Supply Professional February 2025

A CAREER ACROSS CONTINENTS

Rodrigo Altaf on curiosity, challenges, and reinvention

Warehouse technology

Intermodal shipping

Disruption & resilience

The Honda Civic Hybrid Robotics & automation

EFFICIENT AND TIMELY

Accelerated building construction from start to finish

SMALL WORLD

It’s hard not to read the news, watch TV, or chat with friends without hearing about US president Donald Trump’s looming trade war with Canada. That’s not surprising, given the outsized effects our relationship with that country has on our economy, industries, and supply chains.

It’s a relationship worth over US$700 billion and what we ship south makes up about 76 per cent of our overall exports. We import a great deal from south of the border as well, in areas like machinery, electronics and food products. It’s a highly integrated economy. It’s also one of the largest bilateral trading relationships in the world.

As I write this, Trump has yet to enact any tariffs, but the spectre of that threat looms across the pages of this issue in several articles. And it’s not even the only geopolitical issue that our supply chains and industries have faced in recent years.

Canada’s relationship with China has been rocky, notably after the detention of Huawei’s Meng Wanzhou in 2018, leading to the counterdetention of Canadian citizens, the “two-Michaels.” Like many countries, Canada relies on China for an array of exports, and we ship lots of goods there. Any lingering tension with China risks supply chain disruption.

The Russia-Ukraine war has also disrupted the flow of global energy, food, and raw material supplies, which in turn has hit prices in areas like oil and gas and agriculture. It’s half a world away, but the conflict has meant higher costs for some imported goods and fuel.

These are just a couple of examples, but they illustrate how tightly woven our supply chains are with global geopolitics. Uncertainty adds volatility to Canadian business operations, making supply chain planning even tougher. What’s a Canadian supply chain professional to do? Here are a few thoughts on actions to take.

While not a fix-all solution, diversifying your supplier base can provide a buffer against volatility. Establishing relationships with suppliers from different regions can help maintain supply continuity.

Meanwhile, seeking alternative markets for Canadian products in new regions acts as another protection against a potentially choppy trade relationship with the US. Companies must also strengthen their risk management plans to help protect them against geopolitical shocks. Take a regular look at what potential risks loom in certain regions or with suppliers and develop contingency plans based on those risks.

Nearshoring or friendshoring may provide some relief to geopolitical disruptions. There’s potential to reduce risks and strengthen ties with countries that are friendly to Canada and its values.

Finally, technology can be an ally in guarding against disruptions. Realtime tracking, data analytics, and predictive modelling can all help clear the horizon and bolster supply chain professionals’ attempts to make educated decisions about their businesses.

Again, I’m writing this on the eve of Trump’s looming tariffs against Canadian goods, so it’s hard to predict where things will go. And while it may not seem like it, our trading situation with the US is hardly the only geopolitical challenge Canadian supply chain professionals are facing in 2025. Hopefully, whatever actions we take to strengthen those supply chains will help to fortify us against other shocks looming on the horizon.

EDITOR MICHAEL POWER 416-441-2085 x7 michael@supplypro.ca

PUBLISHER

FARIA AHMED 416-441-2085 x 5 faria@supplypro.ca

DESIGN

Art Direction ROY GAIOT Design Consultation BLVD AGENCY

EDITORIAL ADVISORY BOARD

LORI BENSON Procurement Compliance, L&D, Engagement and Knowledge Lead | Business Enablement, Ernst & Young LLP

THOMAS HUDEL Manager, Purchasing and AP, Esri Canada Ltd.

SHERRY MARSHALL Senior Manager, Meetings, Travel & Card Service, PwC Management Services

KIRUBA SANKAR Global Supplier

Sustainability Leader | CoRe Procurement, Deloitte Touche Tohmatsu Limited.

JEFF RUSSELL Maintenance Support Manager, U-Pak Group of Companies.

iQ BUSINESS MEDIA INC.

Vice President

STEVE WILSON 416-441-2085 x3 swilson@iqbusinessmedia.com

President & Executive Publisher ALEX PAPANOU

PUBLICATION MAIL AGREEMENT NO. 43096012 ISSN 1497-1569 (print); 1929-6479 (digital)

CIRCULATION

Mail: 126 Old Sheppard Ave, Toronto ON M2J 3L9

SUBSCRIPTION RATES

six times per year

Opinions expressed in this magazine are not necessarily those of the editor or the publisher. No liability is assumed for errors or omissions. All advertising is subject to the publisher’s approval. Such approval does not imply any endorsement of the products or services advertised.

Publisher reserves the right to refuse advertising that does not meet the standards of the publication.

No part of the editorial content of this publication may be reprinted without the publisher’s written permission. © 2021 iQ Business Media Inc. All rights reserved. Printed in Canada.

Supply Professional is the Official Magazine for NISCL

MICHAEL POWER, Editor

NORTH AMERICA’S WAKE-UP CALL LA’S FIRES OFFER EXAMPLES OF WIDER GOVERNANCE ISSUES

In the world of macroeconomics, there are phenomena identified as leading indicators. Put simply, these are factors that change in advance of the overall economy. An example is housing starts. If these accelerate, it tells us that overall economic activity will soon follow. I bring this up because the state of California has generally been recognized as a leading indicator for the rest of North America. What happens in Los Angeles today will happen tomorrow in New York and Toronto.

I am writing this column on January 19. Two large fires are still raging in Los Angeles. One is 75 per cent contained and the other is 45 per cent contained. The good news, I suppose, is that the majority of the devastation is now behind AngelinosThe bad news is that eve. n if this is the case, the damage is already tremendous. The latest estimates I’ve seen suggest that fires will cost more than $250 billion. This is a number so big that it’s almost meaningless, unless it is put into some kind of context. Let me do my best.

COMPENSATION

The average hourly wage in the US is $35. Forty hours is a standard work week. Multiply those two numbers together and you get $1,400. Let’s assume that the total damages are $280 billion, just to make the arithmetic a bit easier. It will take 200,000,000 work weeks to get LA back to where it was. To put it into even clearer focus, four million people would have to work for an entire year just to get back to the status quo. Coinci-

dentally enough, that is almost the exact population of the City of Angels. But of course, you can’t expect everyone in a broad population to be able to do the necessary work to rebuild their city. It’s almost certain that LA will not fully recover for at least a generation.

LESSONS LEARNED

This is an epic disaster, and there will be lessons to be learned from it. The question is exactly what lessons. In the wake of the 9/11 attack, airport security was heightened all around the world. That seemed to be the fundamental lesson. It did not lead Western democracies like the US and Canada to fundamentally re-think their relationship with Middle Eastern countries. The reason why I bring this up is because even as the fires are put out, there is discussion about appropriate steps to take in order to prevent events like this in the future. Here are the lessons that I hope are learned.

There is general agreement that there was horrible mismanagement at both the municipal and state government level. LA’s mayor was in Ghana at a time when she had to know the city was vulnerable. One of the large reservoirs was bonedry. Hundreds of fire hydrants were out of service. Homeless people were allowed to start fires in wooded areas. Power lines were not buried because it could endanger a plant that virtually no one has ever heard of.

Meanwhile, Janisse Quiñones, the chief executive and chief engineer of the Los Angeles Department of Water and Power earns

$750,000 a year, and that’s symbolic of a major problem that beset all of North America.

We are burdened by bloated government bureaucracies that don’t seem to be in the least accountable. It was widely reported that there was a shortage of firefighters. Resources are finite. If Quiñones earned a more reasonable salary, this would free money to direct elsewhere. But the grotesque spending doesn’t stop with her. According to political commentator Ben Shapiro, the average compensation for an LA firefighter, when you factor in benefits, exceeds US$300,000. Is it any wonder that the city can’t afford to staff fully?

THE PATH FORWARD

Back to Los Angeles. In the wake of this horrific disaster, this is what I would hope to see. First, public officials taking the simple and common-sense step of clearing brush in wildland areas near houses. Fill the reservoirs and fix the hydrants.

The compensation that government workers have must be brought into line with what is earned in the private sector. And last, but certainly not least, every level of government must articulate its priorities and then execute the simple details of governance. Because we’re seeing the cost when this doesn’t happen. SP

“Every level of government must articulate its priorities and then execute the simple details of governance.”

Toronto-based Michael Hlinka is a tenured professor at George Brown College. His website is www. michaelhlinka.com

PROJECT PERSPECTIVE PROJECT MANAGEMENT TO ENHANCE PROCUREMENT

A common definition of a project is: “a temporary endeavour undertaken to create a unique product, service, or result, within defined constraints of time, budget, and resources.” In theory, anything that fits this description can be a project: building a house, launching a marketing campaign, and implementing a new ERP. This article explores whether procurement can be considered a project, and the benefits of applying project management principles to procurement. Imagine you are the purchasing manager for a manufacturing company. The old and underperforming power generator needs replacement. The operations manager sends a material requisition with the necessary documents and approval for a new generator, emphasizing delivery before the next scheduled plant shutdown to avoid production interruptions.

Scope: Scope Is the collective of products and services provided, delivering a benefit or value. The value is perceived when requirements are met with the minimum quality level expected. For this example, the scope is a new power generator with specific requirements: timely delivery for the scheduled shutdown, matching the power output and features of the current generator, and adhering to budget.

Stakeholders: Mapping the stakeholders and their requirements is crucial for the project’s successful development and delivery. Stakeholders can be individuals, groups, and organizations with a relationship with the project. In our example, the internal stakeholders include the purchasing manager, operations manager, the purchasing team, the operations

team, and possibly other departments. The generator’s vendor is an external stakeholder and will become a stakeholder once the purchase order is awarded. Understanding expectations and managing potential conflicts of interest is essential.

Planning: To better understand the work, the scope is broken down into smaller parts or work packages. The activities of each package are identified, sequenced, and estimated by cost and resources, creating the baseline project schedule. The scope could be split into three work packages: PO award, considering all activities related to procurement, such as requesting bids, negotiation, and award of the PO; fabrication of generator, including the vendor’s activities, to fabricate the unit; and logistics, including shipping and customs clearance.

Evaluating risks: Every uncertainty must be identified, mapped, and have a response plan developed, including contingencies of time and cost when planning the project. Risks can be either threats or opportunities. Risks in our example include tight deadlines for the vendor, potential need to reschedule the plant shutdown, unexpected weather, and potential changes in import tariffs.

Communications: Project managers typically spend 80-90 per cent of their working time communicating with stakeholders. Effective stakeholder communication is crucial. This includes updates through meetings, emails, reports, and informal conversations. A communication plan outlines methods, frequency, and recipients, ensuring everyone stays on the same page.

In our example, the operations manager expects weekly email

updates from the purchasing manager. The purchasing manager has daily one-on-one discussions with the team to address roadblocks. The awarded vendor receives an award notification email, while other vendors receive letters of regret. The financial department requests reports on payment events and monthly updates on invoiced amounts.

Monitoring and controlling: Assessing project performance ensures it stays on track to deliver the scope with the required quality level. The choice of effective metrics is crucial. Information must be accessible, understandable, and timely to avoid any negative perceptions. Common metrics are schedule and cost variance, which compares the forecasts of time and cost to complete with the baseline.

Given the fixed plant shutdown date, adhering to the project schedule is critical. Tracking schedule variance would be the most recommended metric. However, it must be shared with the purchasing team to maintain engagement and focus on the delivery time. Cost savings are valuable for the procurement manager and financial department but less so for the operations manager, who is focused on timely delivery and minimizing disruptions to the production line.

Change management: Changes are inevitable in any project, either due to any identified risk or to a new request from the client or stakeholder. A change management plan enables the project manager to foresee potential challenges and address them, ensuring stakeholder engagement throughout. Through change management techniques, project managers can ensure smoother

Assessing project performance ensures it stays on track to deliver the scope with the required quality level.

implementation, better communication, and the successful completion of project goals. For example, a request for an additional remotecontrol panel on the generator triggers a change management response, including getting a quotation, assessing impacts on the delivery date, securing approval of additional funding with the finance department, and revising the purchase order to consider the additional scope of supply with the vendor. Organizations can improve their procurement efficiency using project management methodologies to enhance deliveries. Visibility and accountability are increased, while risk management minimizes disruptions. Finally, fostering communication and collaboration can build better relationships. SP

Othon Bardela, PMP works as a senior buyer for the Oil, Gas and Chemicals division of EXP.

Hyundai Motor Group partners with NVIDIA on AI solutions

Hyundai Motor Group has announced a partnership with NVIDIA to develop AI technologies related to mobility. Hyundai Motor Group operates several AI initiatives, and through this partnership aims to further enhance the application of intelligence to its mobility products, including software-defined vehicles and robotics, and across its business operations.

Through the agreement, Hyundai Motor Group will harness NVIDIA accelerated computing and AI Enterprise software to help manage the data required to develop and train its AI models.

The group will also use the NVIDIA Omniverse platform to develop physical AI and digital twin applications to simulate its factories, helping improve manufacturing efficiencies and quality, and streamline costs. It will also use the NVIDIA Isaac robot development platform to develop and deploy AI robots.

Canadian economy to grow but tariff threat looms: CFIB

The Canadian economy is expected to grow moderately in the first quarter of 2025, says the latest Main Street Quarterly report by the Canadian Federation of Independent Business (CFIB)

CFIB’s estimates and forecasts in partnership with AppEco suggest the economy grew by 3.2 per cent in Q4 2024 and will moderate at 2.5 per cent in Q1 2025.

Private investment rebounded in the last quarter of the year, and the pace is set to pick up in 2025 after a disappointing performance in 2024.

A special analysis this quarter focuses on looming US tariffs and their impacts. A majority (82 per cent) of Canadian businesses expect impacts on their operations if new tariffs are imposed on Canadian products.

Supply chain leaders see tech as growth key: survey

A total of 74 per cent of surveyed supply chain leaders view technology as fundamental or highly important to growth in the face of rising global trade challenges, supply chain disruptions, and geopolitical instability, says a new study by Descartes Systems Group.

The study, What Companies are Doing to Tackle Escalating Global Supply Chain Challenges, shows this number jumps to 88 per cent for companies expecting over 15 per cent growth over the next two years. As well, 59 per

cent consider technology extremely or very important to competitive advantage in international trade.

Regarding what technology capabilities, 36 per cent cited global trade intelligence at the top, followed by global trade analytics at 27 per cent, then supply chain mapping at 26 per cent.

Descartes and SAPIO Research surveyed 978 supply chain intelligence leaders in key trading nations across Europe, North and South America, and Asia-Pacific.

Toyota Material Handling, The Raymond Corporation to become single organization

Material handling solutions providers Toyota Material Handling and The Raymond Corporation will integrate into one company under the name Toyota Material Handling North America (TMHNA), effective April 1.

TMHNA announced that it will maintain unique brand identities for both Raymond and Toyota. This unification will allow TMHNA to leverage the strengths of both organizations, the company said.

Nulogy names Josh Betz chief revenue officer

Manufacturing and supply chain solutions provider Nulogy has named Josh Betz, a sales executive with over 15 years of experience in the technology sector, as the company’s chief revenue officer.

Betz will work to align Nulogy’s teams in driving revenue growth, maximizing profitability, and upscaling the company’s impact in manufacturing supply chains.

“At Nulogy, we are thrilled for Josh to bring his extensive expertise in multi-enterprise supply chain solutions and digital transformation, combined with his empathetic leadership style, to better understand and address our customers’ challenges,” says Jason Tham, CEO of Nulogy. Most recently, Betz served as GM and head of sales for North America at Powerfleet. Prior to Powerfleet, Betz held senior leadership positions at E2open, a global supply chain technology company. Earlier in his career, Betz contributed to the success of BlueYonder and Deliv.

Betz holds a bachelor’s degree in computer science and business administration from Carroll University in Wisconsin.

The organization will integrate the Toyota and Raymond president responsibilities into TMHNA, led by President & CEO Brett Wood.

To optimize manufacturing processes, a $50-million investment to building, infrastructure and equipment elevated operations in Greene, New York, and Muscatine, Iowa manufacturing facilities.

BY MARIETE F. PACHECO

THE NEXT GENERATION WAREHOUSE PROPER DATA USE CAN HELP UNLOCK WAREHOUSE POTENTIAL

Supply chains have evolved a great deal and warehouses are at the core of the transformation. Warehouses are becoming the new, vital hubs of innovation and efficiency. Driving this change is data. At the core of any warehouse operations, data is collected across several functions, such as when tracking and maintaining inventory levels as part of the demand planning process. This data collection is used to create insights for organizations to make informed business decisions and to enable departments to streamline processes. This data generation and collection is not enough to keep organizations competitive. The data’s value exists in using and analyzing it, such as improving ordering accuracy, enhancing inventory management, and increasing operational efficiency. Data can be used with emerging technologies like automation, artificial intelligence, the Internet of Things (IoT), augmented reality and blockchain. Modernized warehouses reshape how businesses operate. Understanding data’s vital role in optimizing warehouse operations is critical to remaining competitive.

Automation is transforming warehouse operations and data is at its foundation. Automated systems depend on precise, real-time data for tasks such as picking, packing, and sorting products. Newer technologies like automated guided vehicles (AGVs) utilize data to navigate safely across warehouses and handle a variety of different products with accuracy. For example, a warehouse using autonomous mobile robots (AMRs) commonly seen in automotive and consumer goods can optimize picking routes based on real-time data about customer order demand and product locations. The AMRs help to decrease the time spent travelling throughout the warehouse, boosting picking productivity by streamlining the picking process. Other automated solutions include automated storage and retrieval systems (AS/RS) which use data to retrieve and store goods, maximize space utilization and minimize the potential for human error. These systems are valued in high-density warehouses, where maximizing every cubic foot is crucial.

Artificial Intelligence has come to the forefront with the accessibility

further by developing recommendations to optimize operations. For example, prescriptive analytics can aid in developing a supply chain network design as part of a new strategic supply chain strategy, such as determining the organization’s supply chain footprint. This can include possible locations of facilities, their size, and how they should be laid out to maximize efficiency and productivity by eliminating process bottlenecks.

The Internet of Things (IoT) continues to play a vital role in the creation of interconnected warehouse ecosystems. It does so by leveraging smart devices and embedded sensors throughout the warehouse. IoT facilitates real-time data collection and monitoring, which enhances the visibility and control of the operations.

of generative AI through many tools and is leaving its mark across many industries; albeit the technology has been around for many years. AI is transforming warehouse operations by converting frequently collected raw data into intelligence. AI-powered systems analyze historical data and patterns to predict possible outcomes, allowing warehouses to: improve forecast demand through machine learning predicting customer demand and enabling more precise inventory planning; enhancing equipment maintenance through predictive maintenance schedules used by AI-equipped machinery to monitor its performance and predict possible failures, therefore reducing costly repairs and downtime; and optimizing human resources through workplace planning based on customer order volume to ensure tailored labour levels during peak and off-peak times. For example, an IoT enabled forklift that collects and tracks key performance data like battery or engine health to help managers optimize equipment usage and schedule maintenance.

Another application of AI; prescriptive analytics builds upon this

Commonly used applications of IoT enabled devices include RFID tags and IoT sensors used to realtime track location data for equipment and inventory to improve inventory management and reduce possible losses. Alternatively, IoT devices can utilize data to maximize energy efficiency through smart energy management solutions such as heating and cooling systems or lighting to reduce operating costs. Environmental monitoring is also an application for IoT devices which monitor environmental conditions such as temperature or humidity, helping to ensure optimal environments for sensitive products.

AUGMENTED FRONTIER

A newer technology that’s emerging in warehouse operations is augmented reality. AR technology can enhance employee productivity by providing warehouse staff with real-time directions when using AR glass that display product pick locations. This can help in reducing training time during employee onboarding and overall pick errors going forward.

For regulated or high-value product focused warehouse operations that demand extremely high levels of security and traceability, blockchain integration is commonly a solution. Blockchain enhances transparency by securely recording data such as transactions. This can aid in ensur-

ing data integrity and helps to develop trust amongst stakeholders.

For organizations interested in adopting a data-driven approach to their warehouse operations, a strategic roadmap is essential for success. Consider these factors before starting on a technology journey within warehouse operations: collaboration with partners; monitoring and adapting; investing in the right technology; quality data integration; and focusing on training.

Partner selection and collaboration is paramount early in the preparation and launch of the new warehouse technology. These experts are key resources when internal expertise is limited to ensure a smooth implementation and the optimization of new systems. Continuously monitoring and analyzing performance metrics and adjusting strategies to stay ahead of industry trends ensures the best utilization and outputs of the new technology. Identifying the right technologies that align with an organiza-

“As the warehouse of the future takes shape, the ability to leverage data will separate the market leaders from the laggards.”

tion’s operational goals is key. There are countless different technologies available with specific performance outcomes, features, and benefits.

It is critical to select the best fit, not simply the newest fad. Ensure data integration is seamless between all inputs and is relevant to the organization’s operations and performance requirements. This entails also having clean data which is characterized as current and accurate so that it can provide a view of the organization’s operations. Lastly, focusing on training, which includes both the users of the

24_014622_Supply_Professional_FEB_CN

technology enabled devices and equipment as well as those using the data. Equipping the warehouse workforce with the skills needed to work with the advanced technologies and interpret data insights, both from a technical skills perspective as well as the change management perspective since introducing new processes, techniques and tools may be difficult to embrace at first without understanding how they align with the organization’s strategy and the employee’s role.

THE POWER OF DATA

In today’s challenging environment, data is the linchpin of warehouse optimization. Through harnessing the power of technologies such as automation, artificial intelligence, internet of things, blockchain and augmented reality, warehouses can achieve unparalleled efficiency and accuracy. For operations leaders, embracing a data-driven approach is not just an option; it is a necessity

for future success. As the warehouse of the future takes shape, the ability to leverage data will separate the market leaders from the laggards. By investing in the right technologies and fostering a culture of innovation, organizations can unlock the full potential of their warehouse operations and gain a competitive edge in the market. SP

Mariete F. Pacheco, MBA, PMP, is managing director at FRW Services Ltd.

BY MICHAEL POWER

BUILDING CONNECTIONS

RODRIGO

ALTAF’S PROCUREMENT PATH SPANS CONTINENTS AND INDUSTRIES

When Rodrigo Altaf arrived in Canada, one of the first challenges he faced – even before landing a supply chain or procurement job – was getting used to the cold. Altaf came to Toronto from Brazil in 2017, and still remembers the shock of arriving from South America. Brazil has an average high of 27 degrees, and Altaf struggled with a Northern climate that frequently sees chilly winter temperatures. Yet acclimatizing to weather is but one example of the importance of adaptability when arriving in a new country to live and work, he says.

“Now, after almost eight years, I have to say, I’m a little bit more acquainted,” Altaf says of his family’s new life. “But it does take time. So, know that it takes time. It won’t happen overnight. If you want to come here and find a job in the first week or two, it’s not going to work for you.”

Since then, Altaf has gotten accustomed to much about living in Canada. That includes starting a procurement career here. He is currently procurement & contracts lead at DRA

Americas, the North American subsidiary of DRA Global, an engineering consulting company. Yet his journey to where he is now was anything but direct. It involved positions on multiple continents, in several fields, and across a number of companies.

In fact, his background, before starting in procurement, was as a civil engineer. Altaf began his career in Brazil in 1998, having earned his bachelor’s degree in civil engineering from the Federal University of Rio de Janeiro. He lived for a while in Australia, working in the mining industry before returning to Brazil. There was a big steel mill that was being built in Rio, partly owned by ThyssenKrupp CSA and VALE, and the company was looking for a large number of people to work on the project.

“A friend of mine was a director on that project, and he wanted someone with technical knowledge of civil engineering who could write an RFP package,” Altaf says. “At that point, I had never written an RFP package. I was familiar with writing a scope of work, but not

a full RFP package. But they brought me on board and said, ‘hey, can you write this?’ And you know what? I had a go at it.”

Once written, the first packages were sent out to kick-start the project. As the bids began rolling in, Altaf and the rest of the team did the price comparison. Over time, the company needed someone to manage those contracts, giving Altaf the opportunity to try his hand at contract administration. He had no procurement experience at the time. Those early responsibilities represented “a baptism by fire,” he now notes. From the first day, he had to do RFP review proposals, award contracts, get them signed, then manage them. The scope of those contracts included earthworks, administrative buildings, electrical substations, pipe racks and engineering, and the total value of the contracts within his portfolio was US$200 million.

“It was really challenging, but that gave me exposure to a lot of different areas of supply chain in a short period of time.”

While working on that project, Altaf got a call from Rio Tinto in Australia. The company was expanding the number of mines it operated, and it had a position available. Altaf applied for and got the position, returning to Australia in 2008. He worked there for two years before returning to Brazil. Once back home, his career shifted into oil and gas. He did a five-year stint at a company named Statoil and another year as a procurement manager at an energy company called Karoon Petróleo & Gás Ltda. It was after that seven-year stretch working in oil and gas in Brazil that Altaf and his family decided to come to Canada, in 2017.

“My biggest direction, if I look back and, you know, look at things forward, is trying to experience as many fields as I can,” he now says of his career during that period. “I’ve had experience in construction, in mining, oil and gas. Here in Canada, I worked for a mining company. I worked for a waste management company. I worked in retail. More recently I was in construction, and now I’m back to mining. So, it’s kind of full circle, but I would say the direction has been, yes, explore as many segments as I can.”

Along with a diverse career in various fields, Altaf has a varied educational background. He holds a bachelor’s degree in civil engineering from the Federal University of Rio de Janeiro, as well as an MBA in business management. Here in Canada, Altaf earned a certificate in supply chain from the University of Toronto. He is now pursuing another certificate in renewable energy, which he plans to finish in the spring. “Like a lot of people in my age bracket, I guess we started in supply chain almost by accident,” he says.

DAILY FRAMEWORK

Having worked at so many places, Altaf now plans to spend several years at his current company, DRA Americas, the North American subsidiary of DRA Global. And like many in the field, he feels lucky that there are no “typical days” at his job. Of course, a framework exists for what needs to happen with each project. But there are so many projects on the go, and with so many clients across the globe, that a daily routine becomes impossible. Yet that lack of routine is what fascinates and excites Altaf the most about the field and his career.

Altaf has also experienced some proud moments during that career. The oil and gas sector is driven largely by technology. There are also a limited number of suppliers. In that environment, he recalls bringing cutting-edge technologies to a company in Brazil he worked for that helped that organization to improve its oil recovery in a challenging exploration field.

Recently in supply chain, there’s an emphasis on securing supply and avoiding disruptions, rather than singularly pursuing savings. While working in Canada, Altaf recalls an issue with cash flow and payment delinquency while working for another company. He was able to address these issues with the vendor to figure out how much the company owed, in which location, what the invoices were, and to design a payment schedule that the vendor was comfortable with. From there, the vendor resumed the supply.

“It’s a lengthy process of rebuilding that trust, rebuilding that connection between the business and the vendors,” Altaf says. “But I managed to pull that off and to ensure business continuity. And when you talk with people in the field, with their boots all dirty, and they’re up there in the middle of nowhere, they’re pretty happy that this was achieved, and now they have the goods and services they need. When you talk about achievements,

the thing that makes me the proudest is when someone in the field calls and says, ‘hey, man, thank you for putting that together, and thank you for solving that issue, and now I can do my work in peace.’ That’s the biggest award and recognition one can ask for.”

INCREASED RISK

These days, supply chains are stretched far and wide, crisscrossing the globe to bring supplies to wherever they’re needed. While this means better access to such supplies, it also increases risk. Natural disasters, supply disruptions, logistics strikes, and tariffs can all have adverse consequences for businesses relying on uninterrupted supply.

To blunt the effects of such disruptions, be ready to deploy a plan B – or even a plan C and D – in the face of adversity. A diversified supply chain that features multiple suppliers for the same products can help keep business running smoothly. Know your market, and know that if a main source experiences disruption, you can go to other suppliers for the same products.

“The way a lot of companies are operating is that they’re investing in long-term partnerships,” Altaf says. “Instead of speaking, for example, from the perspective of a company in Canada that operates in multiple provinces, they would rather consolidate and have one national vendor for everything as opposed to having multiple vendors in several locations. That’s a sensible approach, but that could lead to disruptions. So have your preferred vendor, so to speak, but know that there are other options. Keep your vendor B, C, and D entertained and eager to please, because you might need them. You might need them tomorrow, and you can’t be caught off guard.”

The shortage of talent, along with attracting and keeping the available talent, is another challenge the supply chain field faces, Altaf says. On one hand, Canadian companies across many industries are laying off employees. At the same time, organizations face recruitment challenges.

“I think companies need to think this through for the long term and figure out how they can attract and maintain talent,” he notes.

In the short term, Altaf is focused on completing the certificate in renewable energy that he is working on. At work, he plans to get acquainted with as many clients and projects as possible. Although he has mining experience, it’s a new experience for him to look at the industry from the perspective of a consultant, as he now does. Being involved in projects from this angle is challenging, he says. But it’s also exciting. As well, Altaf has considered working towards a supply chain designation, including the Certified Supply Chain Leader (CSCL), offered by the National Institute of Supply Chain Leaders (NISCL).

When discussing life outside of his procurement and supply chain career, Altaf says that there’s “lots to talk about.” He runs marathons and has completed seven races so far. He has run marathons in Canada, Brazil, Australia, and Italy. His goal is to finish at least one marathon on each continent. Altaf would like to complete a marathon this year and next before deciding whether to set aside running for other pursuits. Altaf has another hobby that, at one time, almost turned into a profession. In his free time, he collaborates on a music website called

“It won’t happen overnight. If you want to come here and find a job in the first week or two, it’s not going to work for you.”

Sonic Perspectives. It’s a Miami-based website focusing on music and features interviews with musicians, often from the hard rock and heavy metal genres. Altaf has spoken with many musicians who work within those musical styles. Contributors to the site are scattered across various countries, with Altaf writing from Toronto.

“I’ve spoken to a lot of musicians that I’ve been a fan of; people from Iron Maiden, The Police, Deep Purple, Judas Priest – all these old-school metal guys,” Altaf says of his writing. “I’m still doing that, although not as intensely as I used to, but I still do it.”

Apart from his journalistic pursuits, Altaf also keeps active with his 10-year-old daughter. Raising a child is, in itself, like a full-time job, he notes, so there’s always much to be done. The family also travels a fair bit. Although still undecided, they are considering travelling to Italy this year.

“It’s for the second time,” Altaf says of the potential trip. “I’ve been there with my wife, but my daughter has never been. She’s curious about visiting as many parts of the world as she can. I guess it’s like the running theme, and the common theme between my professional life and my personal life, which is: be curious. That alone can prepare you for the future, and it can prepare you for things that you weren’t ready for. If you know your landscape, you know you’re better prepared.”

Such curiosity can greatly benefit one’s career, he adds. The term ‘supply chain’ is like a massive umbrella that shelters numerous sub-topics that professionals can explore. Areas including production planning, demand planning, logistics, inbound and outbound, import and export, procurement, sourcing, and even data management for those focused on figures from the consumption of certain goods, can all be included under that umbrella. Pursuing a professional designation, or even a course that covers multiple areas, can help supply chain professionals decide where they fit in.

THE VALUE OF NETWORKING

Along with that curiosity, learning how to network is a valuable skill to develop. The impor-

tance of networking when job hunting in Canada was a useful lesson to learn, Altaf says.

“I thought that by coming here, my resume would speak for itself,” he says. “Here in Canada, it doesn’t, especially in Toronto. I thought that already having experience in Australia and Brazil would suffice. But no, you have to show yourself. You have to network, meet with people, show interest – you have to know and read a lot. There are sources all over the internet about what’s going on in the supply chain. There are associations, certifications you can pursue that will enable a lot of good networking opportunities for you.”

Altaf took the struggles of job searching in Canada and turned them into an opportunity. Along with a friend – also from Brazil – Altaf has built a network of Brazilian supply chain professionals in Canada. What started as conversations on WhatsApp has grown into a LinkedIn group in which members support one another’s career struggles and aspirations. There are now members from across the country, including from Saskatchewan, Quebec, Ontario, and Nova Scotia.

“We’ve helped people find their feet here, find their first role,” he says. “It’s kind of our way to give back to the community and to help newcomers not have to face the same hardships as I faced.”

Staying visible, networking, and meeting with the right people rank high among Altaf’s advice for those searching for supply chain positions in Canada. That’s especially true for those who are newer arrivals to the country.

“I sometimes reflect on my career, and it’s been quite a ride,” Altaf says. “It’s one that had its proud moments, some not so proud. But I guess my focus right now would be on having a longer tenure in a company in Canada. Like this one I just started. My goal is to stay five, 10 years, if I can.” SP

BY CHRISTIAN SIVIÈRE

A NEW DAY DAWNS INTERMODAL TRANSPORTATION IN OUR CHANGING TIMES

To paraphrase Bob Dylan, “the times they are a-changin.” The US has a new president, surrounded by oligarchs, for whom only money and power count. The adjective used is “transactional,” which basically means “anything can be bought” For a president to control all three branches of power, the executive, the legislative (through the House of Representative and Congress) and the judiciary (via the Supreme Court) is unprecedented. What is also extraordinary is the new leader of the free world attacking first (though in words only) America’s friends and allies like Canada, Denmark (Greenland), Mexico, Panama, with his acolyte Musk grossly interfering in German

elections or the UK’s labour government. Interfering in Canadian elections could be next. This is all bringing instability and unpredictability, making strategy decisions that much harder for businesses, including the logistics industry.

TARIFFS

Tariffs imposed on imported goods, or their threat, are disruptive, as they increase costs for businesses and make it difficult to plan ahead. They can reduce available quantities of products, resulting in shortages, hardship and cost increases for businesses and consumers, creating an economic burden for all, while contributing to inflation. Tariffs are considered trade barriers and according to international trade rules, they cannot be imposed without proper justification, or they run against World Trade Organization (WTO) rules. When tariffs are considered unfair and not justified, as is the case with Trump’s tariff threats against Canada and Mexico, a complaint can be filed with the WTO, but this takes months, or years, to decide. And the WTO’s appeals process is stuck, as the US is blocking the appointment of new judges in its appellate body, so appealing to the WTO is no real solution.

Intermodal transport, involving the movement of freight in an intermodal container or vehicle using multiple modes, usually road coupled with rail, is the backbone of efficient and economical distribution of products in North America, given the distances. Due to the heavy investments needed on rail infrastructure but also on trucks, trailers, and warehouses, it relies on the flow of goods, and in North America, tariff-free imports and exports between Canada, Mexico, and the US. A US-instigated trade dispute could lead to a “trade war,” affecting intermodal transport.

These tariffs will disrupt trade and supply chains, especially since tariffs imposed on Canadian products entering the US would likely be matched by retaliatory tariffs on US products imported in Canada. We’ve had an example of such a disruptive impact in 2018, when the US imposed tariffs on Canadian

“Tariffs are considered trade barriers and according to international trade rules, they cannot be imposed without proper justification.”

steel and aluminium. On the supply side, businesses importing raw materials, components and parts will face difficult short-term decisions: absorb higher costs or pass them on to customers. On the demand side, higher product costs may lead customers to cut back on purchases, reducing demand for products and logistics services, as less demand leads to less freight. In the medium to long term, these tariffs could reshape North American product flows, impacting freight volume and logistics infrastructure, as their main objective is to incentivise investment and the reshoring of production in the US. Until then, logistics companies, including intermodal operators, will have to switch to cost-cutting and efficiencies, perhaps reducing services, to stay in business.

Another disruption could come from changes to the US$800 de minimis exemption in the US This rule enabled e-commerce to grow a lot, as both US businesses and consumers can import products from anywhere in the world duty-free, as well as “scrutiny-free.” Referred to as Section 321 in customs language, this exemption also means that products come into the US without formal customs declaration, bypassing many rules, including safety, forced labour prohibitions and so on. The US government has finally realized that it was a back-door duty-free entry for Chinese products, and it’s expected that this rule will be tightened soon. E-commerce originally relied almost

exclusively on express shipping but now relies more on intermodal transport to save on distribution costs, with the popularity of omnichannel distribution. Developments in e-commerce are important for intermodal transportation, as consumers expect faster and more flexible deliveries, while platforms and vendors watch costs.

FINANCIAL RISKS

The world is more at risk financially, due to the new administration’s promotion of crypto currencies. Cryptos are not backed by tangible assets and don’t have intrinsic value but rely mainly on speculation and greed. They are popular with crooks, hackers, terrorists, and tax-evaders. Trump and his acolytes promoting cryptos is undermining the US dollar and may lead us into the next financial crisis. Logistics companies, including intermodal operators, should be cautious. These uncertainties make it harder for the transportation industry to operate and plan. They distract us from pressing issues. Where does this leave logistics and intermodal operators? It forces us to become more resilient, strengthen our finances, seek alliances, develop reliable services to provide customers with cost savings, and to provide added value, adopt new technology, streamline our operations, but also continue to develop and support our workforce. SP

Christian Sivière is president at Solimpex.

NAVIGATING UNCERTAINTY CHALLENGES TO CANADA’S SUPPLY CHAINS

The pre-Socratic philosopher Heraclitus emphasized the role of a dynamic environment in a world where stability is short-lived. Changing global politics, climate challenges, cyberthreats, and aging infrastructure put Canada in a challenging situation, impacting businesses and their supply chains. Canada exports over 75 per cent of its products and services to the US, followed by China at four per cent, Japan at two per cent, 1.8 per cent to the UK, and around one per cent to Mexico as per 2023 statistics. Primarily, it exports energy products like petroleum, and manufacturing goods including automobiles, gold, and forest products. Canada imports automobiles, parts, consumer goods, and energy products. This reflects Canada’s over-reliance on other countries, primarily the US. This dependence has never disappointed the Canadian economy. However, Donald Trump’s

return to the White House could increase tariffs on Chinese goods to 60 per cent, which may mean increased trade with Canada. This could have consequences for Canada’s economy and supply chains. Trump’s promise to expedite “Buy American” and to impose a 10 per cent universal baseline tariff on US importations is expected to result in a decrease in Canada’s US exports, a loss of $7 billion to Canada’s GDP, and cost nearly 20,000 jobs. Trump also promised to raise tariffs to 25 per cent on Canadian and Mexican exports. This could mean a GDP reduction of 3.6 per cent, possible relocation of Canadian manufacturing to the US, and job losses between 500,000 to 1.5 million. Possible renegotiation of the United States-Mexico-Canada Agreement (USMCA) in 2026 could also attract new tariffs, weakening the Canadian dollar compared to the US dollar. That could make Canadian exports more attractive. But it could also attract more stringent trade restrictions.

WAR IN UKRAINE

The Russian-Ukraine conflict has caused commodity shortages including wheat, petroleum products, and fertilizers; the resulting price hikes have intensified challenges to Canadian industries. Yet one could argue that the conflict has also increased worldwide demand for Canadian wheat and metals. The closure of some shipping routes, delayed shipments, fluctuating oil prices, and increasing logistics costs due to the Middle East crisis have also worsened Canadian industrial prospects. From February 2021 to June 2022, volatile energy prices accounted for 33 per cent of Canada’s inflation. The Canadian government could play a significant role. According to one report, investing in renewable energy could help Canada save around $15 billion per year in energy costs. While Canada has developed a clean energy plan, the government still provided $18.6 billion in support to domestic fossil fuel operations. Extreme climate events have also posed challenges. Higher temperatures cause increased pest

“Trump has also promised to raise tariffs to 25 per cent on Canadian and Mexican exports. This could mean a GDP reduction of 3.6 per cent.”

growth in harvests, resulting in greater use of pesticides and more efforts to maintain certain ambient temperatures from movement of commodities to storing and shelving the products throughout the supply chain. In a survey published in 2024, around 56 per cent of Canadian business executives indicated that extreme weather conditions slashed their profitability last year, and 49 per cent reported their supply chain operations have been hampered, and their insurance costs have risen. November 2021 flooding disconnected access to the Port of Vancouver. Western Canadian wildfires in 2024 impacted the rail network for cargo, resulting in higher costs and late shipments.

To promote sustainable business processes, Canada is pressing organizations to adopt environment-friendly practices. One survey shows around 33 percent of organizations have included sustainable practices in their operations ranging from product development, manufacturing, and supply chain. Yet, such efforts increase business costs, at least for now.

Given the nature of supply chain networks involving numerous local to overseas partners and regulatory agencies, who are mainly connected through electronic data interchange (EDI) for real-time data sharing to improve visibility and electronic funds transfers (EFT), Canadian businesses are prone to undetectable cyberattacks. Only in the past few years, incidents affecting multiple organizations reveal how vulnerable these companies are. Even tech companies have been victims. Although

cybersecurity incident reporting increased in 2023, the number is still low: only 13 per cent of affected Canadian businesses – mainly large organizations – reported them in 2023.

The concern is, while the number of such incidents is rising, only 20 per cent of businesses across different sectors have invested resources to upgrade their technology to secure their supply chains. Underinvestment in infrastructure is also an issue for Canada’s supply chains. In 2016, the federal government launched a broadbased infrastructure project called Investing in Canada, earmarking over $180 billion for community development, science, technology, and economic growth, and modernizing of trade corridors and transport infrastructure. However, compared to other developed nations, Canada underinvests in infrastructure. It’s estimated that Canada needs to invest around $500 billion to $1 trillion to cover the gap and address urban areas, limited access to broadband internet in remote areas, and aging transportation.

To prosper, Canadian supply chains could learn from Friedrich Nietzsche’s concept of “amor fati,” the love of fate that persuades organizations to accept challenges as opportunities. SP

For a longer version of this article that includes footnotes, please see https://tinyurl.com/5bbrm46h.

Dr. Naveed Ahmed Khan is professor with Centennial College, George Brown College, and Fleming College in Toronto.

SUSTAINABLE COMFORT FOR EVERY COMMERCIAL SPACE

We provide sustainable, high-performance furniture for modern outdoor spaces. From accessible picnic tables to ergonomic, low-maintenance seating, our durable designs combine comfort, style, and functionality. Built to withstand heavy commercial use and all outdoor conditions.

Made from up to 100% recycled plastic

Proudly made in Canada

High-quality, durable & heavy

5-year Commercial Warranty

Weatherproof - leave them out all year

SHAPING THE FUTURE HOW GLOBAL STANDARDS AND LEADERSHIP CAN ELEVATE CANADA’S SUPPLY

CHAIN PROFESSION

The supply chain profession stands at a critical juncture. Global geopolitical events, such as ongoing trade wars, shifting alliances and regional conflicts, continue to reshape the economic landscape, challenging supply chain leaders to navigate unprecedented complexities. Simultaneously, evolving trade policies, the green transition and technological advancements are redefining the profession’s role in driving innovation and resilience.

As highlighted in the World Economic Forum’s Future of Jobs report, the adoption of AI, big data and sustainability frameworks is transforming industries. For supply chain professionals, this means preparing for structural churn in jobs as roles evolve to meet demands for transparency, sustainability, and efficiency. These shifts underscore the urgency of equipping leaders with global standards and robust credentialing to ensure they can rise to meet these challenges with confidence, ethics, and innovation.

The stakes have never been higher, and the Canadian supply chain profession is uniquely poised to take

the lead. By embracing international standards and investing in professional designations, supply chain leaders can secure a future where operational excellence and strategic foresight converge.

WHY GLOBAL STANDARDS MATTER

Standards in supply chain and procurement are the foundational frameworks that enable seamless and efficient commerce and operations across interconnected organizations, economies, and governments. They serve as a shared language and set of definitions that ensure consistency, reliability, and predictability in both the private and public sectors. They govern processes like purchase orders, payment transactions, logistics coordination and compliance across borders and jurisdictions while providing assurance that the highest ethical standards are upheld. By fostering alignment and reducing friction, these standards empower organizations in all sectors to navigate the complexities of global commerce and governance, adapt to shifting economic and political landscapes and

complex international economy.

Last December, the National Institute of Supply Chain Leaders (NISCL) announced it had signed an agreement to become the exclusive Canadian partner of CIPS. The strategic partnership between NISCL and CIPS is built on a shared vision to elevate the Canadian supply chain profession by aligning it with global best practices. This collaboration enables Canadian professionals to access internationally recognized standards, tools, and training, ensuring they remain competitive in a rapidly changing global economy.

“Our strategic partnership with CIPS enables Canadian supply chain professionals to leverage international expertise and align with global best practices, further solidifying their role as strategic enablers in their organizations,” notes Al-Azhar Khalfan, President & CEO of NISCL.

achieve operational excellence while delivering value to stakeholders.

“Procurement and supply are at the heart of a modern economy. Our profession is a pivotal business function, the fulcrum for the growth and success of organizations, economies, and societies around the world,” says Ben Farrell, CEO of the Chartered Institute of Procurement & Supply (CIPS). His words highlight the centrality of procurement in addressing complex global challenges such as sustainability, resilience, and ethics – issues critical in today’s interconnected and volatile markets.

Global standards, such as those established by CIPS, offer a structured approach to these challenges by defining the competencies, ethical principles, and practices required for excellence. These standards ensure that procurement professionals are equipped to navigate evolving market demands, deliver measurable value, and align with regulatory and stakeholder expectations. With global standards as a foundation, organizations gain the assurance that their operations are rooted in best practices, positioning them to compete in a

This partnership strengthens the profession’s ability to address complex challenges like sustainability and resilience while driving operational excellence and strategic influence across industries. For Canadian supply chain professionals, it provides them access to national and global professional development and credentialing opportunities. “This partnership isn’t just about individual success. It’s about enhancing the collective reputation and effectiveness of Canada’s supply chain sector,” Khalfan adds.

Credentialing is a cornerstone of professional development in the supply chain sector. Designations such as MCIPS Chartered are internationally recognized markers of excellence, validating expertise, ethical practice, and a commitment to lifelong learning. “MCIPS professionals evidence their high level of competency and technical expertise, dedication to their career with lifelong learning, and commitment to ethical standards of practice and operating with integrity,” Farrell explains. The CIPS Salary Guide confirms the value of this designation, with 54 per cent of global employers preferring candidates holding or working toward MCIPS.

For Canadian professionals, the NISCL-CSCL designation complements the MCIPS credential by

emphasizing leadership, strategic vision, and alignment with Canada’s specific market needs. These credentials reflect a commitment to advancing the profession while equipping leaders to tackle global challenges. Through credentialing, supply chain leaders can enhance their career trajectories and contribute to industry credibility, driving progress in sustainability, ethical practices, and the adoption of transformative technologies.

DRIVING INNOVATION, SUSTAINABILITY, AND TECHNOLOGY TRANSFORMATION

Sustainability has become a core component of any supply chain strategy, and our ability to deliver continuity of supply in this complex, ever-evolving, disruptive global economy. This reflects its critical link to resilience and our long-term operational success. According to the CIPS Global State of Procurement & Supply 2024 report, procurement leaders increasingly recognize this interdependence. “Sustainability and resilience are totally correlated and interlinked; if you have sustainable practices, you are automatically resilient,” explains Farrell. “However, if you are resilient exclusively, you are not automatically sustainable.”

This understanding underscores why embedding sustainable practices into supply chain operations is

The stakes have never been higher, and the Canadian supply chain profession is uniquely poised to take the lead.

no longer optional but essential.

The report highlights that 78 per cent of procurement leaders consider environmental, social, and governance (ESG) issues to be growing priorities. From ethical sourcing and reducing carbon footprints to ensuring transparency, procurement teams are at the forefront of driving meaningful change.

Canadian organizations are respected strategic partners in global supply chain networks and, as such, are leading the way in adopting and enhancing these principles, spurred by legislative pressures, evolving stakeholder expectations and strategic business objectives. This commitment aligns seamlessly with NISCL’s mission to champion innovation and sustainability as fundamental pillars of Canadian supply chain leadership. “By aligning with global standards on supply chain excellence, organizations not only mitigate risks but also build trust and enhance their long-

term impact in a scrutinized global economy,” says Khalfan.

Technology further amplifies these efforts, transforming how supply chains operate by enabling greater efficiency, transparency and strategic value. The Future of Jobs report predicts that 75 per cent of companies will adopt big data and AI technologies by 2027, underscoring the pivotal role of digital tools in the sector’s evolution. “AI isn’t just about automating tasks. It’s about reimagining how procurement can deliver greater strategic value, resilience and innovation to organizations and society as a whole,” Farrell notes. Tools such as AI-powered analytics, blockchain and real-time supply chain visibility are revolutionizing decision-making and enhancing ESG metrics.

For Canadian professionals, embracing technology is a strategic advantage and a necessity for staying competitive in a dynamic global landscape. NISCL’s strategic partnership with CIPS reinforces this need, ensuring Canadian supply chain leaders can access the digital tools, standards, and training required to excel. By integrating sustainability and technology transformation into their strategies, supply chain professionals are not just meeting today’s challenges but shaping a resilient, sustainable and innovative future for the industry.

STRATEGIC LEADERSHIP IN SUPPLY CHAIN

Building on the dual imperatives of sustainability and technology transformation, effective leadership across all integrated supply chain activities has emerged as the defining factor in navigating today’s interconnected global economy. Leaders who anticipate geopolitical shifts, embrace adaptability, and foster cross-functional collaboration are best positioned to succeed.

“Procurement professionals increasingly see themselves—and are seen—as part of the solution,” says Farrell, emphasizing the evolving role of procurement as a strategic enabler.

Canadian supply chain leaders can expand their influence and drive impactful change by aligning with global standards and leveraging international credentialing. By partnering with CIPS, NISCL aims to be a vital enabler of this transformation, providing leaders with the frameworks, tools and expertise needed to navigate uncertainty, fuel innovation, and deliver sustainable value across industries. As Khalfan aptly puts it, “Together, we’re creating a blueprint for excellence that benefits Canadian supply chain and procurement professionals, their organizations, and our economy.”. SP

BY JACOB STOLLER

SKILLING UP FOR AI AI SOLUTIONS HAVE ACCELERATED TECHNOLOGY ADOPTION BY MANUFACTURERS AND SUPPLY CHAIN

OPERATORS

Technology, many believe, will be central to improving Canada’s productivity. However, while some of AI’s most important advances originated here, there are concerns that Canada will fall behind other industrial nations in leveraging the productivity-enhancing advantages of AI-powered automation.

The challenge is not in the technology itself, but in helping people adjust to working in a digital environment. “Technology is accelerating at such a rate that manufacturers always need to be thinking about upskilling their workforce,” says Simon Floyd, GM of manufacturing and mobility for the Americas, Microsoft.

“For the most modern manufacturers, there’s a general push to leverage data as part of day-today operations,” says Greta Cutulenco, CEO, Waterloo, Ontario-based Acerta Analytics Solutions. “This means that there’s a general upskilling going on where more and more engineers are being told to leverage data from newer production technology in order to do their job.”

This isn’t, however, about learning to code – instead, it will be about applying operational knowledge in an increasingly digital environment and incorporating more and more data into daily decisions.

“Our approach is to simplify the complexities of AI and machine learning powered analytics for manufacturing engineers so that they don’t have to become data scientists or do complex calculations,” says Cutulenco. “They just need to focus on having the right alerts, indicators, and recommendations so that they can continue to do their job.”

For example, Acerta’s flagship product, Line Pulse, uses the predictive power of machine learning to provide advanced warning of potential production problems. “We can provide early indication that a process is getting out of control,” says Cutulenco, “and that allows people to calibrate machinery or make other process adjustments before problems occur.”

Consequently, advanced technology allows engineers to leverage their expertise more widely. “The engineers we’re working with are people who understand their processes and understand their products,” says Cutulenco. “What we’re giving them are the tools that help them accelerate their work. So instead of having to do a lot of guesswork and pull data together in Excel spreadsheets, and then, when there’s a major quality issue, run around with their heads on fire, they can leverage AI and machine learning

powered analytics for quick guidance and direction on how to respond.”

Part of the learning process is developing an understanding of how AI generates the insights. “There’s certain knowledge that people will need to be able to trust the insights and predictions that come from machine learning technologies,” says Cutulenco. “What’s evolving is a general understanding of how AI works, and how it achieves results, and how to prepare data sets that are available to make it work.”

SEEING THE BIG PICTURE

The digital transformation happening in manufacturing is certainly not limited to the shop floor. Over the past decade, Texas-based o9 Solutions has developed an integrated planning tool, called the o9 Digital Brain, that breaks down information silos that often restrict informed decision making throughout the company.

In describing the product, Anand Srinivasan, o9’s chief strategy officer, compares the large corporation to a single-person operation. “Let’s say you have a one-man company that makes potato chips,” he says. “So, when it comes to making decisions, he would have all the aspects of the business in his head.

But if you look at a large corporation today, there’s no one brain – data, skills, and functions have become very fragmented. So, that single brain thinking goes away, and you have siloed and less optimal thinking.”

The challenge, Srinivasan says, is that conventional IT systems don’t provide decision-makers with the subtle information that comes from intimately knowing the business. “Large companies have ERP and CRM systems, but those only capture about 30 per cent of the knowledge needed to run the business,” says Srinivasan. “What they don’t capture is tribal knowledge that is patched together in emails, pictures, and spreadsheets, and in the mental models of planners and other people who have been in the business for 20 to 30 years. They intuitively know which customers are risky, for example, but that’s not in the systems.”

The objective is to create an enterprise-wide database that can inform decisions at any level in the organization through anything from a morning briefing for a CEO to a response to a query from a purchasing manager on how to respond to a weather alert.

“Anybody that’s making any decision in the company will be a potential user,” says Srinivasan. “Let’s say we’re expecting a snowstorm,

“For the most modern manufacturers, there’s a general push to leverage data as part of day-to-day operations.”

and I have a parts shipment coming. Should I pre-order, and how much should I pre-order? Is the extra freight worth it? Which customers will be kept waiting? That discussion should be one decision away in natural language.”

The approach can be extended beyond a company’s walls. Toyota is piloting o9 Digital Brain to strengthen its communication ties with suppliers and make its supply chain more resilient. The technology will provide a two-way communication link between Toyota and its suppliers, allowing them to collaborate more cohesively in order to maintain the flow of parts to the production lines.

“Post COVID-19, especially, semi-conductor supply and some of the downturns we saw, really challenged our ability to navigate issues

in the automotive industry,” said Andy Woehler, group manager supply chain digital transformation at Toyota’s North American headquarters in an article on the o9 website. “We want to continue to go deeper into the supply chain … recognizing the value in having a deep understanding of our lower tier supply chain, which is very complex.”

Seeing the business through such a broad lens will call on decision makers to apply their knowledge more broadly and therefore, to provide higher value to the organization. “In terms of skills, the technology is not the challenge,” says Srinivasan. “You’re going to be talking it, or it’s going to be video driven. But the scope of the work will change. In the past, you would be responsible for one slice of the business. Now, with such a tool, I can plan an entire P&L. I am the planner for an entire product from end to end.”

Instead of resisting the technology, people who work in supply chains should embrace it. “It’s going to be doing the grunt work, and people get to do the smart work,” says Srinivasan. “But it’s not going to take a person’s work away – AI takes work away from people that don’t use AI, but AI is not going away. People are starting to warm up to that now.” SP

BY CHARLES R. JORDAN

THE RIGHT PARTNERS VENDOR TIPS FOR FACILITIES MANAGEMENT

Facilities management encompasses various disciplines and skills. One of the most challenging aspects of transitioning into a facilities manager role within an agency is establishing effective vendor and supplier sourcing to ensure efficient operations. A reliable vendor supplying materials or services can make the difference between a quick, cost-effective repair and creating an extensive plan to obtain necessary maintenance or supplies. As a former local government facilities manager who now collaborates with clients to help optimize their facilities management operations, I have observed that these systems are frequently not implemented when a new manager assumes control or are needed for a team to deliver an effective response. The following steps are recommended for implementing a vendor sourcing program.

Develop a current vendor list: The first step is often the hardest to take. In this case, creating a list of vendors that the agency has utilized over the past three to five years can feel overwhelming, but it is essential. This list should include categories such as service providers, suppliers, and subcontractors. Service providers are vendors that offer specific services not handled in-house by the agency, such as skilled trades, life-safety inspections and maintenance, and professional services.

Suppliers are vendors that supply specific items or materials needed for maintenance, including hardware stores and parts vendors. Subcontractors may overlap with service providers but typically refer to vendors that provide regular support work for internal operations.

Organize the list: Using the initial list, a facility manager should organize it by category, primary service or purpose, and the amount spent with the vendor in the previous 12 months. This will help assess the value of the vendor source and indicate where funding is most needed to identify potential backup providers or determine whether a new provider or pricing is necessary to achieve positive cost impacts.

IDENTIFY GAPS

After developing the list, review the categories and primary purpose to identify any gaps in necessary services or supplies that need to be addressed. Add these areas to the list without assigning a vendor.

A manager may notice that a crucial facilities management function or supplier has been overlooked in recent years, even though it’s essential for legal compliance in building operations, or that a specific part or piece of equipment is frequently purchased from various vendors. Highlight these areas for follow-up. Review list for potential high-value quantities: Once the list is organized, are there vendors generating significant revenue yearround for specific purposes? These vendors should be assessed to understand the associated costs and determine if their pricing should be adjusted based on quantity or if

“A facilities manager should reassess supply and vendor lists at least every three years to secure the best pricing and minimize expenses.”

other vendors in the market might offer better pricing options.

Review supplier support purchasing programs: Review programs for businesses such as major hardware stores (Lowe’s Pro, Home Depot, or HD Supply) and others to explore pricing options for efficient supply purchases that can help reduce costs and enhance availability. The manager should also investigate national collective purchasing options, which help identify and utilize existing pricing mechanisms, including bids or requests for proposals, to ensure consistent vendor pricing for various agencies.

Establish purchase orders and bid out high-value programs: Once high-value areas are identified, a plan should be established to consistently obtain quoted or bid pricing for the service. This is also where a crucial aspect of facilities management comes into play: redundancy. In high-value areas, having multiple suppliers or vendor sources is always advisable to ensure that responses to requests and necessary maintenance are not delayed due to supply issues or heavy workloads. In facilities management, response time can justify the additional cost of keeping tenants safe and healthy.

Develop priority lists for staff: Using the lists created in the previous steps, compile a list for supervisors or primary technicians in specific fields to use when responding to service calls or planning preventive maintenance. The primary vendor should include this list, along with a list

of secondary vendors or backups approved in the previous steps.

Tracking: Finally, the most crucial step to consider is tracking vendor expenses not only by vendor but also by category. This will simplify the previous steps when it comes time for reevaluation. A facilities manager should reassess supply and vendor lists at least every three years to secure the best pricing and minimize expenses. Rotating the evaluations so that not all vendors are assessed every three years will help maintain the lists’ currency and relevance for facilities management activities. A tracking list, or a resource management program organized by purchase order or vendor, should include all purchases made since the last evaluation, along with their date and purpose, so that it can be sorted and evaluated efficiently and effectively.

ESTABLISHING SYSTEMS

In facilities management, leading organizations consistently implement steps to ensure their services are streamlined and cost-effective. Utilizing technology and expertise is essential for the effective deployment of these techniques. It’s crucial to establish systems that manage these steps efficiently and involve staff with direct, expert-level knowledge of their applications to ensure success.

As a facilities management organization matures, this process will become second nature, enhancing its responsiveness and ability to become a high-performance organization. SP

Charles “Chas” R. Jordan, MPA, FMP is manager at Matrix Consulting Group.

By Jil McIntosh

By Howard J Elmer

Light-duty line up New pickup trucks for 2025

Competition among pickup truck manufacturers is the most heated in the auto industry and with good reason. Sales numbers are huge and even small gains and losses in market share equal big money. Hence the reason that rarely is there not something new, each year, from the main players. As you’ll see, 2025 is no exception as competition continues to rage.

Ram has revealed its 2025 Ram heavy-duty trucks showing a midlife redesign with some updated styling, engines, and technology. Prominent is a new grille, thinner split LED headlights. There’s a new console, large high-contrast centre stack display, 10.25-inch passenger touchscreen and digital rear-view mirror. While there is still a gasoline engine option, the more common Cummins diesel 6.7L engine has been reworked. It now makes 430hp and 1,075 pound-feet of torque. While the 6.4L Hemi V8 will make 405hp and 429 pound-feet of torque. Both engines are mated to the same

TorqueFlite eight-speed automatic transmission. Maximum towing capacity is 36,610lbs, while towing with a conventional hitch is set at 23,000lbs. A big deal is Ram’s Onboard power inverter, a welcome upgrade providing 2.4 kilowatts of AC power right in the bed.

The redesigned Ford Ranger was new for 2024, however arriving late in the year its making more of a splash in 2025. Ranger’s base engine is 2.3L inline-4 that makes 270hp and 310lbs-ft of torque. An optional 2.7L twin turbocharged V6 put out 315hp and 400lbs-ft of torque. Ranger is available in only one body configuration: a crewcab with a five-foot bed. Ranger will tow up to 7,500lbs and has a payload of 1,805lbs. Every Ranger uses a 10-speed automatic transmission. For the 2025 Ranger gets a Raptor edition as well. It uses a turbocharged 3.0L V6 making 405 horsepower and 430lbs-ft of torque. It comes with standard four-wheel drive, Fox shocks, a two-speed

transfer case, front and rear locking differentials, and 33-inch tires.

New for 2025 are cruise control standard on Work Truck trim; trailer brake controller; standard on LT trim and higher; a seven-speaker Bose premium sound system standard on ZR2 trim; front and rear parking sensors standard; and available 20-inch-high gloss black wheels. The 2025 Chevrolet Silverado can be configured with three bed lengths: a 5.8-foot short bed, a 6.6-foot standard bed, and an eight-foot-long bed. These can be paired with a two-door Regular Cab, a four-door Double Cab, or a larger four-door Crew Cab. Engine choices abound – along with small diesel option – frankly, the only one left in the half-ton category. The entry-level offers a turbocharged four-cylinder, while for those wanting more grunt they can step up to either of the available V-8 engine options. The Bison badge adds more features like 33-inch all-terrain tires, Multimatic spool-valve damp-

ers, and thick underbody skid plates. For 2025 Nissan Frontier gets a mild update. This midsize truck comes in two-door King Cab and four-door Crew Cab layouts. This equals either a five- or six-foot bed. A Crew Cab long-wheelbase model with six-foot bed now available on SV, Pro-4X, and SL grades. There’s also a larger optional touchscreen and wireless Android Auto is now available. A telescopic steering wheel is standard on all trims. There’s a six-way power driver seat with two-way power lumbar on SV trims and higher. A four-way power passenger seat is now standard on Pro-X, Pro-4X, and SL models. It boasts a 3.8-litre, V-6 engine making 310hp and 281lbs-ft of torque. King Cab models are two-door trucks with 6-foot beds. Four-door Crew Cab versions of the Frontier can be outfitted with a five- or six-foot bed. The new RAM RHO is based on the refreshed 2025 Ram 1500 including the high-output version of its new twin-turbo 3.0L inline-six.

Ford Ranger

RAM RHO

This Hurricane engines output is 540hp and 521lbs-ft of torque. With the monstrous TRX being retired, the RHO is the follow-up and in many ways is a better off-road truck. Carrying weights have increased over the TRX to 1520lbs payload and a tow rating of 8380lbs. Some of the unique features of the RHO are a functional cold-air hood intake and a freer-flowing dual exhaust. Its bumpers, grille, and LED headand taillights have also been massaged. Getting the power to the ground is a sport-tuned ZF eightspeed automatic transmission driving a variable full-time four-wheeldrive system with an electronically locking rear differential. You’ll also find clever drivetrain and chassis electronics featuring nearly a dozen drive modes, plus launch control and 35-inch Goodyear Wrangler Territory AT tires.

For 2024 F-150’s major changes included the discontinuation of the base gas V-6 and the addition of the Blue Cruise hands-free driving fea-

ture and a head-up display to the options list. Also, the 12-inch infotainment screen became standard across the lineup. So, for 2025 F-150 carries over virtually unchanged. But Ford felt it had to do something so the one highlight this year is the Pro Access Tailgate along with a few styling changes. The F-150 is available with multiple body styles and bed lengths. Most trucks come with standard automatic full-time four-wheel drive and the 5.0L V-8, or the twin-turbo 3.5L V6. Ford offers the most engine options with a 325-hp twin-turbocharged 2.7L V6 or the 400hp 5.0L V-8. The 3.5L twin turbo makes 400hp, while the 430hp hybrid powertrain adds a 47hp electric motor to the mix. All F-150’s are paired with a 10-speed automatic. For 2025 the Max tow is 13,500lbs and Max payload is 2,455lbs.

The key takeaway from the Silverado EV story is that it has the largest battery around. This big battery offers 650km of range. In addi-

You’ll also find clever drivetrain and chassis electronics featuring nearly a dozen drive modes.

tion, its equipped with a super-fast DC charger. What that means is that at an average rate of 198 kilowatts when charging it can go from 10 per cent to 90 per cent charge in just under an hour.

Another interesting feature is a throwback to the Chevy Avalanche – a midgate that opens to add cargo flexibility, particularly for long items. The LT trim is probably the best equipped model with power-adjustable, heated, and ventilated front seats; heated rear seats; a larger center touchscreen; and a seven-speaker Bose stereo. This midrange LT offers 645hp and all-wheel drive. A rear-wheel steering system and an adaptive air suspension are optional; as are a set of huge, 24-inch wheels that’s also available. This EV is rated to a maxi-

mum towing capacity of 12,500 lb with a payload of up to 1800lb. 2024 was the generational update for the Tacoma, however the much-anticipated hybrid engine option is only coming on stream this year so we can call that a 2025 innovation. Called the i-Force Max the engine puts out 326hp and 465lbs-ft of torque. It is standard on the TRD Pro and Trailhunter but optional on the TRD Sport, TRD Off-Road, and Limited trims. An interesting point on fuel economy; the consumption is nearly identical between the gas version and the hybrid version. That said it appears the point of the hybrid is simply more power. Toyota says maximum payload capacity for the Tacoma amounts to 1,710lbs for the hybrid. Also of note is that the bed is marginally deeper, designed to accommodate a camp fridge below a tonneau cover. Tacoma also gets the quick release tailgate function from the Tundra. A power open/ close function is optional. FM/SP

Nissan Frontier

Toyota Tacoma

By Seth Walker

1.

Drive safe You need more than good data to improve safety behaviour

Recently, the automotive fleet industry has adopted high-tech telematics platforms and dash cameras at a surprising rate. When I speak with fleet managers, I often hear, “We have telematics, but our drivers still behave unsafely.” Persistent unsafe driving behaviours place people at risk, increase the costs of maintaining an automotive fleet, and introduce the possibility of a “nuclear verdict.”

I am an unapologetic data nerd and believe that adopting telematics systems is an important step toward producing a safer environment for drivers. However, there is a disconnect between having good data on a problem and having a good solution to a problem. Telematics systems are an excellent diagnostic tool, but they will always rely on a human component to produce behaviour change. The human component could involve introducing gamification, restructuring quotas and incentives, or fixing pre-existing systems like managerial coaching to produce safer driver behaviour.

Behavioural recipe

2.

Human behaviour is complex. To make things a bit simpler, I break things down into three components I call the behavioural recipe: outcomes, effort, and environment. The first factor that influences behaviour is the outcomes that those behaviours produce. If the outcomes immediately benefit the person, by either producing something favourable or removing something unfavourable, they are likely to behave similarly in the future. For instance, we all know that eating well produces positive health outcomes in the long run. Much of the time, we opt for the burger over the salad because of the more immediate outcome. Burgers taste great and they are filling. Salads are also food, but their true payoff is later, in somewhat intangible “health benefits.”

The next factor, effort, changes how we behave most frequently. Humans are programmed to save time and energy. If we find an easy or quick way to do something,

we will do it that way. For example, we all know we can go to the supermarket to buy things and have them right away but ordering through online retailers reduces the immediate effort and time involved in “shopping.” So, many shoppers have transitioned to online retailers purely due to the reduction in shopping effort.

Our last ingredient in the behavioural recipe is the environment. Humans are very good at identifying correlations between our actions and the outcomes they produce. We typically use signals or cues from our environment to figure out which outcomes are most likely to occur at a particular moment. For example, if you see a certain sour look on your significant other’s face, you may know that you should choose your words very carefully. Alternatively, if that look on the face is more positive, you may be able to joke more freely or tease.

Outcomes, effort, and environment play a role in all human behaviour, especially driving

behaviour. We all know that speeding, changing lanes quickly, following closely, or using our mobile device is unsafe. We do those anyway because of the low probability of collision, the time and effort it saves us, and the signals we see in our environment that tell us a certain behavioural pattern has worked well in the past and should continue to do so.

The State of the Data Report (Lytx, 2024) ranked the 10 most risky behaviours captured by their telematics system. Seven of the 10 risky behaviours were those that save drivers time or effort at the expense of increasing incident risk. The other three were related to distracted driving. The good news about those data is that all 10 of the risky behaviours reported by Lytx can be remedied through using a system found in all organizations, managerial coaching. However, many managers are not taught specifically how to manage others’ behaviour, even though it is arguably their primary function in an organization.

Seth Walker, PhD, is a consultant with ABA Technologies, developing training products and helping organizations improve coaching and performance improvement systems.

Effective coaching

There is much more to changing behaviour than providing a driver with data. The same applies to teaching managers to be effective coaches. Do not hand a manager a scorecard and expect them to have a conversation with an employee that solves all performance issues. Expect that your investment in developing your manager’s leadership and coaching skills will help them become more comfortable handling difficult conversations, that they will deliver more effective feedback for employees, and that you will see positive changes in behavior over time.

Prioritizing concerns

Managers should know what to do with all their data on employee performance. When there are multiple performance issues, managers need to prioritize the most pressing issues and address those first. The process of prioritizing also reduces the likelihood that the coaching they deliver looks like a laundry list of performance problems.

Monitoring performance

The second aspect of effective coaching is monitoring its effects. An in-house method of tracking performance like a scorecard will often suffice, but other

ways can be effective too. When managers do not observe improvement in employee performance after coaching, they tend to be less motivated to continue coaching. Having a performance tracking system can help managers detect smaller performance improvements and encourage them to continue providing critical coaching.

Navigating difficult conversations

Providing coaching on another’s performance can be hard. The way in which employees respond to feedback can influence how frequently and accurately managers deliver coaching in the future. Teaching managers to navigate difficult conversations allows them to become more effective in defusing emotional conversations and communicating their safety message more clearly.

Just like providing coaching, receiving coaching is a skill that often needs to be learned. Folks who receive coaching come to coaching sessions prepared, receptive to change, and ask clarifying questions when they are unsure. This creates more positive interactions between manager and employee, which contributes to a positive culture. When two individuals have a history of good experiences with each other, they tend to communicate more efficiently, support one another when problems arise, and increase their engagement.

Driver behaviour is influenced by several factors. When launching initiatives to improve driver behaviour, telematics data is critical to understanding the current problem. To produce long-term changes in behaviour, it is important to look at how fleet managers approach behaviour change when coaching their drivers. FM/SP

Seven of the 10 risky behaviours were those that save drivers time or effort at the expense of increasing incident risk.

By Jason Johnson

Cracking the code Using a last-mile TMS

In today’s fast-paced world, where customer expectations are higher than ever, the last mile is the final piece of the equation from manufacture to distribution hub to the customer’s doorstep. It’s no secret that this critical delivery phase is often the most expensive and challenging to manage, with last-mile logistics accounting for up to 53 per cent of shipping costs. Innovative last-mile optimization platforms transform how businesses and their fleets approach these challenges, offering a roadmap to efficiency, cost reduction, and customer satisfaction. Managing last-mile complexities is a balancing act of logistics, day-today business chaos, costs, and customer expectations. The challenges are well-documented, and include: Drives costs: The unpredictable nature of last-mile logistics— marked by multiple stops and various delivery sizes, creates opportunities for inflated costs, fuel usage, vehicle maintenance, and labour, all significantly impacting fleet budgets.

Urban complexity: Cities present unique obstacles, from unpredictable traffic patterns and limited parking spaces to challenging delivery windows. A robust system will help navigate these hurdles seamlessly. Demanding customers: Today’s consumer expects fast deliveries, real-time tracking, and flex-

ible options. Failure to meet these expectations can result in loss of customer loyalty.

Employee retention: Easy-to-use systems help employees stay organized and stick to their schedules, which in turn reduces overtime.

Businesses win or lose both their customers and reputation in the last mile. Companies that fail to address the challenges of last-mile delivery risk not only cutting into their profit margins but also losing the trust and loyalty of their customers.

Optimization platforms

Last-mile transportation management systems (TMS), like route optimization platforms, are at the forefront of tackling last-mile logistics challenges. These cutting-edge tools use advanced algorithms and real-time data to create smarter delivery strategies. Here’s how they’re reshaping the industry.

Smarter route planning: These platforms calculate the most efficient routes by considering delivery addresses, traffic, weather, vehicle loads, delivery deadlines, vehicle capacity, and many other constraints. This results in reductions in time spent planning, travel distances, and drive time.

Real-time adaptability: Delays caused by traffic, road closures, or unexpected order changes can

be managed on the fly. This adaptability ensures that deliveries stay on schedule.

Sustainability goals: Optimized routes mean fewer vehicles on the road, reduced fuel consumption, and lower carbon emissions, which are critical for fleets looking to meet sustainability targets.

Happier customers: Optimized last-mile operations and real-time updates create a superior customer experience.

A well-planned approach ensures success for companies looking to adopt a TMS for route optimization. Route optimization focuses on efficient operations planning. Data optimization provides the foundation for making smarter decisions across the entire logistics chain. Here’s a roadmap.

Understand your needs: Identify inefficiencies in your logistics operations. Are delays common? Is fuel consumption too high? Knowing your pain points is the first step.

Understand the data: Make sure you have the right data. Data makes or breaks the last mile. Ensure you have the proper operational rules, SOPs, and customer requirements.

Choose the right tool: Not all platforms are created equal. Select one that suits your business’s size, delivery volume, and requirements.

Seamless integration: To streamline operations, ensure the platform can connect with your existing

systems, such as order management, ERP, or CRM tools.

Training: Familiarize your staff with the platform’s features so they can use it from day one.

Continual improvement: Businesses can improve by understanding key performance metrics, such as delivery times, fuel usage and customer satisfaction.

Driven by efficiency

In an age where speed and service quality reign, adopting a last-mile TMS for route optimization is no longer optional – it’s essential. The benefits are undeniable: lower costs, increased operational efficiency and an improved customer experience.

For Canadian businesses, where geographic and urban delivery challenges abound, route optimization could be the key to unlocking new levels of competitiveness. Whether you’re a growing small business or a logistics powerhouse, these platforms pave the way for more innovative, greener, and profitable last-mile delivery operations. By embracing these solutions, businesses can meet the demands of today’s discerning consumers and future-proof their logistics for a more dynamic, data-driven era. The last mile may be the final step in the delivery journey and there are opportunities for giant leaps toward innovation and growth. FM/SP

Jason Johnson is senior strategic partner manager with Route4Me.

welcome to uncommon roads to success

On-board

By Stephanie Wallcraft

Riding the wave In a shrinking car market, the Honda Civic Hybrid is worth checking out

Cars keep falling further out of favour with Canadian buyers. According to DesRosiers Automotive Consultants, they hit a recordlow market share of 13.4 per cent in 2024 relative to light trucks and SUVs. This means the industry’s most affordable models are going extinct at an alarming pace. On the consumer side, not a single new car is left in Canada with an MSRP below $20,000 before fees.

For fleet managers, this is bad news. Cars continue to be an excellent choice in many fleet applications for their efficiency, overall handling, and outright affordability.

It’s interesting timing, then, that Honda is bringing a Civic Hybrid back to its line-up for 2025 after

a decade-long hiatus. And as most other cars struggle in the marketplace, this launch has Honda Canada riding a wave. After losing its 24-year streak as Canada’s best-selling car to the Toyota Corolla two years ago, the Honda Civic regained that crown in 2024. In January, the Honda Civic Hybrid was named 2025 North American Car of the Year. And for the first time ever, the Honda Civic Hybrid is being built on Canadian soil: production began in mid-2024 at Honda of Canada Mfg. in Alliston, Ontario.

On the surface, you won’t notice much difference between a gas-powered Civic and the hybrid version. Apart from some badging, nearly all styling elements are the same,

including the popular and aesthetically pleasing honeycomb dashboard insert that hides the air vents.

The differences

In fact, when comparing apples to apples – namely the Honda Civic Sport, which is the top gas-only trim for 2025, versus the Civic Sport Hybrid, the lowest-priced hybrid trim – there are exactly four differences between the two (note the Civic Hatchback is also available as a hybrid, though we’re looking specifically at sedan models here).

The obvious difference is the powertrain. The foundation is a 2.0-litre four-cylinder gas engine, which is nearly identical to the one found in the gas model. However,

by adding a pair of electric motors, the hybrid produces a total system output of 200hp and 232lbs-ft of torque. The extra 50hp and 99lbs-ft versus the gas model make a big difference in driving performance, and that’s in spite of the hybrid’s electro-continuously variable transmission (eCVT).

And the hybrid does this while achieving a fuel consumption rating of 4.7 litres per 100km in city driving, 5.1 on the highway, and 4.9 combined, as opposed to the already frugal 7.6/6.0/6.9 in the gas Civic Sport. This makes the Civic Hybrid one of the most efficient vehicles on the road without a plug. Our two weeks of testing netted an average of 6.0L/100km

1. By adding a pair of electric motors, the hybrid produces a total system output of 200hp and 232lbs-ft of torque.

2. The Honda Civic Hybrid has more power than its rivals, but it comes with a higher price tag to match.

combined, but this is to be expected when riding on winter tires on bitterly cold days.

Other differences between the two models include the paddle shifters, which shift the automatic transmission in the gas Civic but adjust the regenerative braking in the Civic Hybrid. There’s also an EV symbol on the hybrid’s digital instrument cluster that indicates when the powertrain is operating in electric mode. Finally, the Civic Hybrid gives up its spare tire to make room for the battery and equips a tire repair kit instead.

Otherwise, the two Civic Sport models are identical, including the available paint colours and long list of standard safety systems such as

blind spot monitoring, cross-traffic monitoring, forward collision warning, adaptive cruise control, traffic sign recognition, traffic jam assist, automatic high beams, and a driver attention monitor.

Pricing

The gas-powered 2025 Honda Civic Sport is priced at $33,666 including fees, while the 2025 Honda Civic Sport Hybrid costs $35,562. Based on Natural Resources Canada fuel consumption ratings, it would take three years to make up this $1,896 price difference in fuel costs. If you’ve already decided to buy a Civic, this makes the Civic Hybrid an obvious choice.

But there’s still one car left to rain on Honda’s parade, and that’s the Toyota Corolla Hybrid. Not only can you buy a Corolla Hybrid with front-wheel drive for less than $30,000 — $29,985 including fees, to be exact — but the Corolla Hybrid is available with all-wheel drive starting at $31,485, lower than where the FWD-only Civic Hybrid even starts.

The Civic Hybrid does offer better interior styling and some thoughtful features such as trunk-mounted seatback releases and wiper fluid nozzles that discharge directly onto the blades. These make Honda’s offer worth considering.

On the surface, you won’t notice much difference between a gaspowered Civic and the hybrid version.

What remains to be seen, though, is whether these highly efficient sedans and their relatively affordable prices can save cars from their market freefall. FM/SP

As Tested (2025 Honda Civic Sport Touring Hybrid)

Price (incl. freight and PDI and dealer fees): $39,062

Engine: 2.0-litre I4 plus electric motors

Power: 200 hp, 232 lb-ft

Transmission: eCVT

Rated Fuel Economy (L/100km): 4.7 city/5.1 hwy/4.9 combined

Observed Combined Fuel Economy (L/100km): 6.0

LABOUR RELATIONS UNIONS CHALLENGE TRANSIT PROCUREMENTS

In two recent labour relations rulings, municipal transit authorities faced legal challenges in connection with the partial outsourcing of their public transit operations. These cases highlight some of the additional risks that should be considered when institutions plan on contracting out services that intersect with work that is currently performed by unionized employees.

The August 2023 arbitration ruling in the matter of Toronto Transit Commission v. The Amalgamated Transit Union, Local 113 dealt with a complex dispute between the Toronto Transit Commission (TTC) and the union representing fare collection workers. The case involved the implementation of PRESTO, a regional fare collection system. By way of background, Ontario’s regional transit agency, Metrolinx, implemented the PRESTO system under the direction of the provincial government and with the assistance of an external service provider. PRESTO replaced the fare collection functions previously performed by multiple municipal transit authorities in the Greater Toronto Area, including the TTC. As the decision detailed, while the TTC initially considered implementing its own alternative fare collection system, and even issued a request for proposals to receive bids based on that alternative, the costs of implementing a parallel system, together with the risks of losing provincial funding if it did not adopt PRESTO, led to the TTC’s decision to abandon its own fare collection system.

After the implementation of PRESTO, the union representing the TTC’s now-redundant fare col-

lection workers brought a legal challenge alleging that the TTC had violated the applicable collective bargaining agreement. After determining that the TTC had no control over the new system and had little choice but to adopt it as part of a broader regional initiative, and after ruling that the union waited too long to bring its legal challenge, the arbitrator dismissed the case.

COMMON CONTROL AND DIRECTION

Similarly, the April 2024 Alberta Labour Relation Board ruling in the matter of Amalgamated Transit Union, Local 569 v. City of Edmonton dealt with the City’s decision to contract out new on-demand transit services in remote and sparsely populated areas within the municipality. The union brought a legal challenge arguing that the new operator’s employees should fall under the same collective bargaining agreement that applied to the City’s internal municipal transit workers.

The board concluded that the new work did not fall within the scope of the existing collective bargaining agreement since the City did not exercise “common control and direction” over the operations of the new contractor. For example, while the City appointed an internal employee as contract manager to administer the new contract, the day-to-day operations of the new services were controlled by the external operator. Further, while the on-demand transit services included some operational integration with the core transit services provided by the City’s bargaining unit staff, particularly where the two systems

intersected for passenger transfers, the Board ruled that this did not justify recognizing the new operator’s employees as falling under the City’s collective bargaining agreement. The ruling also determined that the new on-demand service did not result in any reduction to the number of existing City staff who operated the City’s core transit system. The Board therefore concluded that there was no basis to extend the City’s collective bargaining agreement to the external operator’s new on-demand drivers.

CONSIDER EXISTING AGREEMENTS

While both cases were ultimately dismissed, these rulings highlight how new outsourcing arrangements remain subject to potential labour relations challenges. This underscores the importance of carefully considering existing collective bargaining agreements during the procurement planning process before contracting out services that may overlap with work that is currently being performed by unionized employees.

To the extent that they anticipate that new contract awards could impact existing collective bargaining rights, the overall feasibility of the outsourcing should be carefully considered. Further, public institutions should be careful to properly disclose any flowthrough impact that collective bargaining arrangements, or employment commitments more generally, could have on newly awarded contractors who bid to take over work that was previously performed internally by the public institution or was previously per-

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

“These rulings highlight how new outsourcing arrangements remain subject to potential labour relations challenges.”

formed by a prior external service provider for that public institution. In addition to potentially leading to labour relations disputes, the failure to warn bidders of known contract risks during a bidding process can, and often does, lead to significant contract performance disputes after the tendered contract is awarded. Project teams should therefore add labour and employment considerations to their expanding list of due diligence areas that they need to consider as part of their contract scoping decisions and material disclosure duties when they plan for new complex procurements. SP

Your partner in facilities evolution

Strong foundations. Smart evolution.

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

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

ECOSYSTEM

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

EXPERTISE

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

EXPERIENCE

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

| 1-866-202-0064

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.