history as people at about the year 1900, Kirk notes. Then, disruptive technologies included the first cars, planes, telephones, radio transmissions and electricity. These technologies were the bridge between the old agriculture-based economy of the 1900s and the new industries of the 20th Century.

“Today’s disruptive technologies are smart communities, CAVs, artificial intelligence and robotics,” he says. “Together, these will have an impact on the 21st Century every bit as broad and deep as the disruptions of 120 years ago.” SP SUPPLYPRO.CA 17

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2020-04-14 11:17 AM

Fleet Management

By Lesley Wimbush

Kia Forte The Kia Forte returns for 2020 with a new turbocharged GT version. Only we lucky Canadians get the hatchback. The Forte features a sharper, sportier ride, with new GT models offering an even sportier tuned suspension setup. All regular Fortes are powered by a 147hp, four-cylinder motor, GT models boast a 201hp, turbo-charged four-cylinder mated to a seven-speed dual clutch transmission. Standard features include heated side mirrors, 15-inch steel wheels, split folding rear seat, leather trimmed steering wheel, air, eight-inch display with Apple

Nissan Kicks Nissan’s subcompact crossover is surprisingly practical, making up for its tiny footprint with a versatile interior offering as much cargo space as some larger rivals. Powered by a 122hp four-cylinder, the Kicks isn’t big on passing prowess, but is peppy enough for around town.

Standard are continuously variable transmission, blind-spot monitoring,

automated emergency braking and forward collision warning.

Higher trim levels offer Apple CarPlay, Android Auto, 17-inch wheels, hill start assist, Bose sound system, heated front seats, remote start, enhanced gauges, rear parking sensors, and two-tone paint.

A spring lineup The Canadian International Auto Show 2020 provided plenty of budget-conscious fleet options.

February is a welcome reminder that the long winter is coming to an end and spring is finally on its way. The month also heralds the arrival of the Canadian International Auto Show. The country’s largest celebration of the automobile, held annually in Toronto, is a showcase of exotic concept vehicles and the latest new technology. The CIAS is also one of the most valuable resources to those considering new fleet purchases. The new crop of 2020 arrivals offer plenty for the valueminded buyer.

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CarPlay and Android Auto, Bluetooth.

Higher trim levels add LED headlights and daytime running lights, heated steering wheel, rear seat air conditioning vents, wireless smartphone charging, lane keeping assist, LED taillights, sunroof, adaptive cruise control, advanced collision avoidance, power driver’s seat, heated rear seats, premium sound, and navigation. GT models add paddle shifters, front sport seats, sport wheel and pedals, 18-inch rims, ambient lighting, red accented grill, spoiler, rear diffuser.

Mazda 3 Mazda’s stylish compact offers an engaging and refined driving experiences. Available in sedan or hatchback, the Mazda3 delivers excellent fuel economy despite being one of the sportiest vehicles in the compact segment. For 2020, the Mazda3 now offers as standard the same driver safety features once found only in upper trim levels, including adaptive cruise control, auto high beams, lane departure warning, automated emergency braking and lane-keeping assist. Its cabin feels upscale with options like Bose Audio, heated and power adjustable front seats, Sirius XM Satellite radio. All Mazda 3 come with a 186hp, 2.5L four-cylinder, mated to standard gearbox on the hatch, or automatic on the sedan. All-wheel drive is optional, and available only with automatic transmission.

FM/SP SUPPLY PROFESSIONAL

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The 2020 RAM Commercial Lineup is here. With everything you need, all in one place.

Give your clients and team members the rugged capability they’re craving with the 2020 Ram 1500, featuring a max payload of up to 2,300 lb [1,043 kg]*.

Take on the really big jobs with the 2020 Ram Heavy Duty, with diesel towing of up to 35,100 lbs [15,921 kg]*. And be ready for anywhere the job takes you with the 2020 Ram ProMaster City, featuring best-in-class cargo capacityΩ .

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*When properly equipped. ΩBased on the latest available competitive information for Cargo Vans marketed as Small Vans in the WardsAuto Small Van segment (Ford Transit Connect and Nissan NV200).

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Toyota Corolla The Corolla returns in 2020 with an all new hybrid. Joining the lineup is a new battery-assisted variant featuring the same hybrid powertrain as the Toyota Prius. The Corolla offers terrific value with standard 1.8L, four-cylinder, six-speed, seven-inch touchscreen, Apple CarPlay, keyless entry, and the Safety Sense 2.0 suite of driver’s assistance, including Radar Cruise Control. Higher trim levels

Hyundai Elantra The only change to the Elantra for 2020 is an optional continuously variable transmission in place of the six-speed automatic. It’s offered in five trims, all with a 147hp fourcylinder, except Sport models, which have a 201hp turbo-charged four.

Standard are 15-inch steel wheels, five-inch touchscreen, heated front seats, six-speaker audio, intermittent wipers, air, heated and adjustable side mirrors and adjustable cloth seats. Midrange trim levels offer auto transmission, blind spot warning, rear cross traffic alert, leather trimmed and heated steering wheel, passive keyless entry, auto headlights, forward collision warning, avoidance assist, lane departure warning and

assist, dual zone climate control, hands-free trunk, and satellite radio seven-inch touchscreen. Upper trims add pedestrian detection, adaptive cruise control, heated rear seats, eight-way adjustable power driver seat, wireless smartphone charging and 4.2-inch LCD information cluster.

Honda Fit

Chevrolet Spark

Mitsubishi Mirage Mitsubishi’s three-cylinder is one of the least expensive cars in Canada.

Although it offers less power and refinement, the Mirage is a fuel economy champion, returning 6.6/5.6L/100km (city/highway) when equipped with the continuously variable automatic transmission.

Available in two trims, both powered by a 78hp, three-cylinder engine, the Mirage comes standard with five-speed manual transmission, 22 APRIL 2020

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include CVT gearbox, heated seats and steering wheel, power moon roof; and a 169hp, 2.0L four-cylinder engine and sports tuned suspension for sporty SE models. Range topping XSE models include heated front and rear seats with eight-way driver’s seat adjustment. While gas-powered Corollas boast fuel-efficiency as low as 6.0L/100km, the Hybrid claims 4.4L/100km for city driving.

backup camera, auto climate control, AM/FM/CD audio, auto off headlights, 60/40 folding rear seat. Available are CVT, air, remote keyless entry, tilt, Bluetooth, Apple CarPlay/Android Auto, and Rockford Fosgate audio.

Lacking are driver assistance features: lane-departure warning, forward collision warning, or automated braking.

Chevy’s subcompact hatch returns unchanged for 2020. At $9,998, the Spark is hands-down Canada’s most affordable car. Available in three trims, the Spark comes standard with 15-inch steel wheels, manual transmission, rear spoiler, fourspeaker audio, intermittent wipers, seven-inch infotainment system with Bluetooth, and tire pressure monitoring. Higher trim levels add auto transmission air, forward collision alert, lane departure warning, heated seats, sunroof, chrome trim, leatherette upholstery.

All Sparks get a 1.4L, four-cylinder that returns 7.9/6.2L/100km (city/ highway) with auto transmission, and 8.0/6.2L/100km for manual.

There are no changes to the Fit for 2020. The Honda Fit is the champion of interior flexibility. Its main claim to fame is its “Magic Seats” which can fold in a variety of configurations to accommodate cargo. The modestly powered engine (130hp with the manual gearbox and 128hp with CVT) is responsive, so the Fit feels fast, even though it isn’t. Standard are Bluetooth audio and steering wheel controls, six-speed transmission and backup camera. Upper trims feature seven-inch touch screen with Apple CarPlay/Android Auto, six-speaker sound, and a CVT automatic that also includes the Honda Sensing package of automated braking, lane departure warning, adaptive cruise control and lane-keeping assist.

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We originally bought this magazine space to tell you about our award-winning vehicles. But now it just doesn’t feel right.

Instead, we honoured this commitment and decided to use this space to thank all the essential and non-essential professionals working tirelessly to keep us safe and to make sure we get out of these hard times.

Our sincerest and most heartfelt thank you to every single one of you — for bringing us confidence in these uncertain and challenging times.

It’s time to move mountains.

Stay safe, Your friends at

Subaru Canada, Inc.

subarufleet.ca

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Fleet Management

By Stephanie Wallcraft

The 2020 Honda Pilot

Classically handsome and with ample cargo space, the Pilot is a reliable option Over the last few months, the three-row SUV market has been upended. New products have taken the segment by storm, such as the Hyundai Palisade and the Kia Telluride, and several faithful standbys have had top-down overhauls, including the Toyota Highlander and the Ford Explorer.

Where does that leave this vehicle, the Honda Pilot? This brand is fortunate to have many 24 APRIL 2020

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loyal customers, some of whom pass that devotion down to future generations, thanks to a longstanding reputation for quality and reliability. While this is likely to keep sales moving for the Pilot, its five-year-old platform currently needs to stand up to some serious competition.

For starters, although all-wheel drive is standard, as is commonly the case within this segment,

the starting price of $43,236 including delivery fees is higher than some products of similar size and equipment, most notably the Subaru Ascent.

On the other hand, the Pilot’s 3.5-litre naturally aspirated V6 engine, rated at a competitive 280hp and 262lbs-ft of torque at 4,700rpm, is a steady and reliable choice that’s made more fuel efficient in frequent highway use through its

variable cylinder management. In the eight-seat Touring trim tested here, priced at $55,236 including fees, the nine-speed automatic transmission with an auto start-stop function helps to bring down the average further to 12.4L/100km in city driving, 9.3 on the highway, and 11.0 combined. My experience lined up with this, landing at an average of 11.7 in mixed use, which is one of the better figures I’ve recorded in a three-row SUV thus far in the 2020 model year.

If there’s any aspect of the Pilot’s drive dynamics that hasn’t caught up as new products have cropped up around it, it’s the handling.

While others have perfected a light and more car-like feel with planted suspensions, the Pilot does exhibit some bounce on rougher roads and

PHOTO: STEPHANIE WALLCRAFT

1.

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1. The Pilot’s 3.5-litre naturally aspirated V6 engine is a steady and reliable choice that’s made more fuel efficient in frequent highway use through its variable cylinder management.

2. The Pilot boasts 524 litres of cargo space behind the third row, 1,583 litres behind the second row and 3,092 litres behind the first row.

One area where Honda often excels is in cargo space, and the Pilot is no exception.

PHOTO: STEPHANIE WALLCRAFT

3. The Pilot’s interior is quiet and well thought-out with controls found in the places one would expect.

body roll in curves. These traits are by no means to a degree that’s unacceptable; it’s only that several others are stronger performers.

The Pilot’s relative age doesn’t show through in its appearance, which is classically handsome among a field of increasingly experimental competitors. It could be said that the interior is on the darker side with extensive use of black materials and a lack of light to offset it since a panoramic roof is only available at more expensive trims. And though wood or chrome accents would break things up, functionally the Pilot’s interior is quiet and well thought-out with controls found in the places one would expect and door-mounted cup holders positioned within easy reach. One exception to this, however, is the gear selector: this driver is not a fan of the trigger-like action on the reverse button, which leaves swapping between gears feeling neither intuitive nor seamless.

Honda’s smartly laid-out infotainment system is a standout.

The home screen displays functions with icons similar to a smartphone, and while it would be nice to have hard buttons for things like radio station tuning, the most frequently used digital buttons are positioned on each screen within easy reach of the driver. As with most Honda products, Apple CarPlay and Android Auto are included as standard equipment.

Other standard features on the Pilot include 18-inch wheels, LED

2.

headlights and taillights, heated front seats and exterior mirrors, and the Honda Sensing safety suite that includes forward collision warning and collision mitigation braking, lane keep assist, lane departure warning, road departure mitigation and adaptive cruise control. Automatic high beams are also standard. These were exceptional standard features not so long ago, but they’ve become more common in recent years.

In this Touring model, the blind spot information warning system is added, as are 20-inch wheels, auto-leveling front headlights, a hands-free power liftgate, rainsensing wipers, the CabinTalk voice projection feature, a wireless charger, driver’s seat memory function and ventilated front seats, heated second-row outboard seats and a rear-facing roofmounted entertainment system, among others. These feature offerings are more or less on par for the price point.

But one area where Honda often excels is in cargo space, and the Pilot is no exception. Its 524 litres of cargo space behind the third row, 1,583 litres behind the second row, and 3,092 litres behind the first row are made better by seats that fold flat for the best use of the space.

Though it’s not the flashiest, best handling, or most powerful three-row SUV on the market, it continues to be a functional and reliable option for those who prefer the traits that Honda offers. FM/SP

As Tested

3.

Price (incl. freight and PDI): Starts at $43,236; tested at $55,236 Engine: 3.5-litre six-cylinder Power: 280hp; 262lbs-ft of torque at 4,700rpm Transmission: Nine-speed automatic Rated Fuel Economy (L/100 km): City 12.4/Hwy 9.3 Observed Combined Fuel Economy (L/100km): 11.7 FLEET MANAGEMENT SUPPLYPRO.CA 25

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Fleet Management

By Michael Power

Connected telematics

Advances like 5G could mean a greater demand for telematics As in most fields, technology in the automotive world has advanced rapidly in recent years. At the same time, estimates place the global sales of electric vehicles at 30 million over the next five years. Along with that rise comes the added need for connectivity in the automotive world, with technologies such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies advancing at the same time.

The rise in technology also means that the number of connected cars with embedded telematics is likely to spike from 23 million in 2018 to 65 million in 2025, according to a Frost & Sullivan report entitled Analysis of Embedded Telematics in the Automotive Industry, Forecast to 2025.

There has been more interest in telematics among customers and fleet operators, says Lou Vella, manager, client information services (CIS) telematics at ARI. Among the factors accounting for this surge in demand is the drop in the front-end investment in telematics products over the past five years, Vella notes. This has meant that the return on investment for telematics has moved within reach for a larger 26 APRIL 2020

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number of organizations and they’re able to expand the use of telematics to additional business applications.

“It’s not just about curtailing idling and a few of the operational improvements,” Vella says.

“It’s also extended itself greatly on driver safety and some potentially significant operational improvements where its benefits go straight to the bottom line. It’s improving things like scheduling and route optimization, recognizing the performance of routes that drivers take and being able to improve upon them. Ultimately, that goes to improving things like delivery times, driver productivity, being able to do more effective dispatching and, in general, improvement to service levels for a business’ customers.”

The number of clients and vehicles enrolled in ARI’s telematics program has nearly tripled over the last two years, adds Don Woods, ARI’s VP of CIS. Additionally, Woods notes the number of RFPs requesting telematics has jumped from approximately 20 percent just a few years ago to more than 70 percent in recent months.

The technology surrounding telematics has not only moved within reach of more drivers but

also accelerated alongside other advancements in the automotive industry. Greater vehicle autonomy and V2V connectivity is moving organizations from simply telematics service providers toward becoming technology innovation partners, says Anubhav Grover, Frost & Sullivan Mobility Research Analyst.

Looking to the future, the introduction of 5G connections in cars will usher in a new, expansive range of connected applications – drivers will enjoy more bandwidth and immersive experiences in their vehicles, while automakers will get accurate vehicle data. The data-processing capabilities of 5G technology will play a huge role in so-called vehicle-to-everything (V2X) communication capabilities, Grover notes.

“Through V2V communication, vehicles could receive information on obstacles beyond line of sight,” Grover says. “Such information could be sourced and communicated from other cars, pedestrians or infrastructure, which would improve traffic or lower the chances of an accident.”

Increasing vehicle connectivity will also create opportunities for automakers and Tier 1 suppliers to access potential revenue that can be leveraged off data generated by connected services, he says.

There are several immediate advantages to applying the technology, notes ARI’s Don Woods. More safety benefits, help in complying with regulatory demands such as hours of service (HOS) rules and the wide range of operational usages are some of the main advantages available through the technology, he notes.

Telematics can also help answer questions such as whether a fleet has the right number of vehicles, if they’re being utilized enough or too much, what’s the downtime, how much time vehicles spend off road, in the shop and so on.

“With telematic devices, we can start monitoring vehicles in some cases right off the production line, all the way to the time of delivery,” Woods says. “Customers can start to see where their vehicles are in the supply chain.”

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0333

2020 TRANSIT CONNECT

2020 TRANSIT

2020 SUPER DUTY®

2020 F-150

DRIVING BUSINESS IS WHAT WE DO. A full lineup of vehicles with the support from dedicated professionals and Ford-approved upfitters and modifiers means that Ford has all your fleet needs covered. Our vehicles have the configurations, capabilities and Driver-Assist technology, as a way to help drive success.

FLEET.FORD.CA Driver-assist features are supplemental and do not replace the driver’s attention, judgment and need to control the vehicle. ©2020 Ford Motor Company of Canada, Limited. All rights reserved.

†

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Looking to the future, one of the most impactful technological advancements emerging in the telematics world is the use of artificial intelligence (AI) in conjunction with video.

AI can automatically analyse video to increase safety and recognize, for example, when drivers may be driving distracted, says ARI’s Vella.

In-cab video is usually reviewed after an incident takes place, he notes. Advancements in communication and AI will make it possible for such reviews to become automatic.

“With AI and in-cab video, it allows you to proactively address driver behaviour. For example, if a driver is distracted, if they start using their phone, you’re not necessarily going to have that impactful event such as an accident to trigger a review,” Vella says. “And yet, the technology is able to alert the fleet manager that there’s a driver that perhaps needs some training.”

Short term, 5G won’t be extremely impactful as infrastructure will need to catch up in order to use 5G networking, says Vella. As well, Woods adds that while 5G currently has limited availability, the promise of the technology

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It’s not about reducing the number of vehicles a business has, but rather specifying, utilizing and outsourcing effectively based on running cost per mile for the vehicle.

is what will enable both autonomous driving and vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications.

“5G is what you think you need as a platform when you envision a future where vehicles are talking to each other, talking to the roads, talking to the stop lights – those things which enable more autonomous and more safety features to come out,” says Woods. “You’ll hear 5G thrown around in that conversation quite often.”

Data is king

Geotab has seen an increase in the need for quality data from organizations in order to make informed business decisions, says the company’s executive VP of sales and marketing, Colin Sutherland. Data from vehicles can help fleets to define their running costs per mile and to look at how different vehicle classes perform under various duty cycles. With fuel being the biggest cost for fleets, understanding the right vehicle class to serve a particular business need is essential in order to provide precise details of running costs for fleets to lower their overall costs.

“In the generation we’re entering for supply chain logistics, it’s not about reducing the number of vehicles a business has, but rather specifying, utilizing and outsourcing effectively based on running cost per mile for the vehicle but also building new models such as running cost per delivery of service,” Sutherland says.

“The personnel and vehicle costs line up with how a business generates its profits.”

Sutherland also agrees that improved networks will be a critical factor in the effectiveness of telematics for businesses to leverage more data from the field. This includes integrating vehicle data with video, over-the-air updating of mobile software and connecting vehicles, personnel and machines.

Telematics helps fleets manage other areas, like curbing carbon emissions, says Sutherland.

California, a leader in the US in vehicle electrification, mandated in 2018 an EV sales goal of five million vehicles by 2030. This means that the state must ensure that at least 50 per cent of the light-duty vehicles purchased each year are zero-emission. To manage this, California is using telematics to monitor EV adoption usage and, in turn, quantify the associated GHG emission reductions and savings from lower fuel and maintenance costs.

As technology continues to progress, so too will the benefits and ROI from the use of telematics. As this happens, fleets would do well to incorporate telematics into their operations to take advantage of these advances. SP FM/SP SUPPLY PROFESSIONAL

2020-04-14 11:17 AM

B

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K S C k (9

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F tr

We’re in the business of driving yours forward.

2020 KONA

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When equipped with available Forward Collision-Avoidance Assist and LED headlights.

When equipped with available Forward Collision-Avoidance Assist and LED headlights.

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Our award-winning SUV lineup includes TOP SAFETY PICKs by the IIHS — bringing advanced capability, unmatched reliability and impressive fuel economy to you, your company and everyone that drives it forward.

Kevin Forodi Senior Manager, Fleet Sales CPO and Remarketing kforodi@hyundaicanada.com (905) 948-6701

Julian Cheng Fleet Specialist jcheng@hyundaicanada.com (905) 948-6764

Naval Khan Fleet and Remarketing Analyst nkhan@hyundaicanada.com (905) 948-6746

hyundaicanada.com For more information on IIHS please visit www.iihs.org.com. ™/®The Hyundai name, logos, product names, feature names, images and slogans are trademarks owned or licensed by Hyundai Auto Canada Corp.. All other trademarks and trade names are the property of their respective owners.

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2020-04-14 11:17 AM

THE LAW—BY PAUL EMANUELLI

AN ESSENTIAL SERVICE PROCUREMENT CONTINUITY CRITICAL TO MANAGING PANDEMIC When dealing with the challenges of the current pandemic, public sector decision makers should prioritize their procurement planning since their procurement operations are critical to ensuring ongoing services to the public and minimizing adverse impacts to the broader economy. This discussion provides some guidelines on how to manage ongoing procurement operations and how to deal with the stimulus spending that was recently announced in response to the global pandemic.

In addition to serving as a key method of delivering essential goods and services to the public by securing critical supply chains, government procurement also serves as a major driver of economic activity. In fact, each year public institutions flow billions into local economies through the award of government contracts.

Given this dual role as a critical channel for public service delivery, as well as a major driver of economic activity, it is a matter of paramount public interest that government procure-ment be managed with a high degree of speed and preci-sion, especially in crisis situations.

While some public institutions may be tempted to shut down all non-critical aspects of their ongoing operations in response to a major emergency such as a global pandemic, that approach to business continuity will actually make the situation worse by triggering avoidable economic downturns. To put this challenge in context, government procurement accounts for 12 per cent of gross domestic product (GDP) across Organisation for Economic Co-operation and Development (OECD) countries and there is a strong correlation between higher levels of govern-ment 30 APRIL 2020

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procurement expenditures and higher living standards.

For example, the OECD reports that government procurement ranges from as low as 5.1 per cent of GDP in Mexico to as high as 20.2 per cent of GDP in the Netherlands. When the engines of government procurement fail, this has a stalling effect on the economy and an adverse impact on our living standards.

While public institutions should ensure that their staff are safe through social distancing and that their emergency operations are prioritized, they should avoid overreacting by unnecessarily shutting down other business operations that can be performed remotely. Leaving staff idle and ignoring general procurement operations will only prolong the impact of the global pandemic by causing serious economic disruption. Many suppliers, especially in industries that can continue to provide services remotely, are facing significant reductions in their business and would welcome ongoing business opportunities to maintain their own operations and avoid staff layoffs.

VIRTUAL BUSINESS Public institutions should therefore revert to a virtual version of “business as usual” as soon as possible and, to the greatest extent possible, should prioritize all procurements that can be delivered remotely to minimize impacts to their business operations and to the overall economy. Unless the specific procurement falls within a legitimate emergency exception or another direct award exception, general procurement operations, as well as procurements funded by stimulus spending, should be conducted in accordance with open tendering protocols. For

those areas that do not fall within the emergency exception or other direct award exceptions, purchasing institutions should accelerate their tendering cycles by leveraging early strategic planning for their more complex projects.

The internal decision-making process for the selection and approval of priority projects, including stimulus funded projects, remains subject to due diligence standards. While procurement operations should continue during the pandemic crisis, they need to be executed with both speed and precision.

For example, in a March 2019 report entitled Inquiry into procurement of work by Westland District Council at Franz Josef, New Zealand’s Auditor-General found significant flaws in the direct intervention by two locally elected officials in a rushed municipal construction project that was initiated to protect a local wastewater facility from potential flooding. Those flaws included poor decision making and procurement planning, questionable authorizations and the absence of proper technical advice.

Similarly, in its 2010 report, the Ontario Auditor General found significant flaws in how the provincial government approved the funding for its $4 billion stimulus spending initiative.

The Auditor General determined that the province failed to allocate adequate time and staff resources to the approval of thousands of municipal funding requests, that it failed to properly prioritize those requests, and that it failed to document the rationale behind its funding approval decisions to properly protect against the politicization of its spending decisions.

Paul Emanuelli is the general counsel of The Procurement Office and can be reached at paul.emanuelli@ procurementoffice. com.

“It is a matter of paramount public interest that government procurement be managed with a high degree of speed and precision, especially in crisis situations.”

As these examples illustrate, a rush to market will be quickly replaced with a rush to judgment if due process standards are not followed, even when faced with urgent circumstances. SP SUPPLY PROFESSIONAL

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Our Smartest Feature?

Your Protection.

Whatever your workday, we aim to ensure your team leaves the jobsite exactly how they arrived. With Crosswind Assist¹ to stabilize your journey, Blind Spot Assist² monitoring approaching vehicles, and state-of-the-art COLLISION PREVENTION ASSIST³ technology, our fleet protects the most valuable asset to your business; your workforce.

Discover unbeatable fleet protection at MBVans.ca/Fleet.

1 Caution: Crosswind Assist can only act within the laws of physics. If the driver exceeds the physical limits, even Crosswind Assist will not be able to prevent an accident! ²Blind Spot Assist is a warning system only and may not be sufficient to avoid all accidents involving vehicles in your blind spot and does not estimate the speed of approaching vehicles. It should not be used as a substitute for driver awareness and checking of surrounding traffic conditions. See Operator’s Manual for system’s operating speeds and additional information and warnings. ³COLLISION PREVENTION ASSIST may not be sufficient to avoid an accident. It does not react to certain stationary objects, nor recognize or predict the curvature and/or lane layout of the road or every movement of vehicles ahead. It is the driver’s responsibility at all times to be attentive to traffic and road conditions, and to provide the steering, braking, and other driving inputs necessary to retain control of the vehicle. Drivers are cautioned not to wait for the system’s alerts before braking, as that may not afford sufficient time and distance to brake safely.

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