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SUSTAINABLE MANUFACTURING

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SUPPLIER RISK

SUPPLIER RISK

BY JACOB STOLLER

PROFITING FROM SUSTAINABLE MANUFACTURING

MANUFACTURERS CAN IMPROVE THEIR ENVIRONMENTAL FOOTPRINT AND BOTTOM LINE BY REDUCING COSTLY WASTE

In 2016, Southbrook Winery, located in Ontario’s Niagara region, received the results of a conservation assessment advising that its electricity and natural gas consumption could be reduced by 40 per cent.

This was notable given that Southbrook was already a recognized leader in sustainable production, was operating in a LEED gold certified facility, and was planning a solar panel installation to offset its electricity consumption. Furthermore, an earlier energy study commissioned by Niagara-on-the-Lake Hydro had identified potential savings of only five per cent.

The news was no surprise to Bruce Taylor, president of Elmira, Ontario-based EnviroStewards, which conducted the second study. Taylor’s approach, which has won his company numerous awards, is to comprehensively assess all potential sources of waste, including losses of energy, heat, materials, toxic substances and in many cases the final product.

The challenge is that environmental losses are not usually caused by large and easy-toidentify deficiencies, but by dozens or even hundreds of incremental problems which may be inter-related. Rooting them out takes time and effort, but it’s worth it. Enviro-Stewards’ customers achieve on average a one-year payback, including Maple Leaf Foods, which is saving $12 million per year across its 33 plants, and is now the first major food producer to be carbon neutral.

By implementing Enviro-Stewards’ recommendations, Southbrook was able to reduce the footprint of its solar panel installation, saving land to grow more grapes which now produce an additional 200 cases of wine per year. Payback was four months. The project also won a national Clean50 award.

Some of the best opportunities are found by looking across engineering disciplines. EnviroStewards was recently called into a solvent recycling plant where management was concerned about the costs of running a huge exhaust fan to remove toxic fumes from a distilling process.

“They had a fan blowing air out through the wall,” says Taylor. “If we only looked at electricity, we would get them a better fan motor. If we also looked at thermal, we’d get them a heat exchanger to get 60 per cent of that heat back. But if we look at toxics, we ask why they even have the fan.”

It turns out that the toxic fumes were emitting from a single tank. Having sealed the tank, the company now vents the fumes through a condenser, producing additional solvent that is now being sold. “Now it’s not in the air, and we didn’t even need the fan,” says Taylor. “So you save more energy by doing a toxic study than you could save by doing an energy study.”

Most companies miss such opportunities because they only scratch the surface of their environmental deficiencies, often under pressure to comply with government regulations. Accordingly, companies typically commission environmental audits based on the lowest bid price, which rules out a comprehensive approach. “The procurement person assumes that the best audit is the least expensive one,” says Taylor.

The issue Taylor finds most disturbing is food waste, which he claims is getting little attention. “All the emphasis is on destroying that food more efficiently and keeping it out of landfill where it would turn into methane,” he says. Even when the food is disposed of correctly, he notes, 90 per cent of the environmental footprint for producing it – cultivating, fertilizing, harvesting, transporting – goes to waste. “Reducing food loss in the first place recovers its economic, environmental, and social value,” he says.

Enviro-Stewards’ assessment of 50 food and beverage processors across Canada found an average of $230,000 savings per year at each facility. “Food loss is the third largest greenhouse emitter in the world,” says Taylor. “If food loss was a country, it would be the third largest greenhouse emitter in the world.”

LEAN AND GREEN

Profiting from waste reduction is a central tenet of Lean manufacturing, the approach pioneered by Toyota, which engages the entire workforce in finding and eradicating wasteful expenditures and efforts.

“Lean is inherently green, because you’re constantly looking for ways to maintain output while consuming less resources,” says Larry Coté, president of Ottawa-based Lean Advisors.

Improving workflows by revising the plant layout is often an early target. “If we shorten the distance a forklift has to travel from 500 to 100 yards, we’re saving time and energy,” says Coté, “and that might add up to not having to buy another forklift.”

Other examples include eliminating unnecessary run time of machinery or reducing excess inventory of materials, works in process, and finished product. The improvements add up – companies that take the Lean approach seriously routinely reduce space requirements by 50 per cent, improving their environmental footprint as a by-product.

“When you fly into Pearson Airport, those flat-topped buildings you see are all inventory,” says Coté, “and a lot of them don’t have to be there. If you reduce their required footprint, your energy and overall operational costs go down, and you’re not creating as much pollution.”

SUSTAINABLE PROCUREMENT

A product is only as sustainable as the components that comprise it, so many manufacturers

“What the technology can give you is a high level of assurance that the claims suppliers are making weren’t just fabricated.”

depend on their suppliers, who might be located anywhere in the world, to align with their sustainability practices. Validating supplier claims, however, can be difficult.

New information technology may alleviate this concern. A number of companies, including Toronto-based start-up Convergence Technologies, are providing blockchain-based verification solutions for supply chain consortiums. A blockchain, in a nutshell, can provide an unbreakable record of a product’s lifecycle, including certificates of origin and proof of compliance with standards.

For example, working with the United Nations Development Programme (UNDP), Convergence developed a solution that allows Mongolian farmers to certify their wool as genuine cashmere, assuring farmers the necessary margins to maintain sustainable practices, and giving clothing brands and their customers the assurance that they are getting what they are paying a premium for.

“What the technology can give you is a high level of assurance that the claims suppliers are making weren’t just fabricated, but were actually issued by a certification body,” says Erik Zvaigzne, vice-president of product innovation at Convergence, “so there’s a lot of integrity to the claim piece.”

In many industries, Zvaigzne says, companies have been reluctant to share the data that reveals their sustainability practices. Blockchain technology addresses this by allowing a finer degree of control over what is shared and what is kept private. “People don’t want to give up their trade secrets,” says Zvaigzne. “What the newer technology provides is a degree of transparency that doesn’t have to be 100 per cent.”

The technology also shows promise in multitier supply chains with many players. “In the more complex supply chains, you’re often passing on or forwarding claims,” says Zvaigzne, “so that’s where traceability comes in. If there’s a quality issue, you can trace the product all the way back.”

MOVING FORWARD

The bottom line is that a reactive approach to sustainability - meeting only minimum regulatory requirements – tends to incur costs with little or no benefit. Boldly going the distance, as many companies have found, can be a winning proposition.

“Sustainable companies tend to be more profitable than the rest,” says Taylor. “Otherwise, you’re spending all your time and money on compliance.”

Embracing sustainability also gives manufacturers the edge in meeting what is arguably their toughest challenge – hiring the best talent from the next generation of workers. “Employers that understand the positive impacts of sustainable practices don’t always appreciate the excitement that comes from employees knowing that they actually are doing something to help the next generation,” says Coté. “I think that’s a huge motivator for a lot of people. We all want to leave this world better than the way we took it on.”. SP

Fleet Management

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25 First drive Test driving the Chevrolet Bolt LT. 26 New truck hauls for 2021 A roundup of pickups for the New Year. 28 Green rides Sustainable options for your fleet.

Fleet Management is a special section of Supply Professional magazine. It is an important resource for Canadian supply professionals who recommend, select and manage fleet vendors and service providers. EDITORIAL INQUIRIES: Michael Power, 416-441-2085 x110, michael@supplypro.ca ADVERTISING INQUIRIES: Alex Papanou, 416-441-2085 x101, apapanou@iqbusinessmedia.com

The Chevrolet Bolt LT

Compact EV makes an excellent fleet option

The case is getting stronger for electric vehicles in fleet applications as the adoption barriers fall. Take range as an example. Earlier EVs could barely make it 200km without charging, which made them useful only in select applications. Today, many mainstream EVs get close to or exceed 400km on one charge, which means they can complete a full day’s work before the driver needs to seek out a plug.

And charging options have become significantly more plentiful over the past five years. Level 3 chargers are found on multiple networks through mobile apps, and these fast chargers usually bring an EV up to 80 per cent of its battery’s capacity over a lunch break.

The final major barrier to adoption is up-front price, and that’s falling in some ways, too. Consider for example that Uber recently entered an arrangement employee pricing on 2020 Bolt EVs and 20 per cent off associated accessories, including at-home charging equipment. Plus, electric cars save money over the life of the vehicle through lower maintenance costs since they have fewer fluids and components than internal combustion engines.

Add on government purchase incentives extended to corporate fleets in some markets – including the federal government’s iZEV rebate, which lets businesses claim $5,000 off up to 10 EVs per calendar year and to write off 100 percent of additional zero-emission vehicle purchases under $55,000 – and there’s a growing list of reasons to consider going electric.

That Uber and GM partnership came to fruition for good reason: the 2020 Chevrolet Bolt is an excellent and relatively affordable EV for many general-purpose fleet applications. With a starting MSRP below $45,000, the Bolt qualifies for the iZEV program and for provincial incentives where they exist. This entry-level LT model is $49,243 with freight and PDI and before incentive payouts, with most extra cost going to adding on safety features like blind spot monitoring, automatic emergency braking, intelligent high beams and others.

For 2020, the Bolt benefits from adjusted battery chemistry to gain 34kms on its overall estimated range, which crosses that all-important 400km threshold for a total of 417km. It’s easy to track where that energy is going through the Bolt’s digital displays. While it takes some time to learn to read the data, the gauge cluster simultaneously displays how much power is used or recovered at any given moment, a real-time range estimate with projected minimums and maximums in case of battery use changes, and a bar rating how efficiently the car is performing based on the driver’s habits and external environmental factors.

While the Bolt has a slightly smaller electric motor than some competitors at 150kW (200hp), it posts a respectable torque rating of 266lbs-ft. Perhaps a more significant factor is that its 55kW charge rate, while accessible at all Level 3 charging stations, falls short of the faster rate other EVs achieve. For example, the Nissan Leaf Plus can charge at 100kW at capable Level 3 fast chargers, nearly double the Bolt’s rate.

The Bolt has been criticized for the quality of its interior, though using lighter materials is understandable in an EV where weight boosts efficiency, and the appearance is well-executed. The comfort of the seats is another criticism, and this is fairer. Longer torsos may find the headrests push the spine into an unnatural alignment that gets uncomfortable. The upside is the infotainment is laid out on a 10.2-inch display with Apple CarPlay and Android Auto integration and added features for power output and analysis displays.

The 2020 Chevrolet Bolt LT may not have some of comforts of similarly priced internal combustion engine alternatives, but it covers the important bases and its benefits largely outweigh drawbacks. If the small hatch suits the application, it could be a welcome addition to a fleet line-up. FM/SP

As Tested

Price (incl. freight and PDI): Starts at $46,898; tested at $49,243 Engine: 150kW electric drive unit Power: 200hp; 266lbs-ft Transmission: single-speed Rated Fuel Economy (L/100km): 1.9/2.2/2.0 / 16.5/19.5/17.8 Observed Combined Fuel Economy (L/100km): 10.9 (after significant effort)

Ford F-150 Jeep Gladiator

Hauling into the New Year Pickup Truck roundup for 2021

The year 2021 will offer new electric truck models, though we haven’t seen them yet. Still, Rivian, Fisker, Bollinger, Altis and Tesla say we will. What we have seen are more versions of traditional pickups with an emphasis on off-road capability, across all auto manufacturers. This trend has been growing for years and seems to be more important than ever to the market.

Also new for the coming year:

We get a new Ford F-150 and Super Duty; Ram has just released its TRX – a serious off-road truck; Toyota is increasing the number of TRD-Pro models; and The Nissan Titan, in Canada, is discontinued. The 2021 Ford Super Duty was launched in January 2020, just before the COVID-19 shutdown. The big news is a new 7.3L gas engine which offers best-in-class 430hp and best-in-class 475ft-lbs of torque. The optional 6.7L Power Stroke diesel is also updated and gets a new 10-speed TorqShift automatic transmission (also used with the 7.3L) These are available now. The F450 has a maximum payload of 7,850lbs and a maximum towing capacity of 37,000.

The 2021 Ford F150 is the first major update since the all-aluminum body debuted in 2015. A new hybrid engine, based on the 3.5L EcoBoost, is on offer. It’s 47hp electric motor has been integrated into the 10-speed transmission to create a new powertrain – called the PowerBoost. They claim this engine will have a range of approximately 1,100km on a single tank of gas. Another new, unique feature is called Pro Power Onboard. This generator (with plug-in outlets in the bed) will push enough power (as much as 7.2KW) to run 28 average refrigerators, says Ford. Tech upgrades include a new generation of SYNC (4) that includes over-the-air updates. The new centerpiece is a 12-inch screen that is the heart of the infotainment system. An interesting new feature is fold-flat front seats. More than just a full recline – the seat folds back and the bottom lifts up to form a flat bed. This new PowerBoost drivetrain is rated at 12,000lbs max towing. Other powertrains are still available. The maximum payload is 3,270lbs and the towing capacity is 13,200lbs.

Meanwhile, the 2021 Ford Ranger is selling well and remains unchanged for the 2021 model year with a maximum payload of 1,860lbs and maximum towing capacity of 7,500lbs.

The 2021 Ram 1500 is a carry-over year for the 1500. However, the Ram 3L diesel, in its third incarnation, is now available in any version of its 1500-series truck – not the case with all brands. The maximum payload is 2,300lbs and towing capacity is 12,700lbs.

Also new to trucks is the Ram 1500 TRX. This serious off-roader challenges the Ford Raptor. Powered by the 702hp supercharged 6.2L Hemi V8 engine, it delivers a top speed of 190km/h, making it the quickest, most powerful mass-produced half-ton pickup truck in the world.

The TRX differs from the standard Ram 1500 by being eight inches wider and taller to accommodate the new 18-inch wheels supporting the 35-inch Wrangler Territory All-Terrain tires from Goodyear. This combination, paired with an all-new custom suspension, produces even more capability on the street or in the desert. Its payload is 1,310lbs and towing capacity is 8,100lbs.

Ram 1500

Nissan Titan

This is also a carry-over year for the Ram Truck HD 2500 and 3500 as 2019 was the update. Its interior is still one of the best with a seven-camera surround-view system broadcast on the 12-inch centre stack screen. Its payload is 7,680lbs and the towing capacity is 35,000lbs.

The 2021 Jeep Gladiator is powered by the Pentastar 3.6L V6 and can be ordered with a manual six-speed. For 2021 it is also available with an optional diesel as well as a 1,600lbs payload and 7,650lbs towing capacity.

This is a carryover year for the Toyota Tacoma. For 2021 more features are offered in the Pro editions along with limited annual colours. There is also a new base SR package that combines entry-level price with all the up-to-date infotainment options. Payload is 1,500lbs and towing capacity is 6,500lbs.

A generational update to the Toyota Tundra should arrive in 2021. The last one occurred in 2014, and Toyota tends to stick to the seven-year update cycle. The big rumour is that the 5.7L V8 will be dropped in favour of a six-cylinder turbo. Payload is 1,710lbs and the towing capacity is 10,000lbs.

This is a carry-over year for the Chevrolet Silverado HD 2500 &3500 (GMC HD Sierra). A major update came last year along with upgraded 6.6L diesel engine, a new 10-speed transmission and a new gas engine as a base – a 6.6L V8. Payload is 7,374lbs and towing capacity is 35,500lbs.

This is a carryover year, however the GM 2021 Chevrolet Silverado 1500 3.0L diesel with the 10-speed automatic is now fully available. Of note: A new Chevy Tahoe was released in November with an all-new interior – I expect it to move into the pickup, although the question is, when? The payload is 2,250lbs and the maximum towing capacity is 13,400lbs.

The 2021 GMC Sierra is also in a carry-over year. Along with the Tahoe came a new GMC Yukon. Its interior is also updated, however for the first time ever the Denali version got its own unique, exclusive design. This should also move into the Sierra Denali pickup. The maximum payload is 2,250lbs and the towing capacity is 13,400lbs.

The mid-size twins are in another carryover year. Sales remain strong for the 2021 Canyon and Colorado. In particular, the Chevy ZR2 offroad version featuring front- and rear-electronic locking differentials, DSSVTM damper technology, a lifted frame and 31-inch Goodyear Duratrac off-road tires. Payload is 1,620lbs and the 2.8L I-4 diesel’s towing capacity is 7,700lbs.

The 2021 Honda Ridgeline offers some ‘editions’ – new, mild appearance packages while its mechanicals remain the same. It continues to serve its limited market well with a maximum payload of 1,600lbs and towing capacity of 3,500lbs.

On a sour note, Nissan has announced that 2020 is the last year the Titan pickup will be available in Canada. It continues in the US however no promises have been made past the 2021 model year. The Frontier, on the other hand, remains and is very overdue for a generational update, which should be in 2021 – probably as a 2022 model. FM/SP

The 2021 Ford Ranger is selling well and remains unchanged for the 2021 model year with a maximum payload of 1,860lbs.

Subaru Evoltis

Subaru has announced a new vehicle platform for 2021 that will accommodate gasoline, hybrid, plug-in hybrid or all electric configurations. Until now, the Crosstrek plug-in hybrid was Subaru’s only electrified option, and was available only in limited numbers. An all-electric crossover called the Evoltis developed jointly with Toyota is scheduled to arrive in late 2021. Although no performance or range information has been confirmed, it is expected to be approximately the size of a RAV4 and could therefore feature the same BEV technology as the new all-electric RAV4 Prime.

FCA Jeep Wrangler

The first plug-in hybrid in the Jeep’s history was named Green SUV of the Year by the Green Car Journal. The 2021 Jeep Wrangler 4x4 plug-in hybrid has a combined output of 375hp and 470lbs-ft of torque and a range of up to 600kms. Fuel consumption average is estimated to be 4.7L/100km. The Wrangler 4xe can deliver up to 40km of zero emission, electric-only travel. The fully capable, Trail Rated SUV features solid front and rear axles, full-time 4x4, two-speed transfer case and fully articulated suspension

Green roads ahead Sustainable fleet rides for 2021

As the year draws to a close, many automakers are already rolling out their new models for 2021. Fuel economy and environmental impact have become key factors influencing consumer choices, and with this in mind most OEMs now feature some form of electrification in their model lineup – including hybrids, plug-in hybrids and pure battery EV.

Toyota Prius

Toyota helped pioneer hybrid technology with the introduction of the Prius back in 1997. Electrification now runs through most of their portfolio, with several models available only with a hybrid powertrain. For 2021, the Toyota Sienna returns as the only hybridonly AWD minivan on the market. Fuel consumption improves by a whopping 43 per cent over the outgoing Sienna, with an official rating of 6.5L/100km combined for front-wheel-drive models, and 6.7L for AWD. Each Sienna comes with Toyota Safety Sense 2.0, power sliding doors, heated steering wheel, 10 airbags, and a nine-inch touchscreen with Apple CarPlay and Android Auto.

Hyundai Kona Electric

Hyundai has made the ambitious claim of having 10 electrified models in its lineup by the end of 2022, including hybrid and plug-in versions of its most popular mainstream sedans and crossovers. Hyundai also plans to develop an electric-only lineup under the Ioniq sub-brand. Demand for their Kona Electric subcompact crossover has exceeded demand, and it returns unchanged for 2021. The front-wheel-drive only Kona produces 201hp and travels up to 415km on a single charge.

Ford borrowed the name of their iconic pony car to generate interest in their all-new electric crossover. Although the Mustang Mach-E shares a few styling cues with its namesake, they’re otherwise unrelated. Available in rear- or all-wheel-drive, the standard Mach-E is capable of 355km or 325km with AWD, and up to 475km with the extended-range battery. With 332hp and 417lbs-ft of torque, the Mach-E is targeting such premium performance crossovers as the Porsche Macan. A GT, and GT Performance Edition with 459hp and 612lbs-ft of torque, will arrive later.

Nissan Ariya

Nissan’s adding an all-electric crossover to its lineup with the new Ariya, scheduled to arrive in 2021. With up to 480km of travel on a single charge, it beats out the Leaf’s extended range of 363km. Roughly the size of the Rogue, the Ariya has a lower, wide stance, futuristic styling and offers a host of technologies such as torque-splitting all-wheeldrive, driver’s assistance systems, connectivity and a peppy zero-to100km time of under 5.0 seconds.

Mercedes-Benz EQC

Mercedes-Benz recently unveiled plans to introduce a lineup of six electric vehicles in 2021, under a new “EQ” badge that should correspond to their existing nomenclature pairing sedans and coupes with crossovers sharing the same trim level. The first of these will be the EQC, an allelectric version of the GLC compact crossover. With 402hp and 561lbs-ft of torque, the EQC is estimated to have up to 449km of range and will feature Mercedes’s latest in driving assistance technology.

Mitsubishi Outlander

Back in 2014, Mitsubishi’s Outlander PHEV was the world’s first plug-in hybrid SUV. It returns in 2021 with a new twist: the addition of two-way or bi-directional charging. The 13.8kWh battery will deliver the same 54km all-electric range as before, but it can now store or discharge energy to and from the grid – essentially becoming a “battery on wheels”. The Outlander PHEV is fully charged in seven hours on a home plug, or 25 minutes on a level 3 fast charger.

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