WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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FEBRUARY 2020
C A N A DA’ S S U P P LY C H A I N M AG A Z I N E FORMERLY
MATERIALS
WHAT IS YOUR MANAGEMENT &
DISTRIBUTION
JOB WORTH?
The 2020
Survey
of the
Canadian
Logistics
Professional
Publication mail agreement #40063170
WMS enables
growth
i Blockchain
vs fraud
i Hazardous
INSIDELOGISTICS.CA materials
Software suited to meet the current and evolving business processes of
single or multiple warehouse sites, 3PL distribution,
ecommerce and mobile workforces
www.rfpathways.com
AUTOMATION ASSOCIATES INC.
6705 Tomken Road, Suite 211 • Mississauga, Ontario L5T 2J6
P: 905-565-6560 • Toll Free: 866-823-6114
CHECK OUT OUR
MOVERS & SHAKERS
SECTION
SECT ION
page 1111
C A N A DA’ S S U P P LY C H A I N M AG A Z I N E
FE B R UARY 2 0 20 • V O L UM E 6 5 • NU M B ER 0 1
CONTENTS
In every issue:
5 Taking Stock
Editor’s analysis
7 Supply Chain Scan
News and numbers
from around the world
27 Learning Curve
2020 resolutions
28 Supply Chain
Smarts
Managing risk in 2020
Automating
12 29 Leading Edge
Who dug your welll?
30 Safety First
Chemical hazards
for growth
Shandex maximizes with WMS
ON THE COVER
SUPPLY CHAIN SCAN
7 Exoskeletons advance | Increasing carrier liability | Movers + Shakers |
Safer lithium-ion battery | SMB costs climb | Cobot adoption
0
0
0
average
0
0
2014 2015 2016
Measuring up MODEX Salary Survey Blockchain
We asked and you answered –
what are supply chain jobs
worth this year?
15 2020
What’s in store
at the show and
16 Find out where
you stand with
our Survey of the
22 Using the
technology for
fraud prevention
Story on page 16 conference in Canadian Logistics
Cover photo: Zelfit, iStockimages.com Atlanta this March Professional
insidelogistics.ca 3
TA K I N G S T O C K
insidelogistics.ca
EDITOR IN CHIEF: Emily Atkins
(416) 614-5801 emily@newcom.ca
WESTERN EDITOR: Derek Clouthier
(403) 969-1506 derek@newcom.ca
SALES MANAGER:
Anthony Buttino
(416) 614-5830 (514) 292-2297 anthonyb@newcom.ca
CREATIVE DIRECTOR: Tim Norton
(416) 510-5223 tim@newcom.ca
PRODUCTION MANAGERS:
Alicia Lerma & Jwad Khan
(416) 510 6845 alicia@newcom.ca jwad@newcom.ca
CIRCULATION MANAGER: Mary Garufi
(416) 614 5831 mary@newcom.ca
We are senior citizens
MANAGING DIRECTOR,
INSIDE LOGISTICS magazine is celebrating a milestone this year; we
TRUCKING & SUPPLY CHAIN GROUP: Lou Smyrlis celebrate 65 years of publishing in 2020! And although we’ve changed
lou@newcom.ca our name a few times over the years, we are still going strong as new
members of the seniors’ club and have no intention of retiring.
NEWCOM MEDIA INC .
That’s because we love the supply chain and all the fascinating people,
CHAIRMAN & FOUNDER: Jim Glionna
PRESIDENT: Joe Glionna processes and technology that are brought to bear to solve the many
and various challenges of getting goods where they need to be, when
Inside Logistics, established in 1956, is published
six times a year by Newcom Media Inc.
they need to be there. We’re happy that you’re along for the ride, and
thank you for your support over the years. We hope to continue to build
HEAD OFFICE
5353 Dundas St W. Suite 400, Toronto, ON, M9B 6H8 the conversation with our readers as supply chain management continues
in its rapid evolution.
SUBSCRIBER SERVICES
To subscribe, renew your subscription or to While we enjoy an enriched work environment, not everybody is quite
change your address or information contact as happy. Salaries are down this year, bonuses are weak and fewer people
mary@newcom.ca or 416 614 5831 or visit our
website: www.insidelogistics.ca/subscribe are expecting to get a raise.
SUBSCRIPTION PRICE PER YEAR These are some of the findings you’ll read about when you turn to
Canada $84.95 per year, Outside Canada $159.95 US per year. our 2020 Survey of the Canadian Logistics Professional on page 16. While
Single copy price: Canada $15.00, Outside Canada CA$32.65
Inside Logistics is published six times per year except for job satisfaction numbers have been relatively stable over the past few
occasional combined, expanded or premium issues, years, we still see up to a third of employees in some sectors and job
which count as two subscription issues.
categories looking to jump ship to a new company or job this year.
©Contents of this publication are protected by
copyright and must not be reprinted in whole or With labour shortages turning up as the second most concerning
in part without permission of the publisher. topic on our readers’ minds this year (after the perennial favourite,
DISCLAIMER controlling costs), this makes the question of retention strategies quite
This publication is for informational purposes only. You
should not act on information contained in this publication interesting. Most of our respondents say better pay is the main attraction
without seeking specific advice from qualified professionals. for changing jobs, but with costs a concern and fears of an economic
Inside Logistics accepts no responsibility or liability for claims
made for any product or service reported or advertised in downturn top of mind, how can employers compete?
this issue. Inside Logistics receives unsolicited materials, My comment above about enjoying an enriched work environment
(including letters to the editor, press releases, promotional
items and images) from time to time. Inside Logistics, might be one of the keys to keeping staff engaged. A University of
its affiliates and assignees may use, reproduce, publish, Waterloo researcher recently found that making a job meaningful is key
re-publish, distribute, store and archive such unsolicited
submissions in whole or in part in any form or medium in retaining workers, at least at the early career level in seasonal, front
whatsoever, without compensation of any sort. line jobs (see page 20 for more details).
PRINTED IN CANADA While figuring out what enrichment means will be different in every
Publications Mail Agreement #43008019, work environment, the idea bears consideration, especially with the
ISSN: 0025-5343 (Print) ISSN: 1929-6460 (Digital).
new values that millennials and younger employees bring to the job.
Inside Logistics is indexed in the Canadian Magazine Index by
Micromedia Limited. Back copies are available in microform
Any advantage that keeps employees happy and at work should be
from Macromedia Ltd., 158 Pearl St., Toronto, ON M5H 1L3 considered.
Please share your thoughts on these or any other issue with us. I can
be reached at emily@newcom.ca.
Until next time,
MEDIA INC.
FUNDED BY THE CHECK OUT OUR
GOVERNMENT
OF CANADA LOOK AT MANAGING RISK
IN TURBULENT 2020
ON PAGE 28.
insidelogistics.ca 5
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SU PPLY C H A I N S C A N
THE EVOLVING EXOSKELETON
Putting muscle into a new technology
EXOSKELETONS HAVE BEEN making inroads into
manufacturing and material handling environments
for the past several years, and now a new version is
set to power the technology to new achievements.
Delta Air Lines is partnering with Sarcos Robotics
to test a powered robotic skeleton in the first quarter
of 2020.
TOYOTA
Sarcos has developed the Sarcos Guardian XO, a INTEGRATES
battery-powered, full-body exoskeleton designed to Process complete
boost human performance and endurance while
helping to prevent injury.
This robotic suit, designed for employees to wear,
does the heavy lifting. By bearing the weight of the
8
suit and the payload, the exoskeleton may enable
an employee to lift up to 200 pounds repeatedly for
up to eight hours at a time without strain or fatigue.
A SAFER
The suit addresses the so-called ‘lift-gap’ for items BATTERY
between 15 and 90 kilograms across a wide range of
processes, and allows the operator to move in space
where traditional lifting equipment cannot maneuver.
Until now exoskeletons have been passive, non-pow-
10
ered assistive devices used largely in the automotive
sector to help workers doing repetitive overhead
AIRLINE
LIABILITY
Exoskeletons address INCREASED
the ‘lift gap’ between unassisted Better cargo
Baggage handlers lift an average of five protection now
humans and powered lifting tons of baggage per day, often performing standard
equipment. lifts in awkward positions inside an aircraft’s
underfloor baggage compartment. Such
movements greatly increase the risk of mus-
culoskeletal injuries.
11
work. Toyota, Audi, Ford and many others have been “We owe it to the best airline employees on the
testing and implementing exoskeleton systems. planet to explore how emerging technology can
Levitate’s Airframe system was shown at ProMat in make their jobs safer and easier,” said Gareth Joyce, MOVERS +
2019 and is used in Toyota’s Woodstock, Ontario,
plant. Ford began using a product called the EksoVest
Delta’s senior vice-president – airport customer ser-
vice and cargo. “That’s why we sought out a partner-
SHAKERS
Appointments and
at 15 plants in 2018, including the Oakville Assembly ship with Sarcos.” moves in the supply
Complex in Ontario. Swissport won an IATA award The Guardian XO is designed for use in industries chain sector
in 2019 for its role in developing an exoskeleton where lifting and manipulation of heavy materials
called the LiftSuit.
Delta is the first company whose frontline employ-
ees have worked directly with Sarcos to determine
or awkward objects is required and isn’t easily han-
dled by standard lift equipment. Potential uses at
Delta could include handling freight at cargo ware-
13
potential operational uses for the Guardian XO. In houses, moving maintenance components at Delta
November, representatives from Delta’s airport cus- TechOps or lifting heavy machinery and parts for
tomer service and cargo division visited the Sarcos ground support equipment.
headquarters to see the suit in action and explore Delta plans to test the technology in a pilot location,
how wearable robotics could potentially benefit them giving employees the opportunity to experience the
in their everyday work. continued on page 8
insidelogistics.ca 7
SU PPLY C H A I N S C A N
THE EVOLVING EXOSKELETON, continued from page 7
technology in a real-world setting and potentially be performed by a more nology for commercial deployment.”
provide additional feedback on its diverse talent pool, thanks to wearable Delta first started working with Sarcos
functionality. robotics. in 2018 as part of the “X-TAG”, or exo-
In addition to enabling superhuman Ben Wolff, Sarcos CEO, said, “We look skeleton technical advisory group, repre-
strength for extended periods, the robotic for companies who are clear leaders in senting the aviation sector. The group
suit may also level the playing field in tech adoption and have a history of inno- includes 10 Fortune 100 companies in
terms of physical capacity. Roles that have vating. Delta is the natural fit in the airline industrial manufacturing, oil & gas, util-
historically been limited to those who industry and has proven to be a great ities, logistics, construction, automotive,
meet specific strength requirements could partner as we work to fine tune this tech- aviation and aerospace industries.
Toyota completes
integration
Jeff Rufener
TOYOTA Forklift’s business units, Toy-
ota Industrial Equipment Manufacturing
(TIEM) and Toyota Material Handling
USA (TMHU), have been integrated into
a single business unit. The company’s
new name is Toyota Material Handling,
Inc. (TMH).
The move combines Toyota’s forklift
manufacturing operations with its sales,
marketing, and distribution functions.
The company remains headquartered
in Columbus, Indiana, where the Toyota
Forklift brand has been manufactured
since 1990. TMH is led by president and
CEO Jeff Rufener, senior vice-president
Tony Miller and senior vice-president
Bill Finerty.
Integrating the two business units is
the next step in a process that started in
2014 when TMHU completed a three-
year relocation of its headquarters from
California to Indiana. The integration
process occurred progressively through-
out 2019.
8 INSIDE Logistics FEBR UARY 2020
SU PPLY C H A I N S C A N | By Christian Sivière
Airline liability increases
THE MAXIMUM liability of airlines for
lost or damaged cargo and baggage
increased on Dec 28, 2019.
Whether they are transporting cargo,
baggage or persons, commercial airlines
photo: franckreporter, iStockimages.com
issue air waybills or tickets incorporating
well-defined terms and conditions of
carriage, including maximum amounts
that they will compensate customers
should something go wrong.
As most countries around the world
have signed the “Convention for the Uni-
fication of Certain Rules for International
Carriage by Air”, also known as the Mon-
tréal Convention MC1999, produced by
the International Civil Aviation Organiza- SDR is the abbreviation for Special airline has gone up from about C$34
tion (ICAO), these amounts are uniform Drawing Rights, an international unit to about C$40 per kilogram. Although
around the world. ICAO announced of measure created by the International this is excellent news, some shippers
last September that these amounts were Monetary Fund made up of five curren- may feel that this is too low and does not
increasing effective as follows: cies (US dollar, Euro, Japanese Yen, adequately compensate for the loss of
Injury/death: From 113,100 SDRs to British Pound and Chinese Yuan) often high-value merchandise.
128,821 SDRs per occurrence used in supranational agreements. Its The answer to this is to contract com-
Delay: From 4,694 SDRs to 5,346 SDRs value fluctuates according to the fluctu- prehensive cargo insurance in order to
per occurrence ations of these five currencies. On Jan- fully protect your shipments in transit.
Baggage: From 1,131 SDRs to 1,288 uary 3rd, one SDR was equal to C$1.80. And when a loss occurs, your insurance
SDRs per occurrence For air cargo, if your shipment is lost company pays you for the full insured
Cargo: From 19 SDRs to 22 SDRs per or damaged, the maximum amount of value. And in a separate step, it chases
kilogram compensation you will obtain from the the airline for compensation.
Logistics costs to increase for SMBs
NEARLY HALF (47 percent) of small to The top-down pressure from big-box is too expensive, while 17 percent pre-
mid-sized business decision makers who players is creating an underlying tension fer to invest in alternatives to traditional
have involvement or influence in distri- within the mid-market, which includes shipping options such as UPS, FedEx,
bution/logistics and/or procurement/ companies that likely don’t have the XPO Logistics, and freight brokers.
purchasing estimate they will spend same infrastructure and resources to “The decisions of small and mid-sized
more on shipping in 2020 over 2019. support aggressive logistics strategies. business owners are being heavily influ-
The 2020 SMB Shipping Strategies As a result, the debate for SMBs boils enced by the rise of big-box retailers
Report, conducted online, also revealed down to where they invest resources like Amazon,” said Kris Lamb, CEO of
SMB shipping spend is being influenced for logistics: teams or technology? The uShip, which sponsored the survey. “So,
by big-box retailers. In fact, 25 percent study finds 20 percent of SMB decision SMBs are beginning to rethink how
of SMB decision makers said the logis- makers would rather invest in the right they invest their shipping and logistics
tics strategies of Amazon and Walmart logistics team over technology, while dollars. Our hope is that these insights
are influencing how their company nearly 30 percent plan to make new convey the pressure being felt across the
thinks about shipping, while 27 percent technology a priority. industry and inspire SMBs to find new
said those strategies are influencing how However, 14 percent of SMB decision ways to incorporate supply chain and
their customers think about shipping. makers say investing in new technology logistics strategies.”
insidelogistics.ca 9
SU PPLY C H A I N S C A N
Researchers develop safer, water-based lithium-ion battery
AS THE LITHIUM-ION BATTERIES that Energy Storage Materials, a team of engi- ficient battery that still performs well.
power phones, laptops and electric neers at Rensselaer Polytechnic Insti- The electrodes inside a battery are
vehicles become faster-charging and tute demonstrated how using aqueous immersed in a liquid electrolyte that con-
high-performing, they also grow more electrolytes instead of the typical ducts ions as the battery charges and dis-
expensive and flammable. organic electrolytes would allow for the charges.
In research published recently in creation of a substantially safer, cost-ef- Aqueous electrolytes have been eyed
for that role because of their non-flam-
mable nature and because, unlike
non-aqueous electrolytes, they aren’t
π
sensitive to moisture in the manufactur-
ing process, making them easier to work
with and less expensive. The biggest
challenge with this material has been
maintaining performance.
SHIPPING SUPPLY SPECIALISTS “If you apply too much voltage to
water it electrolyzes, meaning the water
WAREHOUSE ESSENTIALS breaks up into hydrogen and oxygen,”
said Nikhil Koratkar, an endowed chair
HUGE SELECTION OF PALLET RACKING IN STOCK
professor of mechanical, aerospace,
and nuclear engineering at Rensselaer.
“This is a problem because then you get
outgassing, and the electrolyte is con-
sumed. So usually, this material has a
very limited voltage window.”
In this research, Koratkar and his
team – which included Fudong Han,
an endowed chair assistant professor
of mechanical, aerospace, and nuclear
engineering and Aniruddha Lakhnot,
a doctoral student at Rensselaer – used
a water-in-salt electrolyte, which is less
likely to electrolyze.
For the cathode, the researchers
used lithium manganese oxide, and for
the anode, they used niobium tungsten
oxide – a complex oxide that Koratkar
said had not been explored in an aque-
ous battery before.
“It turns out that niobium tungsten
oxide is outstanding in terms of energy
stored per unit of volume,” he said.
ORDER BY 6 PM FOR The combination of fast-charging
SAME DAY SHIPPING capability and the ability to store a
large amount of charge per unit vol-
ume, Koratkar said, is rare in aqueous
batteries.
Achieving that kind of performance,
with a low cost and improved safety,
has practical implications for applica-
COMPLETE CATALOG tions such as electric material handling
1-800-295-5510 uline.ca
vehicles.
10 INSIDE Logistics FEBR UARY 2020SU PPLY C H A I N S C A N
MOVERS + SHAKERS
Delmar International Inc. has promoted Anne Bélec has been elected to the board
Daniel Richard Cutler to the position of directors of crane and lifting solutions
of chief technology officer (CTO). Most manufacturer Manitowoc Company, Inc.
recently, Cutler was director, global strategic Bélec is a senior executive with over 33
development. With the promotion, this years of experience in sales, marketing and
represents the third generation of Cutler customer service. She had an extensive
family to hold a senior executive position in career at Ford Motor Company, holding
Remus Arbanasi will be Andy Transport’s the company’s 55-year history. Previously successively senior positions, including
chief operating officer while COO Andreea Cutler served as team lead for technology director, global marketing, and president
Crisan takes maternity leave. Arbanasi is a deployment. He lived and worked in and CEO, Volvo Cars N.A., Volvo Cars
graduate of the HEC Montréal, with a major mainland China for several years and speaks Corporation. Bélec also performed senior
in finance and accounting. Before joining English, French and Mandarin. He holds a executive roles at Navistar, Inc. and
Andy Transport as financial controller in bachelor’s degree in chemical engineering Bombardier Recreational Products, Inc.
2016, he had grown through the ranks to a from McGill University and is a CargoWise Bélec is the co-founder and serves as CEO
management role as director with Raymond Certified Professional. He will continue to be of Mosaic Group, LLC. She holds a business
Chabot Grant Thornton. Arbanasi previously based in Delmar’s Montreal head office in degree from the University of Ottawa, and
held the position of treasurer and founding Lachine, Quebec. a MBA from the Fuqua School of Business
member of the Romanian Chamber of at Duke University. Bélec also serves on the
Commerce in Quebec. board of directors of Wajax Corporation.
In a senior leadership shuffle, lululemon
athletica inc.‘s COO and EVP, international,
Captain Claude Hurley has been appointed Stuart Haselden, left the company, effective Arnold Kurtis has resigned from the
as Canada’s new permanent representative January 10, 2020. Chief technology officer, position of CEO of Toronto-based PUDO
to the Montreal-based International Civil Julie Averill and chief supply chain officer, Inc., and also from the board of directors.
Aviation Organization (ICAO). Hurley, a Ted Dagnese have joined the company’s The company’s founder Frank Coccia
professional pilot, most recently served senior leadership team, reporting to CEO will assume the position of CEO. Coccia
as president of ICAO’s Air Navigation Calvin McDonald. Averill joined lululemon founded PUDO in 2015, and has more than
Commission, the organization’s primary in 2017 and previously was as REI’s first- four decades of experience with repeated
technical body. He has been Canada’s ever CIO, and also spent over a decade at successes in banking, legal, optical, and
nominee to the Air Navigation Commission Nordstrom, where she held positions on the travel businesses.
since 2014. Before ICAO, Hurley worked in company’s IT leadership team. Before joining
Transport Canada’s Civil Aviation directorate. lululemon in 2016, Dagnese served as vice-
With over 30 years of experience, he also president, supply chain at VF Corporation
served in the Canadian Armed Forces. and senior director at Gap, Inc.
Logistics uses of cobots expected to surpass automotive IN CASE YOU MISSED IT
what’s happening at
LOGISTICS applications are expected to tive robot revenues in 2018, will hold a
insidelogistics.ca
outpace automotive industry uses and 68.4 percent share in 2023.
become the second most common use In the next five years, the fastest-grow-
for cobots in the near future. ing regions for cobot shipments are » Humanoid robots working at Ford
http://tinyurl.com/IL-Humanoid
According to a recent report by Inter- China, North America, the rest of APAC
act Analysis, in 2018 global collaborative and then Eastern Europe. All are fore-
robot revenues totalled US$566.9 mil- cast to grow at a compound annual » AI cluster launches 10 new projects
http://tinyurl.com/IL-Cluster
lion, a number that is expected to reach growth rate (CAGR) of more than over
$5.6 billion by 2027, accounting for 30.2 30 percent.
percent of the total robot market. In 2018, 51.6 of revenues were gener- » Kiva founders win innovation award
http://tinyurl.com/IL-Innovate
Material handling, assembly, and ated by the two largest manufacturers –
pick-and-place are forecast to remain Universal Robots and TechMan Robot.
the three biggest uses of collaborative More than 80 percent of collaborative » Mass layoffs due to AI unlikely
http://tinyurl.com/IL-Layoffs
robots. These three functions, which robot suppliers generated less than $10
accounted for 75 percent of collabora- million in revenues in 2017 and 2018.
insidelogistics.ca 11C A S E S T U DY | By Emily Atkins
AUTOMATING FOR
GROWTH
SHANDEX ADAPTS TO ITS CHANGING BUSINESS WITH A FLEXIBLE WMS
W
hen your warehouse staff ness develops private label consumer tems and development. “They’re doing
are trying to find inven- goods and operates four distribution the best they can. But, as we grew, peo-
tory using opera glasses centres, fulfilling both store and, increas- ple trying to locate boxes in a warehouse
to scan the upper rack- ingly, e-commerce orders. when they’re all brown, all have a white
ing levels for labels on boxes, you know “We literally came to gridlock in the label on them and trying to read them
something has to change. That’s the pre- warehouse,” said Claire Griffin, Shandex’s was a challenge.”
dicament the Shandex Group was expe- director of operations. “If you rely on peo- The company also has Health Canada
riencing in 2009. ple to drive where products go, that works certifications, which require tracking
The company is a diversified third- initially when you have copious amounts expiry dates and lot numbers, adding to
party logistics provider with a transpor- of space.” the manual workload. “A lot of our labour
tation arm and light manufacturing “We hit a wall where people can was just trying to transcribe what peo-
capabilities, based in Pickering, Ontario. only take you so far,” confirmed James ple had written into a spreadsheet so you
Founded in 1987, the family-run busi- Lambert, the company’s director, sys- could add it all up,” Lambert continued.
12 INSIDE Logistics FEBR UARY 2020Photo: Ken Young-Pong
The Shandex team from left to right: Joe Shannon, operations manager; James Lambert,
director, systems and development; Claire Griffin, director of operations; Jennifer Shannon,
VP manufac
manufacturing
turing and distribution;
distribution; and, Rob Staite, president.
a plan to run a parallel paper-based sys-
SHANDEX BY THE NUMBERS tem for a transitional month was com-
3 facilities with WMS
pletely abandoned.
63 DC employees (200 in total) “We were very confident that all of
Four shifts, seven days a week our orders were being processed and
Automation Associates RF recorded properly, which is what you
Pathways WMS need to be able to ship an invoice,”
Motorola handhelds Lambert said. “So, we didn’t feel like
Zebra label printers things were going to a black hole and
disappearing. We could see everything.”
Toyota counterbalance forktrucks
Griffin concurred: “We could see
Raymond reach trucks
how complicated it was going to be,”
Griffin said. “Our team picked up really
well in terms of using the [RF] guns.
Associates, which was the ultimate winner Acceptance of the system was higher
photo: Shandex
after all the contenders were reviewed in than we initially expected.”
a process of site visits and interviews.
“They really wanted to understand Getting results
our business and really understand how Now that the system has been in place for
their system could handle our business,” 10 years, the Shandex Group has experi-
said Griffin. “For us a big piece was also enced tangible benefits. Employee train-
that they were local and Canadian.” ing is streamlined and productivity has
Automation assist Once the vendor was chosen the com- soared.
“As soon as you have the constraint of pany moved ahead with an aggressive Joe Shannon, now the company’s oper-
space, you need some kind of system three-month implementation plan, with ations manager, started in the warehouse
or algorithm to keep the flow moving,” the objective of having the WMS in place in February 2009, using the manual sys-
Griffin said. before their annual inventory count tem. “I became a much more effective
At this point the company decided it would need to be done. “I was going to employee after the system was imple-
was time to automate inventory control in quit if we had to count on paper one mented because it evened the playing
its distribution centres to “look at zoning more time,” Lambert laughs. field. You had to spend years to become
and put away...to take that decision pro- Although Automation Associates a really good picker beforehand,” he said.
cess away from the material handler and counseled a six-month implementation Previously, 40 orders would be a big
allow the system to drive it,” she added. plan, they “rose to the occasion”, Griffin day for the DC, with an average of about
An RFP netted a proposal from said. In fact, things went so well that by 25 to 30 orders. Now, an average day,
Mississauga, Ontario-based Automation the end of the go-live day, April 1, 2009, including e-commerce, would be 200.
continued on page 14
insidelogistics.ca 13C A S E S T U DY | continued from page 13
request. “Information is what everyone
wants right now,” Lambert said. “Before,
the order had shipping to this place, this
SKU, this quantity. Now there’s tracking
numbers, lot numbers, expiration dates,
another SKU number, this SKU num-
ber, all this extra information. We are
continually adding more information
into these smaller and smaller orders for
more and more clients. But you can see
the benefits of that with the end analysis
photo: Shandex
that can be done and all the extra infor-
mation that’s there.”
Likewise, the WMS seamlessly commu-
nicates with customers’ enterprise systems
Keeping things moving – the WMS has allowed Shandex to grow along with customer as well as a newly implemented in-house
requirements.
TMS. This is key for the company’s rel-
atively new role fulfilling e-commerce
And the composition of orders has two different lot numbers instead of one, orders for clients. “Because we’re fully
changed over the years, making the so they invent a field and a process for integrated with our clients, orders actually
process considerably more complex. that. And then, another customer or cli- integrate into our WMS. They don’t have
E-commerce, for example, has meant ent needs to trigger things for best before to change anything on their front end
the addition of serial numbers in the dates, or special needs on other ones,” because they’re using their own indepen-
system, in which previously the smallest Lambert said. “A lot of the time there was dent platforms,” Griffin said.
unit would have been a case. something in the system that was almost
But the WMS has streamlined the pro- there but needed to be taken one or two Sustainable growth
cess, making the higher volume possi- steps further. And we would come up with Looking five years down the road
ble. Where before orders would come our scheme to do that. And Automation Shandex expects the WMS to continue
down on paper and a picker would “have Associates would sit down with us and talk supporting its growth. Lambert noted
to look through the order tray and go, through how to make it a reality.” that the priorities are to get better at the
oh, this is a three pager and this is a two Another advantage of the WMS has consumer goods business, e-commerce
pager,” now the whole thing is summa- been the ability to flex space up and and the Health Canada certified business.
rized in the system, Shannon said. down as need required. Since the system For e-commerce, which is growing
was adopted the company has opened quickly, “the challenge for us is the sys-
Adaptability and closed numerous off-site warehouse tem side, which is where we depend on
The biggest gain, according to Griffin, facilities that it has managed from the RF Pathways and James’s team to fig-
is the ability to grow. The WMS “had main Pickering installation. “We like to ure out how to process the order faster.
given us efficiency gains so that we were grow conservatively,” Griffin said. “WMS Because, if we can get the tracking num-
comfortably able to grow and expand.” has given us that flexibility. If we need to ber to the customer at the point of pur-
And even after a few years when client lease space as we prepare to grow for the chase when they click, that takes the anx-
requests began to really push the sys- next step of taking on a new facility or iety off the consumer and then we’ve got
tem’s limits, the Shandex team was able purchasing a new facility, we can bring time to pick and ship the order and get
to sit down with Automation Associates up a temporary site for nine months.” it out,” Griffin said.
to work out how to make adjustments to Previously, satellite sites were a chal- Likewise, the 3PL counts on the auto-
fit the new requirements. lenge with paperwork needing to be mation to help it be as flexible as its cli-
“Until about five or six years ago, we physically moved there from head office, ents require. “We never want to tell a cli-
weren’t utilizing the full capability,” resulting in slowdowns in order pro- ent, “No, we don’t have the space,” she
Shannon said. “Then we really focused cessing and invoicing. The WMS really added. “And at the same time we don’t
on diving in, using all the back tables improved the company’s cash flow, want to get to a gridlock position. We
to drive efficiency through the system. Griffin said, and was instrumental in count on that flexibility to let us con-
And that really changed the way we put gaining senior management buy-in. stantly adjust and accommodate.”
away and organize our warehouse and The bottom line, Griffin said, is “we
drive efficiency. Now, we’re at the point Data haven’t lost sight of our grassroots, but
where we are making more continuous The team at Shandex is also very happy it’s also allowed us to really expand and
improvement changes.” with the WMS’s ability to deliver the kind grow as a company in a healthy man-
For example, “a client wants to track of data that customers now routinely ner.”
14 INSIDE Logistics FEBR UARY 2020MODEX PREVIEW |
COME VISIT WITH THE
INSIDE
LOGISTICS
TEAM
IN BOOTH 4277
MODEX 2020 POWERED BY POSSIBILITIES
Seminars and students
M
HI’s 2020 MODEX show, taking personal story as well as taking a look at
place in Atlanta from March 9 the importance of supply chain in global In addition to the keynotes, more than
through 12 this year, is a combi- commerce. For sports fans, Peyton Man- 150 show floor seminars offer practical
nation trade show and conference ning, two-time Super Bowl champion advice on technology selection, explore
geared toward helping companies find and five-time NFL MVP, and his father trends and allow for personal interac-
the materials handling, automation and Archie Manning, also a former NFL tion with industry experts in a casual,
supply chain solutions they need to keep quarterback and patriarch of the famous quick presentation format.
business moving. Manning family will share their stories On March 11, the show hosts a stu-
Inside Logistics will be there to gather about the power of teamwork, collabora- dent day, supported by travel grants
the highlights and report on them for tion, preparation, and giving back both (for information see www.modex.com).
you, but if you plan on attending there is on the field and in business. This day connects students with the
a lot to see in four short days. MHI will preview its annual report, industry through discussions with
With more than 900 exhibitors, the with a panel of speakers on hand to industry experts, a guided tour of the
show is grouped into five “Solutions Cen- analyze the results that includes Wim show floor and networking with pro-
tres” covering manufacturing technol- Appelo, worldwide vice-president of fessionals who can support their career
ogy, information technology, fulfillment supply chain strategy, innovation and growth. The highlight of the day is the
and delivery, emerging technologies and deployment for Johnson & Johnson; guided tour of the show floor, led by
transportation and logistics. Randy Bradley, assistant professor of industry experts and the opportunity
information systems and supply chain to meet with exhibiting companies who
Five keynotes management at the Haslam College of are looking for future employees.
Keynote speeches on Monday, Tues- Business, The University of Tennessee;
day and Wednesday promise to inform Arpana Brahmbhatt, U.S. industry solu-
attendees about key issues in supply tions – manufacturing for Microsoft; Admission to MODEX is free, and
chain and business. Speakers include and, Rick Faulk, CEO of Locus Robotics. pre-registration is available at:
former U.S. ambassador to the United As always, the panel will be moderated http://tinyurl.com/IL-MODEX
Nations Nikki Haley who will share her by MHI CEO George Prest.
insidelogistics.ca 152 0 2 0 SU R V E Y O F T H E C A N A D I A N LO G I S T I C S PR O F E S S I O N A L | By Emily Atkins
SALARIES DOWN IN 2020
How did you fare compared to the Canadian average?
S
alaries are down this year. After a high in 2018 of $105,931, the Average salaries are
average in our 2020 survey has dropped to $92,289. down $13,642 in 2020.
As usual, men fare better than women, with a differential of Executive salaries
declined by $1,573.
$18,373, or 21.2 percent between the male average of $96,344 and Senior managers lost
the female average of $77,971. That’s is an improvement over our $1,147. Operations
last survey results, however, when women were paid 23.2 percent less than managers gained
their male counterparts. The chart below details the progression of $12,050.
Canadian supply chain salaries over the past five years. And over the next
five pages you’ll be able to see whether your pay package measures up.
%
5-YEAR SALARY OVERVIEW
Year
overall
2014
$86,987
2015
$92,182
2016
$90,566
2017
$99,902
2019
$92,289
21.1 Women are
making this much
male $92,276 $97,945 $96,141 $105,931 $96,344
less than their male
female $78,819 $83,381 $76,919 $83,881 $77,971
counterparts in
Male vs Female 2014 2015 2016 2017 2019 Canadian supply
chain jobs.
$ Difference $13,457 $14,564 $19,222 $22,050 $18,373
% Difference 15.7 16.1 22.2 23.2 21.1
$108,000
$100,000 2019 | $96,344
2019 | $92,289
$92,000
average
$84,000
2019 | $77,971
$76,000
2014 2015 2016 2017 2019
16 INSIDE Logistics FEBR UARY 2020SALARY BY REGION & URBAN AVERAGES Ontario was one of the
biggest losers in the
salary sweepstakes in
the 2020 survey with
declines almost across
the board.
British Columbia Alberta
$93,765 L $95,639 K
Saskatchewan Atlantic (Net)
Edmonton $105,900 K $94,489 K
$83,704 L Manitoba
St. John’s
$74,400 L
Vancouver
Saskatoon
$96,500 K $99,400 K
$92,306 L
Winnipeg
Calgary $98,006 L Ontario
$101,606 K $92,319 L Montreal
$82,913 L
Ottawa/ Halifax
Gatineau $136,120 K
$106,875 L
Cambridge/Guelph/
Kitchener-Waterloo
Greater Toronto Area/
$93,789 K Brampton/Oakville
KL The arrows indicate if average regional salaries $96,411 L
have increased or decreased from last year. Hamilton/
Burlington/
Niagara
$71,948 L
SALARY BY SECTOR
CATEGORY AVERAGE
96,344 77,971 121,502 109,630 86,598 66,335
$150,000
146,065
121,667
120,250
120,375
117,800
$130,000
114,875
109,750
111,941
108,727
106,988
104,432
102,077
96,553
96,038
95,939
$110,000
93,424
93,123
92,734
90,602
89,045
87,556
85,818
86,105
84,316
80,782
76,923
77,150
75,000
$90,000
74,875
72,005
71,889
68,567
67,473
60,667
61,513
$70,000
$50,000
SECTOR MALE FEMALE EXEC SENIOR OP. MGRS/ SUPPORT
MEAN MGMT MGMT SPRVSRS & SALES
STAFF
MANUFACTURING THIRD-PARTY LOGISTICS OTHER
TRANSPORTATION RETAIL
insidelogistics.ca 172 0 2 0 SU R V E Y O F T H E C A N A D I A N LO G I S T I C S PR O F E S S I O N A L | continued from page 17
SALARY BY COMPANY SIZE
BY ESTIMATED GROSS ANNUAL SALES
Sales in Canadian $ Mean $ Male $ Female $ Exec Senior Ops Mgrs./ Support &
Mgmt $ Mgmt $ Supvrs $ Sales $
1 million or less 76,650 63,786 60,000 91,300 110,000 90,000 36,667
Over 1 million to 5 million 74,164 78,709 57,500 87,000 77,500 87,286 60,662
Over 5 million to 15 million 82,400 90,414 56,750 97,500 67,800 106,250 59,810
Over 15 million to 30 million 86,959 91,375 81,072 127,667 103,000 72,482 52,571
Over 30 million to 60 million 85,797 91,750 66,450 139,600 103,409 66,300 47,667
Over 60 million to 100 million 95,909 100,732 73,000 137,875 91,000 81,000 84,280
Over 100 million to 500 million 98,049 98,458 93,250 142,000 101,895 90,750 77,364
Over 500 million to 2 billion 101,382 108,675 88,692 135,195 123,857 90,917 72,330
Over 2 billion 111,433 116,691 79,438 176,000 145,000 95,615 78,585
BY NUMBER OF EMPLOYEES
Total Employees Mean $ Male $ Female $ Exec Senior Ops Mgrs./ Support &
Mgmt $ Mgmt $ Supvrs $ Sales $
25 or fewer 87,974 86,968 74,000 105,633 84,000 88,813 56,013
26 to 100 82,752 87,309 73,069 114,667 89,188 67,543 66,638
101 to 500 91,904 98,820 67,993 138,278 99,683 96,374 65,833
501 to 1,000 87,909 90,059 80,600 131,333 101,000 101,600 49,429
1,001 to 5,000 92,328 98,794 75,625 145,000 125,857 81,088 62,236
5,001 to 25,000 105,220 107,556 101,730 143,195 146,436 91,067 78,807
More than 25,000 100,581 104,477 75,333 152,000 122,250 85,833 77,867
Are times tough? Methodology
Along with salaries being down this year, Our survey was conducted online in
there are a few other ways in which our the fourth quarter of 2109. Readers of
results reflect general perceptions of a Inside Logistics and sister publication
softening economy. While 11 percent TOP 5 WORK CHALLENGES FOR Canadian Shipper were invited via email
of respondents say they’ve had no salary
increase in the past five years, 60 percent
did receive one last year. Respondents
2020 to share their data. After winnowing out
incomplete data and removing unqual-
ified respondents the survey represents
are split evenly at 49 percent saying their the input of 410 Canadian supply chain
1 Controlling costs
wages either have or have not kept pace professionals. This provides a margin of
with their responsibilities in the same 2 Labour Shortage error of plus of minus 4.8 percent, 19
time period. times out of 20.
3 Capacity
Furthermore, 39 percent are not The respondents’ average age was 50
(carriers & industrial space)
expecting an increase in 2020. For those years, with 97 percent over the age of 35.
who did receive increases, a whopping 4 On-time delivery Almost half (48 percent) of respondents
65 percent say they were just fair or were from Ontario, while 39 percent
5 Tied for 5th are Trade;
even poor, while 35 percent were happy hailed from the Western provinces, and
Regulatory headaches;
with their bump. And when it comes to and, Information systems and 21 percent were from Quebec and the
bonuses, 44 percent do not expect one. data interchange Atlantic provinces.
18 INSIDE Logistics FEBR UARY 2020SALARY BY AGE AND EXPERIENCE
BY AGE
Total Employees Mean $ Male $ Female $ Exec Senior Ops Mgrs./ Support &
Mgmt $ Mgmt $ Supvrs $ Sales $
Under 26 58,500 70,000 47,000 NA NA 70,000 47,000
26 to 35 70,506 71,081 69,409 145,333 81,286 67,333 52,950
36 to 45 83,271 83,796 82,046 96,750 112,119 75,840 60,542
46 to 55 94,738 101,934 75,507 115,059 103,778 96,407 73,366
56 to 65 109,700 111,810 88,667 139,594 128,059 84,615 76,800
Over 65 86,636 88,200 71,000 96,833 74,500 76,000 71,000
Over 55 (NET) 106,489 107,939 87,308 127,932 123,596 83,467 76,459
BY YEARS OF EXPERIENCE
Total Employees Mean $ Male $ Female $ Exec Senior Ops Mgrs./ Support &
Mgmt $ Mgmt $ Supvrs $ Sales $
2 and 5 and 10 and 15 and 20 and 25 and 30 and2 0 2 0 SU R V E Y O F T H E C A N A D I A N LO G I S T I C S PR O F E S S I O N A L | continued from page 19
Worker retention candidate in Waterloo’s Department of
JOB SATISFACTION
While job satisfaction numbers have not Recreation and Leisure Studies. “Job
changed substantially since our last sur- enrichment aims to design work condi-
vey, with a slight upwards shift (one per-
cent) in satisfaction alongside a one per-
tions in ways that maximize meaning,
responsibility and knowledge.” 40%
Very satisfied
cent decline in those expressing dissat- Drewery’s study was focused on sea-
isfaction, there is still a significant num-
ber who are considering changing jobs,
sonal frontline workers, which is a key cat-
egory of employees in environments such 30%
Neither satisfied
particularly in third-party logistics and as distribution centres. “Retaining con- nor dissatisfied
among sales and support staff -- see side- tingent staff is a key management issue
bar on page 21. because turnover is very expensive,” he
And in today’s job market, with vast said. “We already know that job enrich-
shortages of workers in many areas
(think warehouse labour and truck driv-
ment can have great benefits for full-time
employees, but this is the first study to
Dissatisfied 11%
17%
ers), losing an employee is usually not show that part-time and casual frontline Extremely satisfied
a good thing. Our respondents’ top staff also benefit from job enrichment.”
Not at all satisfied 3%
five reasons for thinking about chang- The research did not study the role of
ing jobs are more money, better work- compensation in job retention, but rather
life balance, geographic location, better other motivations of employees who were
opportunities and better benefits. at the beginning of their careers. Sixty percent of
But a researcher at the University of “These results show that managers respondents have hiring
Waterloo, in Ontario, suggests that mak- need to set clear expectations, remind
responsibilities and 64%
ing jobs more meaningful might be frontline staff of the positive impact
the answer to keeping staff on board. they have on their clients, give staff the
report hiring talent taking
“Managers can use job enrichment tools they need and then trust them to longer than in the past. In
to make work more engaging and to use them appropriately,” said Drewery. spite of talent shortages,
develop a bond between staff and the “These are the building blocks of job 55% expect to see hiring
organization,” says David Drewery, a PhD enrichment.” stay the same, while 10%
see it getting harder.
SALARY BY JOB FUNCTION
Total Employees Mean $ Male $ Female $ Exec Senior Ops Mgrs./ Support &
Mgmt $ Mgmt $ Supvrs $ Sales $
Transportation 93,888 98,751 78,450 118,289 114,782 88,698 61,856
Customer Service 90,450 95,284 73,094 119,160 108,350 90,217 58,944
Purchasing 98,905 105,534 77,780 123,897 104,578 96,859 67,438
Training and Development 92,010 94,235 82,316 113,071 102,484 82,870 66,248
Inventory control 97,171 99,766 85,112 127,400 105,858 93,227 66,296
Project Management 99,549 103,523 83,474 122,259 114,989 81,456 70,164
Customs 88,383 91,006 79,197 128,200 104,173 80,122 62,717
Warehousing 96,942 101,645 75,439 115,345 108,416 90,846 60,289
Demand planning/ Forecasting 95,262 97,827 83,552 126,239 107,897 82,766 63,819
Order Fulfillment 95,212 99,638 76,640 123,750 105,759 90,379 58,072
Sales/Marketing 95,427 96,672 82,308 112,091 113,654 96,444 68,787
Information Technology 93,502 93,980 90,429 111,500 108,111 81,735 71,560
20 INSIDE Logistics FEBR UARY 2020DOES JOB HOPPING PAY OFF? WHO IS
COMPANY MOVES LOOKING
Number of companies
worked for
Mean Male Female Exec
Mgmt
Senior
Mgmt
Ops Mgrs./
Supvrs
Support &
Sales
FOR ANOTHER
One 92,658 98,557 82,941 143,750 101,700 102,706 59,431
JOB?
Two 87,908 89,430 76,829 113,900 97,307 91,466 61,367
Three 89,546 94,143 77,789 110,333 115,265 78,781 65,188 Male
Four
Five
90,884
87,608
100,055
90,122
66,182
68,323
144,143
115,100
93,088
121,954
76,818
80,000
65,330
62,775
24%
Six or seven 100,168 101,565 84,429 149,793 111,143 91,300 86,483 Female
Eight to ten
Eleven or more
104,975
108,286
106,833
112,833
99,400
81,000
102,214
NA
134,143
152,250
79,000
50,000
69,333
49,500
22%
Exec Mgmt
14%
JOB CHANGES
Number of jobs held Mean Male Female Exec Senior Ops Mgrs./ Support &
Mgmt Mgmt Supvrs Sales
Two or less 68,874 76,560 64,625 NA 63,500 98,000 54,288
Senior Mgmt
21%
Three 83,300 83,385 79,354 95,000 92,269 90,529 60,655
Four 81,754 85,897 73,469 108,000 91,781 72,667 69,580
Five 99,504 106,460 78,636 117,073 114,567 92,200 72,827
Op. Mgrs/
Six or seven 100,521 99,603 93,081 136,000 119,782 94,192 59,650 Sprvsrs
Eight to ten
Eleven to fifteen
95,729
113,935
94,436
122,441
85,123
89,833
132,550
108,583
112,308
133,000
71,124
102,833
79,215
77,500
24%
Sixteen or more 130,714 139,000 81,000 125,000 171,000 0 76,000 Support &
Sales Staff
36%
CHANGING GEARS WHO IS HIRING?
Manufacturing
TOP 5 REASONS
57%
21%
60
FOR CONSIDERING
54%
A JOB AT ANOTHER
49%
47%
COMPANY 50
44%
44%
43%
1 Better 40
Retail
34%
money
24%
31%
30
2 Better work/
life balance
20%
20
3 Geographic
location 10
Third-party
logistics
4 Better career
opportunities
0
MFG RETAIL THIRD- TRANSPOR-
PARTY TATION
BC AB MN/SK ON QC ATLANTIC
38%
LOGISTICS
5 Better
benefits
Transportation
26%
insidelogistics.ca 21B L O C KC H A I N | By Jacob Stoller
HONEST
HOW BLOCKCHAIN STREAMLINES
SUPPLY CHAIN ACCOUNTABILITY
The growing
A
2018 study by the Association of Fraud, however, may be only the tip
complexity of global Certified Fraud Examiners (ACFE) of the iceberg. Weak accountability in
supply chains is contains some troubling statistics supply chains can lead to lawsuits, large-
for supply chain stakeholders. Of scale recalls, damaged cargo, loss of cus-
making it increasingly 2,690 fraud cases surveyed, 89 percent tomers, and widespread inefficiencies. It
difficult to maintain involved misappropriation of assets. Of also leads to routine losses such as fines
trust. Blockchain has greater concern, however, is the indica- that are unfairly assessed. “Late fines are
been proven to have tion of a general lack of preparedness – just paid – that’s the hidden secret of the
great potential for internal audits and management review industry,” says Ashik Karim, CEO of
Image: Guirong Hao, iStockimages.com
solving this problem, combined detected only 28 percent of Burnaby-based blockchain solution pro-
the schemes, while 40 percent were dis- vider LiteLink Technologies. “What’s
but wide deployment covered by random tips. happening now is folks are embedding
won’t occur overnight. “Because of their complexity, supply late fines into their fees.”
chain operations provide abundant oppor-
tunities for fraud or misconduct, both by Audit trail
employees and external parties,” warns a Blockchain technology takes the uncer-
recent KPMG study on supply chain fraud. tainty out of the supply chain by providing
22 INSIDE Logistics FEBR UARY 2020“Because of their complexity, supply chain operations
provide abundant opportunities for fraud or misconduct,
both by employees and external parties.”
– KPMG
people together in conversations, establish Canadian use cases
certain standards with the help of GS1 Brookdale Treeland Nurseries, based in
and BiTA, and provide a Canadian voice,” Schomberg, Ontario, is using a LiteLink
says CBSCA President Erik Valiquette, who blockchain solution to streamline its
is based in Montreal. Canada-wide distribution network. The
The challenges for adopters, however, system has many of the attributes of a rout-
are significant. Blockchain represents a ing system, but with an important differ-
radical departure from traditional meth- ence – all the routes are certified in the
ods of handling supply chain information blockchain, and all activity is traceable.
in that stakeholders typically must agree “Our system takes multiple data sets
on a common set of business rules and around driver data – GPS and geo-fencing
then change how they share and access data – and proves what time the driver
supply chain information. arrived and what time the driver left,” says
The technology is also widely misun- Karim.
derstood, partly because of its association “So when late fines are administered,
with cryptocurrencies such as Bitcoin. our system is now the source of truth
What confuses many is that blockchain between the supplier and the buyer.
has three functional components that So there’s no argument and no disrup-
may or may not be applied in a particular tion.”
solution. The IT research firm Gartner LiteLink’s software, 1ShiftLogistics, can
has incorporated these in a decision tree be purchased as a standalone, e.g., for an
for prospective adopters. independent trucker who wants to avoid
They can be summarized as follows: unfair late fines, or by an organization
1. Distributed Ledger Technology (DLT) – which can scale the blockchain according
the encrypted and certifiable record to the number of participants. In addition
of events, which may be inputted from to geo data, the software supports input
an unbreakable audit trail of events that multiple sources. from cameras, and from sensors which
serves as a common record for all involved 2. Distributed Consensus – the assurance of the company also provides.
parties. Consequently, essential facts such trust provided by having multiple wit-
as arrival times and shipping routes, prov- nesses to transactions, administered by Linking multiple players
enance and condition of goods, or environ- having multiple parties hold certified Another traceability example is a pilot by
mental conditions affecting shipments and copies of the blockchain. Toronto-based Shoppers Drug Mart for
storage can all be captured and certified. 3. Digital Tokens or Smart Contracts – the ensuring the provenance of cannabis
The recently formed Canadian use of blockchain as a payment medium shipments. The solution, based on soft-
Blockchain Supply Chain Association or as a platform for “smart contracts” ware from Venice, California-based
(CBSCA) is working to promote wider where events are automatically initiated TruTrace Technologies, uses blockchain
dialogue between manufacturers, trans- when various conditions are met. to create a shared ledger that serves cul-
port companies, technology providers, tivators, testing labs, transport companies,
regulators, and standards organizations The DLT component is the easiest to manufacturers of topical and edible prod-
such GS1, which deals with barcodes, and implement, and consequently, accounts for ucts, government regulators, and other
the Blockchain in Transportation Alliance most of the early supply chain use cases in stakeholders.
(BiTA). Canada. In fact, DLT is sometimes mistak- The approach, explains TruTrace
“The goal of the association is to bring enly given as a definition for blockchain. continued on page 24
insidelogistics.ca 23B L O C KC H A I N | continued from page 23
co-founder and CTO Tommy Stephenson, “Shearing only happens Crime-fighting cacao
“is to create a peer network in a trusted once a year, but during Another global example of blockchain’s
node infrastructure that allows everybody shearing season, buyers enabling power comes from Choco4Peace,
from the distribution side all the way down have no idea how much a Montreal-based social enterprise that
to Health Canada to participate in that connects independent Colombian cacao
trusted node network.”
cashmere is available. farmers with global markets. The project
The blockchain is employed to register There are also middlemen originated when the company’s executive
the various strains of cannabis, to record that manipulate prices, director Sergio Figueredo learned of the
licenses and certifications for cultivators etc. So the first part of this plight of farmers who were trying to tran-
and labs, to certify test results, and to track was to digitize – leaping sition from growing coca leaves for
the movement of product, which is pack- into a decentralized cocaine production to a much safer and
aged with scannable seals. The key to wide
participation, Stephenson notes, is keep-
system that the herders, more stable alternative – growing cacao
for chocolate. Their previous economic
ing the barriers to entry low. “We try to the buyers, and everyone dependence on organized crime – some
make this as simple as possible,” he says. can trust because it’s communities even used cocaine as their
in the record.” currency – meant they had no access to
Thinking globally – Chami Akmeemana, external markets, loans, insurance, or
Toronto-based Convergence Tech, a dig- Convergence Tech CEO. payment methods.
ital transformation company that employs “At this point we realized that there is
blockchain, has recently gained interna- a systemic issue with the entire chocolate
tional attention for helping solve a unique industry,” says Figueredo. “They couldn’t
problem – how can shoppers who want get payment because they didn’t have
to buy sustainable and ethically sourced banking. They couldn’t get crop insur-
products ensure that they’re getting the ance. They didn’t have technology, and
real thing? they weren’t getting much help from the
This problem is particularly urgent in government. This wasn’t just about getting
Mongolia, where the supply of cashmere paid fairly – these people were not part
and the long-term livelihood of herders of an inclusive economy.”
are being threatened by unsustainable Choco4Peace uses blockchain to not
grazing practices – a development that only ensure traceability, but to serve as a
has caused some sustainable brands to shared platform for an independent
discontinue their Mongolian cashmere self-governing community of producers,
products. buyers, investors, and financial service pro-
Using Convergence’s technology and viders. The permissioned consensus feature
expertise, the UN-supported sustainable of the blockchain is being applied –
cashmere pilot is using blockchain to the agreement of multiple parties in trans-
register herders who maintain sustainable actions ensures fairness throughout the
practices and then verify the provenance community. The blockchain also enables
of their cashmere. With a relatively mod- peer-to-peer transfers of funds, eliminating
est investment in technology, the project middlemen and channeling more funds
is creating a system where none existed directly to farmers.
for the second-largest export industry in As in other cases, technology is only a
the country. small piece of the overall puzzle. “The
“There’s currently no system to monitor technology is affordable, but executing
any part of the process in Mongolia for it can become a bit expensive,” says-
this kind of cashmere,” says Convergence Figueredo, who cites sending trainers to
Tech CEO Chami Akmeemana. “Shearing remote regions as a major cost. The com-
Image: loonger, iStockimages.com
only happens once a year, but during pany is also working on providing smart
shearing season, buyers have no idea how phones to farmers and intends to build
much cashmere is available. There are warehouses in Montreal and Colombia
also middlemen that manipulate prices, to help mitigate middlemen.
etc. So the first part of this was to digitize While ambitious, this project is only a
– leaping into a decentralized system that prototype for the kind of global transfor-
the herders, the buyers, and everyone can mation Figueredo envisions. According
trust because it’s in the record.” to data from the UN and other interna-
24 INSIDE Logistics FEBR UARY 2020You can also read
