DEALING WITH E-WASTE SUSTAINABLE MUNICIPALITIES GREEN VEHICLE ROUNDUP THE TRAVEL RFP - National Industry Expo 2016
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DECEMBER 2016
CANADA’S SUPPLY MANAGEMENT MAGAZINE
DEALING WITH
E-WASTE
SUSTAINABLE
MUNICIPALITIES
GREEN VEHICLE
ROUNDUP
THE TRAVEL RFP
National Industry
Expo 2016
PB2B_DEC16_BAS.indd 1 2016-12-05 4:35 PM
Cover: Dorothy Jakovina
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Vol. 58, No. 6 • DECEMBER 2016 Table of Contents
Features
8 GREEN MUNICIPALITIES
10
How cities and towns can use sustainable procurement.
10 SUSTAINABILITY TRANSFORMATION
What some companies are doing to make their
procurement practices greener.
30 FOSTERING BUSINESS GROWTH
National Industry Expo 2016 special report.
35 FOUR-LETTER WORD?
Tips for preventing and dealing with e-waste.
36
BIG CHANGE, SMALL PACKAGE 28
Sustainable products for the office.
Also inside
4 UP FRONT 37 IN THE FIELD
5 BUSINESS FRONT 38 THE LAW
6 FINANCE CORNER
36
13 28
Cover: Dorothy Jakovina
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Features
BID-RIGGING FOCUS
RFP EVALUATIONS
Applying standard deviation The Competition Bureau ups bid
calculations in request for rigging work to protect federal cash.
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features
PRINTING TRENDS
Multifunction printer features evolve to meet today’s tech trends.
This story offers a look at some of the main trends in the field.
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Up Front
80 VALLEYBROOK DRIVE
TORONTO, ONTARIO M3B 2S9
www.PurchasingB2B.ca
PUBLISHER/ADVERTISING SALES
Dorothy Jakovina
416-510-6899, djakovina@PurchasingB2B.ca
EDITOR
Michael Power
The Digital Shift 416-442-5600 ext 3259, mpower@PurchasingB2B.ca
ART DIRECTOR
Brooke Shaw
T
519.428.3471 ext. 264
echnology and big data are two of the hottest topics in business right now. Rarely does
ACCOUNT COORDINATOR
a trade show or conference go by where mention isn’t given to how these trends are Tracey Hanson
changing the ways organizations interact with customers, suppliers and each other. 416-510-6762, thanson@annexbizmedia.com
Many of these technologies are disruptors on an enormous scale, akin to the Gutenberg CIRCULATION MANAGER
printing press or the automobile. Barbara Adelt
For example, the SCMAO annual conference in November had a strong focus on inno- 416-442-5600 x 3546, badelt@PurchasingB2B.ca
vation and technology, along with how these trends can drive innovation in the supply ANNEX PRINTING & PUBLISHING INC.
chain. During that conference’s keynote address, Nicole Verkindt, founder of OMX and a VICE-PRESIDENT: T im Dimopoulos (416)510-5100,
Dragon on Next Gen Dragon, discussed technology advances and the so-called networked tdimopoulos@annexweb.com
economy. This new economy is changing people’s expectations surrounding how they con- PRESIDENT & CEO: Mike Fredericks, mfredericks@annexweb.com
sume products, Verkindt told the audience. It’s also changing how companies must engage
both their customers and suppliers. Amazon, for example, allows readers to download For over 56 years, PurchasingB2B has been a trusted source of
information for Canadian purchasing/supply chain management
books immediately—a process that would have been unheard of a few generations ago. professionals in the private and public sectors. Special features and
“If I can buy a book on Amazon in nanoseconds, why should I—when I show up at supplements include Fleet Management, Canadian Automotive Review
(CAR), PurchasingB2G, and Travel Management Canada.
your credit union—fill out all this paperwork?” she said.
The digitization of business can mean that some businesses are forced to transform PurchasingB2B is published six times a year, except for occasional
combined, expanded or premium issues which count as two subscrip-
themselves from the ground up. In November, Patrick Maroney, VP of global innovations tion issues, by Annex Business Media.
at SAP, spoke at a “Best In Fleet” event in Florida, organized by fleet management com-
© Contents of this publication are protected and may not be
pany ARI. You can read about it on page 18, but during his presentation Maroney cited reproduced, in whole or in part, without the written consent of the
Under Armour as an organization that has changed radically to accommodate the shifts publisher or editor.
brought on by the digital age. The company has moved from a “towel company” to one NOTICE: PurchasingB2B accepts no responsibility or liability for claims
largely focused on both technology and healthcare, Maroney said. made for any product or service reported or advertised in this issue.
PurchasingB2B receives unsolicited materials including letters to the
Such shifts can help an organization not only better address customer needs, but in editor, press releases, promotional items and images from time to
some cases stay in business. Think of typewriter companies, and how a technology that time.PurchasingB2B, its affiliates and assignees may use, reproduce,
publish, re-publish, distribute, store and archive such unsolicited submis-
was once necessary to the function of any organization has become antiquated within a sions in whole or in part in any form or medium whatsoever, without
few decades. Who among us now can imagine changing ribbons, unjamming keys and compensation of any sort.
cleaning ink off one’s fingers? These changes are coming quickly and the pressure is on SUBSCRIPTION SERVICES: To subscribe, renew your subscription, or to
companies like never before to keep up or be left behind. As Maroney said during his pre- change your address or information, contact us at 416-510-5713 or
1-866-543-7888, ext 3258, apotal@annexnewcom.ca, or visit us at
sentation: just 10 years ago, the word “Skype” was a typo. www.PurchasingB2B.ca. Subscription price per year: $99.95 CDN; Outside
In some ways, these shifts tie into the theme of this issue of PurchasingB2B, which is sus- Canada per year: $172.95 US; Single issue Canada: $18 CDN. Annual
Supply Chain Survey issue, Canada: $45; Outside Canada: $70 US.
tainability. Digital technology can help organizations to be more sustainable. For example, Taxes extra.
technology now allows companies to optimize delivery routes, thereby saving gas, reducing
From time to time we make our subscription list available to select
emissions and helping the bottom line. Ever-growing supply chains can be monitored, thus companies and organizations whose product or service may interest
helping to ensure corporate social responsibility criteria are being met. Big data provides you. If you do not wish your contact information to be made avail-
able, please contact us via one of the following methods:
opportunities to mine for trends that can lead to more sustainable approaches. Phone: 1-800-668-2374, Fax: 416-442-2200
The sustainability theme influenced our cover photo choice as well. The sky and ocean Mail to: Privacy Officer, 80 Valleybrook Drive, Toronto, ON M3B 2S9
you see was taken in Florida during an ARI “Best In Fleet” event that PurchasingB2B Printed in Canada.
attended. We felt the image reflected the benefits and possibilities sustainable endeavors ISSN: 1497-1569 (print); 1929-6479 (digital)
Publications Mail Agreement No. 40065710
offer, be they financial, social or environmental. As always, we hope you enjoy the issue.
Indeed, technology provides various ways for organizations to pursue sustainability We acknowledge the financial support of the Government of Canada
through the Canada Periodical Fund of the Department of Canadian
goals. Procurement and supply chain would do well to pay attention to the digital shift. Heritage
4 / December 2016 / PurchasingB2B.ca
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Business Front
The Meaning Of Toronto-based
Michael Hlinka provides
Donald Trump business commentary
to CBC Radio One and
a column syndicated
It’s probably not what you think across the CBC network.
By Michael Hlinka
T
uesday, November 8 was astonishing Reality There are some who think that Trump won because of his stance on
TV. I was working that night, teaching a class foreign policy in general and Muslims in particular. I agree that Trump’s
that ran until 8:30pm. Generally, I walk home, position was more similar to the average American’s compared to either
enjoying some fresh air and exercise. But that eve- Barack Obama or Hillary Clinton and this likely helped him. But I don’t
ning, I grabbed a cab. I wanted to get home as quicklythink it was decisive for most voters. As James Carville famously said when
as possible and watch the election results. I cuddled he worked on Bill Clinton’s first presidential campaign: “It’s the economy,
up beside my wife (who had predicted a Trump vic- stupid.”
tory months before) and watched the drama unfold. It’s my thesis—and I wrote a book about it several years ago—that for
We were watching CNN which had been dubbed, the majority of North Americans, real wages have been stagnant for at
and not unfairly, the Clinton News Network, because least the past decade. And this is what the electorate was reacting to.
of its obvious bias towards the Democratic candi- The chattering classes made much of Trump’s “anti-immigration” rhet-
date. Up until 9:30, the story line was that Donald oric. There were charges that this position was anchored by racism. And
Trump was doing better than expected. From about given some of Trump’s statements, it wasn’t a stretch. But I don’t think
9:30 to 10:30, it changed to: “There’s an outside that this explains why most Americans voted for Trump. I think most of
chance he could win.” From 10:30 to 11:30, as the the Americans who voted for Trump did so because they intuitively under-
sample became larger and larger: “It’s likely he’s stood that it’s immigration—and particularly illegal immigration—that
going to win.” And then capitulation: Donald Trump depresses their wages.
was going to be the 45th President of the United It’s striking that Trump’s core constituency was less educated working
States and that was that. Time to hit the sack. class whites. College graduates backed Hillary Clinton by a nine-point
margin while non-college grads favoured
“When I woke up next morning, my Trump by eight percent. This was the
widest gap in a generation. When illegals
first thought was: Was I dreaming last enter the US, they’re not (for the most
night? Had Trump won?” part) competing for work as university
professors or government paper-pushers.
When I woke up next morning, my first thought The illegals are tradesmen and unskilled labourers.
was: Was I dreaming last night? Had Trump won? Donald Trump was elected because the majority of Americans under-
But by then it was official. Hillary Clinton had stand (correctly) that their standard of living and quality of life is not what
conceded and it was time to move on to a Trump it was a generation ago and that the political establishment wasn’t doing
presidency. anything to address it.
There was a great deal of discussion in the weeks Okay. So that’s why Trump was elected. Now the question is what he’s
that followed that attempted to make sense of the likely to do first and how it will impact the American and global economies.
result. Almost everyone who was seemingly in the If he’s smart—and if nothing else, he demonstrated real cunning in
know was certain that Hillary Clinton would become this election cycle—he’ll start with income tax cuts, combined with tax
the first female President of the United States. And reform. This will not only make him popular with most working people,
while it’s true that she won the popular vote, every- but it will mute the criticism that will come from the people who oppose
one knew the rules coming in and there was no ques- Trump and will always oppose him.
tioning the legitimacy of the result. Trump will not build a wall with Mexico. And he will take some flak
Before I get to why I think Donald Trump won, from his base for it. But there will be greater security along the border.
let us find common ground and agree that he won And deportations will increase and this will be enough.
in spite of his persona, not because of it. The peo- Trade will be a tougher row to hoe: I’m just not sure how this will play
ple I know who supported him agreed that he could out.
be personally offensive, perhaps even more offensive Donald Trump has shaken the political establishment and even though
than any other candidate before, yet they believed I’m not sure that the majority of his voters will see an uptick in their lives
that his ideas were more important. as a result, his election in itself was an important statement. B2B
PurchasingB2B.ca / December 2016 / 5
PB2B_DEC16_BAS.indd 5 2016-12-05 4:35 PM
Finance Corner
Waste Not,
Want Not Siobhan Chinnery is the
vice-president of global
A knock-on effect of sustainability projects/oil & gas at
is often a boost to the bottom line Schenker of Canada.
By Siobhan Chinnery
T
he easiest path to a “greener” supply chain also Minimize risk in long supply chains
happens to be a surefire way to reduce costs. It’s important to review the supply chain and ensure that there are not
Most initiatives with the objective to reduce the any risks to life, communities or other social perils with suppliers engaged
environmental footprint of that organization—either along the value chain. As supply chains have become increasingly global
deliberately or as an unexpected benefit—will there- and longer from source to consumer, the risk increases for the organiza-
fore help to reduce waste. tion responsible for that supply chain. An organization that is focused on
So remember to calculate the value that’s created the full impact of its supply chain will ensure that all suppliers in the chain
by initiatives that focus on sustainability. Although meet its high standards for quality, environmental stewardship, and work-
cost reduction may not be the main motivation, it place practices protecting human rights. A
is often an additional benefit. As with all procure- When the opposite is true, one can see the impacts in the headlines.
ment initiatives, cost reductions lead to a one-for- Companies that did not ensure this rigour in their supply chains expe- s
one improvement to the bottom line, while a similar rienced high costs to recall faulty products, lost revenue from a lack of S
increase in revenue does not get fully realized. customer confidence, unexpected costs related to incidents and the sur-
rounding fallout. The cost avoidance of a
“In streamlining transportation routes, reducing trips having a truly sustainable supply chain
that will not lead to market instability, a •
and miles, green initiatives also reduce the consumption
lack of customer confidence and the high
of fuel and maintenance costs for the vehicles involved.” cost of undoing poor supply decisions is
immeasurable in many cases.
In this article, I’ll discuss three ways sustainable
supply chain initiatives can, and usually do, have a Simple but beneficial office programs
•
positive impact not only on sustainability efforts, but Many organizations first enter the world of green supply chains by reduc-
on the bottom line as well. ing paper consumption, recycling paper programs and other such initia-
tives focused on the waste produced in the office environment. Many office
Cost and waste reduction programs really do focus on waste, which easily translates to reduced
Reducing an organization’s environmental foot- costs. Take, for example, an initiative to reduce the number of pages that
print is often done through waste reduction, which get printed either through double sided printing, a reduced number of
•
results in cost reduction. For example, organizations printers or simple reminders to employees aimed at eliminating unnec-
that reduce the packaging they use will not only see essary printing. These programs target waste, reduce costs and benefit
less packaging thrown away or recycled, but will also the environment. This is usually the low-hanging fruit of the green ini-
purchase less packaging. This means reduced pack- tiatives—easily implemented and also have the direct benefit of reducing
aging costs. costs, which should be tracked as cost reduction initiatives as well as sus-
Another example involves industry where organi- tainability actions.
zations strive to use less water. Doing so often means A
less water treatment chemicals, which lowers the Reporting cost reductions
overall costs of products purchased. And finally, in These few examples illustrate how green or sustainable supply chain initia- L
the transportation arena, initiatives that reduce the tives also have a financial reward and could be reported as procurement
miles travelled automatically lowers the greenhouse value creation. All value creation should be supported by practical evidence
gas emissions associated with that delivery service. and should also focus primarily on cost reductions, rather than potential
In streamlining transportation routes, reducing trips cost avoidance. Although mitigating the risk of long, global supply chains
and miles, green initiatives also reduce the consump- can prevent potential upsets and costs, it is not advisable to report this cost
tion of fuel and maintenance costs for the vehicles avoidance. Focus rather on true cost reductions resulting from a reduction
involved. in waste to share the financial benefits of a sustainable supply chain. B2B
6 / December 2016 / PurchasingB2B.ca
PB2B_DEC16_BAS.indd 6 2016-12-05 4:35 PM PB2B_SC
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PurchasingB2B.ca / December 2016 / 7
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MUNICIPAL
SUSTAINABILITY
Canadian municipalities turn to supply chains for By Natalie Duronio
effective resource use
T
here is a growing expectation that local governments use More than 60 percent of municipalities profiled in the Municipal
resources efficiently and effectively, while driving posi- Collaboration for Sustainable Procurement’s (MCSP) 2015 Annual
tive impacts for the community, society, and environment. Trends Report noted they were still at a nascent stage regarding staff
Many municipalities have turned to their supply chains to address training and engagement on sustainable purchasing, and none of
this call to action. The challenge is that most municipalities are them felt as though they were yet doing all they could. Canadian
still working at getting the basics in place and growing their pro- municipalities have identified staff education and change manage-
grams. Change takes time, and putting into practice a different ment as a pillar for their programs, but determining how best to
way of making purchasing decisions is not easy. This means that carry out these activities is a challenge of its own.
those driving sustainable purchasing work must prioritize finding Some barriers facing municipalities are finding the resources
ways to communicate and engage, making sustainable purchas- and time for training and engagement, and figuring out how to
ing stand out against the emails, information and priorities com- deliver information most effectively. While it’s tempting to look
ing at their staff. for ways to get information across most quickly, simply sending
Large municipalities in Canada spend upwards of $20 billion emails that include slide decks or posting information packages
annually, so a major portion of their social, environmental, and to online portals is not effective at creating lasting change.
economic impact is driven by what they buy. By some estimates, Municipalities are working to tackle this by implementing bet-
public agencies’ supply chains account for more than 40 percent ter training and engagement practices. While trial and error is
of their greenhouse gas emissions footprint. How they decide to involved, best practices have emerged. Staff training and engage-
spend their money can have an impact on citizens and the planet. ment can be a considerable investment, but following the three
Many municipalities have now codified sustainability into their principles below will help to ensure that there is a positive return
purchasing policies or directives, and have taken steps to apply a in terms of the development and success of sustainable purchasing.
sustainability lens in evaluating their vendors and their products Tailor training to the differing needs of your internal audiences.
and services. However, it’s a challenge to embed sustainable pur- There are three types of audiences that need to be informed about
chasing into the organization’s fabric. sustainable purchasing, each with different learning needs:
• Senior managers or directors who oversee and approve budgets
need awareness of how green and social procurement choices
The opportunities presented by benefit the business plan. They need to learn how to identify
sustainable purchasing are vast, and where their planning decisions will most impact sustainability
what is required to make it work is to get goals;
a bit creative, leverage technology, and • Those in purchasing roles who are most intimately involved in
keep communication channels open and the bulk of this work need to; and
• Administrative staff or P-card holders who make spot pur-
collaborative
chases or perform ordering need a sustainability mindset—
understanding that small purchases can add up to have bigger
The challenge is that the integration of sustainable purchasing impacts. This group needs instruction to gain and maintain
requires buy-in and behaviour change across all levels in nearly awareness of the environmentally and socially responsible
every department. Staff needs to be on board and to see it as a choices they can influence.
priority. This takes time, and there’s no evidence that it happens The best results come from tailoring training to each audience
organically—training and engagement activities are a must for so they’re well versed in the messages and procedures most rele-
organizations to capitalize on the potential that sustainable pur- vant to their involvement in sustainable purchasing.
chasing provides. You wouldn’t roll out a new e-procurement sys- Avoid “one-and-done” style training. Research shows multiple
tem without taking the time to normalize new procedures and learning interventions lead to the greatest retention and ability to
providing opportunities for training. Similarly, municipal staff apply knowledge. Organizations should avoid holding a single,
can’t deliver on sustainable purchasing activities without robust comprehensive training session on sustainable purchasing. Even
investment in training and communications. speaking with a supervisor about what you hope to get out of a pos-
8 / December 2016 / PurchasingB2B.ca
PB2B_DEC16_BAS.indd 8 2016-12-05 4:35 PM
sible training event adds impacts, again if a mix of in-person sessions, with digi- procedures and ongoing training.
there’s a post-event discussion. tal content and reference materials that The opportunities presented by sus-
Particularly when new tools to support can be worked with independently. After tainable purchasing are vast, and what
the work are being rolled out, it’s impor- introducing sustainable purchasing con- is required to make it work is to get a bit
tant for staff to be introduced to the tools, cepts at an in-person meeting, the City creative, leverage technology and keep
then to work with them, and over time, to of Edmonton exposed their staff to more communication channels open and col-
further ask questions and learn more. material in short, online modules and dis- laborative. The result will be an inte-
The City of Vancouver’s supply chain tributed short follow-up emails. This has grated system, in which sustainability is
management team held multiple one-hour been complemented by discussions with fully embedded into procurement prac-
staff training sessions when new sustain- the contact for sustainable purchasing, tices and drives real impact, helping
able purchasing processes and tools were workshops, and inviting staff to attend to achieve municipal goals and tangi-
rolled out in 2015. All SCM staff were webinars on sustainable purchasing topics. bly improve the social, environmental
trained and re-trained in the new tools Sustainable purchasing is the way for- and ethical performance of our procure-
and processes. The training sessions were ward for municipalities and other orga- ments and impacts of the supply chain.
tailored to the needs of each group within nizations that need to deliver social, Ultimately, effective engagement can
SCM to ensure the most relevant infor- environmental, and economic impact. lead to a way of purchasing that drives
mation for their needs. The design of the Getting this impact requires a culture change, turning the organization’s supply
training—with an initial session, then fol- shift toward sustainable purchasing, and chain into a catalyst for social and envi-
low-up sessions—reinforced new practices this means engaging staff from across ronmental innovation in the marketplace
and identified implementation challenges. the organization and empowering them leading to a circular and inclusive econ-
Apply a blended learning approach. to think differently. Information over- omy. B2B
Staff has different learning styles, and load is a challenge, but this doesn’t mean
organizations get the best results when that training and engagement should be Natalie Duronio is
their people receive content in multiple overlooked; on the contrary, it creates program coordinator for
modalities. This means mixing formal an imperative to be strategic—integrat- the MCSP and works with
sessions with informal opportunities to ing sustainable purchasing into existing Reeve Consulting.
ask questions. It also ideally means using orientation sessions, basic procurement
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SUSTAINABLE
JOURNEY
I
n recent years, procurement has seen sustainability move from a set of
tasks done off the side of the desk to a value that’s integrated into the
purchasing function and the supply chain. Sustainability has moved
to not only a top priority for procurement professionals but also a core
value for many organizations. Sustainability—while for some a con-
cept still limited to environmentally friendly or “green” products,
recycling and similar ideas—benefits not only the environment but
also corporate social responsibility and the bottom line. Companies
and organizations now realize this, and are incorporating sustainabil-
A few of ity into their business practices.
PurchasingB2B spoke via email to several sustainability and procurement experts
Canada’s about their own companies’ journeys to sustainability, what challenges they
sustainability and encountered, successes they’ve accrued and best practices they can pass along to
other organizations.
procurement One such company to recently look at its procurement practices through a sus-
tainability lens is lululemon. In 2016, the Vancouver-based athletic apparel compa-
leaders provide ny’s global procurement team was in the process of developing policy and strategy,
says Julie Strilesky, sustainability operations manager. At the same time, the pro-
advice on moving curement and sustainability functions both acquired new leadership, which offered
a timely chance to integrate sustainability into the procurement function.
your operations Sustainability has now been included in lululemon’s global procurement policy,
and the company is integrating social, environmental, economic and transparency
towards a considerations into its sourcing, Strilesky says.
greener future “Since we started, nearly a dozen projects will have sustainable criteria incorpo-
rated into the products and services being purchased,” she says. “Projects under-
10 / December 2016 / PurchasingB2B.ca
PB2B_DEC16_BAS.indd 10 2016-12-05 4:35 PM“We need to achieve different results to
EY
sustain the population and if we do not do
things dramatically different we will not
achieve the results needed.”
- Victoria Wakefield
way in the coming months include energy procurement for UBC’s sustainability journey
North America, building management systems and fixtures In its sustainability journey, the University of British Columbia
for our stories.” has developed both supplier outreach material and a sustain-
Initially, lululemon has focused on developing tools and able purchasing guide—designed for university employees to
resources that were made available to the procurement team help them make sustainable buying decisions—all of which is
so they are educated about standards and opportunities, she available on the institution’s website (https://sustain.ubc.ca).
said. The team has included sustainability considerations in The material came about as the school was doing outreach to
its global policy and procurement tools, and works with part- it’s various departments to ask why they weren’t ordering ethi-
ners and clients within the company to add a sustainability cal and sustainable items, says Victoria Wakefield, the univer-
element to sourcing events. sity’s manager of purchasing and operations, student housing
In doing so, the procurement department is driven on a and hospitality services. The answer, she says, was simple:
personal level to put initiatives in place while learning about departments wanted to source better options but hadn’t been
opportunities along the way. “One leader within the team has provided with a guide on how to do so. UBC had committed
conducted extensive research to understand possibilities for at the corporate level to integration of its operational and aca-
better impact polybags, and has given potential suppliers the demic efforts in sustainability, and there was already commit-
challenge of differentiating themselves on their sustainability ment to going green long before the need for the guide became
offerings,” Stilesky says. apparent, she says.
While lululemon’s journey is still in its early stages, the com- The payoff was big since the items included in the guide
pany has made progress in the number and range of projects fell outside of university-wide contracts. “The items in the
examined through the lens of sustainability as well as the col- guide are typically within a spend level that units are left
laboration created between the sustainability and procure- to source themselves within acceptable budgets,” Wakefield
ment teams, she adds. Lululemon has seen a number of wins, notes. “Many of these items are low hanging fruit and campus
including green energy use in Australia, FSC-certified recy- departments were looking for some guidance on the best sus-
clable gift cars and recycled content in polybags and card- tainable choices for small spend items.”
board boxes. While the University of British Columbia is over 100 years
The journey has also taught the company several things, old, the institution’s sustainability journey begins relatively
including the importance of getting engaged in projects early recently, in 1990, when it signed the Talloires Declaration
in the procurement process, fostering strong communication that enshrined the commitment of higher learning institu-
between teams, as well as the value of upfront education— tions to make sustainability a foundation for campus opera-
both on the “why” and the “how” of sustainability initiatives. tions, research and teaching. Since then, UBC became the
As well, the importance of ensuring that leadership and deci- first campus in Canada to adopt—a sustainable development
sion-makers are on board and champion sustainability efforts, policy and to open an office devoted to campus sustainability.
clearly establishing what success should look like for each proj- In 2007, the school met its Kyoto Protocol targets and reduced
ect based on factors like quality, cost, the environment, deliv- greenhouse gas emissions by six percent below 1990 levels.
ery and so on. “There has been many challenges along the way and some
For procurement organizations looking to embark on great setbacks, but if you consider setbacks opportunities to
the path to more sustainable operations, lululemon recom- learn more and establish a better vision it keeps momentum
mends developing a deep understanding of the business, as moving in the right direction,” says Wakefield.
well as who the decision-makers are, and communicate and The university also completed a zero waste action plan in
build relationships with executives and functions across the 2014, she notes. The province’s landfills are full, and with
organization. over 400 buildings on the Point Grey Campus, there are myr-
“Once someone understands and trusts you, you are far iad opportunities to show leadership in achieving zero waste.
more likely to get traction,” Stilesky says. “Timing is also crit- Focusing and prioritizing where products will end up at end of
ical as is being aware of budget cycles and current company use—even before those products are procured—has provided
conditions.” the procurement team with an ongoing project. “We have
PurchasingB2B.ca / December 2016 / 11
PB2B_DEC16_BAS.indd 11 2016-12-05 4:35 PMENERGY-EFFICIENT DEVICES
installing or upgrading to modern
devices that permit reduced energy use
intensity, such as LED lighting.
INNOVATIVE
EQUIPMENT
installing equipment
such as magnetic
bearing chillers. The
motor in this type of
chiller rests on mag-
netic bearings and
levitates when turned
on. It encounters
less running resis-
tance, reduces energy
consumption and
requires less frequent
maintenance.
OCCUPANCY SENSORS
ensures light, heat and ventilation sys-
tems in office spaces only turn fully on
when the building detects people inside.
rolled out a campaign called ‘sort-it-out’ and that is exactly to return used toner cartridges directly to the vendor. Those
what we’ve been doing,” she says. “From composting to con- vendors track and collect those toner cartridges at no shipping
struction waste we have sorted it out!” costs to the company. Along with this, the Manulife Global
Talking, networking and learning from others on campus has Asset Management Group also has an environmental, social
helped UBC keep on the right path in its journey, Wakefield and governance (ESG) policy that outlines how the organiza-
says. Staying connected and listening to both successes and tion integrates the evaluation of risks into its investment pro-
challenges—then trying new approaches—has yielded results. cess, Noue says. In 2015, Manulife Asset Management also
The school’s climate action plan commits to a 33-percent reduc- became a signatory to the United Nations–supported Principles
tion by 2015, a 67-percent reduction by 2020 and 100 percent of Responsible Investment (PRI) initiative.
by 2050. UBC is now investing in large-scale energy retrofits, The company’s new office tower developments look to
alternative energy systems and engagement strategies to meet Leadership in Energy and Environmental Design (LEED)
those energy and climate targets. Gold certification as the basis for design, Noue notes, with a
“What’s worked well has been setting outrageously bold focus on reducing operational energy consumption. Designs
goals,” she says. “We need to achieve different results to sustain also specify high levels of durability for equipment to improve
the population and if we do not do things dramatically differ- performance and reduce replacement costs and waste over a
ent we will not achieve the results needed. It will take courage building’s lifecycle, he says. This approach focuses on reduc-
and risks and looking at water, and energy and waste differently ing the operational lifecycle costs of its buildings and the
than ever before. At UBC, sustainability is not just a word to waste they generate. Noue notes that the company is reducing
define—it’s a word that defines us.” energy consumption in its real estate through:
• Occupancy sensors: ensures light, heat and ventila-
Building sustainability tion systems in office spaces only turn fully on when the
Procurement and sourcing departments require support from building detects people inside.
upper management when enacting sustainability practices, • Energy-efficient devices: installing or upgrading to
notes Eric Noue, director of strategic sourcing, strategic sourc- modern devices that permit reduced energy use intensity,
ing office, at Manulife-John Hancock. To get that support, it’s such as LED lighting.
critical that any sustainability action lines up with the compa- • Innovative equipment: installing equipment such as
ny’s overall strategic priorities, he says. As well, any of those magnetic bearing chillers. The motor in this type of chiller
initiatives must have benefits—be they financial, social or rests on magnetic bearings and levitates when turned on.
otherwise—that would result from putting them into effect. It encounters less running resistance, reduces energy con-
“Sustainability is about getting the most out of the dollars we sumption and requires less frequent maintenance.
invest in our buildings while making changes that result in bet- The journey to sustainability may be a challenging one
ter building environment and ultimately contributing to higher at times, but also one that can yield rewards. Organizations
personnel productivity and satisfaction levels,” he says. undertaking steps to become more sustainable have a wide
For its part, Manulife-John Hancock has implemented an breadth of resources available to them, as well as others on the
improved toner recycling program, which works with vendors same journey to learn from. B2B
12 / December 2016 / PurchasingB2B.ca
PB2B_DEC16_BAS.indd 12 2016-12-05 4:35 PMDECEMBER 2016
16 GREEN FLEET VEHICLES
A look at some of the new sustainable fleet options.
16
22
18 BIG DATA
How the digital economy is affecting fleet management.
20 DISRUPTIVE TRENDS
Driverless cars, Electric vehicles, connectivity and more.
22 TRUCK KING REPORT 26
Find out who is is crowned king in 2016.
26 QUIET AND GREEN
The 2017 RAV4 is a smooth and effortless drive.
Fleet Management is a special section of PurchasingB2B magazine, running in the February, June, August and December issues. It is an important resource for Canadian procurement professionals who recommend,
select and manage fleet vendors and service providers. Editorial inquiries: Michael Power, MPower@PurchasingB2B.ca. Advertising inquiries: Dorothy Jakovina, 416.510.6899, djakovina@PurchasingB2B.ca.
Plug-in hybrid Cadillac on Shell Canada and
sale in spring Purolator sign fleet
Cadillac’s first 2017 CT6 Plug-In
Hybrid prestige sedan will go on sale card deal
in spring 2017, with a total driving Shell Canada has inked a multi-year agreement to pro-
range of over 400 miles. The CT6 vide Shell Fleet Navigator Card services to Purolator,
Plug-In Hybrid system is designed an integrated freight and parcel solutions provider. The
for responsive, all-electric driving for companies announced that Purolator has transitioned
Cadillac
most daily commutes, while providing its fleet of 3,000 drivers across Canada to the Shell Fleet
blended power from the engine and Navigator Card.
battery at higher speeds and higher loads, said Cadillac. “As one of the most prominent freight, parcel and
All-electric range for the vehicle is an estimated 30 miles. But the car’s logistics solutions providers in the country, Purolator
combination of efficient engine and battery power gives drivers more than has a massive footprint and a complex fleet operation
400 miles of range without having to find charging stations along the way. to match,” said Josh Ferguson, national sales manager,
The advanced propulsion system also removes range anxiety for our cus- commercial fleet, Shell Canada. “Through this relation-
tomers, said the company. ship, we’re excited to help further optimize their fleet
Cadillac’s prestige plug-in hybrid entry provides the same zero-to- operations by providing insights and unprecedented
60mph performance as its V6-powered competitors, while achieving flexibility for their fleet drivers.”
roughly twice the full EV range and MPGe figures. In addition to Shell’s accessible fuel network, fleet
The vehicle will have fuel economy estimated at 65 MPGe. Miles per managers at Purolator will have access to Shell’s online
gallon equivalence (MPGe) compares energy the consumption of plug-in card management tool, eTRAC. The system provides
electric vehicles and other advanced technology vehicles with the fuel econ- insights into driver spending, allows managers to set
omy of conventional internal combustion vehicles in miles per US gallon. card restrictions and access reporting functions.
The CT6 Plug-In Hybrid combines an all-new rear wheel drive electric “Shell brings great experience in the fuel manage-
variable transmission to provide smooth, powerful acceleration. The two- ment space as well as a strong reputation for customer
motor EVT system combines with the 2.0-liter turbocharged four- cylinder satisfaction,” said Serge Viola, director, assets man-
gas engine to produce an estimated total system power of 335 hp (250 kW) agement at Purolator. “We selected the Shell Fleet
and 432 lb-ft (586 Nm) of torque. This helps propel the vehicle from a zero NavigatorTM Card based on Shell’s package of value,
to 60mph in an estimated 5.2 seconds, said Cadillac. reporting and customer service. We look forward to a
The CT6 Plug-In Hybrid launches in North America in spring, 2017. collaborative partnership in the years ahead.”
FLEET MANAGEMENT | PurchasingB2B.ca | December 2016 | 13
PB2B_DEC16_BAS.indd 13 2016-12-05 4:35 PM2017 Chrysler 200 earns Ford of Canada names
safety rating new president
The 2017 Chrysler 200 earned a five- Ford Motor Company of
star overall safety rating from the Canada, Ltd. has named
US National Highway Traffic Safety Mark Buzzell as its next
Administration (NHTSA). The front- president and CEO, replac-
Chrysler
wheel-drive (FWD) version merits five ing Dianne Craig, who
stars, the company said, while the all- has served in the role for
wheel-drive Chrysler 200 has not been the past five years. The
rated. Five stars is the highest safety rating given by NHTSA. appointment is effective as
Ford of Canada
The mid-size sedan also scored five stars in each of the crash tests of January 1, 2017.
that NHTSA conducts. They simulate: “While the sales lead-
• A frontal collision; ership title is a nice pride
• Side-impact in a two-vehicle collision; and point for our dealers and
• Side-impact in a single-vehicle collision with a pole or tree. employees, what I consider our greatest accomplish-
These test results come after the Top Safety Pick+ rating given to ment is how we achieved that success. We are the best-
the 2016 Chrysler 200 by the Insurance Institute for Highway Safety selling brand due to an unwavering focus on what is
(IIHS). best for our customers,” said Craig.
Passive safety systems, such as a vehicle’s body structure, help miti- Buzzell, currently general manager for the west-
gate the effects of a crash, said Chrysler. More than 60 percent of the ern market area in the US, joined Ford in 1989 and
Chrysler 200’s body structure consists of high-strength steel, which has held a variety of marketing, sales and service posi-
helps the vehicle maintain its integrity during collisions. tions across the country, as well as in the Caribbean
Active safety systems, such as Full-speed Forward Collision Warning- and Central America. He has a bachelor of business
Plus, help drivers avoid crashes. That system benefits from sensor- degree from Pennsylvania State University and a mas-
fusion technology, the company said, which combines a camera with a ter’s degree in marketing from the University of Notre
radar sensor to deliver greater object-detection precision. Dame.
Full-speed Forward Collision Warning-Plus provides alerts, auton- “I look forward to joining Ford of Canada’s win-
omous braking and, under certain circumstances, slows or brings ning team to lead the company’s efforts to be the most
the 2017 Chrysler 200 to a full stop when a frontal collision seems trusted and admired automotive brand in the coun-
imminent. try,” Buzzell said.
Collisions on the rise:
Allstate Canada study
Thinkstock/Getty Images
The latest Allstate Insurance Company country according to collision frequency.
of Canada Safe Driving Study reveals Of the 86 communities included in the
that collisions continue to rise in a num- 2016 study, Spruce Grove, AB ranked as
ber of provinces. Despite improvements the safest, with a collision frequency rate
in Alberta and New Brunswick, the of 3.6 percent, while the community with followed suit, jumping from 5.6 to 5.8 per-
national collision frequency rate has risen the highest regularity of collisions was cent. Conversely, New Brunswick was
from 5.6 percent to 5.7 percent since the Halifax, at 7.8 percent. the province with the lowest collision fre-
previous period, representing a 1.7 per- Despite an overall hike in the frequency quency rate at 5.1 percent.
cent increase in claims across the coun- of collisions, two provinces experienced Allstate data shows that the three most
try, the report says. particularly significant increases. For the common types of collisions are: vehi-
Now in its eighth year, the Safe Driving second consecutive study, Nova Scotia cles being rear-ended (26 percent); acci-
Study examines collision data of Allstate was the province with the highest collision dents that occur while passing through
Canada customers in Alberta, New frequency rate, increasing from 5.4 to 6.4 an intersection or turning (24 percent);
Brunswick, Nova Scotia, and Ontario— percent, representing an increase of 17.8 and collisions involving parked vehicles
which is then used to rank cities across the percent since the previous period. Ontario (13 percent).
14 | December 2016 | PurchasingB2B.ca | FLEET MANAGEMENT
PB2B_DEC16_BAS.indd 14 2016-12-05 4:35 PM PB2B_NiT:8.125»
S:7»
T:10.75»
S:10»
ADD A FEW HARD WORKERS
TO YOUR CREW.
The 2017 Nissan Titan XD with Cummins® Turbo Diesel Engine* offers superior capability
and performance. With over 12,000 lbs of towing capacity** and 555 lb.-ft. of torque,
you can trust that a fleet of Titans can handle anything your workers throw at it. Or in it.
*Available feature. **When equipped properly. The Nissan names, logos, product names, feature names, and slogans are trademarks owned by or licensed
to Nissan Motor Co. Ltd. and/or its North American subsidiaries. Always wear your seat belt, and please don’t drink and drive. ©2016 Nissan Canada Inc.
All rights reserved.
PB2B_Nissan_Dec.indd
PB2B_DEC16_BAS.indd 115 2016-11-22 10:04
2016-12-12 9:29 AMGREEN Eco-minded options grow in popularity
FLEET
VEHICLES
In the span of a
few years hybrids, EVs
and ultra-efficient vehicles have
gone from curiosities embraced by the
eco-conscientious and early adopters
> Chevrolet’s elec-
GENERAL
MOTORS
tric Bolt has managed to mainstream acceptance with most
to achieve what every automakers fielding at least one entry. There
other EV maker has are several reasons for their widespread gain
Image: Lesley Wimbush
tried and failed to do; in popularity; aside from better awareness of
by delivering a perfectly environmental impact, consumers are realizing
normal driving expe-
an alternative energy vehicle can be easier
rience, with no range-
anxiety, that comes in on the pocketbook—especially given the
under $40,000 (when attractive rebates currently on offer. Here
you factor in rebates). The mainstream-looking Bolt offers are just a few of the “green cars”
383km of driving on a single charge. available on today’s market.
Image: Ford Motor Company
FORD SUBARU HYUNDAI
> Subaru’s first ever hybrid, the
Image: Lesley Wimbush
Crosstrek Hybrid, will be discontin-
ued for 2017. But most of their current
lineup, including Forester, Crosstrek,
Legacy, Impreza and Outback, already
> Ford’s mid-sized four-door comes wear “PZEV” badges, for Partial Zero
in two hybrid flavours: Fusion Hybrid Emissions Vehicle. These vehicles have > Hyundai has had great success
and Fusion Energi Plug-in ($25,388- traditional power trains, but they’re with their Sonata Hybrid and Hybrid
$38,788). Fuel economy numbers for the engineered to produce up to 80-percent Plug-in, which offer best-in-class pas-
Fusion Hybrid are 5.5/5.7L/100km, lower emissions than their conventional senger space. Recently introduced, the
and 2.7L/100km combined for the counterparts. PZEV, once offered as Ioniq is available in Hybrid, Plug-in
Energi. Which one you choose depends an option, is now standard on naturally hybrid and all electric, and is remark-
on whether you value fuel economy aspirated, four-cylinder Subarus, with- able mainly for its rather unremarkable
over utility—the Energi has the lowest out affecting performance. Subaru also appearance. Forgoing the ultra-mod-
trunk space in the segment. It has up plans to introduce an all-electric cross- ern weirdness typical of some green
to 34km of EV-range however, and a over for 2021. vehicles, the Ioniq offers a conven-
combined range of 982km. The power
tional driving experience and plenty of
trains remain the same on both hybrids,
safety and connectivity technology. The
but for 2017, there’s more safety tech-
Plug-In hybrid boasts over 40km in all-
nology including hands-free parallel
electric mode, while the Ioniq Electric
and perpendicular parking, pedestrian
Image: Subaru
has a range of 177km and a fuel-rating
detection, lane-keeping assist and blind
equivalent of 1.89L/100km on a single
spot warning with cross-traffic alert.
charge.
16 | December 2016 | PurchasingB2B.ca | FLEET MANAGEMENT
PB2B_DEC16_BAS.indd 16 2016-12-05 4:35 PMMITSUBISHI
> The de-facto poster child of
TOYOTA
the hybrid movement, the Prius
was a game-changer when it
Image: Mitsubishi
arrived two decades ago. After
a lacklustre attempt in 2012
to produce a plug-in version,
Toyota got it right with the new
2017 Prius Prime. With a com- > The long overdue arrival of the
Image: Toyota
bined driving range of 965km Outlander plug-in hybrid has been once-
and official fuel consumption again postponed—to next summer. This
rating as low as 1.96/100km, leaves only the i-Miev, a rather crude and
the Prius Prime is a viable commuter as well as inner city runabout. While outdated electric car whose range and
it doesn’t offer quite as much useable cargo space as the Prius Liftback or power lag far behind competitors. Still, it
Prius V, the Camry Hybrid (from $29,235) is a stylish, powerful sedan with boasts zero emissions, has space for four
a more refined driving experience and nicely appointed cabin with plenty of adults (compared to the Smart Electric’s
features. two), a comparatively low price, and it qual-
ifies for Ontario’s $8,299-$14,000 rebate.
MERCEDES NISSAN HONDA
BENZ
> One of the first really viable all-
electric vehicles out there on the
market, the Leaf is also happens
Image: Mercedes Benz
to be the world’s best seller. But
iImage: Honda
the vehicle’s range could be dras-
tically affected by the Canadian
climate. For 2017, the Leaf—
which is priced at $32,698—was > Honda has finally released a
> While the luxury German rumoured to be getting a 60-kWh mass-produced fuel-cell vehicle
automaker currently has several battery pack—that would make in their new FCX Clarity, which
Bluetec clean diesel models in its it more than twice the size of the will eventually be available as
lineup, it’s promising to deliver current unit. The move would both an electric and hybrid vehi-
four all electric vehicles by 2020. make the Leaf better able to com- cle. In the meantime, hydro-
Two will be sedans—in the pete with the Chevrolet Bolt and gen charging stations in Canada
mid-size C-Class and full-size Tesla Model 3. The larger battery remain few and far between.
S-Class range, and the other two pack would approximately dou- However, after a year’s hia-
will be compact and mid-size ble the Leaf’s range. Apparently, tus, the Honda Accord returns
crossovers. The refreshed, full- that boost in the car’s energy stor- for 2017 with more horsepower,
size Mercedes-Benz S550e plug- age and range won’t actually hap- more safety technology and a
in hybrid ($117,300- $134,000) pen until 2018. For now, however, four-percent improvement in its
will reportedly have greater elec- all 2016 Leafs (including the base fuel efficiency. As well, the new
tric-only range, and wireless model S which used to have 24 official fuel consumption ratings
charging for 2017. None of its kWh) will come with a 30kWh of 4.5/5.1 put the Accord Hybrid
competitors offer customers the pack and an estimated 172km of at the top of its class with regards
convenience of charging their range. to fuel economy. It also comes
car without cables and ports. with Honda Sensing, which is a
Offered only as a long-wheelbase suite of advanced safety technol-
version, the S550e is loaded with ogy including adaptive cruise
luxury features like massaging control, lane-keep assist, emer-
seats, adaptive cruise control and gency braking and blind spot
semi-autonomous technology. warning.
The 436hp luxury car has an
Image: Nissan
official combined consumption
rating of 9.7L/100km.
FLEET MANAGEMENT | PurchasingB2B.ca | December 2016 | 17
PB2B_DEC16_BAS.indd 17 2016-12-05 4:35 PMYou can also read
