WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics

 
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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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

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                         WHAT IS YOUR                                                         MANAGEMENT &
                                                                                               DISTRIBUTION

                         JOB WORTH?
                         The 2020
                         Survey
                         of the
                         Canadian
                         Logistics
                         Professional
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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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                                                                                                           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

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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
TA K I N G S T O C K

                insidelogistics.ca
               EDITOR IN CHIEF: Emily Atkins
              (416) 614-5801 emily@newcom.ca
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                                                                     We are senior citizens
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       Inside Logistics, established in 1956, is published
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              SUBSCRIPTION PRICE PER YEAR                               These are some of the findings you’ll read about when you turn to
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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
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                                                                     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
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         whatsoever, without compensation of any sort.               line jobs (see page 20 for more details).
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                                                                        Please share your thoughts on these or any other issue with us. I can
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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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

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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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
WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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.”

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WHAT IS YOUR JOB WORTH? - The 2020 Survey of the Canadian Logistics Professional - Inside Logistics
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 2020
SU 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                                                                                                                            11
C 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 2020
Photo: 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                                                                                                                                      13
C 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 2020
MODEX 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                                                                                                               15
2 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 2020
SALARY 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                                                                                                                                                                                                                                                                                                                                                    17
2 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 2020
SALARY 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 and
2 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 2020
DOES 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                                                                                                                                           21
B 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                                                                                                                   23
B 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 2020
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