Supply Professional December 2024

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LOOKING TO 2025

A lot can change in a short time. We’re at the end of another year and a second Donald Trump presidency has moved from speculation to certainty. In Canada, there’s most likely a federal election within the year. Both these events bring uncertainty. So, we’re all peering towards next year wondering what’s in store.

The holidays are also a famously popular time for making lists, whether for gift buying, New Year’s resolutions, or predictions. In that spirit, here are a few of my own thoughts on the trends shaping supply chain and procurement into 2025.

Sustainability: As you’ll notice, much of this issue is dedicated to sustainability. Since joining the magazine 14 years ago, I’ve watched sustainability issues move to front-and-centre in procurement and supply chain. Expect a continuation of its shift from a buzzword to business requirement for Canadian companies and organizations.

Today, sustainability doesn’t just mean so-called green policies and the environment. It now draws on elements from DEI, supplier diversity, ethical sourcing, and other related areas. This expanded focus will grow in 2025, driven in part by mandates and legislation like the EU’s Corporate Sustainability Due Diligence Directive and Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act.

Artificial intelligence: Supply chain professionals will continue to use artificial intelligence (AI), an expanding trend recently. According to this year’s MHI Annual Industry Report, 85 per cent of supply chain professionals surveyed predicted that they would adopt AI within the next five years.

And within AI itself, there are also some interesting trends. The marriage of AI and IoT technologies might lead to better visibility, for example, with IoT sensors collecting information on products in transit and AI then processing that data.

AI technology may also help make “autonomous” supply chains a reality; meaning supply chains that can plan and execute functions using AI and machine learning. Such a supply chain could monitor itself, make decisions, and solve problems on its own. Such a supply chain may not be that far off.

Trump and trade: That increased supply chain visibility may be an advantage with Donald Trump back in the White House. The US-Canada trade agreement is worth $900 billion, which would be altered by Trump’s promise to impose 25-per cent tariffs on Canadian goods if we don’t agree to certain border demands. That is, if he follows through.

The Canada-United States-Mexico Trade Agreement (CUSMA, or USCMA south of the border) comes up for “renewal consideration” in 2026, with Trump vowing to renegotiate the deal to the benefit of the US. This adds even more uncertainty to the continent’s trade future.

There you have it, some of my predictions on the direction of supply chains into 2024. The effects of these trends will, of course, extend beyond next year. But we’ll see them hit their stride in 2025. What do you think about the trends in supply chain going into the New Year? I’d be interested to hear your thoughts. Feel free to reach out to me at michael@supplypro.ca.

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CHARGING ADMISSION AN ARGUMENT IN FAVOUR OF TARIFFS

I am writing this column less than two weeks after Donald Trump’s decisive victory in the 2024 US presidential election. There has been much speculation about exactly why Trump won. I would suggest that it was for a variety of reasons. Number one was the open border. Then there were “cultural” factors. The Democrats played a (as it turns out) dangerous game of identity politics and it blew up in their faces with the Latino vote. There’s always the “It’s the Economy, Stupid” factor. Inflation ran rampant under the Biden-Harris presidency and that’s a bitter pill for most people to swallow. My gut tells me that Trump’s promise to impose tariffs on Chinese products was one of the least important reasons why he won. The irony, however, is that if he indeed follows through with them, it will almost certainly be his most important and impactful economic policy. There are a number of theoretical reasons to be for or against tariffs and I’ll start by arguing why it’s horrible economic policy. Then I’ll take the other side of the debate, which as you can tell from the title of this column, I am inclined to agree with at this time in history.

RESOURCE EFFICIENCY

Tariffs are a tax on the consumer. After their imposition, prices will be higher than they otherwise would be. The impact is similar to that of raising the HST. And because prices are higher on foreign-made goods, it means that domestic producers are able to provide more product, enjoying “unde-

served” revenue and market share. Tariffs encourage those businesses to employ resources relatively inefficiently. It would be so much better, the argument goes, if we allowed foreign countries to do what they do best, and we focused on what we are good at.

Before I present the “pro” argument, it’s important to debunk the canard that tariffs are inflationary. That is simply not true. What is true is that in the short run, tariffs will certainly lead to higher prices. However, speaking precisely, inflation refers to a cycle where higher prices lead to higher prices which lead to even higher prices. Moreover, the price increase after tariffs depends on the elasticity of demand (which quantifies the change in quantity sold for a given change in price) for the particular product. Any price increase after tariffs could be passed on entirely to the consumer, or barely at all.

There are several conventional anti-tariff arguments. The absence of tariffs might lead to greater over-all wealth, but the heightened income inequality is too high a price to pay. Here’s a simple thought exercise. Approximately 40 million people live in Canada. Imagine that $100 of income was taken from each person and that one individual enjoyed a $5 billion windfall. The country, in total, would be wealthier, but something just doesn’t sit right with that tradeoff. There’s also the loss of jobs argument because free trade means that some industries are losers, leading to higher unemployment. Those are valid arguments, but there are two better ones. The first

relates to national security. The second, misallocation of human resources.

You might know that the People’s Republic of China is the world’s number one producer of steel. What you might not know is that if you take the rest of the world and total its steel production, it still won’t match China’s. War requires a tremendous amount of steel. This is not to say that I’m predicting that a major war will break out, but no one in 1913 would have predicted The First World War. Steel is one important product. Arguably there’s an even more important one: semiconductors. In this space, I’ve previously argued that Canada should focus its resources to be the Northern Hemisphere’s answer to Taiwan. Bring semiconductor production back to North America.

HUMAN CAPITAL

And that’s a nice segue into my final point, the misallocation of human resources. The ratio of private sector employees to public sector employees was 4.3 to 1 in September 1999. Now, 25 years later, it stands at 3.0 to 1. Is it any wonder that the Canadian economy has stagnated over the past 25 years? Re-direct human capital to grow the economic cake, leading to a bigger piece for each of us.

I started this column focusing on the US and American tariff policy. But I am a Canadian and that’s where my first loyalty lies. The ideal solution for North America would be a customs union arrangement between Mex-

“Tariffs are a tax on the consumer. After their imposition, prices will be higher than they otherwise would be.”

ico, Canada, and the US. This would allow a free movement of goods and services between us, and then a common trade policy vis-à-vis the rest of the world which would include tariffs. Geography has blessed this continent, and public policy that includes selective tariffs would be the economic icing on the cake. SP

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

ROAD TO THE TOP THE STATE OF WOMEN IN SUPPLY CHAIN

In 1995, “Waterfalls” by TLC was the number one song. That was the year I “fell” into supply chain. Two years later, having graduated with a BBA, I was living in Mexico, working in the electronics industry. My manager at the time encouraged me to apply to a buyer, indirect procurement role. I got the job, and what followed was a 25-plusyear career in supply chain, where I have held 17 different roles in five companies and in five industries. When I started, few people understood the concept of supply chain. I struggled to explain my occupation. That’s changed, especially after the COVID-19 pandemic, when many stores ran out of toilet paper and other goods, and people became interested in where things were made and where they came from. What has not changed that much is the lack of female representation in positions of responsibility, especially as you climb the corporate ladder. It is no surprise that, historically, most supply chain and operations leaders have been male.

WOMEN’S REPRESENTATION

As I moved up the proverbial ladder, I lived this experience many times. In 2004, a few months after my first promotion to supply chain manager, I was asked to join an operations and supply chain leadership event offsite. At the event, I realized there were four female leaders and 100 male leaders in the room. I was already dealing with some symptoms of imposter syndrome as this was my first managerial role, and this lack of representation didn’t help.

Throughout my career, I have been in many high-powered meet-

ings where I have been the only woman in the room. If you add being a Latina, you can imagine the compounded effect, facing biases as a woman and as a visible minority.

According to Gartner research published this year, women’s representation in supply chain organizations has plateaued at 40 per cent. They expressed concern that this plateauing could shrink talent pipelines, making it more difficult for women to reach management levels. In their 2024 Women in the Workplace Report, McKinsey & Company and Lean In go as far as saying that, with current progress, it will take almost 50 years to reach parity for all women in corporate America.

We in leadership positions should share these concerns. Although we have a lot of young and talented women completing master’s in supply chain, or acquiring relevant certifications from ASCM, CITT, PMI, or the National Institute of Supply Chain Leaders (NISCL), it’s evident they’re not making it all the way to the top in proportional numbers. Gartner says that women make up 40 per cent of the total supply chain workforce, but only 26 per cent of the total supply chain C-suite roles are filled by women.

What can we do to shift these concerning trends? Some strategies that I have seen work include: Ensuring female representation in the recruitment process. Set the expectation for a diverse slate of similarly qualified candidates for every vacancy. If your talent acquisition partner initially shares an allmale pool, ask for more diverse candidates. According to a study

from the Harvard Business Review, the odds of hiring a woman were 79.14 times greater if there were at least two women in the finalist pool. If there was only one woman, there was statistically zero chance she would be hired. Offering developmental opportunities. Once you attract female talent, the next challenge is to retain them. You may need to be creative to make these opportunities available. I have found that, for some women, you need to clearly express your confidence in their abilities before they are willing to say yes.

As women, we are obviously not lacking the self-confidence gene, but sometimes, all we need is a vote of confidence and a little push before we are willing to step into the spotlight.

Be an advocate and sponsor. Many people likely helped you to get to where you are today. Pay it forward. Use your position to topple barriers and showcase women’s talents to decision-makers. Recommend these female supply chain leaders for promotions, high-visibility projects, or speaking opportunities.

We all play a role in developing the next generation of female supply chain leaders. It is in our hands to support them, to make the time to coach, mentor, and sponsor them, to volunteer for the universities and associations that are arming them with knowledge, and to share with them the experiences that we have learned in the course of our careers.

You can make a difference in someone’s career, inspiring a female supply chain professional to accomplish her dreams. SP

Alma Arzate, CCLP, CSCL/CSCMP, PMP, C.P.M., CPIM, is senior director, global supply chain logistics, at Apotex Inc.

“We all play a role in developing the next generation of female supply chain leaders.”

Report highlights 3PL trends

A new report reveals decreased order volume growth and increased profitability for third-party logistics providers operating at warehouse capacity over 80 per cent, among other trends. The fifth-annual Third-Party Logistics (3PL) Warehouse Benchmark Report, released by Extensiv, also showed a convergence between artificial intelligence (AI) advancement and network fulfillment points for 2025. The report aggregates data from over 250 3PL warehouses and gives insight on more than 30 topics. It builds on prior data and provides year-over-year changes and trends.

The 3PL industry is seeing slowing growth in order volumes and profitability. Yet businesses are showing resilience and adaptability. 3PL’s operating at larger scales seem best suited for navigating market volatility.

Respondents looking into AI rose from 16 per cent last year to 25 per cent this year. There’s a trend towards adding warehouses for more geographic disbursement; 51 per cent use two to five warehouses. The trend reflects interest in using fourth-party logistics (4PLs). Other report areas include a 2025 outlook, along with trends and metrics related to growth, technology adoption, warehouse operations, and industry challenges.

Syntax Systems acquires Argon Supply Chain Solutions

Syntax Systems, a global technology solutions and services provider for cloud application implementation and management, has acquired Argon Supply Chain Solutions, which specializes in warehouse management and supply chain optimization solutions. Argon serves a range of multi-national customers through its presence in the UK and South Africa. Syntax is a portfolio company in the TMT VI Fund of Novacap, one of North America’s established private equity firms. Argon is Syntax’s seventh add-on acquisition since partnering with Novacap.

Swisslog opens Canadian office

Swisslog, a provider of warehouse automation and software, has opened a new office in Canada. Located in Mississauga, Ontario, the office is the latest step in the company’s growth in the Americas. Over the past year, the company has also strengthened its sales and execution teams to support the Canadian market.

“Canada’s supply chain continues to see strong growth, partly driven by an increase in imports and exports and the private sector’s

commitment to increase overall supply chain efficiency,” said Sean Wallingford, president and CEO of Swisslog Logistics, Inc.

Swisslog’s portfolio of automation solutions and software is available in Canada, with focus on general merchandise, food and beverage, industrial manufacturing, electronics, and healthcare industries. This portfolio features fully automated end-to-end integrated solutions, including ASRS applications for unit loads and eaches.

NISCL announces partnership with CIPS

The National Institute of Supply Chain Leaders (NISCL) has inked an agreement to become the exclusive Canadian partner of the Chartered Institute of Procurement & Supply – CIPS. As of May 2025, NISCL members will become dual members of NISCL and CIPS at a single, unified rate. This provides Canadian supply chain professionals with opportunities to expand their expertise, gain international recognition and connect with over 60,000 peers worldwide, NISCL said in a release.

Amazon goes on Canadian hiring spree

To prep for the holidays, Amazon is hiring 9,000 employees across its Canadian operations network in full-time, part-time and seasonal roles. The company is also opening five new AMZL delivery stations in BC, Alberta, and Ontario, to ramp up its last mile network.

Jobs include stowing, picking, packing, sorting, and shipping customer orders at the company’s fulfilment centres, sortation centres and delivery stations.

Amazon will open five new lastmile delivery stations across Canada by the end of October. At these stations, employees sort, scan and prepare customer packages before they are loaded onto delivery vehicles. The new delivery stations will be located in Burnaby, BC; Calgary, Alberta; Windsor, Ontario; Ottawa; and Richmond Hill, Ontario.

Members can align their skills and learning to the CIPS Global Standard for Procurement and Supply. This competency framework guides professionals to develop skills, knowledge and capabilities aligned with global best practices.

NISCL-CSCL designation holders in good standing will gain access to the chartered MCIPS designation, placing Canadian professionals on par with global peers.

“Our partnership with CIPS represents a new chapter for NISCL and

the Canadian supply chain profession,” said Al-Azhar Khalfan, president & CEO of NISCL. “By aligning with CIPS’s Global Standard, we empower our procurement and supply chain professionals to lead with integrity and excellence, knowing they meet the highest standards recognized worldwide.”

NISCL said it will continue to provide members with world-class resources, expanded learning opportunities, and a globally recognized standard of professionalism.

BY MICHAEL POWER

ETHICAL EDGE SUPPLIER DATA IS KEY TO AN ETHICAL PROCUREMENT PROGRAM

Although today’s post-pandemic global supply chains remain turbulent, the public appetite for ethically sourced goods has remained strong. In fact, a survey commissioned by OpenText in 2021 showed that nine in 10, or 88 per cent, of global consumers said they prioritized buying from companies that employ ethical sourcing strategies. The practice has become an essential part of modern procurement.

As an aspect of a company’s corporate social responsibility (CSR) policies, ethical procurement involves purchasing and sourcing goods and services so that issues like human rights, environmental sustainability, and social equity concerns are considered. As the digital age ramps up, the ability to monitor supply chains and get the right data from vendors has become key to success.

When starting out on an ethical sourcing journey, ensure that you understand what you actually want to accomplish, advises Peter Gosselin, vice-president of supply chain at Wajax. That includes having a clear picture of why such practices are important to you and your organization. For him, that includes maintaining ethical supply chains as a point of pride, as well as enabling the company to stand behind its sustainability efforts, Gosselin says. Ethical procurement practices also help to promote Wajax’s brand, he notes. From a recruiting perspective, ethical procurement practices make the company attractive to sustainability minded job seekers. There are also financial benefits, since consumers are increasingly willing to pay for what they believe to be good products that are ethically sourced, Gosselin says.

“So, we need to define what our goals are,” Gosselin says. “Inside of that, identify how we’re going to measure that. Like any project, identify what we’re going to measure, how we’re going to measure, and set a timeline. You don’t have to reinvent the wheel or boil the ocean. There’s a lot of good work that’s already done out there that you can capitalize on to be able to go ahead with your project.”

ETHICS LEGISLATION

Owing not only to social pressure but also legal obligations, ethical procurement has moved from a nice-to-have to must-have aspect of supply chain management. Here in Canada, the federal government has recently passed the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act (formerly Bill S-211), which came into force on January 1 this year. As the name suggests, the law’s purpose is to reduce forced and child labour in supply chains by increasing transparency.

Other places, like Australia and the UK, have had modern slavery regulations in place for several years, says Michelle Albanese, director, ESG and sustainable supply chain at Upswing Solutions. While many of those regulations focus on human rights in operations and through the procurement of both goods and services, she notes, Canada’s new regulations are more narrowly focused on goods.

Advances in technologies such as artificial intelligence (AI) can help monitor supply chains for ethical compliance, while letting organizations

keep an eye on vendors and their practices. Effective supplier compliance means organizations must first understand the supply chain, Albanese says. A good place for smaller organizations to start is with manual supply chain mapping and risk identification. For larger organizations with more complex supply chains, software can provide automated solutions for issues like supply chain mapping, child and forced labour risk identification, or supplier engagement and assessment.

Such platforms look at information like supplier name, industry, geography, and spend amount, then their algorithms incorporate publicly available data on purchasing and tracking to look beyond their Tier 1 suppliers, Albanese says. The software then provides indicators on where your supply chain might be at risk for child and forced labour.

“This allows for risk prioritization and further due diligence,” she notes.

Other specialty platforms and apps allow workers within the supply chain to report human rights abuses through anonymous survey-based tools, Albanese says, which helps to increase transparency of grievance mechanisms and remediation.

Still, consolidating and understanding supply chain data isn’t without its challenges.

“Human rights due diligence software can be very beneficial in saving time, as opposed to a manual process, and costs are reasonable,” Albanese says. “However, if your supply chain isn’t too complex, you can start this process manually but will need dedicated resources,

which is usually someone from the procurement department. Consider hiring a consultant to help you establish a process for year-over-year improvement.”

QUESTIONNAIRES

Increasingly, big buyers are looking to qualify their supply chains to help ensure ethical practices, says Simon Hutton, national sustainability & ESG lead, BDO Canada. To do so, those organizations are using supplier questionnaires that are designed to increase transparency across a range of issues.

“Those issues generally relate to supply chain, they relate to environment, they may relate to government,” Hutton says. “This is what I’ll call a questionnaire trend that’s increasing very steeply. That’s making people very much aware that these big buyers, the Walmarts of the world, are asking questions because they need transparency in their supply chain.”

“The easiest thing people can do to better understand and do their due diligence on their supply chain is ask more questions.”

Canada’s new anti-child and forced labour legislation will only increase pressure on organizations for more transparency into the origin of goods, he adds. Consumers are looking for a level of confidence that what they’re buying isn’t tainted with the possibility of having used forced labour in the production process.

“The easiest thing people can do to better understand and do their due diligence on their supply chain is ask more questions, and then use

those questions to raise red flags, or they might want to dig a little bit deeper,” Hutton says.

Ultimately, there are multiple reasons why companies would want to incorporate ethical principles into their procurement strategies. These include employee satisfaction, legal compliance, or simply a desire to do the right thing. Whatever the reasons, proper data can help organizations build the transparency they need.

“We all have a responsibility to this world, whether it’s personal or corporate, to ensure that we’re sourcing products that are produced in the most responsible way possible,” says Wajax’s Gosselin. “And it’s not one great big, massive brushstroke that will change everything, but it’s all these little pieces, with each organization contributing and each individual contributing to that, that’ll make this initiative a success.” SP

BY MICHAEL POWER

PASSION FOR THE PUBLIC THARSHINI MARKANDAIER AND HER PROCUREMENT TEAM KEEP THINGS

ROLLING AT THE TTC

Most procurement and supply chain people know the satisfaction of seeing their efforts benefit their organizations, whether it involves costs saved, value realized, or other KPIs. As much as anywhere, this is true at the Toronto Transit Commission, or TTC

Tharshini Markandaier, the TTC’s head of procurement and category management, knows the challenges and rewards of keeping Canada’s largest public transit system, and third largest in North America, up and running. The TTC hosts 1.3 million rides per weekday and operates 6,400-plus kilometres of routes. It has 16,000 employees, and its fleets include 1,983 buses, 220 streetcars, 143 trains, and 62 battery electric buses, the largest fleet of such buses in North America. Along with its own jurisdiction, it integrates with several other local transit systems.

Yet while Markandaier has spent much of her professional life in the public sector –with the past eight months at the TTC – her career began in the private sector in 2000 as a buyer at a Toronto-based IT reselling firm.

Yet when she heard the term ‘buyer,’ she imagined a role dedicated to shopping.

“My idea of the perfect job,” the Toronto-area native now says of that first role. “However, I quickly discovered that being a buyer was much more than that. I was responsible for managing accounts and driving business relationships, which proved to be both challenging and rewarding.”

Markandaier counts herself lucky for landing that first procurement role, as the workplace culture was vibrant and supportive, with amicable colleagues that she has remained friends with until this day. In fact, it was this role that she now credits for laying the foundation for working to build strong relationships in every professional role she has taken on.

While she found the atmosphere at that company collegial, a long-time friend eventually encouraged her to apply for a procurement position at the Region of Peel, which abuts Toronto to the west. She applied for the job, and now considers the move a “leap of faith.”

“I remember preparing for the interview while frantically Googling terms like RFQ and RFP,” she now says of the hiring process. The research paid off, and she landed the position in 2006. “This opportunity was pivotal – it introduced me to the public sector and allowed me to witness firsthand the impact of procurement on the community I served. It was here that I found my passion for public procurement and a commitment to making a difference.”

SHIFTING GEARS

Yet despite the excitement of a new role, the transition from the private sector to the public sector was challenging for Markandaier. She found the first year working at the Region tough, with navigating such a different professional landscape particularly difficult. At the same time, Markandaier gained experience and learn valuable lessons about the field during her time there. The experience of managing multiple portfolios at once, for example, highlighted to her the importance of listening to stakeholders and finding solutions that supported their needs. A moment that she is especially proud of from that time was when she spearheaded a project that streamlined procurement processes, which ultimately advanced service delivery. The project also improved transparency within the organization.

After six years of working at the Region of Peel, Markandaier took on a new position at the City of Richmond Hill in 2012, located just north of Toronto. The position, that of chief purchasing officer, was her first management experience. It was again a daunting transition. But the move also let her focus on areas like policy development, process improvement, and ERP system implementation.

During this time, she also took on opportunities to give back to the procurement community, for example by guest lecturing in procurement topics at Osgoode Law School at Toronto’s York University. She also began sharing her insights into the profession with industry organizations like the Ontario Public Buyers Association (OPBA) and the National Institute of Supply Chain Leaders (NISCL)

“I believe that sharing knowledge and experiences not only contributes to the professional community but also enriches my own journey. Each challenge I faced has fuelled my commitment to strategic sourcing and supply chain management, helping me evolve as a leader,” says Markandaier. She remained at the City of Richmond Hill until 2024, when she accepted the position at the TTC

“Looking ahead, I am excited to continue driving innovation and making meaningful contribu-

tions in my current role at the TTC, as I believe that every step we take in procurement can significantly impact the community we serve.”

Markandaier holds a degree in economics, psychology, and sociology from the University of Toronto, which she says has helped to provide the foundation on which her procurement and supply chain management career is built. Like many in the field, she has continued her education since then and is a believer in continuous improvement and lifelong learning. That belief has driven her to pursue various certifications and professional development opportunities during her career.

For example, she earned her Supply Chain Management Professional (SCMP) designation from NISCL, a Masters Certificate in Municipal Leadership from York University’s Schulich School of Business; and various certifications from Osgoode Hall Law School.

Continuing her education has expanded her skill set, she says. But it has also helped her

become more adaptable as the field continues to evolve. Whether learning advanced procurement strategies or leadership principles, each course and certification she has undertaken has added tools that have helped her along in her procurement career.

“Ultimately, my educational background and ongoing commitment to professional growth have shaped my approach to leadership and problem-solving, enabling me to contribute meaningfully to every organization I have been part of,” she says.

Markandaier says she is “proud” to work at the TTC as head of procurement and category management, a role she has held for the past eight months. The position requires both “strategic foresight and hands-on leadership” –a blend of skills that Markandaier appreciates.

While important aspects of procurement, the function goes beyond numbers and contracts at the TTC, Markandaier says. Understanding people and building relationships are

top priorities, while emotional intelligence is central to her style of leadership as it helps her team feel supported while boosting stakeholder trust in the procurement process.

“I strongly believe in understanding the needs of our stakeholders and acting as a business partner to help achieve results that align with the organization’s goals,” she says. “It’s rewarding to contribute to setting the course for the TTC’s future!”

SETTING A DIRECTION

Markandaier likens her day-to-day routine at the organization to steering a large ship. She oversees procurement activities, ensures compliance, and works to deliver value to the

organization. No two days are alike, which is how she likes her time to unfold. Her days are a mix of strategic planning, solving problems, and connecting with her team.

At the TTC, the procurement and category management department is a centralized division responsible for purchasing a wide range of goods and services. As the third-largest transit organization in North America, it handles everything from trains, streetcars, and buses to tracks, parts, IT equipment, and office supplies like pens and paper. It’s a vast array of responsibilities, Markandaier says, all made possible by an “amazing team” of dedicated individuals.

It’s a large team of nearly 100 procurement and supply chain professionals, and Markandaier notes that they’re always looking for new talent to join.

“I thrive in this dynamic environment where I can pivot between big-picture thinking and hands-on management,” she says. “What truly drives me is the direct impact our work has on millions of people’s daily lives. It adds a strong sense of purpose to every decision we make, knowing that we play a crucial role in keeping the city moving.”

Markandaier has enjoyed several milestones in her procurement career. Most significant was leading the implementation of a state-of-the-art ERP system for the City of Richmond Hill, a move that was a “game-changer” in terms of the operations and efficiency of the organization she worked for at the time. She also developed a corporate-wide acquisition program there, which streamlined processes and saved resources.

She also helped build a team of skilled procurement professionals who have gone on to become leaders in their own right at other organizations. As well, whether at Osgoode Law School, as a panelist at conferences, or university career fares, sharing her knowledge of the field has been fulfilling, Markandaier says.

She was also named one of the 100 Influential Women in Canadian Supply Chain in 2019, by the Supply Chain Management Association (SCMA), now NISCL

Since joining the TTC, Markandaier is especially proud of her department’s work to optimize procurement processes, especially given the scale of the organization’s projects. Collaborating with the team on the most complex acquisitions has been challenging and rewarding, as has watching while those collective efforts pay off. Those projects include purchasing trains with international bidders, making subway stations more accessible, electrifying the TTC’s fleet, and managing complex professional service contracts.

“It’s all about staying proactive and ahead of the curve, ensuring that we can deliver on our commitments without compromising on quality or timelines.”

“What I enjoy most about working at the TTC is the tangible impact of our efforts. Here, procurement isn’t just about transactions; it’s about ensuring the entire city runs smoothly. There’s a profound sense of purpose in knowing that our work supports the daily lives of millions of people,” says Markandaier. “The challenges we face are real, but the rewards—like seeing projects come to life and knowing they make a difference—are even greater. I stay motivated by keeping ahead of industry trends and pushing boundaries in procurement, which keeps me excited for what’s to come.”

As the world continues to recover from COVID -19, one of the biggest challenges procurement organizations face post-pandemic is supplier risk, Markandaier says. That challenge is amplified in the transit sector, because of the scale and nature of the projects.

To tackle this, Markandaier and her team are working on stronger supplier relationships and risk management strategies, she says. The team is looking to refine procurement processes to make them more agile, which she notes lets them adapt quickly to changes and unforeseen circumstances. That sort of collaboration and communication with suppliers lets the team navigate a complex environment while keeping service levels high.

“It’s all about staying proactive and ahead of the curve, ensuring that we can deliver on our commitments without compromising on quality or timelines,” she says.

Looking to the future, Markandaier says she is excited about the potential to further integrate technology into the team’s procurement processes. With the right tools, she says, opportunities abound for streamlining operations and making them more efficient.

Her vision for the role of procurement is that of a proactive department, she says. That includes anticipating the needs of customers and the organization, optimizing the department’s functions and, most important, providing reliable transit service to the community.

“Procurement has evolved significantly; it’s no longer just about buying goods and services,”

Markandaier says. “It has become the backbone of any organization, and the responsibilities we hold are both critical and exhilarating.”

Beyond her work in procurement, Markandaier says that she is passionate about mentoring and supporting the next generation of procurement professionals. Giving back to the field that has given her so much is a priority, and she feels a commitment to helping others grow and succeed in their careers. It’s rewarding, she notes, to contribute to a vibrant, diverse, and constantly evolving procurement and supply chain community.

GREAT BIG WORLD

Outside of work, Markandaier considers herself a bit of an adventurer. She loves travelling overseas to explore different countries with her husband, as it allows her to immerse herself in new cultures and meet people. She has visited 36 countries so far, from European locations like Portugal, Spain, and the UK to African countries including Ghana, Zambia, and South Africa. Her favourite destination is Italy, which she has visited six times. She considers her family very important and cherishes her role as mother to two “amazing boys.”

“Creativity is another big part of who I am,” she says. “I have a passion for repurposing items, so don’t be surprised if you see me picking up a piece of furniture someone has put out for curbside collection. I find great satisfaction in transforming something discarded into something cherished.”

Markandaier is committed to giving back through charity work, not only to the procurement field, but also to her community and internationally. Empowering the disadvantaged –especially women and girls – is an important part of that work. It’s “incredibly rewarding,” she says, to be involved in initiatives that make a meaningful impact in people’s lives and help provide them with the opportunity to thrive.

Markandaier offers straightforward advice to those looking to advance their careers in the field: stay curious and never stop learning. The supply chain is always changing, and those who are adaptable and eager to grow will flourish.

“Also, make it a point to build strong relationships – both within your organization and with external partners,” she says. “Keeping the bigger picture in mind is crucial, as is having a blend of strategic thinking and people skills.

Don’t shy away from stepping out of your comfort zone; it’s where the magic happens. Trust me, it’s an incredibly rewarding career path if you’re willing to put in the effort and stay open to new opportunities. You never know where they might lead.” SP

BY LARRY

ALIGNMENT OF VALUES TIPS FOR IMPLEMENTING ESG STRATEGIES

It’s still early days in the implementation of ESG policies and practices in many businesses and governmental operations. While there are many reasons for doing so, and the benefits are well-documented, the execution of ESG strategies has been mixed. A few examples will reiterate the concerns and contribute to successful implementations. BC-based Cloverdale Paint, a family-owned business, wanted to change direction and bring ESG into their products and business practices. The transition was relatively easy to navigate.

Their procurement group had the expertise and had recently completed a strategic supplier review, revised their procurement procedures for resiliency in the market, and adopted environmental

standards for their product lines. The intent was to minimize their environmental impact yet retain product quality. Having a commitment to environmental standards, the “E” in ESG, shows singularity of purpose. Leading organizations look for comprehensive policies which include social (“S”) and governance (“G”) values. Sustainability requires a holistic approach.

The next big step for Cloverdale Paint was to go fully into an ESG strategy across the company. Senior leadership developed their mission and value statements, which they shared through corporate and customer messaging. Successful implementation of policies requires these be rolled out to ensure customer and stakeholder interests were respected. This was a change in decision-making. Policies are merely platitudes unless accompanied by actions that reflect values.

STEPS TAKEN

The procurement group and quality control went into high gear. They advised major suppliers of the shift towards best value and not just attention prices. This required several concurrent actions.

A supplier code of conduct was drafted, and ongoing third-party audits are conducted to validate supplier compliance with on-site inspections through QIMA. A review of packaging materials led to changes in material specifications. Social and environmental commitments became part of their contract terms and conditions. Paying living wages became a contracting norm. Scope 1, 2 and 3 GHG reduction targets were set; verifiable carbon credits have been purchased with energy and emission audits on a regular basis.

To provide accountability, Cloverdale Paint engaged with EcoVadis to set benchmarks in environmental, labour and human rights, ethics, and sustainable procurement practices. This leads to the aggregated score which has moved from 40, to 43, to 55 as part of their continuous improvement in ESG. Cloverdale Paint still sup-

“Strategic partnerships with key suppliers can result in efficiencies, which can in turn help to realize savings.”

ports philanthropic causes as part of its social commitments. These are voluntary but speak to the ownership’s commitment to the communities it serves.

Much of this transition to ESGbased criteria can be credited to their director of procurement, Ross Nordin and their corporate regulatory compliance manager, Paul Ly. These sea changes by organizations are led by champions who take on the challenges and achieve outcomes that impact all stakeholders. Being competitive on pricing is not lost during this strategic shift.

Strategic partnerships with key suppliers can result in efficiencies, which can in turn help to realize savings. Organizations need a return commitment from suppliers to change their business model. This has a ripple effect for suppliers. If they can assist Cloverdale Paint in their mission, those suppliers benefit from this outcome. Competing on values is good for all players, as it introduces a new level of differentiation for customers. Early adopters win market share.

To date, the Cloverdale Paint ESG journey has been three years in the making. They are a lean organization, yet change management steps had to be taken for successful implementation. Adapting internal business practices and having suppliers address a new value proposition take patience. There can be missteps and doubt about the change in direction early on. Ongoing training is a common commitment with early adopters. Leadership requires monitoring progress and responding to unforeseen events.

CAUTIONARY TALE

Contrast Cloverdale Paint with an example of ESG implementation that leaves room for improvement.

An automotive services company was seen to be lagging in its sector. The senior leadership team sought to invigorate their organization around ESG values. External advisors shared leading policies and practices in their sector and the board gave its approval.

The company launched a new strategy around ESG. From a procurement perspective, their group had not stayed current with best and leading practices in several areas of supply chain management. Consequently, when procurement made the shift towards the adoption of an ESG strategy, they were trying to “fix what was broken in the system” and concurrently introduce a better value proposition. The communication on ESG from the senior group had been primarily customer-facing, which is understandable but internal messaging was getting tuned out with their operational practices stuck in chronic crisis control. The aspirational ESG goals from senior management were becoming platitudes. Leadership requires redefining the procurement value proposition. The intent is to introduce decision criteria, supported by the C-Suite, which reflect stakeholder interests based on sustainability principles. The expectation is to take responsible actions within your sphere of influence to achieve the strategic ESG outcomes. SP

Larry Berglund, SCMP, MBA, FSCMA, is a supply chain leader, consultant, and author.

BY NOELLE STAPINSKY

GREEN MACHINES

NAVIGATING THE TRANSITION TO CLEANTECH IN MANUFACTURING

As the world grapples with the need to address climate change and environmental deterioration, the manufacturing sector is increasingly turning to green technology. This shift not only promises to mitigate environmental impacts but also offers a range of economic and operational benefits. However, such a transition is not without challenges, which is why a holistic approach – one that encompasses people, plant, and process – is critical in navigating more sustainable solutions.

Clean technology solutions trending in manufacturing today emphasize decarbonization, with a shift towards renewable energy, energy-efficient machinery, and carbon capture technologies.

“The circular economy is gaining traction, focusing on waste minimization and material reuse,” says Bryan Glover, chief growth officer and CTO for Honeywell Energy and Sustainability Solutions. “Digital transformation through IoT, artificial intelligence (AI) and big data is also enhancing operational efficiency, while sustainable materials and energy management systems are becoming integral to production processes.”

Adopting clean technology in manufacturing offers many benefits, including better efficiency, cost savings, and helping manufacturers comply with increasingly stringent environmental regulations to avoid fines and penalties.

“Clean technologies also foster innovation by driving the development of more efficient processes and products, ultimately enhancing productivity and quality,” says Glover. “Reducing reliance on non-renewable resources and leveraging automation and other technologies, including sustainable fuels and carbon capture

technologies, can help mitigate risks associated with resource scarcity and fluctuating prices. Investing in clean technology can improve operations long term, ensuring they remain viable and resilient amid changing market conditions. Additionally, a commitment to sustainability can boost brand image and give companies a competitive edge. Overall, the benefits of adopting clean technology encompass economic, social, and environmental dimensions, making it a critical consideration for future growth.”

CLEAR PATH FORWARD

To start navigating sustainable solutions and future investments, manufacturers should first look at their current operations, focusing on energy consumption, optimizing current processes, and identifying where new technologies can help. Glover advises that setting clear, specific environmental goals, such as reducing carbon emissions by a target percentage, will guide decision making. It’s imperative to involve management and employees to support and promote a clean technology culture.

“Energy efficiency is an immediate opportunity for emission reduction for manufacturing, as it provides a near-term and low-risk opportunity to reduce Scope 1 and Scope 2 emissions,” says Ally Karmali, partner, national ESG data and technology leader, KPMG in Canada.

“Clean technology, such as high-efficiency heat pumps, waste heat recovery systems and advanced HVAC control systems, can directly reduce energy demand and emissions.”

Karmali’s colleague, Andrew McHardy, partner, national decarbonization hub leader, KPMG

in Canada, notes that an approach integrating people, processes, and technology is a critical component to integrating clean technology in manufacturing. “From a plant perspective, it’s important to consider both the physical and digital integration of clean technology with existing systems,” he says. “Clean technology may not have the same spatial or energy requirements as conventional systems, and this needs to be considered at an early stage of development to avoid interference with other equipment, impacting performance, reliability, and safety.”

From a process perspective, it comes down to how well an organization is able to utilize its workforce and current technology, notes Scott Smith, VP of manufacturing sector performance, EMC Canada.

“If you haven’t optimized your processes, you’re not going to be able to operate at your full current capacity,” Smith notes. “Along with investing in new technology, we promote investing in the workforce and the plant and investing in process optimization. Those three intertwine and play together.”

All too often, companies will invest in a new technology without thoroughly analysing current process optimization, the electricity requirements of the new technology that may overload the system, and the skills required to operate such equipment. This is one of the biggest obstacles and deterrents to such a capital investment. It’s also why equipment might end up sitting idle on the production floor.

Glover says that high initial investment costs without considering long-term savings, lack of

awareness about the benefits, doubts about performance and reliability, regulatory uncertainty, cultural resistance, and inadequate infrastructure are the most common barriers for clean technology investments. Overcoming these requires raising awareness, education, and promoting a culture of sustainability.

“Implementing pilot projects is another effective tactic, as these can demonstrate the effectiveness of clean technologies in real-world scenarios. Success stories and data from these projects can help alleviate concerns and build confidence in scaling these solutions,” Glover says. “Conducting thorough cost-benefit analyses is also essential to address financial misconceptions, allowing stakeholders to see the longterm savings and returns associated with clean technology investments.”

Another critical step to de-risking technology investments is to understand the various funding and incentives available to support such investments.

“In June 2024, the Clean Technology Investment Tax Credit (ITC) was passed into legislation,” says Karmali. “This ITC addresses the upfront cost of implementing clean technology, providing up to a 30 per cent tax credit, which is a significant opportunity for the manufacturing sector to de-risk and move forward with these investments.”

Glover adds: “Also, promoting collaboration and sharing best practices among companies can help mitigate fears about transitioning to clean technologies, as partnerships can facilitate access to shared knowledge and experiences.”

EMC, Canada’s largest manufacturing consortium, is aiding manufacturers with knowledge sharing presentations through its Green Technology Network, which launched in January 2024.

“The presentations have been really well attended and they’re giving more insight and allowing manufacturers to better understand what the issues are and what the options are for solutions without there being a sales pitch along with it,” says Smith “Quite often, manufacturers will be describing a problem to a technology provider, who is going to base a solution on the technology they’re selling, not based on whether it fits or is the ideal solution for that SME.”

FURTHER BENEFITS

The business case for clean technology should also consider the value of adoption to mitigate operational and supply chain cost escalations.

“Adopting clean technology offers benefits that reach beyond just the production floor. It positively affects office environments, supply chain, and procurement processes. For instance, in office settings, clean tech can lead to cost savings through

“Clean technology solutions trending in manufacturing today emphasize decarbonization, with a shift towards renewable energy.”

improved energy efficiency and enhanced employee productivity by improving air quality,” says Glover. “Furthermore, clean tech contributes to supply chain resilience by reducing reliance on fossil fuels, potentially minimizing vulnerability to energy price fluctuations.”

In November 2024, KPMG in Canada released its Canadian CEO Outlook: ESG Beyond Compliance. Within the report, it stated that decarbonizing the supply chain is a top priority for Canadian CEOs.

“Making meaningful progress in mitigating supply chain emissions requires businesses to think strategically about decarbonization opportunities that may not be directly in their control. Integrating decarbonization objectives into procurement processes, and engaging vendors and suppliers to incentivize low-carbon solutions, are important steps towards reducing supply chain emissions,” says McHardy.

Adopting green technology in manufacturing presents a mix of significant benefits and notable challenges. The environmental and economic advantages are clear, and according to the annual EMC Industry Pulse survey, Canadian manufacturers focused on investing in clean technology is up 10 per cent from the 2023 survey results. Overcoming barriers will be challenging, but by embracing greener technology, companies can not only improve operational efficiency, but also enhance brand image and market position, ultimately driving long-term success and sustainability. SP

RESILIENT SUPPLY CHAINS HOW TO PREPARE FOR GLOBAL AND CANADIAN SUPPLY DISRUPTIONS

The global supply chain is a complex network that has become increasingly vulnerable to disruptions that can propagate shockwaves through global and regional economies. According to the World Trade Organization (WTO), global merchandise trade grew by 2.7 per cent in 2022, a sign of the increasing interdependence of economies worldwide. However, this also makes the global economy more vulnerable to disruptions caused by trade wars, labour shortages, extreme weather, geopolitical conflicts, and unprecedented crises such as a global pandemic. For example, the COVID-19 pandemic led to widespread production halts, transportation delays and inventory shortages across various industries. These disturbances can cause a ripple effect, affecting production slowdowns, labour shortages and productivity, transportation costs and inflationary pressures that can last beyond the initial disruption period. According to McKinsey’s annual Global Supply Chain Leader Survey, supply chain challenges that started during the pandemic continue to impact company operations.

At the same time, while 73 per cent of companies have implemented dual-sourcing strategies, inventory buffers have decreased to 34 per cent as companies unwind the shortterm measures implemented during and shortly after the pandemic.

In Canada, where many industries rely heavily on global trade, supply chain interruptions significantly challenge economic stability and growth. Due to supply chain constraints, Canadian businesses experience higher input costs, contributing to inflation and higher prices for consumers. The manufacturing, technology and retail industries are particularly vulnerable due to their reliance on global supply chains for raw materials and finished goods. Research by the Canadian Manufacturers & Exporters (CME) states that supply chain disruptions cost Canadian manufacturers billions in lost revenue each year.

Any disruption in the production or transportation of goods from major trading partners like the United States, China, Europe, and Asia can lead to significant delays and increased costs for Canadian businesses. For example,

strategies that enhance resilience. A recent Deloitte study found that 67 per cent of respondents highlighted a need for increased supply chain resilience in their operations. This includes advocating for investments in technology, promoting supplier diversification and fostering strong relationships and collaboration across the supply chain. By doing so, they can safeguard their organizations from future disruptions and contribute to the long-term strength of Canada’s economy.

Here are some proactive strategies supply chain professionals can implement to build a more resilient supply chain to help organizations navigate the inevitable, increasing, and ongoing risks of local and global disruptions.

DIVERSIFY SUPPLIERS AND MANUFACTURING LOCATIONS

the recent industrial actions in US ports along the East and Gulf coasts were estimated to cost the US economy US$540 million per day, while a labour strike in the Port of Montreal could put $90.7 million of economic activity at risk. Therefore, it is critical for supply chain professionals to plan ahead and mitigate the impact of such disruptions to ensure business continuity and economic stability.

BUILDING RESILIENCY IN SUPPLY CHAIN FUNCTIONS

When supply chains are disrupted, maintaining the flow of goods is critical to economic stability. Supply chain professionals play a vital role in ensuring their organizations’ success and the resilience of the broader Canadian economy. For example, during the pandemic, supply chain professionals helped ensure the delivery of essential goods such as medical supplies and food, supporting public health and safety efforts. In the face of continued disruptions triggered by any number of geopolitical events, supply chain professionals must be able to pivot fast and lead in shaping

One of the most effective ways to mitigate supply chain risks is through supplier and geographic diversification. Relying heavily on a single supplier or region for critical goods exposes companies to significant vulnerabilities during disruptions. Studies show that companies with diversified suppliers across multiple regions experienced fewer disruptions during the pandemic. For Canadian businesses, this might involve finding alternative suppliers closer to home or in regions less affected by specific risks. Supply chains are really supply networks. A potential side effect may also result in more competitive pricing, execution flexibility and stronger partner relations in the long run. For maximum effectiveness across your organization and partners, you may benefit from up-skilling your operational teams and leadership capacity.

STRATEGIC INVENTORY BUFFERS

While just-in-time (JIT) inventory management has been the go-to strategy for many companies to reduce costs, recent disruptions have shown the value of maintaining larger inventory buffers. Having an excess stock of critical materials or components can help companies

maintain production even when supply chains are disrupted. Companies that manage and adjust inventory levels strategically can consistently meet demand better than those that rely soley on lean inventory strategies. The key is actively paying attention to and leading in supply chain planning by balancing supply, demand, and risk mitigation.

ENHANCE SUPPLY CHAIN VISIBILITY WITH TECHNOLOGY

Technology plays a crucial role in mitigating supply chain disruptions. Implementing digital tools such as real-time tracking systems, predictive analytics, and artificial intelligence (AI) can give supply chain professionals the necessary visibility to anticipate potential disruptions and make informed decisions. By investing in digital technologies and integrating the tools with your network of trading partners, supply chain functions can significantly enhance transparency and agility in their operations and respond quickly to changes in demand, supply, or emerging risks.

STRENGTHEN COLLABORATION WITH KEY STAKEHOLDERS AND IMPROVE EXECUTION

Collaboration is key to navigating supply chain challenges. Supply chain professionals must work closely with suppliers, logistics providers and customers to develop contingency plans and ensure smooth communication during disruptions. Relationships matter. Companies with strong supplier relationships and clear communication protocols are likelier to experience fewer disruptions than those with weaker collaboration practices.

MONITOR GLOBAL SUPPLY CHAIN TRENDS AND RISKS

By monitoring industry news, government policies and trade developments, companies can anticipate disruptions, evaluate risks and adjust their supply chain strategies accordingly. For example, the ongoing shift towards protectionist trade policies in certain countries may lead to increased tariffs or export restrictions, impacting supply chains. Awareness of these changes

Studies show that companies with diversified suppliers across multiple regions experienced fewer disruptions during the pandemic.

can help companies proactively adjust sourcing strategies or build alternative plans. The key to leading supply chains is building strong, lasting relationships with partners in your network that will stand up to disruptive events.

INVEST IN WORKFORCE TRAINING AND DEVELOPMENT AND UPSKILLING

As supply chain disruptions evolve and networks become more complex, so are the skills needed to manage them. Investing in continuous education, such as obtaining designations like the NISCL-CSCL or participating in workshops and training programs, can improve decision-making and equip teams with the necessary skills to respond to disruptions. Access to relevant tools, resources, training, and certification programs can also empower professionals to enhance operational efficiency, drive innovation and foster global competitiveness in the constantly evolving supply chain sector.

Global supply chain disruptions are inevitable, but their economic impact can be mitigated with the right strategies and skills to execute and lead. Canadian supply chain professionals are ideally situated to help their organizations navigate local and global challenges by diversifying suppliers, investing in technology, enhancing collaboration, and staying informed. Furthermore, by leveraging support from associations such as NISCL, supply chain professionals can enhance their decision-making, adapt quickly to market changes and contribute to the overall resilience of the supply chain ecosystem in Canada. After all, supply chain excellence starts with leadership. SP

BY MAMTA LULLA

SUPPLY CHAIN ATTACKS YOU’RE ONLY AS STRONG AS YOUR WEAKEST LINK

If your social media algorithm is anything like mine, then you’ve seen the “who’s the weakest link?” reels on Instagram. It’s the reel where a dog, during dinner, sits close up to the family member who will most likely give in and feed scraps to the pup.

That’s what comes to mind when I think about supply chain attacks in cybersecurity: attacking the weakest link. Supply chain compromises provide an alternate and indirect means for threat actors to compromise their ultimate targets, as cyber.gc.ca defines it.

In fact, in cybersecurity, which has various domains from cloud security to penetration testing (or pentesting), supply chain security can be qualified as its own domain because it is so massive.

Let’s look at an example from the time when the world seemed a bit of a whirlwind. It was in 2020 when the Orion supply chain attack occurred.

Solar Winds – a Texas-based company – has a popular software program named Orion with thousands of customers using the software. Malicious actors, in this case APTs or advanced persistent threats, inserted a malicious code into SolarWinds’ Orion software. When a latest update was downloaded by customers, they also downloaded the malicious code onto their systems.

The impact: according to sans.org, SolarWinds had over 300,000 customers at the time with many key players, including much of the US federal government including the Depart-

ment of Defense, 425 of the US Fortune 500, and other customers worldwide.

Supply chain threats are growing. Cybersecurity Ventures predicts that the global annual cost of supply chain software attacks to businesses will reach $138 billion by 2031, up from $60 billion in 2025, and $46 billion in 2023, based on 15 per cent year-over-year growth.

This doesn’t come as a surprise due to the complexities of supply chains, thanks to the interconnected world that we live in today. Look at Okta’s breach in 2023. Okta, an identity management service provider, was breached through an employee’s Google account on a Chrome browser. This breach left more than 18,000 of its customers’ data exposed. One of the key lessons learned from this breach is the importance of implementing multi-factor authentication. More on this later.

BEST PRACTICES

First, know that security incidents can threaten anyone including a cybersecurity service provider such as Okta. And this creates a ripple effect impacting your partnering businesses and customers and can cost you in fines and reputation.

The National Institute of Standards and Technology’s Computer Security Resource Center (NIST’s CSRF) has a published Best Practices in Cyber Supply Chain Risk Management guideline. The document states that you should develop your defenses based on the principle that your systems will be breached. Another NIST principle

listed is that cybersecurity is never just a technology problem; it’s a people, processes and knowledge problem. Thinking back to the weakest link, this principle aptly puts that the weakest link could be any of the three.

With that, let’s explore ways to protect your people and assets.

Risk assessment and due diligence: Determine who your critical suppliers, partnering businesses and subcontractors are and evaluate their security practices. Find answers to key questions: How often do they conduct security audits? Do they have an incident response plan in place? What are their vulnerability management processes like? How do they secure their customer data?

By asking these questions, you’re trying to determine whether their security values and practices align with yours. It helps you determine your risk appetite when it comes to your vendors. This is just as true for supply chain companies and manufacturers because you may have a list of subcontractors, partnering companies and customers. Because we live in such an inter-connected world, we’re constantly conducting business with others – from sourcing the raw materials to the delivery of the completed product or service.

Risk management is an important topic in cybersecurity. You will start with identifying your organization’s risks, then assessing and mitigating those risks, followed by continuously monitoring those risks.

Mamta Lulla is an entry-level cybersecurity professional focusing on governance, risk and compliance (GRC).

Access Management: Okta’s example brings to mind access management within organizations, which includes access management within supply chain companies. Align access with the principle of least privilege: give your employees the exact access they need to do their jobs. No more, no less. This means if hackers phished and found their way into my account, for example, the scope of their attack won’t go too far beyond what resources and services I have access to within the organization.

Secure communication: Using VPNs prevents malicious actors from intercepting your communication. This is especially important when you’re using free public Wi-Fi such as at cafes or on vacation. Using VPN means you’re keeping your (digital) life private.

Employee training: Show your users what phishing and social engineering attempts look like. For example, phishing emails have a sense of urgency, they may request personal information, the sender’s email address may be just a Gmail or Yahoo account instead of a company email, they may have links or attachments that users should never click on.

They may also have incorrect grammar, spelling errors – but note that this is changing or will soon change as hackers will continue to leverage AI.

Risk transference: There will be times when risk mitigation strategies will not be enough, and your organization may want to consider transferring the risks to third parties, for example insurance companies.

Data security and backups: Encrypt your data at rest. You may also consider separating or isolating data altogether. What does this look like: if I have highly confidential data that I don’t use often, I can choose to have that information sitting on a dedicated machine which is disconnected from the internet.

Regularly backing up your data is another way to minimize impact. This will ensure you can always be up and running (think business continuity) and it means you can reduce your risk against ransomware.

There are many other ways to keep your organization secure. Overall, lean towards a defense in depth approach, which is a multilayered approach to protect yourself. This means if one control fails, another measure will still be working to keep you protected.

Multi-factor authentication: Have you noticed in recent years that a password is just not enough to get you into your account? Companies nowadays annoyingly want to text you verifying codes before you can access anything. This is called multi-factor authentication or MFA.

Let me give you an example: Imagine you work at a warehouse where someone follows you

“Cybersecurity Ventures predicts that the global annual cost of software supply chain attacks to businesses will reach $138 billion by 2031.”

and enters the premises. Even though this makes you uncomfortable, you’re too polite (or should I say, too Canadian) to say anything. But then you come to a second door – a second checkpoint inside the building – that needs a unique access code assigned to each employee. This secondary check won’t let this stranger proceed any further if they’re not an employee.

Adding this second layer of security – say a temporary token or link sent to your phone or email – proves useful in case your password was stolen or brute forced.

MFAs provide an enhanced layer of security that is not just recommended for your business – but consider it for your personal accounts as well. SP

BY MAHMUD

THE AI ARMS RACE A BATTLE FOR TECHNOLOGICAL SUPREMACY

The dawn of a new era is upon us, marked by the unprecedented potential of artificial intelligence (AI) in which tech giants are locked in a fierce competition to lead this revolution.

The primary contenders in this AI arms race are the titans of the tech world. Google is a formidable player with its Gemini model family. Microsoft has partnered with OpenAI, integrating GPT-4 technology across its products. Anthropic, founded in 2021, has emerged with its Claude AI models, including the Claude 3 family, which demonstrates impressive capabilities in natural language understanding and generation. Meta has Llama 2, which is its open-source, large language model.

There is competition from overseas. Baidu has developed ERNIE, a powerful AI model, showing strength in Chinese and English language applications. Alibaba continues to advance its AI capabilities with Tongyi Qian-

wen models. Tencent has Hunyuan, focusing on Chinese language applications.

The competition is fierce, with companies vying to outdo each other on various fronts. Model capabilities, for example, have become a key battleground, with companies striving to develop AI that can perform tasks more accurately, efficiently, and creatively than competitors. Scalability remains crucial as organizations work to ensure their AI models can handle increasingly large workloads and datasets while maintaining performance. Accessibility has also become a major focus, with companies working to create user-friendly interfaces and seamless integration capabilities.

THE FUTURE OF AI

While these players dominate, AI’s future remains dynamic and uncertain. Smaller startups and research institutions contribute innovative approaches, while ethical concerns surrounding AI bias and misuse plays an increasingly important role in the industry.

The integration of large language models (LLMs) into supply chain operations is transforming how businesses operate, particularly in analytics and delivery service optimization. These technologies identify and enhance supply chain competencies through improved analytics, cost optimization, and data-driven decision-making.

AI’s ability to analyze vast amounts of data from diverse sources enables real-time decision making that was previously impossible. By integrating data from suppliers, manufacturers, and logistics providers, AI creates a cohesive picture of the entire supply chain. This allows businesses to identify bottlenecks, predict demand fluctuations, and optimize inventory levels.

AI-powered predictive analytics has revolutionized demand forecasting accuracy. By analyzing historical data, market trends, and economic indicators, these systems help businesses align

“AI-powered automation is streamlining repetitive tasks in supply chain operations, from order processing to shipment tracking.”

their production and distribution strategies proactively. This approach helps minimize stockouts and overstock situations.

AI-driven supply chain analytics enhance risk management by identifying disruptions before they occur. These systems can simulate various scenarios and recommend alternative suppliers or routes, ensuring business continuity and minimal downtime.

AI models excel at evaluating supplier performance by analyzing delivery times, defect rates, and communication effectiveness to provide performance scorecards. This lets businesses make informed decisions about supplier relationships and negotiations.

Sustainability has become critical to supply chain management. AI systems help track and optimize carbon footprints while ensuring compliance with environmental regulations. This allows businesses to implement and monitor greener practices while reporting their sustainability efforts.

AI-powered automation streamlines repetitive tasks – from order processing to shipment tracking – reducing manual errors, speeding operations, and allowing for strategic decision-making.

Supply chain transparency has been enhanced through AI-powered systems that provide realtime visibility into every supply chain stage. This transparency helps businesses maintain quality standards and ensure timely deliveries while building stakeholder trust. AI-driven insights are transforming strategy making, providing the intelligence needed to make data-backed decisions.

Going forward, the ethical implications of AI in the supply chain will be front and centre. These include data privacy, its impact on employment, and decision-making transparency. The regulatory landscape surrounding AI in supply chains will grow in areas like diverse data protection laws, industry standards, and international trade regulations.

Predicting future trends in AI and supply chain management is tricky, as the advancing capabilities, the rise of autonomous supply chains, and how AI will influence global trade dynamics are fast evolving. Potential long-term impacts and what companies can do to prepare are uncertain. Yet the journey must start now.

HUMAN-AI COLLABORATION

The integration of AI into supply chain anaytics represents more than just technological adoption –it’s a transformation of the supply chain into a more efficient, resilient, and sustainable system. As noted by Harvard Business School professor Karim Lakhani, “AI won’t replace humans, but humans with AI will replace humans without AI.” Organizations must understand this. AI integration into business operations has just begun. Success depends on embracing and implementing these technologies while balancing automation and human expertise. Integrating these technologies will be at a competitive advantage. SP

Mahmud Khamis is a supply chain professional in Mississauga, Ontario.

By Mario Cywinski

Hyundai Ioniq5

Over the last few years, Hyundai has gone full speed into electrifying their vehicles and expanded its all-electric Ioniq line. The Ioniq5 was the first one released, and it now offers a RWD or AWD layout, with a range of 488km, 225hp, and 258lbs-ft of torque for the RWD model; and a range of 414km, 320hp, and 446lbs-ft of torque from the AWD model. Battery capacity is 77.4kWh. The Ioniq6, the car version of the Ioniq5, offers the same motor options mated to a specific powertrain. In this guide, the AWD offers 550km of range for the RWD, and 435km to 509km of range for the AWD, depending on wheel size. For a more affordable EV, the Kona has an EV

version. It comes with a range of 420km, 201hp, 188lbs-ft of torque, and a battery capacity of 64.8kWh. Hyundai also offers a hybrid and PHEV version of their Tucson, a hybrid version of its Santa Fe and Elantra, along with a fuel cell vehicle named the Nexo.

Mercedes-Benz EQE

Mercedes-Benz has an extensive range of EVs in its portfolio, with EQB SUV, EQE and EQE SUV, and EQS and EQS SUV. The smallest of the lot, the EQB SUV, has a range of 330km from a 70.5kWh battery, offering 225hp and 288lbs-ft of torque.

The EQE brings more range to the table with 418km, and two power options, with the 350-model having 288hp and 564lbs-ft of torque, and the 500-model having 402hp and 633lbs-ft of torque. The EQE SUV offers the same power options. The EQS has a new 118 kWh battery added to improve its range. The EQS SUV has a range of up to 600km, with 649hp and 700lbs-ft of torque.

Fleet management electrified

EVs available now

The wave of electric vehicles being released, and the resources used to bring the products to market, may have slowed. Yet the future of the automotive industry still looks to be an electrified one. Electric range anxiety, which was once a big concern, is no longer an issue, as many new models have over 400 kilometres (km) per charge, with some making it over 500km and 600km. This looks to only increase as battery capacities continue to grow. Today, unlike a few years ago, every vehicle manufacturer produces an EV vehicle or model in their lineup, with others offering PHEVs, hybrids, or other alternative fuel option. Here’s a look at some of what’s new in the EV realm.

Subaru Solterra EV

Subaru has long been offering PZEV options on their vehicles. Now, the Solterra EV has been introduced. It offers 359km of range from its Lithium-ion battery that has a capacity of 72.6kWh. It offers 215hp, 249lbs-ft of torque, and is available in AWD. The Solterra is also a 2024 IIHS Top Safety Pick.

Nissan Ariya

Nissan was early to the EV game when it released the Leaf back in 2011, which at the time had a range of up to 160km on a charge. Now in its second generation, the Leaf has been improved upon, and boasts a range of up to 342km. What Nissan learned from the Leaf, they applied to the bigger Ariya, which has a range of

up to 465km, torque of up to 442lbs-ft, power of up to 389hp, and two available powertrains (FWD or AWD). A cool feature on the Ariya is the motorized sliding centre console, allowing the whole console to be moved forward and back.

Ford Mustang Mach-E

Ford dipped its foot in the EV pond with the now defunct Focus EV. It learned from the experience and decided to use its most well-known brand to launch its current EV offering. The Ford Mustang Mach-E comes in a variety of trim levels, each with different performance numbers. The standard range battery powered vehicles (available in RWD and AWD) have range of up

to 402km, 264hp, and 387lbs-ft of torque, while the Extended range battery models (also available in AWD and RWD) offer up to 515km of range, 290hp, and the same torque. The GT extended range battery models offer 451km of range, with 480hp, and 600lbs-ft of torque (a performance upgrade is available that increases the torque to 700lbsft). Ford also offers hybrid and PHEV versions of their Escape.

Honda Prologue EV

Honda is another OEM that has been selling a variety of hybrid models over the years, and now are entering the EV market. Their Honda Prologue EV has a dualmotor AWD system that offers up to 288hp and up to 333lbs-ft of torque, a range of 439km to 452km, depending on trim, and a battery capacity of 85kWh. Honda also offers Civic, Accord, and CR-V hybrid versions. The brand’s luxury brand, Acura, also recently released an EV, the ZDX, which offers range of up to 489km, up to 499hp, and up to 544lbs-ft of torque.

Toyota

Toyota has been at the forefront of the hybrid segment with the Prius for some time. As a result, it now offers hybrid options on its Camry, Corolla, Sienna, Corolla Cross, Highlander (and Grand Highlander), RAV4, Sequoia, and Venza. Additionally, plugin hybrid (Prime) versions of the Prius and RAV4 are offered. Now Toyota is joining the EV party with the bZ4x. Available in FWD or AWD, it comes with a lithium-ion battery (71.4kWh for FWD, and 73.8kWh for AWD), and offers a range of 406km (FWD) or 367km (AWD), with power of 201 horsepower (FWD) or 214hp (AWD), while the max torque is 196lbs-ft. The total battery capacity is up to 91kWh.

By Kathy Fowler

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Smart fleet upfitting Boost efficiency, safety, and longterm

ROI by upfitting vehicles

Upfitting a commercial fleet is a vital investment for businesses looking to improve efficiency, safety, and productivity. Whether you’re outfitting a new fleet or enhancing an existing one, budgeting wisely ensures that you maximize your return on investment.

Upfitting refers to customizing commercial vehicles with equipment like shelving, storage, work benches, ladder racks, power systems, and safety features, tailored to specific industries such as contractors, technicians, or mobile service providers.

The right upfit can significantly improve the efficiency, organization, and safety of your vehicles, creating mobile workspaces that cater to daily operational demands. With careful planning, your upfit will align with your operational needs, benefit technicians, and position your fleet for future growth.

Here’s a closer look at the critical factors you should consider when planning your upfitting budget.

Meeting fleet and technician needs: Start by assessing both your fleet’s operational demands and your technician’s needs. What dayto-day tasks are your vehicles supporting? Do your technicians need organized tool storage, or would

safety features like exterior lighting and partitions be more beneficial? Identifying these needs will help ensure your upfits are both practical and cost-effective.

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It’s also important to consider the impact of upfitting for the end user. Well-designed upfits can boost morale, safety, and efficiency – crucial factors for recruitment and retention in a market where skilled technicians are in high demand. A well-thought-out upfit means technicians spend less time searching for tools or equipment and more time getting the job done, setting them up for success.

Moreover, safety enhancements, such as better lighting, partitions, hitch steps, or grab handles, contribute to a safer work environment, reducing the risk of accidents or injury. Incorporating safety features in your upfitting strategy not only protects your employees but also lowers the risk of costly repairs and downtime due to accidents.

One tip is to ask for input from the end users to ensure that the upfit is designed to maximize productivity. After that, break down your needs into “must-haves” and “nice-to-haves” to prioritize your budget effectively.

Maximizing long-term ROI: An upfit should be seen as a longterm investment. Durable and well-thought-out solutions, such as wall lining, flooring, or heavy-duty shelving, can streamline your workflow and reduce wear and tear on your vehicles. This can lead to fewer repairs, lower operational costs, and increased productivity. Technician-focused solutions, like ergonomic equipment placement or climate-controlled environments, can also reduce injury, fatigue, and turnover, ultimately saving money over time.

The best investments often provide measurable returns within months, not years. By planning for the future, you’ll see both immediate improvements in efficiency and long-term savings.

The impact on vehicle resale value: A well-upfitted vehicle can command a higher resale value when it’s time to rotate or sell your fleet. Buyers appreciate vehicles with durable, high-quality upfits that are in good condition, and modular systems can provide added flexibility, making the vehicle more attractive in the used market. By selecting upfits that both improve current functionality and retain value, you can recoup

part of your investment later. Upfitting with resale in mind can help offset the initial cost, making it a win-win for your fleet and future buyers

Planning for fleet growth: Fleet size and future growth plans are important factors to consider when budgeting for upfitting. If you have a large fleet, you may be able to take advantage of volume discounts, but it’s also essential to ensure that each vehicle is upfitted consistently to meet your company’s standards and to streamline driver onboarding. Additionally, if you’re planning to expand your fleet in the near future, it’s important to choose adaptable and scalable upfitting solutions that can grow with your business.

Managing maintenance costs and warranties: Upfitting isn’t just about the initial purchase – there are long-term maintenance costs to consider. The cost of maintaining your upfits, particularly for specialized equipment or electronic components, can add up over time. Be sure to factor these costs into your budget and investigate warranty coverage from your upfitting suppliers. A robust warranty can save you from unexpected repair bills down the road.

Well-designed upfits can boost morale, safety, and efficiency – crucial factors for recruitment and retention.

Regular maintenance ensures that your upfitted vehicles remain in optimal condition, minimizing costly breakdowns and keeping your fleet on the road.

DIY versus outsourcing: What’s best for your fleet? One of the most important decisions when upfitting

is whether to handle the installation in-house or outsource the project. For straightforward tasks like shelving installations or adding basic accessories, a DIY approach may be cost-effective, especially if you have the tools and expertise. Many upfitters offer

1. Have the upfitter manage the installation of complex jobs to ensure quality and accuracy is maintained.

2. Hitch steps and grab handles improve comfort and safety for the technician.

“supply only” options, allowing businesses to handle the installation by themselves.

However, for more complex projects – especially with modern commercial vehicles and electric vehicles (EVs) – outsourcing is often the smarter choice. Modern vehicles come with sophisticated electrical systems that require specialized knowledge to integrate correctly with upfits like backup cameras, alarms, or custom power systems. In the case of EVs, the installation of upfit equipment must not compromise the EV battery located in the floor of the vehicle. Having your upfitter manage the installation ensures that these projects are done to the highest standard, preventing costly mistakes, and ensuring compliance with safety regulations.

Thinking beyond installation: Your fleet’s upfitting process doesn’t end at installation. It’s important to plan for post-installa-

tion support, which could include training drivers on how to use the new equipment effectively. For builds that include products like onboard power systems, power liftgates and drop-down ladder racks, training can provide a seamless user experience to ensure that your team can make the most of the upgrades while preventing operational inefficiencies.

In conclusion, planning your fleet’s upfitting budget is more than just managing costs; it’s about making strategic decisions that benefit your business in the long run. By focusing on your fleet’s needs, technician requirements, long-term value, and the choice between outsourcing or DIY, you can ensure your vehicles are upfitted for maximum efficiency, safety, and profitability. Whether you’re enhancing productivity or preparing for future growth, a wellplanned upfit sets your business up for success. FM/SP

Kathy Fowler is marketing manager at Sterling Fleet Outfitters Inc.

By Peyton Panik

1.

Fleet inspections A small investment with big returns

If you’re part of a fleet operation, you know that vehicle inspections are essential. But how seriously are they being taken? For fleet professionals, vehicle inspections go beyond compliance – they’re a safeguard against the unexpected and a core piece of a more resilient, efficient fleet.

Inspections are, at their core, a fleet’s first line of defense against downtime, costly repairs and, most importantly, safety risks. And while most managers and drivers recognize this, inspection processes can fall by the wayside when schedules are tight, or resources are stretched. This is where having the right fleet management software (FMS) comes in, transforming inspections from a daily checkbox to a streamlined, impactful process that saves time, reduces costs, and keeps fleets running smoothly.

Let’s look at some of the top reasons inspections should be a priority and how the right tools can help you leverage them to improve efficiency.

1. Improved safety

When inspections are consistently conducted and tracked, they become a powerful way to mitigate risk and maintain safety. Detecting issues early, like worn brakes or low tire pressure, means they can be addressed before they lead to accidents. A fleet that regularly prioritizes these checks prioritizes

a culture of safety, reducing risks for drivers and improving accountability across the team.

An FMS can streamline inspections, allowing drivers to document and submit findings in real time. Immediate alerts to any problems ensure that issues are promptly addressed, reducing the risk of missed defects and protecting drivers and company assets.

2. Preventing costly repairs

Fleet vehicles are assets needing ongoing investment, and inspections are one of the most cost-effective ways to protect this investment. Regular checks can spot minor issues before they escalate. Simple things like catching a small coolant leak early could prevent more expensive engine overhauls later. Even small-time investments in maintenance save fleets thousands by keeping vehicles in better condition and extending lifespan.

By enabling a proactive maintenance culture, FMS not only centralizes inspection data but also integrates it with maintenance scheduling, making it easier to prevent small issues from snowballing. Automated alerts and work order creation within FMS prevent small repair needs from falling through the cracks – and turning into big repair needs – and save the fleet repair costs.

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Reduced downtime

Inspection practices affect downtime. Every minute a vehicle sits idle means lost revenue, delayed schedules and missed opportunities. With regular inspections, fleets can better manage downtime by planning for repairs at optimal times, rather than dealing with unscheduled breakdowns. An FMS helps fleet managers see the whole picture by consolidating inspection data and syncing it with maintenance workflows. This way, repairs can be scheduled during off-hours or slow periods, reducing the impact on day-to-day operations.

4. Compliance management

Fleet compliance is a constant concern, especially with regulations like Canada’s National Safety Code (NSC) and the Commercial Vehicle Operator’s Registration (CVOR). Inconsistent inspections or incomplete reports can put fleets at risk for non-compliance penalties.

By providing an easy, centralized inspection platform, FMS helps simplify compliance reporting and record-keeping. With digital records, fleet managers can quickly access a vehicle’s inspection history, ensuring all required documentation is available. Plus, regular digital inspections reduce paperwork and human error.

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Increased driver buy-in

By making inspections easy and accessible, FMS fosters driver engagement and accountability. When drivers have a convenient way to report issues, they’re more likely to provide accurate data. For example, an FMS inspection tool allows drivers to add notes and images to reports, giving fleet managers a firsthand look at any potential problems. This transparency encourages drivers to perform thorough inspections, knowing their efforts will lead to action and contribute to the fleet’s performance. While inspections may seem like small daily tasks, they’re important to a successful fleet strategy. Implementing and following through on these practices can make the difference between a fleet that’s always firefighting and one that’s managed, safe, and efficient.

An FMS transforms inspection data into insights that fleet managers can use to protect assets, save on repairs, and maximize productivity. As fleet management becomes more complex, especially for growing operations, inspections empowered by technology are a way to manage costs, improve safety and prioritize overall efficiency. Fleet professionals who take inspections seriously are investing in a resilient, future-ready operation where people and vehicles are well-supported, and assets perform at their best. FM/SP

Peyton Panik is a senior content marketing specialist for Fleetio, a fleet management software company.

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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.

Full-time all-wheel drive for full-time confidence in motion. Superior drivability, outstanding control and handling you can count on. 1.

Innovative advance warning safety system that helps you avoid potential danger on the road. Subaru’s eye on safety1

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

By Stephanie Wallcraft

Small changes that count

The next-generation 2025 Subaru Forester

The Subaru Forester compact SUV enters a new generation for the 2025 model year, though you’ll need a keen eye to spot some of the differences. As a smaller automaker, Subaru is less focused on aesthetics and instead puts more energy into the functional areas that count. The most important changes for the new model are the ones you can’t see. It’s hard to argue with that.

For example, there are some subtle exterior differences. A larger grille – finished in gloss black on the mid-grade Sport model seen here – is flanked with integrated headlamps. The Sport trim also adds low-profile gloss black roof rails and 19-inch wheels. But the bigger exterior change is a new air

outlet behind the front wheel well, which lets air pass through more freely to reduce front lift and improve driving stability. The new Forester is also lighter overall and has 10-per cent better torsional rigidity, delivering a quieter cabin and a smoother ride.

A new portrait-oriented 11.6inch touchscreen infotainment system finds its way to the Forester, the same system used in other modern Subarus such as the Outback and Crosstrek. Wireless Apple CarPlay and Android Auto, and a wireless phone charger, are equipped on all trims except the base Convenience. Navigation is available, but you’ll need to spend on a trim higher than Sport to get it.

This infotainment system isn’t fancy, but it’s functional, and the learning curve is short. However, it does have one serious drawback: climate and heated seats controls are integrated into the very bottom of the screen. This requires drivers to fully take their eyes off the road, making it a potential distraction.

Unchanged powertrain

Despite entering a new generation, the Forester’s powertrain is effectively unchanged. A 2.5-litre naturally aspirated engine with four horizontally opposed cylinders continues to be the default. Horsepower is down slightly, from 182 to 180hp, while there’s a slight bump in torque from 176

to 178lbs-ft. A continuously variable transmission (CVT) sends power to Subaru’s standard symmetrical all-wheel drive. In terms of power delivery and drive feel, there’s nothing new to report.

Fuel economy is also largely unchanged. The 2025 Forester is rated at 9.1L/100km in the city, 7.2 on the highway, and 8.2 combined. (In 2024, city use was rated at 9.0L/100km; the rest of the figures are unchanged.) On paper, this is roughly on par with the Forester’s gas-powered competition. However, at a reading of 10.4L/100km, we continue to see higher-thanexpected fuel consumption in our real-world testing. A more fuelefficient Forester Hybrid is very

1. A new portrait-oriented 11.6-inch touchscreen infotainment system finds its way to the Forester, and wireless Apple CarPlay and Android Auto, and a wireless phone charger, are equipped on all trims except the base Convenience.

2. Cargo space behind the rear seats improves slightly for 2025 to 779 litres, up from 762 litres.

strongly rumoured but not officially confirmed as of this writing.

Cargo space behind the rear seats improves slightly for 2025 to 779 litres, up from 762 litres. Behind the first row, the Forester retains its 1,957-litre capacity. Figures on the base Convenience trim are slightly higher. Overall, the Forester’s cargo figures are very low relative to the rest of the compact SUV segment. For reference, the Honda CR-V has 1,113 litres the behind the rear seats, while the Hyundai Tucson measures at 1,097 litres and the Toyota RAV4 offers 1,059 litres.

Safety features

The new Forester gets some safety upgrades. A new wide-angle cam-

era for forward-facing driver assistance technologies is standard on all trims. Emergency Stop Assist, a Subaru first, can autonomously bring the vehicle to a stop if the driver becomes unresponsive while using the available advanced adaptive cruise control and lane keep assist features. DriverFocus, a driver attention monitoring technology, is only available on the Forester’s highest trims.

Lane keep assist, lane centring, and automatic emergency braking are standard features. Emergency steering assist, reverse automatic braking, blind spot monitoring, rear cross-traffic alert, and lane change assist come in at the Touring trim.

Pricing for the 2025 Subaru Forester starts at $36,174, including freight and PDI of $2,295. The midgrade Sport trim tested here is priced at $43,674. The line-up peaks at Premier, which rings up at $47,674. As of this writing, there is not yet a Subaru Forester Wilderness trim available in the new generation.

For many buyers, Sport offers the best value. It’s the entry point for Subaru’s dual-function X-Mode system, which adds drive modes for deep snow and mud. It’s also the only trim with a Sport drive mode, Stablex dampers, and exclusive bronze accents.

In our view, the 2025 Subaru Forester’s best fleet applications continue to be in scenarios where

A new wide-angle camera for forward-facing driver assistance technologies is standard on all trims.

its rough-and-tumble abilities override a need for space and fuel economy. Once the Forester Hybrid makes its debut, we’ll give this position a second look. FM/SP

As Tested (2025 Subaru Forester Sport)

Price (incl. freight and PDI and dealer fees): $43,674

Engine: 2.5-litre H4

Power: 180hp, 178lbs-ft Transmission: CVT

Transmission: 6-speed automatic

Rated Fuel Economy (L/100km): 9.1 city/7.2 hwy/8.2 combined

Observed Combined Fuel Economy (L/100km): 10.4

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TEAM CANADA’S TRADE FOULS DEFENDING CANADA FROM TRUMP’S TARIFF FIREWALL

Canada’s federal and provincial leaders recently struck a “Team Canada” working group to defend Canada’s trade-dependent economy against Donald Trump’s threat of massive tariffs. However, Team Canada’s current roster has a troubling track record when it comes to closing trade deals, keeping trade commitments, and avoiding the protectionist schemes that expose Canada to retaliatory sanctions. For example, notwithstanding its self-proclaimed victory in renegotiating the NAFTA in 2018, Canada’s current government failed to extend the procurement-related non-discrimination rules between Canada and the US. Under the new NAFTA, Canadian suppliers lost the protections that were previously established in the 1990s under Chapter 10 of the original deal.

Canada also failed to restore trade relations with the United Kingdom after Brexit took the UK out of Canada’s 2017 trade treaty with the European Union. With an interim arrangement expiring, the UK walked away from trade talks in January 2024, serving Canada with another setback at the international trade table.

BACKSLIDING

Canada’s trade credibility is further compromised by its broader backsliding on trade deal commitments. For example, after an August 2019 Canadian International Trade Tribunal determination ruled that the federal government could not unilaterally declare itself exempt from the trade treaties by declaring “national security” exemptions, the federal govern-

ment passed a statutory amendment that stripped the tribunal’s oversight powers in those procurements. In a subsequent March 2021 ruling, the tribunal concluded that this amendment breached Canada’s commitment to upholding international trade rules and enabled improper sole-sourcing through illegitimate uses of the “national security” loophole.

Coupled with the more recent flurry of scathing audits and ongoing parliamentary probes revealing chronic favouritism and conflicts in federal government spending, Team Canada’s captains carry some serious credibility issues into their trade talks with the second Trump administration.

Ontario’s current government has an arguably even worse track record on protectionism and treaty violations. For example, in a June 2022 ruling in Thales DIS Canada Inc. v. Ontario, an Ontario court struck down the province’s driver’s licence and health card procurement after a European bidder successfully challenged the government’s “madein-Canada” requirements. While a December 2023 decision of the Ontario Court of Appeal reversed this ruling on technicalities over the scope of judicial oversight, and the Supreme Court of Canada refused the European bidder’s appeal in October 2024, the legal void left by the government’s failure to establish clear bid protest rules in Ontario does little to improve its international trade reputation. This case adds to the current government’s broader protectionist schemes. In fact, in March 2022 Ontario enacted the Building Ontario Business Initiative Act, and subsequently

ordered Ontario institutions to apply “made-in-Ontario” preferences against bidders from other provinces and countries notwithstanding the clear risk that this treaty violation will provoke retaliatory sanctions. Western Canada also comes to the trade table with credibility issues. For example, in March 2021 an independent arbiter found that the Saskatchewan government violated the Canadian Free Trade Agreement with a protectionist “community benefits” scheme that improperly imposed local labour requirements on an Alberta bidder and resulted in the unfair award of the disputed highway maintenance contract to a Saskatchewan bidder. The province appealed, but in February 2022 a Saskatchewan court ruled against the government.

British Columbia faced its own legal entanglements over a protectionist “community benefits” scheme that limited bidding opportunities to companies affiliated with specific trade unions, to the exclusion of bidders affiliated with other trade unions and non-unionized bidders. The government took the position that its scheme was not subject to judicial oversight but lost that argument before the BC courts at trial and on appeal. Its subsequent appeal to the Supreme Court of Canada was rejected in April 2021.

Even Alberta comes to the table with trade issues. For example, in a June 2022 report, Alberta’s Auditor General found multiple treaty infractions at Alberta’s infrastructure agency. The audit, which included a four-year sampling from $4.5 billion in construction projects, found rushed bidding deadlines that breached trade treaty competition

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

“Under

the new NAFTA, Canadian suppliers lost the protections that were previously established in the 1990s under Chapter 10 of the original deal.”

rules, weak conflict screening safeguards, and lax document management practices for protecting confidential bidder information and maintaining bid evaluation records.

LACK OF COMPETITION

Finally, with Team Canada gearing up for trade talks, a November 2024 federal audit found rampant sole-sourcing and a lack of competition in the Yukon.

These examples reflect a broader pattern of weak leadership in taking trade issues seriously. Barring a miracle on ice, there is little evidence that this version of Team Canada has the roster depth required to properly defend Canadian businesses, Canadian jobs, and the Canadian economy from Trump’s tariff firewall. SP

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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.