Supply Professional April 2024

SUPPLY CHAIN INTEGRITY

Mark Kenny on the value of buying locally

Negotiation skills

Procurement’s digital renewal

Circular supply chains

The Toyota Grand Highlander Intermodal shipping

Your partner in facilities evolution

Strong foundations. Smart evolution.

To stay competitive and get ahead, you need innovative, scalable and safe solutions. These solutions can help with better storage, distribution, fulfillment or any combination that can grow with your business as it adapts to change.

As your partner in facilities evolution, you can count on Konstant to transform your facilities. Collaborate with our team to optimize your facility today and evolve, anticipate, adapt and imagine the facility of your future.

ECOSYSTEM

Get integrated logistics solutions: racks, shelving, trucks and robotics from our partners including Johnston Equipment and GNJ Automation.

EXPERTISE

Access comprehensive services for your project lifecycle, from planning to ongoing management with a skilled team ensuring quality at every step.

EXPERIENCE

For more than 50 years, Konstant has served businesses across Canada, adapting our services to evolving facility management needs.

WHAT TO DO ABOUT E-WASTE

It’s hard to overstate the benefits that technology has brought us. These include increased productivity for workers, a less onerous workday, greater organizational efficiency, and easier communication.

But more technology has also led to an increase in the waste we produce when we discard our gadgets and electronics. In fact, UN agencies have recently warned that our efforts to recycle this e-waste aren’t keeping up with the amount of junk we produce.

Those agencies define “e-waste” as discarded devices with a plug or battery. This can include items like cellphones, laptop computers, televisions, and ovens. Incidentally, waste from electric vehicles falls into a separate category.

According to the UN’s International Telecommunications Union and research arm UNITAR, we managed to generate 62 million tons of e-waste in 2022. And according to one study from the University of Waterloo, Canada alone was responsible for almost a million tonnes of e-waste in 2020.

Of the 62-million tons the globe produced, metals like copper, gold, and iron made up half of that. Another 17 million tons came from plastics, while the 14 million remaining tons was comprised of things like composite materials and glass. This waste contains hazardous elements like mercury.

We’re not doing enough to deal with all this waste. In 2022, for example, only 22 per cent of the e-waste we generated was properly collected and recycled. At the same time, the UN anticipates that amount will drop to 20 per cent by 2030. But we’re not turning back the clock anytime soon to a time when we used fewer electronic products. Quite the opposite, as we’ll likely see more consumption of electronic goods over the next few decades. We can’t reverse the “electronification” of the world.

This is clearly bad for our environment. What can we do about this growing challenge? While our reliance on electronics will persist, we should reduce consumption by producing and using products with longer lifecycles. Raising awareness among consumers about the problems posed by e-waste can also help.

Better repair options for devices and e-waste management infrastructure is useful. Here in Canada, we have some great facilities to deal with e-waste, for example the Edmonton Waste Management Centre. According to Environment Canada, we also have over 150 facilities across the country that process e-waste.

There are also organizations to which companies and government agencies can donate their used electronics when no longer needed. If items can’t be given away, ensure they are recycled or disposed of responsibly. Check out websites like recyclemycell.ca or recyclemyelectronics. ca to see what options are available.

CORRECTION

During the editing process, errors were inserted into the article, Supply Chain Resiliency, on page 13 of the February 2024 issue of Supply Professional. To view a corrected version of the article, please visit https://tinyurl.com/5eh2deva. Also on page 13 of that issue, the name of the company in the author’s bio was misidentified, and should read Naviga Supply Chain. Supply Professional regrets the error.

OUT TO PASTURE ARE WE HUMANS REALLY MEANT TO RETIRE?

Much of my work life involves sitting in front of a computer and going back and forth between answering emails from students (my fulltime vocation is that of a post-secondary teacher) and preparing for class. I am with students approximately 20 hours a week. That gives me a lot of time for solitary work and rather than listening to music, I prefer to listen to thoughtprovoking podcasters. One of my favourites is the Daily Wire’s Ben Shapiro. He’s an American whose views would be branded “conservative” for those who think labels like those are meaningful.

One of the reasons I enjoy his commentary is that he’s unafraid to take strong stands. He did a podcast this March where he discussed America’s Social Security system and the desirability of retirement. The two themes are linked. By the way, the Canada Pension Plan works very similarly to Social Security in that it taxes you while you work, then provides a benefit based on annual compensation and number of years worked.

Back to Shapiro. To put it mildly, he’s not a big fan of social security. Allow me to quote him (with intermittent commentary) at length. He started with a bold proposition, intended to pique interest, and generate outrage: “It’s insane that we haven’t raised the retirement age in the United States … No one in the United States should be retiring at 65 years old. Frankly, I think that retirement itself is a stupid idea unless you have some sort of health problem.” Part one of his argument is that retirement is frequently bad for the individual.

LIFE EXPECTANCY

I would have contextualized the issue somewhat differently. The retirement age of 65 was established in 1935 when life expectancy for men at birth was 60 and if you made it to 65 years old, you were expected to live another 13 years. Fast forward to the present. Now, basic life expectancy is 78, and if you’re 65, the median age of death is 88. Today, if one stops working at the age of 65, it means that there is a very long retirement. It seems reasonable for someone to consider what they will do with themselves for the remaining years of life, and this was Shapiro’s first point, stated more provocatively.

Shapiro has two other issues with Social Security. Those issues are how it is funded and its inherently progressive tax nature. Again, let me cite him: “The problem with entitlement programs is that they are all going to go bankrupt … politicians obviously have an incentive to kick the can down the road … if we don’t raise the retirement age or privatize Social Security over time… we will go insolvent… the government stole your money and paid it to someone else and now they’re stealing someone else’s money and paying it to you … Social Security is a pyramid scheme, it is a Ponzi scheme … You should not have your money taken away from you by the federal government.”

Shapiro is correct to raise the alarm over Social Security’s funding. According to a 2022 report by its trustees, if there are not changes to the program, in 10 years the benefit will have to be slashed by approximately 25 per cent. That duly noted, there are two ways

to avoid this: The retirement age could be raised (Shapiro’s preferred solution) or more revenue could be directed into the system.

Then there’s the “stealing” allegation. It is unquestionably true that both Social Security and the Canada Pension Plan are “progressive” in nature. Those who make above-average incomes will pay more than their “fair share.” For that matter, those who live longer than average will receive more than their “fair share.” This presupposes that “fair share” means that the benefit you receive is commensurate with what you personally paid. This is an ideological point and good arguments can be made on both sides of it and this will likely be the topic of my next column.

RETIRE ASAP?

I think it’s worth listening to and considering Shapiro’s arguments about the desirability of retiring. Recently, I spent a very pleasant afternoon with several families while our children (aged seven to nine) played together. I was struck by the strong desire of two of the men to retire as soon as possible. I was by far the oldest person in the room (65 years old) and I silently wondered what these vital people would do with their lives if their dream came true.

I’m truly lucky. I love my job and the students (overwhelmingly immigrants) that I spend my time with. And if I could provide a single piece of advice to anyone –including my eight-year-old son –it would be to find a job you love, then you’ll never have to work another day in your life. Retirement will be an inevitability rather than something to look forward to. SP

“Find a job you love, then you’ll never have to work another day in your life. Retirement will be an inevitability rather than something to look forward to.”

MICHAEL HLINKA

Toronto-based Michael Hlinka is a tenured professor at George Brown College. He hosts a weekly podcast about wagering on professional football. His website is www. michaelhlinka.com

UNCERTAIN FUTURE THE AGING SUPPLY CHAIN WORKFORCE

The Canadian workforce and the companies employing them face unchartered territory in the years ahead. The future labour market will see the number of people entering the workforce become less than the number of people leaving. This presents a variety of challenges for companies.

A Statistics Canada labour force survey from November 2023 found there were 2.7 million Canadians aged 15 to 24 that say they are employed, compared to 4.4 million people 55 and older. That same study also shows a big discrepancy in the total population of Canadians 15 to 24 years old, with 4.7 million. That’s compared to those aged 55 and older, at 12.4 million people.

From labour shortages to retaining workers and providing alternatives for traditional work environments, companies will need to look at how they operate and put strategies and policies into place to manage the changing workforce demographic.

VALUE OF EXPERIENCED WORKERS

Older workers are critical to a company for the knowledge, experience, and skills they accumulate during their careers. Those qualities, combined with a strong work ethic, make them desirable employees that companies should try to hold onto for as long as possible.

In manufacturing, older workers have more of the experience and skills crucial to maintaining a high level of quality and productivity. The concern with those workers retiring is it could lead to a decline in product quality, potentially lead-

ing to unhappy customers and clients, along with lost revenue. That’s an outcome no company wants.

Healthcare, transportation, and construction are some of the areas expected to be most affected by a labour shortage. Retaining older workers for longer will help alleviate the issue. It may also require additional training and upskilling to keep current with updated technology.

Experienced workers are instrumental in the training and development of younger workers. Processes should be in place to encourage knowledge transfer from older employees to younger employees through documentation, hands-on training, and group training sessions, with the goal of sharing and exchanging information, thereby retaining the expertise of experienced workers.

ACCOMMODATING OLDER EMPLOYEES

The journey to retirement looks different these days. Supply chain organizations must prepare to meet older employees where they are in this process by offering more work options. Traditional work arrangements will not be attractive to older workers heading into retirement. In the past, people worked in their chosen career and then retired immediately upon reaching a certain age. Current trends indicate a more gradual easing into full retirement. The path to get there could include reduced work week hours, bridge jobs, and short-term contracts or consulting gigs. All or some of these steps can be on the path people take to retirement. Companies that continue to push

traditional work weeks and roles risk alienating their older workforce or losing them to other companies that offer the options they’re looking for.

WORKING LONGER

Part of the older workforce may opt to continue working past 65 in some capacity, either because they can’t afford to retire or want to work longer to save more money. In 2022, working seniors accounted for five per cent of Canadians employed, according to Statistics Canada. Seniors who want to continue working may be looking for non-traditional work arrangements, like pre-retirement workers. As it will get more difficult to fill roles, it would benefit companies to find ways to extend the careers of their older employees for those who want that opportunity.

The competition to fill jobs will be fierce, with more people leaving the workforce than entering it. To be top of mind to potential employees, companies can implement programs to attract and retain younger talent earlier. Internships, co-op programs or apprenticeships are great ways to target college or university students, introducing them to the industry and company before they start their careers.

The younger workforce puts more emphasis on qualities like respect, relationships, and social interactions. Companies should be looking at their work culture and how to improve onboarding processes. That includes mentoring and social events with the intention of integrating newer employees with experienced ones early on. This helps newer employees

“Older workers are critical to a company for the knowledge, experience, and skills they accumulate during their careers.”

feel more comfortable to seek help and ask questions.

Younger workers are more drawn to flexible schedules, especially remote and hybrid working environments. Adapting office policies to accommodate those requirements will help companies attract younger workers.

The ageing workforce presents a variety of challenges to supply chain organizations and their companies. There are ways to minimize the impact of those challenges. It’s important to start implementing change now so employees and employers can plan for that future. SP

Christina Wallaert is a Toronto-based e-commerce specialist and category management professional.

Ontario sees expanded battery recycling partnership

Battery collection and recycling program Call2Recycle and Greentec, a reverse logistics and recycling solutions company for end-of-life electronic waste, have signed an expanded agreement to increase Ontario’s battery sorting capacity.

This partnership will optimize Ontario’s battery recycling efforts and enhance Canada’s overall recycling infrastructure, the organizations said. Greentec’s facility in Cambridge, Ontario will provide battery sorting services to Call2Recycle starting in May. It will also help to reduce the program’s costs and environmental impact while maximizing operational efficiencies.

In 2023, Call2Recycle’s program saw 58 per cent growth in its collection of used batteries in Ontario.

TFI International

Acquires Hercules Forwarding

TFI International Inc. has acquired Hercules Forwarding, Inc., a lessthan-truckload (LTL) carrier with an emphasis on intra-US and US-to-Canada cross-border transportation.

With US headquarters in Vernon, California and Canadian headquarters in New Westminster BC, Hercules utilizes a 31-terminal network and operates over 210 trucks, close to 600 trailers and about 75 containers. Hercules’s non-union team focuses on direct shipper customers across diverse end markets including consumer/retail, HVAC/building products, automotive, industrial, 3PL and food/ beverage. The company will join TFI’s LTL business segment.

TFI International companies service the package and courier, LTL, truckload, and logistics segments.

MODEX 2024 breaks records

MHI’s MODEX 2024 saw a recordbreaking number of manufacturing and supply chain professionals, reaching a total of 48,733 who attended. The event, held in March in Atlanta, saw attendees engaged with 1,200 exhibitors showcasing the latest supply chain technology and innovation across three halls at the Georgia World Congress Center. This was the largest MODEX event to date, with 32 per cent more registered visitors than MODEX 2022. The MODEX Supply Chain Conference sessions included 200 educational seminars and five keynotes. Bill Seward, president of UPS Supply Chain Solutions, spoke on the lessons he has learned at the front lines of UPS’s supply chain efforts. Another keynote tackled the future of smart ports with representatives from the Ports of Rotterdam, Long Beach, and

Toronto’s port cargo hits 2.3 million tonnes

The Port of Toronto moved over 2.3 million metric tonnes of cargo in 2023. The number of cargo ships visiting the port remained consistent last year, with 189 ships delivering a range of bulk, project, and general cargo products. In addition to importing 606,060 metric tonnes of sugar from Central and South America, the port moved more than 685,661 metric tonnes of salt. The port also moved 796,644 metric tonnes of cement (an 11 per cent increase over 2022), 97,016 metric tonnes of aggregate, and 123,234 metric tonnes of steel products, including coil, pipe, and rebar, which transited through the port to construction sites throughout the Greater Toronto Area.

Virginia. Futurist Gerd Leonhard discussed the exponential change in the coming age of AI.

MHI’s John Paxton and Deloitte’s Wanda Johnson released the findings of the 2024 MHI Annual Industry Report: The Collaborative Supply Chain – Tech-Driven and Human-Centric, during a panel discussion. The report includes insights into trends and technologies transforming supply chains.

MHI also announced the winners of the 2024 MHI Innovation Awards during MODEX. The winners were:

Best Innovation of an Existing Product - ForwardX Robotics

Best IT Innovation - Configura, Inc.

Best New Innovation - Slip Robotics

Best New Innovation in Sustainability - Avery Dennison

DHL Express has appointed Geoff Walsh as CEO in Canada, effective February 1. Walsh will oversee the strategic direction in the Canadian market, focusing on commercial growth, operational and service excellence, developing team potential and promoting sustainable transport solutions.

Walsh has worked with DHL for over 30 years. He began as a courier in the UK in 1995 and has since held various operational roles. In 2000, he moved to the UAE, serving as an operations manager. He then held various international management positions. In 2022, he relocated to the US and will now be based at DHL Express’s Toronto headquarters.

DHL Express appoints Geoff Walsh as Canada CEO

BY MONICA OSPINA

A MORE SUSTAINABLE FUTURE UNLOCKING PROCUREMENT EFFICIENCY THROUGH CIRCULARITY

Once viewed as a merely transactional process, procurement is currently undergoing a profound transformation driven by circularity. The core principle of a circular economy (CE) is preserving the value of products, materials, and resources through material loop closure and waste minimization. This transition towards circular procurement is evident across various industries and within governments, where public procurement is increasingly recognized as a pivotal lever for maximizing efficiencies and reducing costs for taxpayers. Cities and municipalities, particularly in their role as service providers, are leading this transition, setting examples for other sectors within local economies to explore the possibilities the circular economy offers.

As an expert in local procurement and stakeholder engagement, I acknowledge the critical role of circular procurement in contributing to sustainability and resilience. In this article, we will delve into the public procurement approach

using initiatives led by Estonia, Amsterdam, and Toronto, shedding light on the transformative potential of circular procurement across industries in transforming products.

STAKEHOLDER ENGAGEMENT

The foundation of circular procurement lies in robust stakeholder engagement. In this approach, open participation and dialogue shape new approaches leading to procurement

strategies. Traditional procurement practices mainly involve one-on-one relationships with contractors and suppliers. In circular procurement, however, the emphasis is on the inclusion and participation of suppliers and contractors. It does this while considering the impact on the environment and society to drive discussions around impacts, efficiencies, productivity, cost, and risk. Supplier engagement and market dialogues are strate-

gic in fostering collaboration and innovation. An example of an effective approach to engagement is developed through the Capacity Mapping model by O Trade. Through a guided supplier-buyer engagement process, this model lets companies understand the socio-economic baseline of local production and local infrastructure capacity, identifying gaps as well as talent, technology, infrastructure, and collaboration opportunities.

MEASURING IMPACT

Measuring the impact of circular procurement initiatives is essential for evidence-based decision making. Quantifying the benefits of circular procurement efforts facilitates the incorporation of circular economy principles into contracts, paving the way for sustainable procurement practices. Common examples of KPIs used to measure the circular economy of a product include recyclability, recycled content, lifespan, resource usage, energy efficiency, greenhouse gas emissions, packaging circularity, use of renewable materials, and waste management efficiency.

CIRCULARITY IN PUBLIC PROCUREMENT

The cases of Amsterdam, Toronto and Estonia demonstrate the transformative potential of circular procurement, starting with the public sector. Amsterdam’s market engagement approach fosters collaboration with suppliers, driving innovation and a transition to circularity. Toronto’s Waste and Circular Economy program defines options for maintaining existing structural and interior non-structural elements, promoting circularity in construction practices. Meanwhile, Estonia’s goverment-led initiatives, such as the Circular Economy White Paper and the National Waste Management Plan, emphasize collaboration and knowledge sharing to accelerate the transition to a circular economy.

CIRCULARITY IN BUSINESSES AND INDUSTRIES

Industrial production across diverse sectors worldwide is making significant strides toward circularity, reshaping their approaches to procurement. Substantial progress in

circular procurement can be observed in various areas, including the following.

Water management: Integrated and sustainable water management is crucial for addressing water scarcity and resource shortages. Circular economy principles significantly improve water and energy efficiency while promoting innovation in water recycling technologies. The approach to water use is also linked to KPIs such as the percentage of circular water consumption, evaluating the percentage of recycled water used by businesses in their operations.

Construction and Demolition Waste (CDW): Construction waste presents opportunities for circularity, with initiatives focusing on promoting material reuse and innovation in construction techniques.

Toronto’s Waste and Circularity Program defines the reuse of building materials in two options:

Option 1) Retain existing structural

“The core principle of a circular economy is preserving the value of products, materials, and resources through material loop closure and waste minimization.”

elements (walls, floors, roofs, and envelope) and Option 2) Retain interior non-structural elements (for example, interior walls, doors, flooring, and ceiling systems).

Electronics: Circular procurement initiatives in the electronics sector aim to extend product lifecycles through repair, refurbishment, and recycling, driving innovation and sustainability. KPIs related to repairability and spare parts availability play

a crucial role in enhancing circularity in electronics manufacturing.

Packaging and Plastics: Circular procurement practices in packaging and plastics aim to minimize waste and promote recycling and reuse. Investments in sustainable packaging solutions and consumer awareness campaigns contribute to the circularity of packaging materials, reducing environmental impact.

Textiles: The fashion industry embraces circularity through initiatives promoting textile recycling and sustainable fashion practices. Circular business models focus on retaining the value of existing materials through perpetual cycles, driven by consumer demand for circular textile products, for example transforming used textiles for carpets or area rugs.

In conclusion, circular procurement reshapes industries, from water management to fashion, by prioritizing stakeholder engagement, market dialogues, and impact measurement. Estonia’s, Amsterdam’s, and Toron-

24_001494_Supply_Professional_APR_CN Mod: March 12, 2024 9:14 AM Print: 03/21/24

to’s experiences underscore the transformative potential of circular procurement in advancing sustainability goals. As cities and industries worldwide embrace circularity, collaboration and knowledge sharing will be key to realizing the full potential of circular procurement in building a more sustainable future. SP

KEEP ON TRUCKIN'

Monica Ospina is the founder and managing director of O Trade – Social Economic Development.

BY MICHAEL POWER

A SUPPLY CHAIN OF TRUST FROM FIELD TO PLATE, MARK KENNY SERVES UP INTEGRITY IN PROCUREMENT

Mark Kenny likes to describe his journey throug his procurement career as going “from dish pig to desk jockey.” As a youth, the Stratford, Ontario native spent summers at Grand Bend, on the shores of Lake Huron in the province’s southwest. His first job saw him working in the food service industry when he was 14, as a dishwasher at a local restaurant called J Dee’s Summerhouse. It took only two weeks working there before its owners (Kenny’s lifelong friends to this day) moved him to the broiler bar and taught him how to be a line cook.

“I wasn’t a great line cook but it did kickstart my love of cooking for other people,” says Kenny, now senior manager, procurement, planning and operations at hospitality services at the University of Guelph. Eventually, he was promoted to kitchen manager, while his skills grew to include those he uses in his current role: purchasing, inventory management, quality control, as well as transportation and logistics. At the time, Kenny had no idea where such skills would take him.

“I was just a kid running a kitchen the best way I knew how, most likely from taking so many cues from watching my mom run our kitchen at home with style and grace,” he says.

Kenny worked at three other restaurants during those early years before eventually landing a job at the University of Guelph, although not yet in procurement. Rather, he managed a printing and graphics shop – a position that suited him due to an interest in art and design developed in high school, combined with an innate creative streak. Kenny found that, once again, several procurement principals applied to the job, although in a different context. After 10 years there, the university offered him the opportunity to move into the procurement office of its hospitality services.

At this point in his career, Kenny also began a formal study of procurement. Through Supply Chain Canada, he completed his Supply Chain Management Professional (SCMP) designation at Toronto’s Humber College in 2009. He also attended Conestoga College in Stratford, receiv-

ing a diploma in business administration, as well as studying for a Bachelor of Arts at the University of Guelph as a mature student.

“My love of food, cooking skills, and restaurant management background made it the perfect opportunity to grow the university’s local purchasing initiatives, which at the time were small but beginning to support local farmers and producers,” he says.

At the same time, a local food movement was developing in the area, and Kenny set out to meet as many local farmers and food producers as possible. His ambition was to incorporate local food into what the university served. At the time, the concept was rather novel: the institution’s chefs would use local food to feed a student population of over 20,000, with smallscale farmers supplying that food.

Over the years, Kenny has participated in focus groups and panel discussions that have allowed him to meet other local food enthusiasts. Eventually, he was able to help develop and launch the Taste Real initiative in 2011, started by Kate Vsetula and now lead by Christina Mann. The initiative started as branding for Guelph Wellington Local Food supporting local businesses, farms, and producers.

“At the time, incorporating local food into such a commercial environment was a real challenge. But now, with a great team of chefs here supporting the beginning initiatives, local food in university foodservice is commonplace and really offers our students, faculty, and staff the best of what our regional farmers offer,” Kenny says. “The food at the University of Guelph is legendary, award winning, and one of the best recruitment tools we have in our toolkit.”

VARIETY ADDS SPICE

Procurement and supply chain are both known for their lack of “typical days,” and Kenny’s routine is no exception. That variety is part of what attracts him to the field, he notes. One day, Kenny can spend his time reviewing his 50-to-70 daily emails and acting on the ones that need a response. Like many in the field, Kenny can spend time writing contracts, drafting RFPs, or reviewing 100-page contracts. Other days can be filled with meetings with suppliers, visiting chefs in the kitchen, or trying new products (those days are among his favourites).

Technology has largely taken over the business of meetings and communication. In both our private and business lives, we rely on tools like Google Meet or Microsoft Teams to speak with colleagues and acquaintances in order to see them face to face. For Kenny, food service procurement remains, as much as possible, an in-person affair. Facetime with suppliers

is crucial to build trust, learn about each other, solve problems, and celebrate wins, he says.

The business revolves around people, and those one-on-one interactions are important to the success of relationships with the final customer: the students who actually consume the food. The institution wants them to have the best food experience possible while attending Guelph.

“You can’t do that through emails,” Kenny says. “I’ve built many long-term relationships over the past 20 years that could not have been possible without meeting in person, in my office, or in a farmer’s field.”

Perhaps the most non-typical part of Kenny’s day involves marketing work. He collaborates with the university’s marketing team, as well as the chefs who cook at the university, to help develop concepts for new operations on the campus, design logos, menus, and other features. He especially enjoys that creative aspect of his work. The art and design eye he developed working at the print shop, and while pursuing person-

al interests like architecture and furniture design, has resulted in some new operations.

“The nice marriage between the two is that I get to tell the stories of the food that I’m purchasing through our marketing channels,” he says. “It’s really an interesting job, because normally a procurement person doesn’t work in marketing. I’ve always been good at it, so it’s a nice added bonus that I’m good at both of those things.”

There are moments in Kenny’s career that stand out, even helping to define who he is, he says. Perhaps the most decisive of these was earning his SCMP designation (known as the CPP at the time). Overall, Kenny found his time in elementary and high school uninspiring. Yet he could enter almost any business situation and thrive. Earning the designation was a four-year process that included attending night school, but Kenny realized it would offer him opportunities that were otherwise closed to him at the time.

A plant agriculture professor at the University of Guelph, Manish Raizada, has asked Kenny

several times to guest lecture a class about agri-food systems, representing another career highlight. The course is an introduction to agrifood systems, both Canadian and global. Kenny’s lecture has focused on how the university procures local food, as well as how it incorporates sustainability and economies of scale while following the Broader Public Sector rules of procurement.

“He was like, ‘we just want you to come in and talk to the first-year agricultural students about why the food is like it is at Guelph, and how you do it. What are you doing locally?

How are you supporting farmers?’ – all that conversation,” Kenny says of the invitation to speak to students. “So, of course, that was right

in my wheelhouse. I was very engaged in talking to the students about that because they come to the university knowing the food is great, but they don’t know anything about it, like how did it get here?”

Kenny was also awarded the Local Food Ambassador Award in 2012 from Taste Real. The award was unexpected, Kenny says, although he has spent many hours in committee meetings, attending local events, meeting partners, and growing local supply chains in GuelphWellington. The award Kenny received was in the shape of a fork. To this day, the fork award hangs on his office door to remind him to “keep eating well and laughing often,” which Kenny says has been a long-time motto for him.

The food services industry supply chain has improved in the post-pandemic era but isn’t yet fully back to the way it once was, Kenny notes. The greatest challenge to the field concerns staffing and people. It’s hard to pin down exactly what has happened, although Kenny cites a disconnect between people and the principles necessary for a well-functioning operation. Not all employees returned to work, for example, and the pre-pandemic dedication to working as part of a team seems to have waned. That’s meant fewer people performing the same workload.

“The supply chain I know is not 100 per cent back to, let’s say, 2017 and 2018 levels,” Kenny says. “That’s certainly in our industry, and I’m sure it’s the same everywhere. I believe that people are still the problem. People haven’t come back to work after COVID. Nobody seems to know where they’ve gone. This is a recurring conversation with everybody I talk to. That is one of the big issues right now, people have left the food service industry.”

Outside of work, Kenny remains involved in food-related projects. One such project is called Cooking by Degrees, which Kenny developed with friend and mentor Owen Roberts, who is a lecturer and director at the University of Illinois. The undertaking is a recipe series – first appearing in the Toronto Star newspaper’s digital space – that highlights campus chefs and their recipes. The series highlights such chefs from across Canada, as well as the farmers and producers they support. The project has won the Best of CAMA 2022 and Best of NAMA 2022, two industry awards.

Kenny also works with the Canadian College & University Food Service Association (CCUFSA), a national organization supporting procurement and supply chain at colleges and universities. Through the organization, Kenny manages a national trade show and co-operative purchasing group for 16 institutions across Canada.

“My love of food, cooking skills, and restaurant management background made it the perfect opportunity to grow the university’s local purchasing initiatives.”

“It challenges me to stay current with food trends, build relationships in institutional procurement and, one day, to hopefully mentor up-and-coming supply chain professionals in our unique industry,” he says. “With 27 years at the University of Guelph, I look forward to a continued successful career in supply chain management and making a difference in other people’s lives.”

Kenny’s wife Jen is a former chef, and the couple enjoy travelling and sampling the food in restaurants around the world. Post-pandemic, the couple has been looking to restart their former travel habits. He also enjoys playing golf, and through his creative background developed a love of architecture and furniture design. A family friend is an architect and an authority on domed stadiums and arena design, as well as a founding partner in the firm that designed Toronto’s Rogers Centre stadium, originally called the SkyDome. Kenny even owned a blueprint diagram of the facility, and when he was younger spent his free time designing mid-century modern style homes on graph paper. As a child, he often visited his godfather in Toronto, who he says had great furniture.

“His furniture was Eames, Breuer and Bertoia to name a few,” Kenny says. “Clean lines, soft textures, and simple design. The less-is-more theory works for my eye. I am fortunate enough to now own an Eames Sofa Compact and Bertoia Diamond Chair, both of which I cherish. I sat on these as a kid and now use them at home and office daily, reminding me how important this relationship with my godfather is.”

INTEGRITY FIRST

Regarding advice for those new to the field, Kenny cites integrity –honesty and strong moral principles – as the most important trait in a procurement role. It’s a people-focused business, and integrity is a cornerstone of relationship building. Ensure that you do what you say you’re going to do, Kenny says. Avoid sugar coating information or covering up mistakes

or bad news. Customers and suppliers must trust each other to produce successful contracts. Integrity gets built over time, so be vigilant in the pursuit of building that trust.

“We’re in the trust business,” he says.

“I have to trust the people that I’m buying food from, because the people that we’re serving food to, they have to trust us. The supply chain of trust is from the farmer to the plate. If you don’t have trust with somebody in that regard, how can you work together to come up with contracts and all that?”

It’s also important to stay flexible in approaching everyday challenges, Kenny adds. Those challenges are constant during any procurement career. Outside influence is an ever-present pressure on decision making. Whether that influence comes from economics, people, mechanical breakdowns or elsewhere, try to spot it in advance. COVID-19 taught the world how vulnerable supply chains can be – shortages, stockouts, staffing issues, and manufacturing problems were all exacerbated by the pandemic, and we felt the effects globally. Procurement professionals must be ready to pivot, not letting last-minute changes upset the process too much. Be fluid and realize that you cannot control everything, Kenny says.

“You need to be open to change, sometimes on an hourly basis,” he notes. “You can’t be so rigid in your thinking that you think, ‘this is how it’s going to happen every single day. It doesn’t work like that. Fresh or perishable product is a perfect example. If there’s a problem, you don’t really hear about it until two days later, because that’s how long it can take to get to market. So, the more you know, the better off you are.”

Finally, in the food service sector, supply chain decisions tie directly to the final meal that customers eat, so what gets served is important.

“We believe in truth in advertising and go to great lengths to ensure our products are authentic and true to our food philosophies,” Kenny says. “Always make sure what you do is what you said you’ll do. Your customer will come to know you for your brand, your personal style, and the way you do business. And brand loyalty is paramount. Just as much as customers have brand loyalty, so too do manufacturers and distributors. If you’re authentic and true, they will keep coming back to you to collaborate, communicate, and problem solve.” SP

Elevating expectations

Considerations for forward-thinking supply chain professionals addressing modern slavery

By: Leigh Jardine and Kolby Kyle, Deloitte Canada

Procurement and risk management professionals are on the precipice of a seismic shift as Canada’s new legislation against modern slavery sets a high bar for compliance. Starting this year, what might seem like a bureaucratic obligation at first glance carries profound implications that can either fortify or unravel supply chain integrity, reputation, and social responsibility.

The Fighting Against Forced Labour and Child Labour in Supply Chains Act, passed in 2023, moves Canadian organizations into a realm of heightened scrutiny. No longer can we afford to turn a blind eye to the 28 million individuals worldwide coerced into work,1 many of whom contribute to products reaching Canadian markets.

And contrary to outdated notions, modern slavery isn’t confined to distant corners of the world; it lurks in supply chains even within nations like Canada. The United Nations recently criticized Canada’s temporary foreign worker program for enabling forced labour, and highlighted the need for worker protection. 2

Supply chain and procurement managers bear the weighty responsibility of unravelling the web of exploitation, which ranges from coercion and isolation to debt bondage, perpetuating a cycle of suffering. The ripple effects of non-compliance are palpable: goods impounded at borders, damage to reputations, and legal repercussions loom large for organizations failing to meet the evolving standards of human rights protection. Already this year, US authorities have seized luxury vehicles 3 and Canadian authorities have impounded solar modules over suspected forced labour links.4 The European Union’s provisional agreement 5 to ban the entry of products made with forced labour signals its members’ commitment to push for increased due diligence and transparency.

The first-year disclosures represent the tip of the iceberg in terms of Canada’s regulatory requirements. This initial phase serves as a foundational step, prompting organizations to begin assessing their supply chains for risks related to forced labour and child labour. Looking ahead, several indicators suggest the future will bring more stringent standards, and regulators will have an increased ability to scrutinize the supply chain, and introduce higher penalties for non-compliance. These indicators include:

• Evolving international standards: Canada will continue to align with international norms and best practices, which are likely to continue to expand.

• Advancing technologies: Blockchain, artificial intelligence, and data analytics are reshaping supply chain management—they’re also offering unprecedented capabilities for tracing product origins, detecting anomalies, and verifying ethical sourcing practices.

• Increasing complexity: Demonstrating year-over-year effectiveness of the organization’s compliance program and the incremental steps being taken to prevent forced labour will become as complex as the

supply chains themselves. Characterized by global sourcing networks, subcontracting arrangements, and diverse supplier ecosystems, modern supply chains pose inherent challenges to ensuring transparency and accountability throughout its many tiers.

And because modern supply chains present fertile ground for bad actors to exploit their multiple layers and conceal unethical practices such as modern slavery, organizations must go beyond mere compliance and adopt a strategic approach that addresses the web of supply chain intricacies. This means a shift toward proactive measures that extend beyond current regulatory reporting obligations, such as:

• Collaborating with NGOs and industry peers for deeper insights

• Implementing supply chain transparency initiatives

• Conducting regular site visits and audits for due diligence

• Developing a supplier code of conduct with anti-modern slavery clauses

• Educating employees and suppliers on ethical sourcing practices

Against the backdrop of regulatory evolution and societal expectation, the 2024 Deloitte perspective A new era of supply chain transparency seeks to be a guiding light. The report doesn’t just illuminate the path to compliance, but also emphasizes the transformative potential of embracing this new era.

It’s essential to recognize that compliance is just the starting point. True impact lies in catalyzing meaningful change, upholding human rights, and safeguarding the dignity of every individual within the global supply chain ecosystem. This necessitates a multifaceted approach encompassing ethical procurement policies, stakeholder engagement, technological innovation, and continuous improvement initiatives.

Procurement and risk management professionals are at a pivotal moment in history, where their actions can reshape supply chain dynamics and contribute significantly to the fight against modern slavery. Considering this challenge as an opportunity for positive transformation is not just a moral imperative but also a strategic imperative for sustainable business success in the 21st century.

1. International Organization for Migration, “ 50 Million People Worldwide in Modern Slavery,” news release, Sept. 12, 2022

2. UN News, “ UN expert sounds alarm over ‘contemporary forms of slavery’ in Canada,” Sept. 6, 2023

3. Financial Times, “ US Porsche, Bentley and Audi imports held up over banned Chinese part ,” Feb. 24, 2024

4. Sofia Martimianakis, “ Canada’s Border Services intensifies crackdown on solar module containers: CBSA provides insight to pvbuzz ,” pvbuzz media, Mar. 6, 2024

5. Reuters, “ EU Parliament, Council agree to ban products made with forced labour,” Mar. 5, 2024

© Deloitte LLP and affiliated entities.

BY RODRIGO ALTAF

THE HUMAN TOUCH

THE IMPORTANCE OF SOFT SKILLS IN SUPPLY CHAIN

It’s official, 2024 is the year that AI broke into the mainstream and was adopted by most businesses to improve their strategies and procedures. From data analytics to demand planning, from process automation to customer service, the applications of this tool are endless. One would be a fool to disagree that AI is the future for any half-respected company.

However, I’m here to build a different case: the fact that the human element is more relevant than ever before and will play an even more prominent role in how we do business moving forward.

Recently in a meeting, a vendor started the conversation by asking about my origins and my family for about 10 minutes. That came as a surprise to me, and coincidently or not, at the end of the discussion, we converged in our negotiation. By pure instinct, he was doing what every negotiation course calls “building common ground.” A trait that was natural for previous generations has for some reason been lost. It now needs to be taught.

While executives are excited about AI in the workplace, job candidates are more often asked to share “what makes them a perfect fit for this role” – a question that is subjective and, to a great extent, designed to test a candidate’s soft skills. Candidates have become way too savvy in cheating the resume scanning tools, to the point where every resume looks the same. As a result, one’s demeanor, presence and confidence are what differentiate a candidate from hundreds of other applicants. Think about the last time you were

hired, or hired someone…how much of that candidate selection was due to soft skills?

In supply chain, soft skills have been historically more relevant than in many other fields. Since this is a relatively new profession, for which there was no “official” course until about a decade ago, many of us had to learn the tricks of the trade from scratch. In Canada, even though certification is desired for many roles, procurement and supply chain remain unregulated professions. Most universities now have supply chain courses, but many teams are still full of lawyers, engineers and business professionals who fell in love with supply chain and got into this field by accident. I’m proud to say I’m one of them, and I learned by making many mistakes in the last 19 years since I stopped working as a civil engineer and went into procurement.

While technological advancements have profoundly altered the way supply chains operate, the human element remains a key component in their success, being at the heart of innovation, resilience, and sustainable growth. I can pinpoint several aspects in which the human element is key for a well-managed supply chain.

COLLABORATION AND COMMUNICATION

At the core of every supply chain are individuals who cooperate, communicate, and make critical decisions that might impact the entire network. Effective communication and collaboration

among suppliers, manufacturers, distributors, and retailers, with a focus on the end user of one’s message, are imperative to ensure seamless operations. Human sensibility and adaptability bridge the gaps between different stages of the supply chain, streamlining the flow of information, troubleshooting, and decision-making. Clear communication aids in averting disruptions, minimizing delays, and quickly adapting to unforeseen circumstances. Moreso than the “perfect ERP system” or the “perfect demand planning tool,” our expertise brings a capacity to adapt and resolve issues in real time. Supply chain professionals draw upon their experience, intuition, and creativity to find solutions when disruptions occur. Their ability to analyze intricate situations and make informed decisions contributes to upholding the continuity of supply chains even in the face of adversity.

INNOVATION AND CONTINUOUS IMPROVEMENT

While automation and digital technologies have streamlined supply chain processes, it is our intellect and needs that propel innovation and enhancement. Human insights, inventive ideas, critical thinking, and the desire to do better lead to the development of novel strategies, processes, and technologies. These augment efficiency, curtail costs, and optimize resource utilization. Supply chain professionals are at the forefront of identifying innovation opportunities and devising implementation strategies.

ESG PRACTICES

Consumers are increasingly concerned with sustainability and ethical practices, and the human element plays a pivotal role in ensuring that supply chains operate conscientiously. It is, after all, for humanity’s sake that sustainability took such a prominent role in today’s business world. We are increasingly engaged in making environmentally responsible decisions, advocating for fair labour practices, and ensuring the ethical sourcing of materials. Human-driven initiatives and efforts can lead to reduced environmental impact, improved brand reputation, and a positive societal footprint.

CUSTOMER-CENTRICITY

Ultimately, supply chains serve the end consumer. The raison d’être of any business is human need. Supply chain professionals who are attuned to customer demands can customize their strategies to deliver products more effectively, resulting in heightened customer satisfaction and loyalty. As Bruce Dickinson, the lead singer of the rock band Iron Maiden once put it, “companies should focus on creating fans, not customers.”

NEGOTIATIONS

Negotiations are inherently human interactions, despite the technological tools available to streamline the process. The human element remains crucial in determining negotiation outcomes. Emotional intelligence plays a significant role, as negotiations often elicit strong emotions such as frustration or excitement. With empathy, emotionally intelligent negotiators navigate conflicts more productively. Trust and rapport are foundational in negotiations, fostering an environment where parties feel comfortable sharing information and making concessions. Transparent communication, integrity, and genuine interest in mutual benefit are essential for building trust between negotiators.

Effective communication skills are also paramount in negotiations. Articulation of interests, active listening, and insightful questions facilitate successful outcomes. Non-verbal cues such as body language and tone of voice also contribute to conveying messages and understanding intentions. Cultural sensitivity is vital in negotiations involving parties from diverse cultural backgrounds. Understanding and respecting differences in communication styles and decision-making processes are crucial for building trust and bridging gaps in understanding. Human negotiators can adapt their approach to accom-

“It’s important to remember that sometimes the best negotiations start with a chat about family.”

modate cultural nuances, enhancing the likelihood of successful outcomes.

Human negotiators leverage intuition and judgment honed through experience to assess information credibility, anticipate reactions, and make informed decisions in real-time. Flexibility and adaptability are essential qualities in negotiation, as challenges and opportunities can often arise unexpectedly.

Negotiators must adjust strategies, make concessions, and explore alternatives to keep negotiations on track. The ability to think quickly and pivot when necessary is valuable in dynamic negotiation environments. Overall, while technology may facilitate certain aspects of negotiations, the human touch remains indispensable for achieving successful outcomes.

In conclusion, it’s true that the current buzzwords are AI and automation. However, it’s

important to remember that sometimes the best negotiations start with a chat about family. As we navigate the complexities of supply chains, let’s not forget the irreplaceable human element – the quirky anecdotes, the gut feelings, and the shared laughs over a cup of coffee. After all, while machines might crunch the numbers, it’s the human touch that seals the deal. Here’s to soft skills, common ground, and the occasional awkward silence that leads to breakthroughs. SP

Rodrigo Altaf is senior procurement manager at Dragados Canada inc.

BY JON HANSEN

LOOKING BEYOND TECHNOLOGY

THE ROAD TO PROCUREMENT’S DIGITAL TRANSFORMATION SUCCESS

You are probably familiar with the old saying, if you fail to plan, you plan to fail. Makes sense? Well, forget about it because, while it sounds like good advice, it lacks the substance to translate into a good outcome. In short, just because you have a plan doesn’t mean you have the right plan. This article is about developing the right plan for digital transformation success, rather than digital transformation pursuit.

After over 40 years in high-tech and procurement, I have found that the simplest ideas are complicated beyond recovery with the pursuit of technology-driven plans.

Here is an excerpt from a Procurement Insights blog post from 2007, titled Dangerous Supply Chain Myths (Part 7) about enabling technology: “Between 2001 and 2005, 75 to 85 per cent of all e-procurement initiatives “failed” to achieve the promised savings results. Accentuated by high-profile misses such as the automotive industry’s Covisint marketplace and the Veterans Health Administration’s seven-year, $650 million JD Edwards-Oracle misad-

venture, a dramatic change in thinking was bound to occur. At the heart of this change is a growing realization of the fundamental truth that people and processes, not technology, are the driving force behind a successful e-procurement initiative. Specifically, credible targets are established and ultimately met through process understanding and refinement combined with technology’s ability to adapt to the way in which the real world operates.”

That was 2007. Now, imagine what year the following Procurement Insights blog excerpt is from: “Uh oh. What is the old saying about those who fail to learn from history? Are the dismal results of e-procurement initiatives in the ERP era going to be repeated in the digital age?

According to the recently published Deloitte Global CPO survey “most companies that have fully implemented digital technologies are not satisfied with the results.”

To save you some research time, the above is from the December 2019 post, Deloitte CPO Survey: Digital Transformation of Procure-

ment a Bust? These two short excerpts, spanning an 18-year period, confirm the peril of a digital pursuit versus digital success. The big difference is that the latter has little to do with technology.

As stated earlier, I have been in high-tech since the early 1980s.

I love technology, which has evolved tremendously over the past several decades. However, no matter how far we have advanced from the days of punch cards and CP/M-driven personal computers to intuitively intelligent self-learning algorithms and AI, procurement’s ability to capitalize on technology’s promise continues to fall short for many.

Why do you think that’s the case? Does the saying “nobody ever got fired for buying IBM” mean anything to you? For those reading this who are unfamiliar with the not “getting fired” part, it simply means that if you buy the right technology, your job is secure regardless of the outcome. The primary focus was selecting the right provider’s technology versus achieving the right result.

ASKING THE HARD QUESTIONS

What are the hard questions, and to whom should they be directed? Well, here is the “hard” answer –if you want to define and execute a plan/roadmap for digital transformation success, don’t look at the technology. As someone who used to do everything from writing dBASE II code and source proprietary I/O cards for different brands, I know that today’s digital technology is solid across the board. There is no right brand because they all work.

You need to look at the experience and expertise of those behind the logo. I am not talking about their technology expertise, rather about their experience in your industry sector. Beyond technology, have they walked a mile in your shoes? That is the difference between chasing solutions and solving problems.

When organizations make the mistake of leading with technology, they bend their people and processes around an equation-based model approach in which the tech drives success.

Jon Hansen is the editor and lead writer for the Procurement Insights Blog and was host of the PI Window on The World Show on Blog Talk Radio.

When you lead with people and process understanding, an agentbased model, technology moves from a functional (primary) driver to a problem-solving support tool that streamlines and delivers efficiencies and tangible results using the following three-step framework:

Step 1 commodity characteristic analyses

Step 2 effective process alignment

Step 3 effective technological alignment

I want to re-emphasize this one point: the groundwork for our accomplishments occurred before introducing the technology.

Therefore, understanding spend, for example, commodity characteristics alone, without understanding what role the other stakeholders or agents play in procurement’s success, is critical. In other words, there is an important bridge between steps one, two and three: understanding internal and external stakeholder interests.

For example, the client organization’s field service technicians had their own processes, performance targets, and technology. How did this impact procurement’s ability to procure and ensure timely “next-day” delivery of a quality component at the best cost? What about suppliers? What impact did location and time of day (TOD) have on product cost, quality, and delivery performance?

Unfortunately, both in the past and the present, most procurement organizations never looked outside the department when deciding on a solution to improve the procurement process and performance. This siloed thinking meant that no matter how well the technology worked, underperformance and failure were inevitable.

I have often discussed the importance of service provider leadership stepping out from behind their company’s logo. What I emphasize is that the critical play is not the technology but the expertise behind it, the market expertise and experience to leverage technology to solve a problem. In the above case reference, I started by researching how

key stakeholders like the service technology department worked.

Here is what I discovered: Field service technicians carried laptops to update calls and order parts through the procurement department.

The technicians’ performance was measured by how many daily service calls they could attend.

While it was a policy that they ordered a required part after each service call, they sandbagged all the orders until the end of the day because of the number of calls-per-day metric. In short, procurement would not receive the bulk of the orders until late afternoon or early evening.

I then researched how the suppliers were operating. Here is what I discovered:

“Today’s digital technology is solid across the board. There is no right brand because they all work.”

85 per cent of all suppliers were based in the US, meaning we had to deal with Canadian customs and another stakeholder, for example an agent, in the procurement process. Because we were dealing with dynamic flux (MRO) versus historic flatline commodities, the later in the day a part was ordered, the higher the cost.

Besides higher costs, there was a significant impact on delivery performance.

The likelihood that we could change technician or supplier behaviour, for example “agents” for required parts the next day, was virtually impossible.

THE FORK IN THE ROAD

When we were initially engaged, the client sought to address the above challenges by implementing a technology solution. But ask yourself this question: How would using technology to improve performance within the procurement department alone address the above external challenges? It wouldn’t, which is why, without understanding internal and external stakeholder objectives and processes, leading with technology, no matter how amazing, will never work.

Unfortunately, most initiatives are siloed and ultimately dependent on a change management approach that is difficult, if not impossible, to achieve. For example, what is the likelihood that field service technicians’ behaviour will change regarding the number of service calls they must complete in a day?

What about getting lower prices from suppliers who know they are likely the only source later in the day? Let’s not forget about clearing customs. Even the most robust procurement technology will not overcome these competing factors.

Here are the client results from the above three-step framework:

1. Improved SLA performance from 51 per cent to 97.3 per cent in three months.

2. Consistently reduce MRO cost of goods by 23 per cent year-over-year.

3. Reduced their FTE from 23 down to three in 18 months.

One final word of caution. This is not a cookie-cutter framework.

While the three-steps are consistently the same, the “bridge work” between steps one, two and three is unique to each client situation. This bridge requires the solution provider’s experience and expertise beyond their technology. SP

BY CHRISTIAN SIVIÈRE

RESHAPING INTERMODAL TECHNOLOGICAL ADVANCES ARE TRANSFORMING INTERMODAL SHIPPING

Intermodal shipping refers to moving freight by two or more modes of transportation, where cargo moves seamlessly between trucks, trains, barges, ships, and planes, although the most common pairing for general cargo and consumer goods in North America is truck-rail-truck. It is particularly popular for long distances. The key factors driving the popularity of intermodal transport are reduced transportation costs, providing they come with reliability, security, and visibility. And this is where technology can help.

On the environmental side, intermodal transport is a clear winner since it contributes to having fewer trucks on our roads. One gauge often used in this context is that, on average, rail is about seven times more efficient than trucking, in terms of greenhouse gases emissions, although this varies depending on volumes and distances. In general, consumers are increasingly concerned about promoting sustainable transportation and reducing our carbon footprint. Although the continuous growth of e-commerce, particularly the increased market penetration of Chinese fast fashion sites like Temu and Shein that encourage overconsumption and generate waste, contradicts the notion that consumers are concerned about the environment. There are contradictions in regulations as well. Recently, the US Securities and

Exchange Commission amended its reporting requirement for Scope 3 emissions: the new rules don’t require publicly traded companies to report certain indirect emissions, which could include the distribution and use of their products, such as coal or crude oil. Some business groups recently sued California over a state law requiring businesses to report their emissions, so the ‘’battle’’ to preserve the environment and save our planet continues.

Technology overall is helping companies to become more efficient. We see it across all industries, in particular it helps alleviate labour shortages and boost competitiveness. Transportation also benefits from technological advances. In the trucking industry, technology enabled the ELD mandate. The electronic logbook laws require all truck drivers to be connected and use their electronic logging device to record driver and vehicle activity, including hours of service and records of duty status. The electronic logging devices or ELDs, record data related to the operation of vehicles and driver activities. Warehouses and distribution centres are also using technology to improve productivity: warehouse automation, autonomous trucks, robotics, inventory management, barcode scanners, RFID tags, and QR codes are some of the tools and technological advancements used by the industry.

DUE SOUTH

Before looking at how technology and connectivity can drive the growth of intermodal shipping, let us look at the current situation south of the border, where new trends generally start. According to the Association of American Railroads, intermodal transport represents approximately 27 per cent of revenue for major US railroads, more than any other traffic segment. About half of rail intermodal volume consists of imports and exports, reflecting the importance of international trade. The US freight railroads move nearly 61 tons of freight per American annually, with Chicago and Los Angeles/Long Beach leading in intermodal volume. The Intermodal Association of North America, which represents the interests of the intermodal freight transportation industry at large, values the North American intermodal market at US$59 billion. Their latest statistics show that 724,528 international containers moved on North American intermodal networks in February, a 25.8 per cent increase from a year ago. As the trucking industry struggles with driver retention and hiring, the use of intermodal solutions reduces these challenges, removing rucks from highways and helping with road congestion.

Christian Sivière is president at Solimpex.

When we look at how technology is transforming intermodal shipping, it takes us to artificial intelligence, which is very much in style nowadays. But, in a way, it’s just a synonym for technology, or a branch of computing. One interesting aspect of intermodal transportation is that the large Class 1 railways, by their sheer size, have an advantage over trucking companies. These railways operate their own intermodal services, with their own trucks and trailers, connecting with their rail networks. This makes it easier for them to invest in the technological resources required to generate efficiencies. Technology provides great tools for companies but it’s not cheap and large networks have the advantage of economies of scale over smaller operators, particularly truckers. On the other hand, they are big machines, aligned to work on volume business, and it leaves room for small intermodal operators, who offer more flexible services, tailor-made to customer requirements.

What are the new tools that are reshaping intermodal transport? Autonomous or semiautonomous vehicles is one of them. The topic has been around for a while and is still in the development stage. Proponents of autonomous vehicles point to the savings generated through greater fuel efficiency and reduced manpower requirements. Platooning, when one driver controls several following trucks, is often mentioned as well, and tested with some success. Some sources indicate platooning can generate costs savings of as much as 45 per cent. Posi-

“On the environmental side, intermodal transport is a clear winner since it contributes to having fewer trucks on our roads.”

tive train control systems, where trains can be monitored and stopped remotely, are already in operation in the US and Europe. It’s reported that the giant mining company Rio Tinto has fully automated one of its 1,500km railways in Australia. The technology to deploy autonomous ships is already in place, with pilot projects running in Europe.

A LOOK AT SAFETY

In the long run, technology generates savings, but how about safety? The US Institute for Highway Safety recently tested partially automated systems and found that only one of 14 performed well enough to get an acceptable rating. Two were rated marginal while the rest were rated poor. No system received the top rating of good. The overall findings were that most systems don’t include adequate measures to block misuse and prevent drivers from losing focus on what’s happening on the road. The report also pointed to the lack of standards and the regulatory void, as technology evolves faster than the laws that should regulate it.

Weather intelligence is also mentioned as a useful tool, especially as we’ve seen many

examples of how extreme weather can impact our supply chains, be it heavy rain, floods, drought, forest fires, or heat waves. When weather disruptions are factored in, the benefits of intermodal shipping can become disadvantages. Weather intelligence software is therefore being promoted to help companies anticipate possible delays and longer delivery times, and to take action to mitigate these delays and develop alternatives.

Data analytics solutions also help intermodal shipping, by collecting, centralizing, and analyzing data, that helps us take the appropriate action in response to changes. This requires having the necessary systems in place to collect the data and make the most of it, for example to be able to use it. Here, one of the challenges is to have different systems from different operators talk to each other, meaning connectivity. And there is no easy solution nor one technology that can achieve that. Rather, the interaction and adaptability of different tools and solutions are needed, and key to success.

Technology, or artificial intelligence as we often call it, is great and can generate savings, but we still need humans: skilled and welltrained operators, who will keep an eye on the system and make sure it works properly, and as planned. In other words, we still need human intelligence. Autonomous trucks, trains and ships are years away. And by the way, how would you feel about flying on an autonomous plane, with no pilot on board? SP

BY JAMES KENNY

SUPPLY CHAIN VISIBILITY COMMUNICATION IS KEY FOR TRANSPARENCY IN THE RETAIL SECTOR

In the ever-evolving landscape of the retail sector, inherent challenges within the supply chain are an inescapable reality, arising from unforeseen disruptions to global events. In response to this dynamic environment, transparency emerges as a fundamental cornerstone for retailers, playing a pivotal role in effectively navigating challenges, maintaining trust, cultivating customer loyalty, and fortifying resilient supply chain practices.

Central to this strategic approach is transparent communication. It’s a linchpin that not only connects retailers with customers, suppliers, and employees but also serves as an indispensable tool for keeping all stakeholders well-informed about the challenges that the organization faces. This communication strategy extends beyond mere information dissemination. It is a strategic imperative

“Supply chain visibility stands out as a critical dimension of transparency, providing retailers with invaluable insights.”

that manages expectations, builds trust, and fosters a profound sense of understanding among those associated with the business.

In the post-COVID-19 era, where customer experience stands as a paramount consideration, transparency assumes heightened significance for preserving trust and loyalty. Candid communication regarding supply challenges, delays, or product shortages from suppliers enables retailers not only to appreciate the honesty but also to prevent potential frustration and disappointment among end-users –the customers. In this context, maintaining transparency becomes synonymous with safeguarding the retailer’s reputation, ensuring a positive and enduring interaction with the end consumer.

VISIBILITY BENEFITS

Supply chain visibility stands out as a critical dimension of transparency, providing retailers with invaluable insights into the intricacies of their suppliers’ operations. This enhanced visibility empowers retailers to identify potential bottlenecks, assess risks, and explore alternative sources of supply. Armed with this information, retailers can make informed decisions, mitigating the impact of supply challenges while concurrently preserving and nurturing their customer base.

Transparent communication is integral to effective risk management within the supply chain. By discussing vulnerabilities in the supply chain, retailers can implement responsive contingency plans, diversify their supplier base, and establish a resilient foundation capable of withstanding future disruptions. This proactive and strategic approach not only minimizes the impact of unforeseen challenges on the overall business but also ensures the formulation of a sustainable and adaptable business model.

Collaboration with suppliers emerges as another critical area where transparency is paramount. Supply chain disruptions often necessitate collaborative efforts between retailers and their suppliers. Transparent communication becomes the catalyst for fostering strong and mutually beneficial relationships, enabling both parties to work collectively towards finding solutions, prioritizing orders, and navigating challenges. This collaborative and transparent approach contributes to the creation of a robust and adaptable supply chain network, capable of weathering uncertainties.

Operational efficiency receives a substantial boost through transparent communication within the supply chain. Retailers can optimize inventory levels, fine-tune marketing strategies, and make informed decisions to streamline operations during challenging times. This heightened operational efficiency not only maintains a competitive edge in the market but also underscores the organization’s commitment to adaptability and resilience in a rapidly evolving retail landscape.

In certain industries and regions, regulatory compliance mandates transparency in supply chain practices. Adhering to these regulations ensures that retailers remain compliant, mitigating legal and reputational risks. Furthermore, this commitment to transparency can serve as a strategic advantage in a consumer environment increasingly driven by social consciousness and ethical considerations.

A transparent approach during supply challenges significantly contributes to a retailer’s market reputation. Customers, particularly in challenging situations, value honesty and openness. Positive reputation management, anchored in transparent communication, becomes a cat-

alyst for long-term success and customer loyalty, reinforcing the retailer’s position in the market.

EMPLOYEE INVOLVEMENT

Transparent communication with employees is equally vital for maintaining morale during supply challenges. Openly discussing challenges and involving employees in the decision-making process ensures a motivated and engaged workforce. This engagement, in turn, contributes to the overall resilience of the business, fostering a collaborative, supportive, and adaptive organizational culture.

In conclusion, transparency transcends being a mere moral imperative. It stands as a strategic necessity for retailers confronting the complexities of supply chain challenges. The multifaceted role of transparency encompasses building trust, enhancing collaboration, and providing a roadmap for navigating uncertainties effectively. In an industry where adaptability is paramount, transparency emerges as a guiding principle for sustainable growth and success, positioning retailers to thrive in a dynamic and unpredictable retail landscape. As retailers continue to evolve, the unwavering commitment to transparency remains a cornerstone for building resilient supply chain practices and ensuring enduring success in the competitive realm of the retail sector. SP

James Kenny is customer collaboration manager with Agropur.

Fleet Management

IIHS reveals tougher TOP SAFETY PICK award criteria

The Insurance Institute for Highway Safety (IIHS) is making it harder to earn its TOP SAFETY PICK and TOP SAFETY PICK+ awards in 2024, challenging manufacturers to offer better protection for back seat passengers and improve pedestrian crash avoidance systems.

Last year’s biggest change was replacing the side crash test with an updated version using a heavier barrier, travelling faster. An acceptable or good rating was enough for the lower-tier TOP SAFETY PICK award. In 2024, a good rating is required for either TOP SAFETY PICK or TOP SAFETY PICK+.

Vehicles now need an acceptable or good rating in a revised version of the pedestrian front crash prevention evaluation to qualify for either award. The new version replaces the daytime and nighttime tests with a single evaluation.

The updated moderate front overlap test has replaced the original evaluation in the 2024 TOP SAFETY PICK+ requirements. Vehicles now need an acceptable or good rating in the updated evaluation, which emphasizes back seat safety. A good rating in the original moderate overlap test is still needed for the base TOP SAFETY PICK award.

To earn either award, a vehicle must offer good protection in a small overlap front crash. This year, the driver-side and passenger-side evaluations have been combined into a single rating.

Winners also must have good or acceptable headlights on all of their trim levels.

Hyundai has the most 2024 awards, with a total of 16 overall. As well, Toyota has the next highest number, with 13 awards. Mazda has earned the most TOP SAFETY PICK+ awards of any single brand, with five, as well as one TOP SAFETY PICK

Feds invest in auto theft investigations, stolen vehicle recovery

The federal government is investing $15 million to support law enforcement agencies working to combat auto theft. Of that, $9.1 million will go to provincial, territorial, and municipal police forces through the Contribution Program to Combat Serious and Organized Crime (CPCSOC) to increase their capacity to seize detained stolen vehicles from the Canada Border

Services Agency (CBSA). As well, INTERPOL’s joint transnational vehicle crime project will receive $3.5 million. Auto theft increasingly involves organized crime groups that use the proceeds of those thefts to fund other illegal activities. Among other steps, Canada has also invested $28 million into the CBSA to detect and search shipping containers for stolen vehicles.

Element Fleet earns a B for environmental performance

Element Fleet Management has received a B score for its environmental performance from CDP, improving from its previous D rating, and ranking higher than the North American regional average.

Core to Element’s improved CDP score this year was the disclosure of greenhouse gas (GHG) emissions, the company said. In addition, Arc by Element, the company’s end-toend fleet electrification and decarbonization solution, continues its positive momentum. Element has also worked to reduce energy usage across its facilities, including consolidating office footprints. CDP is a not-for-profit that runs a global disclosure system for investors,

Ontario to see vehicle innovation network

The federal government is investing $8 million to create two live-environment piloting sites to develop and commercialize new transportation technologies and solutions.

The Ontario Vehicle Innovation Network (OVIN) Technology Pilot Zones will be live-testing sites and will act as a launch pad for over 40 small- and medium-sized businesses as they pilot and commercialize more than 40 new technologies supporting zero-emission (ZEV) and clean air vehicles (CAV). The hubs will be located in Toronto and Windsor/Sarnia. The Toronto hub will focus on urban transportation needs like the required EV charging network and accessibility needs. In Windsor/Sarnia, the focus will be on cross-border efficiencies and multimodal transportation challenges.

Study highlights power needs of EVs

Ottawa’s requirement that all new vehicles sold by 2035 be electric could increase Canada’s power demands by as much as 15.3 per cent, says a new study by the Fraser Institute.

companies, and governments to manage their environmental impacts.

“We’re proud of the progress we’ve made toward environmental transparency,” said said Laura Dottori-Attanasio, the company’s president and CEO. “Our commitment to playing our part in building a sustainable future is unwavering. By taking action and leading with integrity and transparency, Element is well positioned to make the tangible changes that matter to our people, clients, suppliers, and communities – to create a better world for future generations.”

In 2023, Element completed CDP’s climate change questionnaire that included global data covering Canada, the US, Australia, New Zealand, and Mexico.

“Requiring all new vehicle sales in Canada to be electric in just 11 years means the provinces need to substantially increase their power generation capabilities, and adding the equivalent of 10 new mega dams or 13 new gas plants in such a short timeline isn’t realistic,” said G. Cornelis van Kooten, a Fraser Institute senior fellow and author of Electric Vehicles and the Demand for Electricity. The study measures how much more electricity is needed in Canada overall, and in Ontario, BC and Quebec.

“Canadians need to know just how much additional electricity is going to be required in order to meet Ottawa’s electric vehicle mandate, because its impact on the provinces—and taxpayers and ratepayers—will be significant,” van Kooten said.

Driving your team towards their goals?

That’s something we definitely have in common. Our safe, adventurous vehicles help them carve their path to success, while our expert service and high resale value let you redefine the impact of your fleet. We share a vision, let’s get there together. welcome

CROSSTREK IMPREZA ASCENT

On-board technology system connecting your Subaru to the world. 24/7 safety and convenience wherever you go2

By Jeremy Dewey Fleet Management

The EV journey Preparing for the next stage of fleet electrification

Over the last several years, a growing number of organizations have embraced electric vehicles (EVs) as they look to operate a more sustainable fleet and reduce their carbon footprint. Many of these early adopters have built a strong foundation for their electrification strategy – vehicle specifications, ordering parameters, charging solutions, and so on. Now, as their EV programs flourish and expand, they’re looking beyond these basic building blocks.

Today, many organizations are looking to further optimize their fleet electrification program to increase efficiency, reduce their administrative burden, and provide a better experience for their EV drivers. To that end, here’s a look at some potential areas of opportunity as you look to move past the basics of transitioning to EVs and prepare for the next phase of your electrification journey.

Charger installation and management

With more electric vehicles hitting the road each day, many organizations are providing access to charging stations at the workplace and installing chargers at their drivers’ homes. However, deploy-

1. 2.

ing charging stations across numerous locations typically requires significant planning and coordination as well as ongoing administration. If the next phase of your electrification strategy includes installing chargers at various corporate locations and drivers’ homes, you’ll likely want to partner with a service provider who can streamline the process. Aligning with the right strategic partner can significantly reduce your administrative burden and allow you to scale your EV program much quicker. You’ll want to find a partner who can help you source reliable charging units, coordinate installation, and ensure charging session data is seamlessly integrated into your analytics platform. Visibility to performance is critical to monitoring and effectively managing your charging assets across numerous locations.

Public charging access

While at-home and depot charging solutions remain the preferred options, inevitably, there are going to be times when your drivers need to use a public charging station. In this scenario, you’ll want to make accessing public charging as easy

as possible for your drivers. Fortunately, there are innovative solutions that simplify this process, allowing your drivers to recharge and get back on the road quickly.

For most drivers, a mobile app is the preferred solution and there are several options that put all the resources they need right in the palm of their hands. A mobile app solution for public charging allows drivers to quickly find a charging station and receive turn-by-turn navigation if needed. Some mobile apps also allow the driver to process payment directly from the app, eliminating out-of-pocket expenses. This payment method can also capture important vehicle and charging data to measure operating costs with greater accuracy.

These intuitive mobile app solutions provide an easy and convenient way to access public charging, eliminating potential range anxiety while also simplifying payment to improve the EV driver experience.

Driver reimbursement

In most scenarios, at-home charging is the preferred method for charging the light-duty vehicles that drivers take home at the end of their shifts. When a driver is

charging their company vehicle at their home, the expectation is that they’ll be reimbursed for the electricity used. However, the process of measuring charging sessions, validating energy consumption, determining the proper reimbursement rate, and processing payment to the driver comes with a substantial administrative burden.

If you’re electrification strategy includes a significant number of drivers charging company vehicles at their home, you’ll need a plan to simplify this cumbersome process. Often, a strategic partner can streamline the reimbursement process to virtually eliminate your administrative burden.

Using at-home smart chargers and EV connectivity data, your partner can capture all the information necessary to begin the reimbursement process. This information (once validated to mitigate potential fraud), along with electricity rate data, is used to calculate the reimbursement rate. From there, you typically have the option to reimburse the driver directly or integrate the data with your expense management system.

These solutions allow you to easily monitor at-home energy

Jeremy Dewey is manager, fuel & energy, at Holman (Holman.com).

consumption and ensure drivers receive payment in a timely manner while also significantly reducing your administrative responsibility.

EV connectivity

Vehicle performance data continues to be the foundation upon which all successful fleet management strategies are built. However, as you add EVs to your fleet mix, there is a growing gap of information for these units as certain data points are no longer captured during the lifecycle of a typical EV. For example, since EVs don’t refuel with a traditional fuel card, odometer information is collected far less frequently. Similarly, without the need for regular services such as oil changes, EVs may go

extended periods without a maintenance visit where this data is collected.

To fill this critical data gap and gather the information you need to manage your EV fleet effectively, you’ll need to leverage telematics to collect performance data. Through a comprehensive EV connectivity program, you can easily capture key EV attributes such as location, odometer reading, charging session data, state of charge, and so on. You can also opt to do so with or without monitoring driver behaviour.

With this data aggregated with the rest of your fleet’s operating data, you’ll have visibility to vehicle performance, allowing you to make informed decisions to optimize your EV strategy.

Driver training

While you continue to embrace electric vehicles, the reality is that most fleet drivers are unfamiliar with the intricacies of EVs. Whether it is knowing how to properly charge an EV or how to maximize range, many drivers experience a learning curve when transitioning to an electric vehicle. With that in mind, you’ll want to provide your drivers proper training to educate them on the nuances of operating an EV.

A few key training topics include EV safety, techniques to maximize range, and how to properly charge an EV (whether that’s at home, at a depot location, or at a public charging station). A comprehensive training program ensures your drivers know how

Many organizations are looking to further optimize their fleet electrification program to increase efficiency, reduce their administrative burden, and provide a better experience for their EV drivers.

to handle a variety of scenarios associated with driving an electric vehicle to deliver a positive driving experience.

While this next phase of fleet electrification may seem intimidating, remember, you don’t have to navigate this road alone. There are a variety of partners and resources available to help you take the next step of your electrification journey. With the right strategic partner, you can streamline charger deployment and management, enhance the driver experience, and assess performance data to continue to optimize your strategy. FM/SP

By Katherine Vigneau Fleet Management

1.

A safety-first culture Coaching drivers for behaviour change

Most organizations prioritize vehicle safety. They try to pick the right employees, train them on the equipment they will use, and educate them on policies and procedures regarding the operation of vehicles. These are worthwhile practices and will contribute to lowering the risks in the organization. One important element, however, is missing. That element is the ongoing driver coaching that is aimed at identifying and changing risky driver behaviour.

Dr. Alison Betz of ABA Technologies is a noted authority on behaviour change. She says that there are three reasons why people do things they know that they shouldn’t when it comes to driving. Those reasons are:

1. Motivation from the inside is not enough. Drivers do not practice safe driving for the thrill of it. They won’t wear a seatbelt or avoid speeding for the good feeling that comes with obeying the law. There has to be an exterior benefit (or punishment) to encourage safe behaviours.

2. Competing behaviours may have more attractive consequences. Driv-

ers may fail to comply with safe driving behaviours when the consequences of another choice are attractive. Texting while driving provides the satisfaction of social contact with no negative consequences most of the time.

3. Consequences for risky behaviour are improbable and delayed. The infrequency of distracted driving resulting in fines or crashes leads an individual to feel secure with the risky behaviours. And even if a driver does get fined or reprimanded for risky driving, it is often too far removed from the behaviour to make a direct impact.

These reasons explain why traditional driver training programs, at least on their own, do not work. It is simply not enough to provide a short defensive driving course and expect drivers to consistently apply what they have learned. Without constant reminders, drivers revert to what brings the most immediate satisfaction, whether that means speeding to arrive home a little earlier or sending a text to stay in touch. They definitely know that these practices are unsafe, but negative consequences are unlikely.

A coaching relationship

NAFA’s Risk Management Guide likens the relationship between a driver and their supervisor to that of an athlete and a coach. To ensure drivers do the right thing, even when the supervisor and consequences are not present, requires a nurturing and supportive relationship aimed at permanently changing risky behaviour. Here are five steps to help bolster effective driver coaching:

Get full visibility on driver behaviour and risky situations through the installation of appropriate technology. Without visibility into driver activity, there’s a lot of unnecessary guesswork involved and some of the greatest risks to the organization may go unidentified. Dash cameras and global positioning systems (GPS) provide the information needed to launch needed change. Initial resistance to their installation by drivers can be overcome by emphasizing the benefits to them. The technology keeps employees safer and provides them protection in a lawsuit (if they were doing the right thing).

Work with drivers to define what safe driving looks like. Setting standards for the classification of preventable crashes is a starting point. The industry classifies preventability based on whether a driver did everything reasonable to prevent the crash from occurring. The interpretation of that standard is crucial – setting the bar too low breeds complacency. At the same time, setting the standard too high creates a situation in which that standard is impossible to reach and drivers may give up. Involving driver representatives in the safety committee making the decisions will help get their support.

Provide ongoing coaching. Drivers learn when the consequence is immediate and clearly linked to the behaviour. This is why real-time technological solutions that vocally alert the driver to unsafe issues and include the supervisor can have a significant impact. Supervisors do not have to wait until a driver returns to home base. They can reach out

Katherine Vigneau, CAFM, is director of fleet for MCG Consulting Solutions.

when good or bad behaviours are observed to address them.

Make your drivers into safety advocates. Safe driving should be their goal every time they get behind the wheel. Drivers and supervisors should commit to never passing a fault, in themselves or others. Only when safe driving behaviour becomes an integrated part of the organizational culture will drivers do the right thing – even when no one is watching or there is no obvious negative consequence.

Take disciplinary action if positive change is not happening. Although coaching reinforces the positive to achieve desired behaviours, it is important to remember that negative behaviour left unchecked will continue. In a sense, an absence of consequences for the negative behaviour reinforces it.

Negative consequences should be delivered as soon as practical after the event, always used in combination with reinforcement strategies, and not be delivered in public.

Reinforce the benefits

As highlighted by Dr. Betz, “the good news is that the environment, including consequences, can be deliberately arranged to support safe driving behaviour.” Organizations that are successful in eliminating unsafe practices do so by consistently reinforcing the benefits of safe driving. A safety minute before formal meetings, signage with reminders, a leaderboard showing kilometres driven since the last crash and daily updates on safety indicators all contribute to a safety-rich environment. Positive rein-

Drivers may fail to comply with safe driving behaviours when the consequences of another choice are attractive.

forcement will help safe driving behaviours to grow. This growth in safe driving has a snowball effect and will permeate the organization, changing its culture to one of “safety first.”

To learn more about changing risky driver behaviour, see Affecting Risky Driver Behaviour: https://tinyurl.com/mtc2unkb. FM/S

By Stephanie Wallcraft

A value-packed SUV The Toyota Grand Highlander elbows its way to the top

Amid the already crowded and competitive three-row SUV segment, Toyota has dropped a vehicle most buyers didn’t even know we needed.

The all-new 2024 Toyota Grand Highlander fills a gap that’s existed in the brand’s line-up for some time. It’s larger than the Toyota Highlander, a slightly smaller three-row SUV long appreciated for its safety and reliability but isn’t roomy enough at the back for consistent third-row users. But it’s smaller than the Toyota Sequoia, a large body-on-frame SUV that’s often not practical for urban and suburban lifestyles.

The Grand Highlander falls neatly between these two vehicles as a safe, fuel-efficient, spacious, and valuepacked SUV that’s bound to offer the

great value retention Toyota is known for. It’s a winner all around, and the Automobile Journalists Association of Canada agrees: AJAC selected the Grand Highlander as the 2024 Canadian Utility Vehicle of the Year.

Three powertrains are available on the Toyota Grand Highlander at launch, each with all-wheel drive as standard equipment in Canada. The base 2.4-litre turbocharged four-cylinder engine has a power output of 265hp and 310lbs-ft of torque. This version has a rated fuel consumption average of 10.0L/100km combined and starts price from $53,553.

Next up is the efficiency-oriented hybrid. This powertrain combines a 2.5-litre, four-cylinder engine with two electric motors and a battery.

It offers 243 combined hp (Toyota doesn’t declare a combined torque figure for most hybrids), a fuel consumption average of 7.0L/100km combined, and a starting price of $56,853.

Hybrid powertrain

We tested the top trim, the Toyota Grand Highlander Platinum Hybrid Max. This version comes with Toyota’s performance-oriented hybrid powertrain, which strikes a balance between maximizing power output and fuel efficiency. Here, the 2.4litre turbo four-cylinder and hybrid drive delivers a combined power output of 362hp and 400lbs-ft of torque, an average fuel efficiency of 8.8L/100km combined, and a price

that starts at $68,513 in Canada.

This is a high asking price for a mainstream three-row SUV, but it’s fair for the premium package Toyota has put together. The interior finishes edge close enough toward luxury that you need to seek out the differences between this vehicle and the base Lexus TX that shares the same underpinnings, despite the latter starting roughly $5,000 higher.

In a strange way, Toyota may have undercut its own luxury brand here, to the benefit of savvy buyers.

Power is more than sufficient and readily accessible thanks to the electrified powertrain and the use of a six-speed automatic transmission, which offers a more natural drive feel than the continuously variable trans-

1. Cargo capacity measures up at 568 litres with all seats upright, 1,640 litres with the third-row seats down, and 2,761 litres behind the first row.

2. All versions of the vehicle include a wireless phone charger, USB-C ports, and a 12.3-inch touchscreen infotainment system with standard wireless Apple CarPlay and Android Auto.

mission (CVT) commonly found in hybrids. Handling is also very impressive, given the Grand Highlander’s size. There’s relatively little body roll or pitch. Our only sense of the vehicle’s size comes when maneuvering in tight parking lots. In these situations, the panoramic view monitor that comes with each powertrain’s highest trim level comes in handy.

Cargo capacity for all trims measures up at 568 litres with all seats upright, 1,640 litres with the third-row seats down, and 2,761 litres behind the first row. Note that the gas-only powertrain and the Platinum Hybrid Max can pull up to 5000lbs, while the Grand Highlander Hybrid is limited to a 3,500lbs max towing capacity.

Although there are only five trims available between the three powertrains, buyers have plenty of options. Seating capacity tops out at eight with the standard second-row bench seat, while the captain’s chairs available on each powertrain’s top trim bring this down to seven but add a centre console that puts cupholders within easy reach. Heated front seats and a heated steering wheel are standard, while ventilated front seats and heated outboard second-row seats are equipped on higher trims. Ventilated second-row captain’s chairs are included with the Platinum Hybrid Max. All versions of the Grand Highlander include a wireless phone charger, USB-C ports for all three rows, and a 12.3-

inch touchscreen infotainment system with standard wireless Apple CarPlay and Android Auto.

Safety features

Impressively, a long list of standard safety features is included under the Toyota Safety Sense 3.0 banner, including lane departure alert with steering assist, automatic high beams, dynamic radar cruise control, road sign recognition, lane tracing assist, sway warning, left turn oncoming vehicle detection and braking, blind spot monitoring with safe exit alert, and semi-automated emergency steering for pedestrian, cyclist or vehicle collision avoidance. The Toyota Grand Highlander drops in among the current crowd

Impressively, a long list of standard safety features is included under the Toyota Safety Sense 3.0 banner.

of popular mid-size three-row SUVs like the Hyundai Palisade, Kia Telluride, Mazda CX-90, Ford Explorer, Chevrolet Traverse, and others, and immediately elbows its way to the top of the list. FM/SP

As Tested

Price (incl. freight and PDI):

Starts at $68,513

Engine: 2.4-litre turbocharged four-cylinder plus hybrid drive Power: 362hp, 400lbs-ft of torque

Transmission: 6-speed automatic Rated Fuel Economy (L/100km): 9.0 city/8.8 hwy/8.8 combined

Observed Combined Fuel Economy (L/100km): 10.2L/100km combined

STRENGTHENING CONFLICT GOVERNANCE WEAK CONFLICT CONTROLS IN CANADIAN PROCUREMENT

The federal ArriveCAN project put a fresh spotlight on conflict of interest in Canadian public procurement. As this article discusses, the new scandal is symptomatic of a broader pattern of weak conflict controls within multiple public sector institutions across all levels of government in Canada.

In its February 2024 ArriveCAN report, Canada’s auditor general found a surprising lack of records documenting “how and why GC Strategies was awarded the initial ArriveCAN contract through a non-competitive process”. After its $2.35 million sole-source award, the audit found that GC Strategies “was subsequently involved in the development of the requirements” that were included in a downstream bid solicitation for further project work. The auditor general concluded that the “requirements placed on bidders were restrictive and likely limited competition”. In fact, in its parallel January 2024 audit entitled Procurement Practice Review of ArrivCAN, Canada’s procurement ombud found that the bid solicitation included seven specific instances of overly restrictive requirements that favoured the incumbent. While 40 prequalified suppliers were invited to bid, no one else did. GC Strategies was the only bidder and was awarded a new $25 million deal. While conflict issues at the federal level, including multiple rulings against members of the federal cabinet, have been well documented, provincial and municipal institutions also face challenges in enforcing conflict rules.

For example, in its November 2022 report entitled COVID-19 Contracts and Procurement, Ontario’s auditor general recommended that the province update its procurement directive to better clarify conflict screening procedures for provincial sole-source awards. Ongoing bid-rigging involving provincial procurement was previously documented in the May 2020 decision in R. v. Charpentier, where the defendant admitted that he colluded with other contractors in an ongoing price-fixing scheme on 43 provincial road construction projects tendered by Ontario’s Ministry of Transportation.

More recently, in its January 2023 audit entitled Metropolitan Regional Housing Authority –Examination of Service Contract Awards, Nova Scotia’s auditor general found that the top official at a regional housing agency failed to disclose multiple conflicts of interest. That senior official was involved in a series of personal transactions with a contractor while concurrently participating in the agency’s award of a tendered security services contract to that same contractor. The audit found that the tendering rules for that bidding process, as well as 10 other projects sampled across five different regional housing authorities, had no conflict disclosure requirements for bidders. Further, in its subsequent February 2024 report entitled Value for Money: Development of Transitional Care Facilities, Nova Scotia’s auditor general found that neither the agency officials who approved alternative procurement projects for health-

care facilities nor the evaluation team members who awarded the resulting contracts were required to provide conflict declarations.

COLLUSION CONCERNS

Conflict and collusion concerns are also well-documented in Canada’s municipal sector. For example, in its July 2021 report entitled Roads Value for Money Audit, Hamilton’s city auditor found multiple warning signs of bidder collusion in road paving tenders, findings that were strikingly similar to those contained in the Toronto auditor general’s March 2017 report entitled Detection of Warning Signs for Potential Bid Rigging Should be Strengthened.

Similar to the ArriveCAN scandal, Montreal’s inspector general has also raised conflict concerns involving biased bid specifications. In its September 2020 report entitled Recommendation Report on Contract Management Related to Generator Set Calls, the inspector general determined that there was improper collaboration between the engineers who were retained by the municipality to design specifications for building generators and the distributors of the required products. While that report recommended remedial measures across the organization, in its June 2023 Rehabilitation of the Roussin Centre report, the inspector general found no records that the consultant retained to draft the tender call requirements had even attempted to prepare neutral specifications before adopting specific brands and models that improperly restricted competition.

“Provincial and municipal institutions also face challenges in enforcing conflict rules.”

Finally, in its July 2023 decision in Winnipeg (City) v. Caspian Projects Inc., the Manitoba Court of Appeal upheld a summary trial decision which found Winnipeg’s former chief administrative officer liable for accepting bribes in relation to a contract award to build a new police headquarters. While a police investigation did not result in criminal charges, the municipality brought a successful civil claim for financial compensation based on the tort of bribery against its former top administrative official.

The fact that these case studies are a small selection from a much deeper vault of reported conflict findings at all levels of government across Canada should serve as a wake-up call to all public institutions of the need to strengthen their conflict governance practices. SP

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

Workforce Shortages:

6 Unexpected Costs for Manufacturers

Besides better benefits and compensation, manufacturers are cobbling together a patchwork of tactics to maintain production. But doing more with less is starting to cost manufacturers more.

NO MORE NEW BUSINESS

Almost half of manufacturers were unable to take on new business and lost revenue opportunities in 2022.

RECORD-BREAKING PRODUCT RECALLS

A lean pool of new, inexperienced, or undertrained workers are prone to make more mistakes that impact product quality. Is it a coincidence that a record-breaking 900 million of product units were recalled in the first quarter of 2022?

SLOWED DOWN EXPANSIONS

This year, over 59% of manufacturers say the inability to find enough workers has impacted decisions to make investment plans or expand.

MORE WORKER INJURIES & FATALITIES

Nearly 66% have increased reliance on temporary sta ng services. Almost 10% reported using an “on-demand” labor force (like gig workers) to meet production demands. But temporary workers and subcontracted employment have significantly higher fatal and nonfatal injury rates than permanent employees in standard jobs.

SMART FACTORY CYBER RISKS

Manufacturers are turning to robotics, co-bots, and other connected technologies to make up for the shortage of human workers. Cyber risk exposure will only increase as manufacturers embrace and scale automation. Nearly 50% of those surveyed say sites were targeted or victim of a cyberattack - and say the attacks have increased in frequency – as often as daily or weekly.

WANT TO ACHIEVE SAFER, SMARTER, MORE PRODUCTIVE OPERATIONS?

The Avetta One platform helps manufacturers across the world achieve safer, smarter, more productive operations.

THE FUTURE OF INTRALOGISTICS IS INTEGRATED

Build smart. Stay agile. Now is the time to take a broader look at your overall intralogistics strategy and optimize. Making adjustments to combat today’s challenges will prepare you for a strong and sustainable future. And we can help.

Together, we’ll analyze the strategy and systems you’ve built to move, manage, store and protect goods and bring forward new ideas to enhance or secure the investments you’ve already made. Let’s get started.

RUN BETTER. MANAGE SMARTER.™

Discover how Johnston Equipment can help optimize your facility.