Canadian Shipper September/October 2015

SEPTEMBER/OCTOBER 2015

PUBLISHED SINCE 1898 | WRITTEN FOR BUYERS OF TRANSPORTATION SERVICES

SALARY SURVEY What the numbers say about your pay

ARCTIC SHIPPING Opportunities and challenges

BORDER BACKUP INFRASTRUCTURE WOES TRUMP TRADE

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CONTENTS

SEPTEMBER/OCTOBER 2015

DEPARTMENTS

22

6 | Editor’s Forward Trade agreements are sticky but a necessary way to move forward.

COVER STORY

NAFTA AND THE BORDER

8 | Viewpoint What happens to supply chains if China’s economic growth falters?

The relationships, the trade, the infrastructure challenges and future prospects of the deal integrating Canada, the US and Mexico’s economies.

12 | In the News Quebec’s blueprint for a maritime strategy; Air Canada Cargo’s e-booking tool.

52 | Inside the Numbers Results from our Equipment Buying Trends Survey.

54 | The Bigger Picture Final Reflections on Freight Bids-the top 11 tips.

SURVEY OF THE CANADIAN SUPPLY CHAIN PROFESSIONAL The results of our 16th annual salary survey: the roles, regions and other factors behind your pay.

©Bee-Creative/iStock/Thinkstock

32 A truck enters the US across the Ambassador International Bridge connecting Windsor and Detroit.

The bridge handles 25% of all merchandise trade between the US and Canada.

FEATURES LEADERS | 20 Groupe Morneau’s logistics growth.

WARMING OF THE NORTH | 40 A look at Arctic shipping-opportunities, trends, challenges-who and what is at stake?

ELECTRONICS | 44 Transportation and logistics’ role in electronics recycling.

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WHAT’S ONLINE

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E-COMMERCE | 46 The Internet of Things and Big Data promise to speed up the information highway in retail last mile delivery.

SMARTWAY CARRIER PROFILE | 49 The growth of the Mullen Group’s trucking and logistics segment.

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WEB TV Transportation Matters

SHAPING THE AGENDA What’s ahead for the CITT’s Canada Logistics Conference 2015.

EXPORTING STYLE A look at the business of fashion logistics.

BLOG BITS Search our blog archives at ctl.ca

Dan Goodwill Become a Best in Class Shipper One of the best ways to find out where a company stands in the area of Freight Management is to conduct a Transportation Audit.

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Carolina Billings I vs We. What is the tipping point between personal ambition and being a team player?

Whoever said that the top of the ladder has a nice view was kind enough to warn us that it can also be a lonely place…

Find us on Twitter at: @CanadianShipper

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@LouSmyrlis

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@JuliaKuzeljevic

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@JamesMenzies

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@FleetExecutive

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EDITOR'S FORWARD Julia Kuzeljevich

Of trust and trade: forging ahead on NAFTA and future trade deals

T

his issue we focus on Canada’s relationship with its NAFTA partners, the U.S. and Mexico, in the context of trade and transportation. Where are we one year beyond the 20th anniversary of NAFTA? Canadian Shipper looks at current perceptions and realities around the deal, where relationships are being forged or strengthened, and the practical realities of being a trade stakeholder in the North American context.

NAFTA as a trade deal is still held in high regard. North America is a more integrated economy than ever before. In some ways also the tighter borders that resulted after 9/11 have opened up, via increased efforts at customs and trade harmonization, such as the Canada-U.S. Beyond the Border Action plan, single window initiatives, and increased participation in trusted trader programs.

Canada and the U.S. continue to forge a stronger, if occasionally contentious, relationship in the trade arena. The U.S. and Mexico have also been taking steps to modernize their shared border and improve regulatory cooperation. A recent meeting under the U.S.Mexico High Level Economic Dialogue looked at supply chain security. The two sides are working to expand the mutual recognition arrangement between the Customs-Trade Partnership Against Terrorism and Mexico’s Nuevo Esquema de Empresas Certificadas.

U.S Customs and Border Protection and Mexico’s Tax Administration Service (SAT) are developing a single, shared customs manifest for use in both countries for all transportation modes. Efforts are also underway to strengthen border infrastructure and customs training.

However the cost of harmonization has not been insignificant. As Canadian Shipper was going to press, Stats Canada released a study on moving goods by truck across the Canada-U.S. border.

The study, “How Much Thicker Is the Canada–U.S. Border? The Cost of Crossing the Border by Truck in the Pre and Post 9/11 Eras” is based on the first data produced to estimate the costs associated with trucking goods across the border before and after 9/11.

From 1994 to 2000, it cost, on average, 16% more to move goods across the Canada-U.S. border by truck than to move the same goods the same distance domestically. After 2000, the premium paid to cross the border rose steadily to 25% in 2005 and remained at about that level until 2009, StatsCan found.

The two main factors in cross-border trucking costs are fixed costs per shipment of moving goods across the border (facilities, insurance and terminal costs) and higher line-haul costs of trucking cargo over longer distances. Delays at the border and other border compliance costs add to the fixed costs per shipment incurred by trucking firms, the study said.

Differences in fuel prices or difficulties finding ‘backhauls,’ that is, 6

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cargo for a return shipment, can also add to the line-haul costs of shipping to and from the United States.Whether these additional costs are imposed on the export or import leg of the cross-border journey depends on the balance of cross-border trips. The export leg bore these costs until about 2005 and, increasingly, the import leg thereafter.

In 2005, the premium on the export leg was 30.0%, while the premium on the import leg was 20.3%. By 2009, the premium on the export leg had fallen to 17.1% and risen on the import leg to 25.6%. The extra cost associated with cross-border trucking added about 0.3% to the value of exported and imported goods, on average, from 1994 to 2000.

From 2005 to 2009, the extra costs of cross-border trucking added about 0.6%, on average, to the value of goods crossing the border.

While these additional costs are relatively small on a percentage basis, their effect is larger for goods such as autos and auto parts that pass over the border several times as they move through the various stages of the production process, said the report.

A recent C.D. Howe Institute report looking at the high costs of complying with Rules of Origin (ROO) requirements found that small and medium-sized firms (SMEs) often find it cheaper and more efficient to pay customs duties instead of producing the paperwork that would allow them access to preferential, often zero tariffs under trade agreements.

In “Making Free Trade Deals Work for Small Business: A Proposal for Reform of Rules of Origin,” author Dan Ciuriak outlines a ‘presumption of origin’ proposal that would improve SME access to free trade agreement (FTA) preferences by modifying a specific feature of how ROOs are applied. This, says the author, would help improve the performance of SMEs under Canada’s existing FTAs, and should be incorporated in FTAs currently under negotiation, such as the TPP, or Trans-Pacific Partnership. The Trans-Pacific Partnership, or TPP, is currently being negotiated among a dozen countries: Canada, the United States, Mexico, Australia, Japan, New Zealand, Malaysia, Singapore,Vietnam, Chile, Peru and Brunei.

(Most of Canada’s traders are SMEs, but they face greater barriers to taking advantage of FTAs than do larger domestic competitors.

Hence it is important for Canada to remove barriers to SMEs, making the best use of the new opportunities that its hard-won trade agreements provide.)

For the trade community whose job it is to peel off the myriad layers of sticky red tape, it would be perhaps idealistic to see protectionist policies become a thing of the past.

But in the context of global trade there is no way to go but forward on seeking the maximum benefits trade deals, and harmonization efforts, can potentially provide. CS

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THE VIEW Lou Smyrlis, MCILT September/October 2015 Volume 118 Issue No.4

EDITOR Julia Kuzeljevich (416) 510-6880 Julia@TransportationMedia.ca

A question I didn’t really want answered What happens to global supply chains if China’s economy falters?

A

bout a decade ago, when we had grown giddy on China’s consistent double digit growth economy as a major contributor to world economic growth, I remember asking at an industry gathering what would happen if the Chinese economy suddenly faltered. I didn’t get much of an answer but I did get more than a few disgruntled stares for even daring to ask the question.

Well, I may finally get an answer.

The aftermath of late August’s Black Monday where concerns over China’s faltering economic growth led to the Shanghai composite index suffering its biggest selloff since the global crisis of 2007 and panicking investors worldwide, will prove to be either a strong market correction or worse, the start of a new phase to the global economic crisis which began about eight years ago.

Either way, whether you’re in charge of managing a global supply chain or a domestic one, what happens in China is going to have an impact on your ability to move freight.

Canada is a commodities producer that relies on global economic growth and much of that growth has come from China. During its double-digit growth spurt China developed a voracious appetite for wood, metals, potash and oil, which fuelled our resource based economy.

Considering that as I write this Canada is flirting with dropping back into at least a technical recession (two straight quarters of negative growth) after experiencing negative growth in each of the first five months of 2015, the latest news out of China is not what we needed to hear. There are serious doubts now about China’s ability to maintain its growth projections and that could considerably lower demand for many of the things that drive Canadian exports.

If you’re shipping domestically a dip back into recession or prolonged low economic growth may play in your favour in terms of downward pressure on transportation base rates and fuel surcharges but it can also affect carrier equipment renewal plans and service. Our annual Equipment Buying Trends Survey of the nation’s motor carriers shows that although the larger carriers are staying the course on equipment renewal, small carriers, essentially the heart of Canadian trucking, are having second thoughts with 55% telling us they have no plans to renew their fleets in 2016.

For those of you managing global supply chains, a faltering China may have an even larger impact. A Chinese government pressured to find the money to prop up its economy may merge its state-owned COSCO and China Shipping Container Line (CSCL). COSCO is the sixth largest marine carrier serving the global market with CSCL right behind it in terms of TEUs, according to Drewry Maritime Research. A combined entity would create a carrier controlling upwards of 1.5 million TEUS, moving it into fourth place in terms of global market share.

Although industry analysts say such a merger makes sense from the standpoint of the stateowned enterprises’ viability, continued consolidation can only lead to a negative impact on industry competition, likely creating a domino effect on existing carrier alliances and spawning further mergers. In turn this could also have a negative impact on service. As I mentioned a few columns ago, the on-time performance bar in container shipping has dropped so low that we actually rejoice when we can get two-thirds of our container shipments delivered on time.

Greater China represents about 30% of all container moves in the world. A slower growing Chinese economy – WTO data shows merchandise imports were down 15.5% and exports rose just 1% in the first six months of 2015 – is going to place even greater pressure on containerlines already pressed with trying to fill the slots on their new Ultra Large Container Ships. Containerlines’ desire to meet greater than 90% fill rates, rather than the 80-85% which may be more realistic under the latest economic realities, may keep ships delayed even longer, dropping the bar on service even further. CS

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EDITORIAL DIRECTOR Lou Smyrlis (416) 510-6881 Lou@TransportationMedia.ca ART DIRECTOR Ellie Robinson erobinson@annexnewcom.ca CONTRIBUTING EDITORS Carroll McCormick, Leo Ryan, James Menzies, John G. Smith, Ian Putzger, Ken Mark, Carolyn Gruske MARKET PRODUCTION MANAGER Kim Collins (416) 510-6779 kcollins@annexnewcom.ca VIDEO PRODUCTION MANAGER Brad Ling RESEARCH MANAGER Laura Moffatt CIRCULATION MANAGER Mary Garufi (416) 614-5831 mary@newcom.ca PUBLISHER Nick Krukowski (416) 510-5108 nkrukowski@canadianshipper.com VICE-PRESIDENT PUBLISHING Joe Glionna PRESIDENT Jim Glionna HEAD OFFICE: 80 Valleybrook Drive, Toronto, ON M3B 2S9 Canadian Shipper is written for Canadian transportation and logistics professionals who manage product flow from manufacturer to point-of-sale. Editorial is focused on reporting, analysis and interpretation of Canadian logistics trends and issues. It is published by NEWCOM BUSINESS MEDIA INC.

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IN THE NEWS

QUEBEC MARITIME STRATEGY BLUEPRINT WITH CONTROVERSIAL LOGISTICS DIMENSION Making good on a key election promise in 2014, the Quebec Liberal government this past summer launched an ambitious Maritime Strategy blueprint that allocates an estimated $9 billion in infrastructure investments over the next 15 years in maritime-related industries on or near the St. Lawrence shipping corridor.

Initial industry reponse was enthusiastic.

Sylvie Vachon, President and CEO of the Montreal Port Authority, called the initiative “a turning point in our history.”The Conseil du patronat, the top Quebec business association, said the blueprint was an important undertaking to bolster Quebec prosperity.

The St. Lawrence Economic Development Council (SODES) applauded a plan that “placed the maritime industry at the heart of Quebec’s economic development.”

However, as noted later in this report, a logistics hubs dimension has stirred controversy, with a high-profile industry figure raising a red flag.

Special focus on the St. Lawrence River’s economic potential has always been high on the radar screen of provincial governments in Canada’s French-speaking province. But it is the first time that such a comprehensive program, despite being short on some specifics, has been elaborated following extensive consultations with industry stakeholders. It has emerged as a linchpin of overall economic policy.

For the ports on the St. Lawrence River, the challenges are considerable. Whereas ports like Montreal specialized in general cargo are gaining business, the opposite holds true for such bulk ports as Sept-Iles and Port Cartier which have been hit hit hard by plunging world commodity prices.

In the past decade, total traffic in the St. Lawrence ports has fallen well below an average of 110 million tonnes.

Not surprisingly, the Port of Montreal and the Montreal region are singled out for prominent roles amidst mounting competition all across North America’s East Coast to meet the transportation, logistics and trade challenges of the 21st century.

On the commercial shipping front, the goal is, no less, to transform Quebec into 12

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BY LEO RYAN

tics hubs in the Vaudreuil-Sou“the mega-hub of transatlantic langes area near Montreal and trade.” In particular, opportuniat Contrecoeur, 40 km from ties of increased maritime exMontreal on the south shore of changes are anticipated from the the St. Lawrence River. AnCanada-European Union free other $300 million is eartrade agreement awaiting ratifimarked for supporting private cation, from the expansion of the investment projects in indusPanama Canal in 2016, and from trial port zones. the persistent congestion issues While she applauds the in U.S. ports. overall thrust of the blueprint When a 53-page document placing the role of the maritime was released in late June, Premier Philippe Couillard an- Madeleine Paquin, President sector at the heart of Quebec’s and CEO of Logistec economic development, Madnounced “a series of measures Corporation eleine Paquin, President and that will enable us to benefit CEO of Logistec Corporation (which opfully and sustainably form our maritime erates a wide network of cargo-handling potential and make Quebec a special gateterminals), feels that the Vaudreuil-Soulangway for major markets in northeastern es project represents a “silo vision” with a North America.” north-south focus that runs counter to the The provincial government intends to purely maritime strategy approach aimed invest some $1.5 billion over the next five notably at further building up the Port of years and all told $5 billion by 2030 in inMontreal. Paquin is also vice-chair of Carfrastructure and other matters. It is countgoM, which promotes the Greater Moning on the private sector to invest about $4 treal cluster as a hub for the transportation billion in various projects ranging from of goods. intermodal transport to logistics centres, Not far from Vaudreuil is a new, big inshipyard expansion and tourism. Some termodal terminal at Valleyfield operated 10,000 new jobs are foreseen over the next

by U.S. rail giant CSX, which offers direct five years, climbing to 30,000 new jobs access to a 34,000-mile network in the within 15 years.

United States.

During the first five years of the action “Vaudreuil is not linked to Montreal by plan to sustainably develop the maritime rail,” indicated Paquin in an interview. ”It’s economy, the government intends to invest part of a concept of a north-south supply some $200 million in port and intermodal chain.” infrastructure projects to help meet the Although the proposed Vaudreuil logischallenges of competitiveness, notably vistics hub offers certain advantages for Canaà-vis U.S. East Coast ports. About $75 milda-U.S. trade flows, it would compete dilion is destined for enhancing road access rectly with the activities of the Port of to the Port of Montreal which has become Montreal and steer some business towards increasingly strained during peak periods.

American ports, Paquin affirms. CS In addition, the provincial government wants shortsea shipping to develop its full potential to take advantage of its economic, soLeo Ryan is a veteran journalist who cial and environmental benefits and to benefit has reported on key transportation and from anticipated demand from such alternatrade developments in Canada for more tive energy sources as liquefied natural gas.

Logistics hubs proposed for Montreal region The plan provides for investing about $300 million in the establishment of major logis-

than two decades. A former Montreal bureau chief for The Journal of Commerce, he specializes in port and shipping issues and was awarded the Medal of Merit in 1992 by the then Canadian Port and Harbour Association.

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IN THE NEWS

AIR CANADA CARGO LAUNCHES E-BOOKING TOOL; MAKES E-AWB ACCESSIBLE Air Canada Cargo customers can now book shipments directly on aircanadacargo. com thanks to the introduction of a new

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e-booking and management tool for air freight shipments.

Launched in August on the company’s

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updated website, e-booking provides a simple, intuitive interface with a user login allowing Air Canada Cargo account holders to book and manage shipments online, including those requiring specialized shipping solutions like AC Cool Chain, AC DGR and AC Live.

Bookings can be made for flights within Air Canada’s global and interline networks. The system also returns an estimated quote for the cost of the shipment, the company said. e-Booking also provides a unique interface for managing and tracking multiple shipments. From the dashboard, users can view the status of all their current shipments, fill out an e-AWB, add to the house air waybill, edit a shipment or print a document pouch.

With e-AWB capability in most of its network, Air Canada Cargo has been encouraging its customers to fully participate in e-AWB, resulting in steadily increasing penetration rates. With the arrival of ebooking, renewed emphasis will be placed on the benefits of e-AWB, and a specific campaign will be launched in the coming weeks.

“Our new e-booking system is unique in the industry,” said Vice President, LiseMarie Turpin, “and a true game changer for us and our customers. Our goal is to present our customers with a choice of channels and methods for conducting business with us, enabling them to choose a method that suits their specific needs. By making this leading-edge solution for online bookings available, we’re providing the tools they need to take their business to the next level.”

Air Canada Cargo has been working on rebranding its website with view to reorganizing content, modernizing it and making it a useful tool and resource centre for customers, noted Johanne Cadorette, Manager, Advertising and communications, and Vito Cerone, Director, Marketing & Cargo Sales Americas at Air Canada, in conversation with Canadian Shipper. ©Lonely_/iStock/Thinkstock

15-09-02 11:26 AM

IN THE NEWS

The website also now offers better access to shipping information, advisories, weather information, information pertinent to live shipments and detailed fleet cargo capacity information.

Cerone said Air Canada Cargo worked with customers and company call centre employees on usability aspects of the new site.

The company set up an advisory board two years ago with its customers, with web redesign one of the top items on the agenda, he added.

“This is phase one of a couple of phases coming into play,” noted Cerone.

787s into the airline’s fleet and expanding network, Air Canada Cargo is focused on meeting the opportunities presented by increased capacity.

“As Air Canada grows and renews its fleet and extends its network, we’re poised

to better serve key cargo markets around the world,” adds Turpin. “This year, we’re looking forward to our Dubai and Delhi starts, and the 787-9 aircraft that will operate on these key routes will allow us to expand our cargo reach,” said Turpin. CS

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“Our new e-booking system is unique in the

INTRODUCING E-BOOKING IN 4 EASY STEPS!

industry and a true game changer for us and our

Booking shipments online is now easier than ever at Air Canada Cargo. In minutes, book general and specialized shipments to anywhere in our global network, complete with e-AWB and estimated price.

customers. Our goal is to present our customers with a choice of channels and methods for conducting business with us, enabling

Discover the new aircanadacargo.com

them to choose a method that suits their specific needs. By making this leading-edge solution for online bookings available, we’re providing the tools they need to take their business to the next level.”

Lise-Marie Turpin, Vice President, Air Canada Cargo

For customers with their own booking systems, one of the phases will look at combining systems.

“We feel we are part of the supply chain and we need to understand what customers want. That’s why we set up the advisory board,” Cerone said.

With the addition of cargo-friendly widebody aircraft like Boeing 777s and ACC488_ad_canshipper_1234_092015.indd 1

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Air Canada Cargo | Going Further. aircanadacargo.com

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LEADERS

TRUCKING TALK

Ke

Io

GROUPE MORNEAU CONTINUES TO GROW AND STRENGTHEN ITS LOGISTICS André Morneau

BY CARROLL McCORMICK

T

his March, Quebec-based transportation company Groupe Morneau opened its twenty-first terminal in the province. The 9,755 square-metre, 82-door LTL terminal in Anjou, Montreal can handle 500 merchandise trips and over 10,000 pallets a day.

The terminal serves four of the company’s five divisions: Morneau Transport, Morneau Solution, Morneau Sego and Morneau Global. Company-wide, 400 tractors and 900 trailers make 2200 deliveries a day. Groupe Morneau has made Anjou its

Fran

logistics hub, with a new data centre infrastructure with 18 terabytes worth of computer capacity called SmartRow, by Emerson Network Power.

André Morneau, Groupe Morneau’s third-generation president, and Luc Dalens, general manager of the company’s logistics division, reveal some of the company’s logistics strategies and aspirations.

Luc Dalens

ANDRÉ MORNEAU: “It has 82 doors and is

120 feet wide.The old dry goods terminal in Saint-Léonard has 54 doors and is 70 feet wide.The distance between each door is four feet, versus 30 inches in the Saint-Léonard terminal. It is easier for drivers. The width gives us the best use of time to do the job and more efficiency.”

What improvements in the planning, execution and control of goods does your SmartRow data centre give you?

CANADIAN SHIPPER: CANADIAN SHIPPER: How

does the Anjou terminal improve your ability to efficiently consolidate shipments for delivery to customers?

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supply chain & logistics

cred-ability

Nothing says “Professional Logistics Expert” like CCLP. CITT is proud to present the CITT-Certified Logistics Professionals who earned their CCLP designation between June 2014 & June 2015. Congratulations to the 107 dedicated supply chain logistics professionals who now join the ranks of the industry’s elite.

Kevin Amezquita, CCLP North York, ON

Ioan Bunget, CCLP Breslay, ON

Franco Ming Cui, CCLP Mississauga, ON

Michelle Arseneau, CCLP

Mary Grace Avalos, CCLP

Evan M. Balchen, CCLP

Roselyn Capistrano, CCLP Winnipeg, MB

Rajan Mathew Chelleth, CCLP

Steve Decoste, CCLP

Scott Dimond, CCLP

Mississauga, ON

Edmonton, AB

Winnipeg, MB

Mississauga, ON

Jean Boudreau, CCLP

Jonathon Brake, CCLP

P.L Vivi Chu, CCLP

Graham Cook, CCLP

Keith P. Corcoran, CCLP

Kurtis Dool, CCLP

Ferdinand Aloysius D’Souza, CCLP

Elaine Fan, CCLP

Spruce Grove, AB

Stouffville, ON

Calgary, AB

North Vancouver, BC

Dieppe, NB

Stony Plain, AB

Mississauga, ON

Toronto, ON

Saskatoon, SK

Toronto, ON

Josie Felts, CCLP

Joseph Fernandez, CCLP

Amy Fok, CCLP

Katarzyna Formicka, CCLP

Joseph Gallello, CCLP

Shariq Hameed, CCLP

Kelly Hou, CCLP

Jim Kawli, CCLP

Pierre Kitts, CCLP

Lorraine Koehler, CCLP

Marina Koval, CCLP

Teresa Lam, CCLP

Mississauga, ON

Toronto, ON

Brampton, ON

Toronto, ON

p16-21 CdnShipper SeptOct2015 Leaders.indd 17

Scarborough, ON

St-Lazare, QC

Toronto, ON

Etobicoke, ON

Etobicoke, ON

Woodbridge, ON

Richmond Hill, ON

Brampton, ON

15-09-02 1:57 PM

Christina Laskaris, CCLP

Candace Markin, CCLP

Lorie Miller, CCLP Brampton, ON

Lisa Molinaro-Dayboll, CCLP, Mississauga, ON

Naomi Ogino, CCLP

Ricardo Pacheco, CCLP

Florina Papuc, CCLP

Shawn Patola, CCLP

Geoff Reguly, CCLP

Larissa Rosu, CCLP

Grace Sammarco, CCLP

Dhivakar Santhanamoorthy, CCLP, Brampton, ON

Mississauga, ON

Ville St-laurent, QC

Thunder Bay, ON

Calgary, AB

Brampton, ON

Oakville, ON

New Westminster, BC

Bolton, ON

Mississauga, ON

Anil Krishnanunni Nair, CCLP, Calgary, AB

Elton Ng, CCLP Elton Ng, CCLP

Shaun J. Sh

Mississauga, ON

Trevor Price, TrevorCCLP Price, CCLP

Neil Andr Ne CCLP, T

Steven Saunders, CCLP

Erin Serack, CCLP CCLP Erin Serack,

Mercy D. Po, CCLP

Brampton, ON

Mississauga, ON Mississauga, ON

Edmonton, AB Edmonton, AB

Calgary,Calgary, AB AB

Cal

Geng

Burn

Andry T

Bram

Chris Wa C

Washi

Joyce M N Joy

Mississ

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15-09-02 1:57 PM

CCLP

Photographs of the following 2015

CITT-Certified Logistics Professionals were not available:

Shaun J. Shaw,J.CCLP Shaun Shaw, CCLP

Dennis Slater, CCLP

Mansi Sood, CCLP

, CCLP

Neil Andrew Sookdeo, Neil Andrew Sookdeo, CCLP, Toronto, ON, CCLP, Toronto, ON,

James Benjamin Sothmann, CCLP, Calgary, AB

Jack Harold Stewart, CCLP, Saint John, NB,

, CCLP

Geng Sun, CCLP Geng Sun, CCLP

Richard Tang, CCLP

Rosemary Terek, CCLP

Andry Tulsie, AndryCCLP Tulsie, CCLP

Trevor Tung, CCLP

Zayan Ul Bari, CCLP

Chris Warren, CCLP CCLP Chris Warren,

Bradley Watkins, CCLP

Steven Wishnowsky, CCLP

a, ON

n, AB

AB

Calgary,Calgary, AB AB

Burnaby,Burnaby, BC BC

Delta, BC

Scarborough, ON

Brampton, ON Brampton, ON

Washington, DC Washington, DC

Richmond, BC

Burlington, ON

Brampton, ON

Waterdown, ON

Mississauga, ON

Chambly, QC

Victor Alvia, CCLP, Brampton, ON Jonathan Aubut, CCLP, Montreal, QC Sebastién Bousquet, CCLP, Calgary, AB Isabelle Brière, CCLP, Montreal, QC Neil Chandoo, CCLP, Caledon, ON Arnold Ning Chen, CCLP, Richmond, BC Mike Crawley, CCLP, Gravenhurst, ON Damon Davies, CCLP, Surrey, BC Clayton Essig, CCLP, Thornhill, ON Nelson F. Garcia, CCLP, Calgary, AB Rebecca Laura Garland-Zaleschuk, CCLP, Brampton, ON Thomas W. Giberson, CCLP, Oakville, ON Bonnie M. Gilbert, CCLP, Calgary, AB Jack Gilbert, CCLP, Etobicoke, ON Daniel Goldberg, CCLP, Montreal, QC Corey W. Gordon, CCLP, Milton, ON Roy Gunpat, CCLP, Mississauga, ON Rob Wayne Hall, CCLP, Elmira, ON William Heinrichs, CCLP, Winnipeg, MB Terry Robert Holland, CCLP, Keswick, ON Michelle Husain, CCLP, Port Hope, ON Lalitha Joseph, CCLP, Brampton, ON John Kaps, CCLP, Brampton, ON Maxim Kopyshov, CCLP, Woodbridge, ON Gary D. Lamb, CCLP, Whitby, ON David A. Lawlor, CCLP, Regina, SK Kalli Leventis, CCLP, Toronto, ON Tracey Loewen, CCLP, Saskatoon, SK Lyndon S. Noronha, CCLP, Pickering, ON Michael Pell, CCLP, Winnipeg, MB Kathy Schmidt, CCLP, Quispamsis, NB Nihleen Sharma, CCLP, New Westminster, BC Tichawona Desire Tamanikwa, CCLP, Edmonton, AB Kevin Thompson, CCLP, Brantford, ON Adam E. Todd, CCLP, Leduc, AB Olga Tsareva, CCLP, Edmonton, AB Fern VanderWilk, CCLP, Edmonton, AB Hong Yin Zhang, CCLP, Mississauga, ON Zequan Zhang, CCLP, North York, ON

To see The List of all Current CCLPs, visit www.citt.ca/CCLPs For more information about supply chain logistics courses and professional certification from CITT, visit www.citt.ca

Joyce M NingM Xu, CCLP Joyce Ning Xu, CCLP Mississauga, ON Mississauga, ON

Na Yi, CCLP

Coquitlam, BC

Jefferson Yoro, CCLP Mississauga, ON

www.citt.ca info@citt.ca 416-363-5696 Ronald Andrew Yule, CCLP Calgary, AB

p16-21 CdnShipper SeptOct2015 Leaders.indd 19

Michael Zhiltsoff, CCLP Thornhill, ON

15-09-02 1:57 PM

LEADERS

continued from p. 16

ANDRÉ MORNEAU: “It is three to four times better for quantity of information and the rapidity of communication we can manage between all of our terminals. If Montreal does better, all of our terminals will do better.”

Morneau Global coordinates local, provincial, national and international transport. Are any of these four areas growing especially quickly?

shipments for remote areas in Canada, mostly Northern Quebec, the North Shore, Saguenay, Lac-Saint-Jean and Abitibi. Overseas volume has been steady up to now.”

CANADIAN SHIPPER:

Have you recently begun offering any new logistics services?

CANADIAN SHIPPER:

“We began offering a new service in 2013 for anywhere in North America, in containers directly to our Morneau terminal in Sept Îsles. They arrive full or we consolidate them there and ship them directly to Shefferville by train. A local partner in Shefferville delivers them directly to First Nations and mining companies.”

LUC DALENS: LUC DALENS: “Up to now this year, compared to 2014, we have an increase of 50% in provincial volume, and 65% in April over March. It is a very high volume for special projects.”

“We had a rough winter and when the sun arrived everyone wanted to have merchandise in the stores.

Nationally, the increase is mostly in the intermodal market, road and rail to Western Canada. We have increased LTL and TL dry

ANDRÉ MORNEAU:

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CANADIAN SHIPPER: This March you hired a person to improve your logistics, and two more in May and June. What areas will they focus on?

LUC DALENS: “A new director was hired to manage North American logistics here in in Quebec City.

Another started at the end of May to handle the team in the Montreal offices, which mainly handles overseas logistics. The Montreal [logistics manager] will provide logistics consulting services for all of our customers and analyses for specific customers.”

CANADIAN SHIPPER: Is Groupe Morneau busier this year at the Port of Montreal?

ANDRÉ MORNEAU: “We haven’t increased our volume because our volume is mainly with Asia, through British Columbia. Our terminal in Anjou is ready for a higher volume from Europe when the free trade agreement [with Europe] is signed.”

LUC DALENS: “There

are plenty of Canadian and European manufacturers ready to open new markets as soon as customs barriers fall. We will be ready to help them.”

www.canadianshipper.com

15-09-02 1:57 PM

LEADERS

Will your Anjou terminal allow you to do more work consolidating loads in containers for sea transport, and deconsolidating containers?

CANADIAN SHIPPER:

LUC DALENS:“The

previous warehouse in Saint-Léonard was too small. We will be able to develop and increase this service a lot more in the coming months. In Quebec City we have customers who are receiving containers but they are fed up. Among the containers arriving at the Port of Montreal a lot of the cargo is not palletized. For the North Shore, companies do not want to hire people to palletise. We bring in containers to unload, palletise, and store temporarily. We can offer directly the distribution to market and keep distribution costs down for importers.”

solutions; for example, between the Gaspé and Germany. Companies can call Morneau and get service door to door … anywhere in the world. We developed this expertise for remote areas, but this service is also good for people in large cities.” CS

Carroll McCormick is an award-winning writer who has been covering transportation industry issues and technologies for more than a decade.

He is based in Quebec.

What about your goals to improve the international freight business?

CANADIAN SHIPPER:

LUC DALENS: “We are not interested in the high-volume, low-value market, such as waste. We want to concentrate on specialized markets and competencies like food and wood products with special requirements like safety and sanitation control. On the import side we focus on freight requiring a lot of distribution in North America.

We will unstuff containers in Anjou and use our LTL network to distribute to Canadian retailers. We expect to have about 10% of Groupe Morneau’s volume coming from international markets, importing and exporting, by 2020.”

Companies have been outsourcing transport logistics management for years. Is there anything changing that is making companies even more interested in having companies like Morneau Global handle their logistics?

CANADIAN SHIPPER:

ANDRÉ MORNEAU: “We realize that people in remote areas need assistance in developing overseas markets; for example, with foreign languages. We offer English, French, Spanish and German.We are developing more language services, mostly when [clients] have to talk to clients overseas, arrange movements and facilitate communication between receivers and shippers.

Customers in remote Quebec areas do not have good experience in financial transactions and documentation.We do integrated www.canadianshipper.com

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September/October 2015

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NAFTA

SHAKE, RATTL

BY CARROLL McCORMICK

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www.canadianshipper.com

15-09-02 11:53 AM

NAFTA

WILL AN AILING TRANSPORTATION NETWORK HOBBLE TRADE TRAFFIC?

TLE AND ROLL W

ith collapsing overpasses, thousands of unsafe bridges, unfunded port repairs, poor roads, harsh winters, freak storms and governments refusing to pass infrastructure bills, can NAFTA and pending new trade agreements get a fair shake?

Statistics Canada reports that in 2014, Canada’s exports to the US were valued at $400 billion, and imports from the US $350B, up 11.6% and 12% over 2013, respectively. And according to the Bureau of Transportation Statistics, trucks carried 59.7% of US – NAFTA trade in 2013.

Since trade agreements can only be as good as the transportation networks that enable the trade, dire warnings about the deteriorating infrastructure in North America should be of concern.

“Two things bother me: one, infrastructure decay and the lack of maintenance.

Two, my concern is that if any money is allocated to highways, it will go totally to potholes and shovel-ready jobs. It won’t go to things that will bite our asses, like climate change,” says Stephen Blank, Special Advisor, Collaboratory on Energy Research and Policy, University of Ottawa.

“North-south transportation between Canada and Mexico is almost all by truck. If more manufacturing is brought back to North America from China, that is good.

But if our roads are decayed, how will that work,” Blank asks.

Concerns about crumbling infrastructure in the US and Canada are widespread.

In 2013 the American Society of Civil Engineers (ASCE) issued its quadrennial “Report Card for America’s Infrastructure,” in which is assigns letter grades to each type of infrastructure, nation-wide. It gives bridges a C+, noting that of the country’s 607,380 bridges, one of every nine (67,487) is structurally deficient. To fix this, the Federal Highway Administration (FHA) estimates

that it would take an annual investment of US$20.5B, versus the US$12.8B being spent in the run up to the 2013 Report Card.

Ports earned a C.While noting that port authorities and private partners made US$46B in capital improvements to 2016, federal funding had declined for waterways and landside freight connections used to move goods in and out of ports.

The ASCE gave roads a D, noting that 42% of the country’s major urban highways were congested, at a cost to the economy of $101B. The FHA puts the cost of significantly improving road conditions and performance at $170B. The ASCE concludes, “… our infrastructure systems are failing to keep pace with the current and expanding needs, and investment in infrastructure is faltering.” So is the infrastructure itself.

Between 1989 and 2012 nearly 600 US bridges failed, according to a 2012 CBS News interview with Barry LePatner, author of “Too Big to Fall: America’s Failing Infrastructure and the Way Forward.”

Recent examples: In July a bridge collapsed on the I-10 in California, which carries 54,000 vehicles a day. Listed as functionally obsolete in the FHA’s 2014 National Bridge Inventory, the collapse was blamed on an extreme weather event. A bridge closure on the I-65 in Indiana this August forced a 60-mile detour for 25,000 northbound travelers a day, including 8,000 trucks.

Sixty percent of truck drivers surveyed by 3PL company National Retail Systems said roads are getting worse. One conclusion of the survey, posted this June, is that bad roads and the related operating costs and delays are aggravating driver shortages.

Despite this infrastructure deficit, Senate Republicans defeated an amendment to the 2016 budget to add US$478B in new infrastructure spending.

Canada has its own infrastructure debt hole. A Canadian Infrastructure Report Card issued in 2012 calculated that city and community traffic gridlock costs Canada’s economy C$5B. Pooled responses from 118 municipalities put 26% of all road types in fair to very poor condition, and only 43% in very good condition; i.e., with no operational problems and demand corresponding well to design capacity.

Last year Canada2020 issued a report, which includes summaries of other infrastructure reports. It notes that congestion costs Canada C$15B a year, that the transportation portion of the country’s municipal infrastructure deficit is C$21.7B and that it would take C$66B between 2013 and 2023 to repair urban roads and bridges.

Zeroing in on one province, New Brunswick, a 2013 Auditor General’s Report on the state of the province’s 2,608 bridge structures stated that 293 have a “poor” rating, defined as requiring significant work in the near term to keep them in service.

Climate change is an emerging infrastructure migraine. The Summer 2015 issue of Asset Management Newsletter BC, for example, discusses engineering vulnerability as a function of climate change.The damage to infrastructure is illustrated by insurance payouts, including a first-ever “two-billion” event – the Southern Alberta flood of 2013.

Freak weather and unusually severe storms, with the attendant impact on transportation systems, have become practical commonplace across the continent.

What are some of the faces of Canada’s infrastructure deficit? In 2006 a Laval, Quebec overpass collapsed, affecting 3,000 trucks a day. Weight restrictions on several classes of trucks on 135 overpasses followed, affecting 12,000 trucks a day. The following year, carriers threatened to sue over lost revenues and additional expenses. continued

©Thinkstock

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www.canadianshipper.com

September/October 2015

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15-09-02 11:53 AM

Hercules

NAFTA

The Champlain Bridge is a critical part of a C$20B trade corridor between the US and Canada. It carries 58 million vehicles a year. Thanks to a lowest-bid design and structural components that cannot be effectively repaired, the bridge, only 53 years old, is on costly life support.

A 2011 assessment of the bridge by Delcan reports that, “… there is risk of partial collapse of the bridge …” and “… this bridge can be expected to collapse partially or altogether in a significant seismic event.”

Coincidentally, but happily, the A-30 ring

Ranked One Of Canada’s Top Carriers Years In A Row

4

SERVING ONTARIO, QUEBEC, WESTERN CANADA AND THE UNITED STATES TO & FROM CANADA.

www.gxts.com 1-877-740-3940 | gxinfo@gxts.com LTL • DEDICATED • TL • DIRECT • EXPEDITED • DRY VAN • REEFER • LOGISTICS • DISTRIBUTION

ROAD • RAIL • AIR • OCEAN

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September/October 2015

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road around Montreal was completed in 2012. Should something happen to the bridge before its replacement is ready in 2018, the ring road will serve as a ready detour.

Then there is the crumbling, critical 18-kilometre Gardiner Expressway in Toronto. This June Toronto council voted to rebuild the Expressway, with work to begin around 2020.

According to the Canadian Centre for Policy Alternatives, underinvestment in infrastructure is a chronic problem, with Canada short C$145B worth of infrastructure. The report points to a large offloading by federal governments of infrastructure responsibilities onto local government.

Its report warns that continued low levels of investment, “…will leave our infrastructure stuck at a crisis level indefinitely, and is clearly a recipe for disaster.”

In a ray of hope for untold numbers of shippers, it seems that construction of a new, six-lane bridge will finally begin and, by 2020, ease pressure on the slow-rolling transportation nightmare that is the Ambassador International Bridge connecting Windsor and Detroit. It handles 25% of all merchandise trade between US and Canada and millions of trucks creepy crawl across it every year. Faced with mindnumbing congestion and no luck getting a deal with the US to co-fund a new bridge, Ottawa finally decided that Canadians would pay for the $1B construction tab.

As trade increases, Canadian ports will be asked to process ever more cargo.Wendy Zatylny, president, Association of Canadian Port Authorities (ACPA), comments that Canadian ports will likely have to handle another billion tonnes at Canadian ports by 2030. “This means we would have to double our capacity – about five CPAs the size of Port MetroVancouver.The question is how do we prepare?”

But ports underfunding is also today’s boat anchor.To cite just one dimension of the issue, a Transport Canada/ACPA study identified $5.8 in investment needs for the 18 CPAs, including $1.9B in rehabilitation work, the dirt-poor third cousin of capex projects, from the point of view of locating funding.

What about the railways? CN and CP spend billions annually on maintenance and upgrades, but short line railways struggle to fund infrastructure improvements.This summer the Coalition of Rail Shippers included into their submission to the Canada Transportation Act Review requests that railways increase capacity to meet demand.

It is time to start spending. CS

www.canadianshipper.com

15-09-02 11:53 AM

HERCUL

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NAFTA

NAFTA PERCEPTION AND REALITY

BY JULIA KUZELJEVICH

DRIVING THE DEAL FORWARD

M Our Promises Get Delivered

Have a promise that just has to get delivered somewhere in North America?

We Can Help!

North America wide truckload service

Satellite tracking

One time and multiple shipment contracts Web tracking Imaging CSA, PIP, C-TPAT, FAST, ACE, ACI

Operating from seven terminals in Canada and the USA, we offer swift and reliable truckload service to most of North America.

That, combined with our no nonsense commitment to customer service has helped Penner become the transportation provider of choice for Manitoba companies who need to keep their promises, wherever they need to ship in North America.

www.Penner.ca

Toll Free 866.729.7134

ore than 20 years after the North American Free Trade Agreement (NAFTA) was concluded, a panel of logistics stakeholders at this year’s Vancouver, B.C. Cargo Logistics Conference examined the overall perception of NAFTA in the marketplace, and how the trade community can drive the benefits forward.

NAFTA was born to eliminate trade barriers, promote safe competition, promote foreign direct investment, create an effective procedure to manage disputes and finally, to establish a cooperation framework, a North American trade block.

“After they set out to create this trade block, 9/11 increased border and homeland protection. Then there was the rise of drug trafficking trade, the 1994 Mexican recession, and the 2009 US economic crisis.

Mexico implemented many financial controls that helped them get through the 2009 crisis. What we didn’t see coming when we signed NAFTA was how much technology was going to help us, (i.e. on customs clearances, for example),” noted moderator Jordan Dewart,VP,Yusen Logsitics Mexico.

The criticisms of NAFTA are that trade did not grow as much as it could have. The perception was that job losses in the US were due to outsourcing leading to a smaller GDP, and larger immigration into the US from Mexico. continued

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www.canadianshipper.com

©Agil_Leonardo/iStock/Thinkstock

15-09-02 11:53 AM

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This is not where you want to discover your gear isn’t waterproof.

With a wide range of new and exclusive work and safety apparel by top brands like Dakota, companies all across the country count on Imagewear. From transport fleets to transit systems, we can outfit your entire workforce from head to toe with high performance work apparel and footwear, uniforms and branded attire designed for Canadian weather.

Visit imagewear.ca or call 1-(844) 359-9466 to find out more.

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15-09-02 11:53 AM

SALARY SURVEY

THE WAY TO PAY IS YOUR SALARY KEEPING UP? OUR 2015 SURVEY RESULTS PAINT THE PICTURE

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www.canadianshipper.com

©linetic/iStock/Thinkstock

15-09-02 11:55 AM

SALARY SURVEY

Brought to you by our survey partners:

BASE SALARY INCREASES Survey Average

CS Readers

Increased

60%

46%

Remained the same

34%

49%

As the leading and largest association in Canada for professionals in supply chain management, the Supply Chain Management Association (SCMA) is the national voice for advancing and promoting the profession.

SCMA strives to ensure that

SIZE OF INCREASE

employers recognize the critical contribution that SCM professionals make to the success of their

Survey Average

CS Readers

34%

30%

organizations. SCMA sets the standard of excellence for

2.0% or less

professional skills, knowledge and integrity. With nearly 8000

2.1% to 4.0%

40%

43%

4.1% to 6.0%

9%

0%

6.1% to 10.0%

8%

17%

10.1% or greater

8%

10%

members working across the private and public sectors, SCMA is the principal source of supply chain training, education and professional development in the country.

R

esults are in for our 16th annual Survey of the Canadian Supply Chain Professional, and as usual they shed some interesting light on the state of compensation and satisfaction in the industry.

The survey was once again conducted in partnership with our sister publications MM&D and Purchasing B2B, as well as the Supply Chain Management Association, offering one comprehensive national survey which included responses from more than 1,200 supply chain professionals across Canada.

Once again this year we are breaking out all survey results to show the overall survey average and the results specific to Canadian Shipper readers. With a strong transportation management focus we feel it is more accurate to isolate their results.

Some 53% of Canadian Shipper respondents this year work in transportation and warehousing. Over 91% of respondents work full time in supply chain.

The good news for Canadian Shipper readers is that 59% of respondents agreed, either somewhat or strongly, that their com-

http://www.scmanational.ca/

BDO has extensive experience providing services to a broad range of clients in the traditional and emerging areas of distribution providing us access to firsthand knowledge of trends and insights.

We understand your business. Our international network of industry professionals has a wide range of financial and advisory expertise to support your changing needs. www.bdo.ca

www.canadianshipper.com

p32-39 CdnShipper SeptOct2015_Survey.indd 33

September/October 2015

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SALARY SURVEY

BASE SALARY RANGES Survey Average

CS Readers

Less than $40,000

2%

5%

$40,000 to $49,999

5%

12%

$50,000 to $59,999

10%

14%

$60,000 to $69,999

12%

“

MEAN SALARY BY POSITION Survey Average

CS Readers

Total Respondents

$92,182

$91,761

Clerical/administration

$67,414

$55,336

Consultant

$98,383

$82,500

Engineering/professional

$95,630

$81,333

Executive

$130,604

$152,364

Managerial

$101,446

$87,282

Operations/Tactical

$80,422

$76,071

Supervisor

$81,239

$76,791

9%

$70,000 to $79,999

11%

9%

$80,000 to $99,999

24%

17%

$100,000 to $119,999

12%

3%

$120,000 and higher

12%

14%

MEAN SALARY BY SUPPLY CHAIN FUNCTION pensation level is keeping up with their job responsibilities.

Those who “somewhat disagreed” rang in at 29% while only 12% “strongly disagreed”.

Looking ahead to next year, 75% of Canadian Shipper respondents anticipate a salary increase of at least 2% while 45% anticipate their salary will rise between 2.1-4%.

The survey revealed some strong trends, many of which are positive for the supply chain sector.

Specifically, the value of education: 88% of Canadian Shipper respondents have completed tertiary levels of education and 64% said they would need further education or professional development to progress in their careers.

The top skills Canadian Shipper readers identified they’d need to do their job today were people skills (24%) followed by decision-making skills (18%).

Achieving professional designation status to get ahead in the job is something that 38% of Canadian Shipper’s readers agreed with. But 39% said they disagreed with the statement that “I should really have a professional designation to get ahead in my job”.

Industry-specific training, meanwhile, whether through courses, workshops, conferences and in-house training, is highly regarded by 55% of Canadian Shipper readers, with one-third also seeing the value of investing in a professional designation.

What kind of influence do those in a supply chain role have

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Survey Average

CS Readers

Total Respondents

$92,182

$91,761

Supply chain management

$97,034

$99,403

Purchasing/procurement

$91,288

$99,171

Strategic sourcing

$96,485

$91,923

Logistics

$93,093

$91,445

Warehousing

$94,416

$89,988

Transportation

$93,224

$88,620

Inventory/Material Control

$89,600

$98,855

Information Technology

$99,817

$98,260

Project Management

$97,429

$102,022

Consultant

$103,230

$101,083

www.canadianshipper.com

15-09-02 11:55 AM

T

T su B u

A

w

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SALARY SURVEY

MEAN SALARY BY COMPANY SIZE over their organization, at the C-level?

According to the survey, 46% of Canadian Shipper respondents say they have influence at the C-level, while 12% say they are at the C-level themselves.

And 88% of respondents in 2015 strongly agreed with the statement: “My company has come to realize our business could not function without supply chain management professionals”, another positive statement.

When looking at the influence the supply chain role has in the organization, in terms of importance to senior management, 27% of Canadian Shipper respondents “strongly agreed” that this influence is on the rise, while over 75% of respondents agreed that this was true.

If additional research and benchmarking were available, Canadian Shipper readers consider the most valuable top trend to be sales and operations planning (S&OP) (39%) followed by big data management (15%).

Narrowing down the top two supply chain issues faced over the last 12 months, 33% of readers pointed to cost control followed by transportation at 26%.

In terms of the overall list, 18%, as befits our readership, pointed to transportation, 15% said cost control, 14% reorganization, and 11% capacity shortages as the top issues they faced over the last year.

What do Canadian Shipper readers anticipate will be the top supply chain isues over the next 12 months?

The top issues are expected to be cost control (20% of respondents), capacity shortages (12% of respondents) and reorganization (11% of respondents).

Getting down to the nitty gritty, the overall average salary this year among total survey respondents came in at $92,182, with executive position salaries at $148,571 (up from $141,813 in 2014).

Overall average salary for males was $97,945 and $83,381 for females.

Three years ago we were hopeful that things were looking distinctly better when we found that

Survey Average

CS Readers

Total Respondents

$92,182

$91,761

1 to 99

$82,853

$77,041

100 - 499

$86,511

$80,543

500 or more

$98,916

$114,079

MEAN SALARY BY EDUCATION Survey Average

CS Readers

Total Respondents

$92,182

$91,761

High school or less

$78,293

$92,600

Trade/technical diploma

$91,614

$97,300

College diploma/CEGEP

$88,694

$69,142

Some university

$94,253

$108,143

University Bachelor’s degree

$92,253

$92,625

MBA

$109,412

$142,500

Other Masters

$102,294

$89,000

MEAN SALARY BY YEARS OF EXPERIENCE Total Respondents

2-5 years

6-10 years

11-15 years

16-20 years

21-25 years

26-30 years

31 or more years

Survey Average

$92,182

$63,104

$75,930

$90,765

$96,046

$97,851

$107,733

$107,823

CS Readers

$91,761

$49,550

$75,342

$75,167

$109,500

$148,500

$125,273

$76,514

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SALARY SURVEY

MEAN SALARY BY INDUSTRY SECTOR Survey Average

CS Readers

Total Respondents

$92,182

$91,761

Transportation & warehousing

$91,960

$81,230

Manufacturing

$87,000

$83,125

Public administration

$84,101

$89,000

Healthcare

$90,996

$ NA

Natural Resources

$104,231

$116,125

Services

$91,889

$85,471

$83

$89,273

Trade/Wholesale

MEAN SALARY BY PROVINCE Survey Average

CS Readers

Total Respondents

$92,182

$91,761

Atlantic Canada

$80,930

$74,867

Quebec

$84,763

$91,600

Ontario

$90,809

$87,835

$81,117

$73,500

Saskatchewan

$86,540

$59,500

Alberta

$104,392

$121,000

$87,587

$85,750

Manitoba

British Columbia

71% of our survey respondents received a salary increase, a marked improvement from dismal 2009 when only 39% received a pay increase. In 2015 however, only 62% of survey respondents reporting a pay increase, and only 46% of Canadian Shipper readers received an increase.

Looking at the size of increases received, 30% of Canadian Shipper respondents received an increase at 2% or less, while 43% received a salary increase in the range of 2.1-4% with 27% receiving increases above 6.1%.

The mean gross salary for 2015 was $91,761 for Canadian Shipper readers with 17% of our readers now pulling in base salaries of $80,000-$99,000 and 17% reporting six-figure base salaries.

Those in supply chain management positions enjoyed a mean base salary of $99,403. Those with transportation functions had a mean salary level of $88,620, up just slightly from last year’s $88,137.

When examining salary levels by position within the organization, what’s more informative than simply paying attention to the actual figures is paying attention to the gaps from one level to another. Those individuals working for companies sophisticated enough to consider supply chain as an executive-level function enjoy the greatest spread in salary levels. The mean compensation for a Canadian Shipper reader who is an executive level supply chain professional is $152,364.

Understanding your company’s perspective when it comes to the value of supply chain management is critical.

Our survey also records differences in pay levels attributed to a variety of factors such as the sector you work in, the region of the country in which you are based and the size of company for which you work.

Company size makes a similar difference in base pay levels. Canadian Shipper readers working for companies with fewer than 100 people had a mean salary of $77,041. Those working for companies with 500 or more employees posted the largest compensation level at $114,079. That’s more than a $37,000 difference for those working for smaller companies.

What is the impact of personal factors such as years of experience and education? Our readers are in their top earning potential in the 21-25 year range of their career. Those in that bracket earned a mean compensation of $148,500 in 2015. CS

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SALARY SURVEY

RESPONDENT PROFILE & METHODOLOGY Of the 1,256 supply chain professionals included in our sample, 40% defined themselves as being in the managerial ranks of their organizations and 44% said they were in transportation.

The vast majority of respondents (80%) were over 35 years of age with the mean age being 45. The majority (88%) had at least a college degree.

Respondents performed a variety of functions ranging from supply chain management (70%) and purchasing/procurement (84%) to transportation (44%) and warehousing (37%). The majority of respon-

dents who are Canadian Shipper subscribers had transportation and supply chain responsibilities. Their survey response totals are shown separately in our charts as a comparison to the overall survey numbers.

The survey enjoyed wide geographic reach across Canada. While 33% of respondents came from Ontario, another 45% were from Western Canada and 18% from Quebec and the Maritimes.

The respondents also represented a mix of small, medium and large enterprises with 49% working for large companies employing more than 500 while 18%

worked for small organizations employing fewer than 99.

E-mail invitations were sent to supply chain professionals across Canada from email lists provided by Canadian Shipper and our sister publications MM&D and Purchasing b2b as well as the Supply Chain Management Association. The survey was handled once again by the research firm of G. Bramm Research Inc. After filtering out unqualified respondents and incomplete surveys, we compiled data from a 1,256 respondents. This represents a margin of error of plus or minus 2.6 percentage points, 19 times out of 20. CS

GEOGRAPHIC DISTRIBUTION Quebec Atlantic Canada

12%

5% Manitoba/ Saskatchewan

10% Ontario

33% British Columbia

10% Yukon/ Northwest Territories/ Nunavut Alberta

25%

“There’s always going to be risk.

The issue is how to manage it.”

People who know Distribution, know BDO.

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1%

Assurance | Accounting | Tax | Advisory www.bdo.ca/consumer-business

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SALARY SURVEY

SIZE OF COMPANY

HIGHEST LEVEL OF EDUCATION

100-499

Some university

28%

17% College diploma/ CEGEP

1 to 99

18%

23% University degree

35% Highschool or less

6%

500 or more

Trade/technical diploma

49%

MBA

6%

7%

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ARCTIC

WARMING OF THE NORTH ARCTIC INFRASTRUCTURE: CHALLENGES, OPPORTUNITIES The University of Manitoba’s Transport Institute held a conference this March looking at Arctic Transportation, supply chain management and economic development. Here are the highlights.

Arctic Infrastructure-Realities and challenges Offering a Yukon Perspective on Arctic infrastructure at the conference, Allan Nixon, Assistant Deputy Minister, Highways and Public Works, with the Yukon Government, said that economic growth in the region is driven in large part by the mineral sector and public sector infrastructure expenditures. A small tax base in the Yukon accounts for 11% of revenues - with heavy dependence on federal government transfers.

With a population of 37,000, of which 28,000 are centered in the Whitehorse area, some 22% of the Yukon government’s capital budget is spent on transportation infrastructure.

“As the Yukon is driven by commodity costs, there are many shifting demands. It’s also driven by exploration, with changing needs. There’s a general lack of last mile infrastructure in the Yukon,” Nixon said.

“We have a reasonably well developed network in the North but there are not a lot of go-around options in the event of emergencies or incidents,” he added.

The Yukon maintains a 4,800 km highway of which 2,800 km are gravel and 350 km asphalt-the only all season highway crossing the Arctic Circle.

Noting there are some seasonal changes in weather patterns, Nixon also discussed the challenges of permafrost construction: it has to be constructed under freezing conditions and there are frequently settlement issues.

“Deformations can become water traps, causing increased maintenance costs,” he said.

Additional maintenance/rehabilitation costs in permafrost sections costs from $22,000-36,000/km/year.

Research is underway at the Beaver Creek Permafrost research site, looking into reducing the rapid melting of the per40

September/October 2015

BY JULIA KUZELJEVICH

NEAS ship waiting for ice to disperse. Courtesy: NEAS.

mafrost, under the combined efforts of Transport Canada and Laval University.

The expansion of the system can’t be done by one government alone, however.

“Mining is no certainty, tourism is no certainty, traffic is no certainty,” Nixon noted.

The Yukon government is examining, among other things, dedicated resource access funding, infrastructure banks, and public private partnerships as part of its strategic planning/business modernization.

The Railway perspective Merv Tweed is President of OmniTrax Canada, which owns and operates 19 different railways across North America. In Canada the company operates Hudson Bay rail and the Carlton Trail, a small 8-mile track into British Columbia out of the U.S. “The importance in the Hudson Bay trade line is that it provides a link from domestic to international sites.The Bay line is the only line for both freight and passengers for the smaller communities in Manitoba,” he said.

To sustain the Bay line into the future will require some changes, Tweed said.

“The cost is tremendous and varies an-

nually. There are three different rates of permafrost. Last summer we shut the rail service for 22 days. It took us eight days to get people out there to fix a derailment,” he said.

Some $10 million was spent on infrastructure in 2014, which Tweed noted was not even a capital expenditure because it’s essentially infrastructure that is now gone (i.e. ballast, that disappears and crushed rock.)

Ballast replacement, including the lifting of track to build up the ballast, which sinks into the tundra, took place almost daily.

“I believe that we are a utility-providing a service to the community, often at a loss.We are hoping grain will offset the loss.

The government’s role is to help northern Canada develop the way the rest of Canada has developed.We have to look at transportation as the essential for growth and development. We have discussed P2s and P3s, but we cannot get an investment unless we see a return,” Tweed said.

OmniTrax partners with universities across North America and in other countries on permafrost issues and solutions that have worked for them.

“For me, we’ve studied it to death-we just need to find the solution,” said Tweed.

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Lifeblood of the North In her opening remarks at the Warming of the North Conference, Esther Nagtegaal, ADM, Manitoba Infrastructure and Transportation, said that the transportation network forms the lifeblood of the northern economy.

“In Manitoba we are working very closely with Nunavut to build a ManitobaNunavut road. Something like this really is nation-building,” she commented.

Nagtegaal also discussed the Arctic Marine Shipping Assessment.

The first-ever database of all the ships in the Arctic, but not including military vessels, was developed, but Nagtegaal noted the difficulty in getting information out of Russia about its cargo ships.

(At press time the Russian Coast Guard had announced a polar fleet renewal with new ice-going vessels, to include smaller, fast patrol boats and a new vessel of the long-time proven Svetlyak-class vessel, to be ready for service in 2019.) On a visit to Alaska in early September US President Barack Obama proposed speeding the acquisition and building of US Coast Guard icebreakers that can operate year round in polar regions. (The Canadian Coast Guard's next icebreaker, CCGS Diefenbaker, will not be in the water until 2021 and the fleet currently stands at two icebreakers for the whole Arctic Coast.)

Supply Chain and Implications for Arctic Transportation David Porter, President of Newfoundland and Labrador’s McKeil Marine Ltd. , which offers transportation and project cargo services for a wide range of customers and industry sectors, and which has about 1015% of its annual sales component in the Arctic, said that Arctic trade involves balancing business cases and being innovative when it comes to remote projects.

“The lack of infrastructure creates a unique need for gear and project support.

It’s a short season, so timing sometimes conflicts with high utilization time in the Southern trade regions. We are a support company, but as mining and government infrastructure increase we will have opportunities to support them.We’re working on a day to day basis, not planning around an extended operating season,” he said.

McKeil has a skilled sailing crew and shore-

based crew and its fleet investment in the last three years totals more than $80 million.

Uncharted territory While charting of the Arctic’s southern waters probably started about 200 years ago, it’s still not perfect, noted Michel Goguen, Director, CHS Central and Arctic, Canadian Hydrographic Service, who provided a status update on Arctic bathymetry and charting.

“Charts are the roadmap to the Arctic but the big dilemma we have is that there is limited bathymetric info in the Arctic-it takes 5-10 years to get good data,” he said.

The CHS does not have access to dedicated survey ships, or a budget or program for the Arctic.

“The Central and Arctic capacity for surveys is currently limited to three survey teams of 5-8 persons each to cover demands on both the Great Lakes and Arctic waters,” Goguen said, noting the Arctic survey season runs approximately 2.5 months from mid -July to the end of September.

The way forward envisions equipping strategic federal vessels with modern hydrographic technology and capabilities, he noted.

Arctic shipping-the potential?

The Northwest Passage is considered a shorter route to transit through the Arctic, but the more southern the origin of the passage the longer the route is. Also, even if the route is shorter, the speeds are slower and insurance premiums much more expensive at around 25%, noted Dr. Frédéric Lasserre, of Laval University.

Drifting ice remains a hazard at all season changes and even in the summer, he added.

While there is a strong incentive for navigation opportunities from industries like mining, it’s related to destination, not transit, traffic.

“Bulk carriers are looking for long-term contracts and higher charter rates,” he noted.

There were 17 Northwest Passage transits in 2014 vs. 22 in 2013 of which one was a commercial cargo transit. Most transits are actually by pleasure craft.

In 2014 there were 108 Canadian cargo ships or barges in the Arctic, and 119 fishing vessels. Arctic shipping is expanding, but it’s driven by destination traffic.

“Shipping firms transporting containers are not interested in Arctic routes. They are

too complex, uncertain, there’s no port along the route, and there are low load factors. There is a little more interest for bulk shipping, but with prudence around ice, insurance, the need for longer term contracts and high charter rates, and the need for ice-strengthened ships,” Lasserre said.

“Arctic shipping is a niche market, not a future competitor to the Suez or Panama, and certainly there is much more potential in destination traffic over transit,” he noted.

Arctic Stewardship: priorities The chairmanship of the Arctic Council was handed over this April from Canada to the U.S. Lucy K. Abbott, Counselor for Energy and the Environment at the U.S. Embassy in Ottawa, said that the U.S. intends to increase its engagement with industry and the environment.

The U.S. has been an Arctic nation since purchasing Alaska in 1867.

“Now communities in Alaska are being threatened by rapid changes to the ecosystem. Our upcoming chairmanship is a good time to take stock of changes in the Arctic.

We also want to highlight the shared challenges and opportunities the Arctic presents.

Overall Arctic policy has been guided by our May 2013 Strategy for the Arctic Region. Although we are focusing on the Arctic because of our chairmanship, our focus is nothing new,” Abbott said.

President Obama has issued an executive order focusing on enhancing coordination between an Arctic Executive Steering Committee and over a dozen federal agencies, state and local authorities.

“We propose building on existing programs. We emphasize safe, secure, and environmentally safe shipping. Priorities include marine environmental protection, ocean acidification, and improving economic conditions in the North, with renewable energy options, improved sanitation, and community resilience.Transportation and supply chain developments are also a key imperative as is addressing climate change,” Abbott said.

“Our work at the Embassy focuses on the smooth transition of the Arctic Council. We will identify areas in which our two countries can increase coordination. We look forward to continuing to work with Canada on the sustained stewardship of the Arctic,” she said. CS

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ARCTIC VISIONS Suzanne Paquin sees the shipping needs of the North through clear eyes The Canadian North is admittedly a harsh mistress, but the lack of marine infrastructure and oversight there borders on the otherworldly. There is a way forward, however, according to Suzanne Paquin, president and CEO of NEAS, which provides sealift services to scores of communities, mines and other clients in the North.

In a densely packed nutshell, Paquin lays out the challenges, “We deliver an essential service under extreme conditions. All communities are dependent on marine resupply, however there is a huge lack of basic marine infrastructure.We have no ports, no wharves, no harbours, no ramps and no lighting, no safe or secure marine work areas on beaches, no safe anchorages or mooring buoys for our vessels, few navigational aids and very limited hydrographic charts.”

Paquin lives and breathes cargo and shipping. After graduating from McGill University with a Bachelor of Commerce degree in accounting and management information systems, she joined Logistec Corporation in 1983, and Suzanne Paquin, and eventually became vice-president, president CEO of NEAS operations in its shipping division, Logistec Navigation. She helped create Transport Nanuk, a joint venture between Logistec Corporation and The North West Company, served as Transport Nanuk’s president, and now runs the NEAS Group.

Paquin also sits on the board of directors for Logistec Corporation and has been a director for the St. Lawrence Ship Operators Association since 1990.

NEAS employs 150 people. Its adminis-

BY CARROLL McCORMICK

trative office is in Montreal. For 15 years now Valleyfield has been home base for its vessels and the NEAS Cargo Service Center. NEAS generally loads four vessels at least three times a year, but special projects require additional shipments.

NEAS operates five vessels, with a combined deadweight tonnage of 56,576 tonnes and 3,324 TEUs worth of container capacity.They ply the Northern waters during a four to five-month month shipping window – roughly July to November.

Each ship carries a “kit” of portable port infrastructure. It includes tugboats, barges, forklifts, portable office, lighting and frontend loaders - indispensible for moving every stitch of cargo from ship to naked beach.

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ARCTIC

hour shifts, crews require two weeks to do a job that would take three days at a wharf.

“In Iqaluit we can lose six weeks of downtime [in a season],” Paquin says.

These portable ports double as unsupervised playgrounds and are magnets for eager townspeople.

In a Northern first, last year Iqaluit created a defined staging area under its Sealift Safety Program.

The absence of port facilities is a colossal boat anchor on the Northern economy.

“The lack of marine infrastructure in the Arctic is a hidden tax on economic development in Nunavut,” Paquin explains.

“This marine infrastructure deficit increases costs on all development, from housing, new construction to everyday pricing of everyday products required to sustain life.”

“In the 1990s, the federal government, the provincial government and Makivik [Corporation] put in place a plan to bring marine infrastructure to each Nunavik community. They worked together and identified the needs. They prioritized and executed the plan. These are not fancy ports, but they are making things better incrementally,” Paquin says.

One might be awed by Ottawa’s lateJuly announcement that it will contribute up to $64 million for a deepwater port in Iqaluit, but the cost, scope, timeline and even whether it will be built at all are nowhere near cast in concrete.

“Deep-draft ports and mega projects are expensive, especially in the North where the needs are so much. We’ve told [governments] what we need. We need to just work 24 hours a day," Paquin says.

People in the south need more information about northern realities to better inform their decision-making, according to Paquin.

“I started explaining sealift in 2008 and I was surprised how little people knew about how things worked in the North. People say ‘you’re working on a beach. No!’” It would be an economical, and economic, leap from the 16th Century to the 21st merely to have the old causeway across from Iqaluit upgraded so ships can dock and unload in a normal fashion.“It is already here. It just needs to be ramped up,” Paquin says..

Lest one think that global warming and melting ice might make shipping easier, Paquin says, “Planning for having less ice in years going forward is not a good assessment. The weather and ice conditions have

been more volatile than ever before. " NEAS has invested in larger ships, doubled capacity, does more voyages and is more efficient than ever, Paquin says.

“We’ve invested … come on, it’s time for others to invest. The more people know

and understand about the reality of remote communities in the Arctic, the more obvious the need for action becomes. We are seeing piecemeal investments in the Arctic.

What we want to see is a global vision and leadership.” CS

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ELECTRONICS

T

he name of the game in recycling end-oflife electronics (EOLE) is transportation, and how to do it as efficiently as possible.

“As much as this is an environmental business, the reality is that this is mostly a logistics business,” says Craig Wisehart, executive director, Western Canada, Electronic Products Recycling Association (EPRA).

EPRA, a national, not-for-profit organization created in 2011, operates recycling programs in eight provinces, has over 2,000 collection sites and collects over 100,000 tonnes of EOLE a year. Wisehart runs the British Columbia program.

EOLE recovery in British Columbia begins at three main sources: 49 stores that participate in return to retail programs (R2R); companies participating in the Industrial, Commercial and Institutional (ICI) program; and 173 official depots where consumers can drop off approved EOLE. From these locations most EOLE is sent, usually in less-than-load (LTL) shipments, to six consolidation centres. Here it is cross-docked and generally moved in full truckloads to four processors. They dismantle and transport the EOLE to companies that specialize in extracting commodities like metals, precious metals and plastics.

Last year EPRA British Columbia collected 22,737 tonnes of EOLE. Its total program costs were $1,004 per tonne, of which transportation accounted for $199 per tonne.

Most EOLE in British Columbia enters the system at the depots, about 125 of which are bottle and can recycling depots run by Encorp Pacific. “We have a very extensive collection network in BC because we piggyback on Encorp Pacific depots,” Wisehart says.

Encorp Pacific negotiates its transportation contracts, palletizes and weighs the EOLE, and bills EPRA. “We rely heavily on Encorp to get the e-waste from the depots to the consolidation centres. Encorp does most of the negotiations, as a shipper, and uses a pretty broad mix of carriers,”Wisehart adds.

Encorp uses around 45 carriers to move its own and EPRA’s recyclables from its depots to the consolidation centres.

Depots do a three-item sort: computer displays, which are shrink-wrapped on skids in neat piles about five feet high; computers and laptops, which are stack on skids; Theand "newshrink-wrapped and improved" Panama Canal will openand everything else, which April 2016. Photo is1,packed incourtesy fibre Mala bagsRae.about the footprint of a skid and about three feet high.These bags can be double stacked.

Because much of the trucking is backhaul, it is an 44

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MOVING E-WASTE TRANSPORTATION IS THE NAME OF THE GAME IN END-OF-LIFE ELECTRONICS RECYCLING

BY CARROLL McCORMICK

©moodboard/Thinkstock

15-09-02 11:57 AM

E

ELECTRONICS

important selling point to carriers bidding on these runs that the EOLE is nicely packed. “People look at us and say ‘you give us nice, neat, clean shrink-wrapped, palletized product, rather than loose, overhanging …’”Wisehart explains.

At the big-volume depots, shippers make scheduled pickups. For depots with less volume, pickups are made upon request.

R2R logistics are a little different. Operating outside of the Encorp system, EPRA provides a transportation incentive to audited and approved processors such as eCycle Solutions, which contract with the retailers to make collections.

“We receive approximately 10,000 metric tonnes every year as part of the EPRA BC program. We have about 25 destinations where we ship [recovered elements from the recycling process].

Nothing is shipped LTL. Some ferrous metals or clean glass will be shipped within BC, [some] in open-top bins. Shipments to Asia go in a sea container. Everything else goes in full 53-foot truckloads,” says Alan Ferguson,VP business development, eCycle Solutions.

As for the ICI EOLE collections,Wisehart explains, “If you can put together at least three skids, we will arrange transportation and come get it.We have a similar program for approved processors, an all-encompassing rate, where they go pick up material from businesses.”

“There is no annual [carrier] bid cycle, but EPRA periodically sends out Requests for Quotes. Encorp does too.You can often get a good reset if you do that. For the most part, payment to transporters is on a skid and truckload basis,” Wisehart notes.

There are six consolidation centres: two on Vancouver Island and one each on the Lower Mainland, the Kootenays, the Okanagan Valley, and Prince George. They cross-dock incoming pallets and bags onto full truckloads for shipment to the approved processors: Global Electric Electronic Processing’s Edmonton facility, FMC Recycling and eCycle Solutions on the Lower Mainland and KC Recycling in Trail.

Although the collection fees that EPRA pays the depots are partially for skid storage, storage at the consolidation centres, because of the rapid cross-docking, is a non-issue.

Truckload shipments, at around 11 tonnes, go from the consolidation centres to the processors. “We have optimized the transportation from our consolidation centres to where it goes, to which processors.

For any lane, we are doing competitive bids. Once we have got the best transportation bids in various lanes, we go back in and ask ‘what is the optimal ship point for these materials?’” Wisehart says.

What does this mean? Wisehart is a logistics expert with over 30 years of transportation experience, twenty of which were with Canadian Freightways in roles ranging from terminal manager to vice-president of operations. When he joined EPRA in 2012, processing costs, which include transportation, were about $900 a tonne. Analyzing distances, transportation costs and processor fees, for example, with the help of his “Spreadsheet of Fun” he began wringing costs out of the system.

Take Fort St. John, less than 100 kilometres from the Alberta border.

©petovarga/iStock/Thinkstock

p40-51 CdnShipper SeptOct2015 Big Data_MullanTrucking.indd 45

EPRA, because of its consolidation mentality, was shipping EOLE 440 km west to the Prince George consolidation centre and then east 740 km to the processor in Edmonton.

“We found it was cheaper to ship LTL from Fort St. John to Edmonton than truckload out of Prince George,” Wisehart says. The direct route east saves EPRA between $5,000 and $6,000 a year. EPRA made the same change out of nearby Dawson Creek.

EPRA made additional savings by changing how it allocates EOLE to the processors. Although EPRA gets competitive bids from processors, it shares the work out to several of them to be sure they maintain a competitive market. EPRA would give, to use an illustrative figure, 40 percent of its business to the lowest bidder. But before Wisehart, this was a province-wide 40 percent that came with a costly transportation bill.

Wisehart changed that to allocating processors EOLE from regions. This reduced transportation costs. “I began looking at transportation as an overall thing; in other words, transport all the material from an area to a lower-cost processor.”

Wisehart further optimized the reverse logistics by looking beyond the pure transportation costs. “The processors quote us different amounts for different EOLE products, so there’s all that to figure out, where you ship them to, the [transportation] cost from each consolidator to which processor, to optimize the process,”Wisehart explains.

“That is how we were able to reduce costs by 30 percent since I came on board. I just came and [asked], “How can I make this more cost effective? That had not been applied in the BC program before,” says Wisehart.

The EOLE program’s success can also have unexpected cost consequences.“In some cases we changed the market.We were shipping one truckload a week from Kelowna to Edmonton. We had some changes in processing practices and [began] shipping five loads a week. We ate up our backhaul capacity and were paying headhaul rates. We had to change our distribution strategy,” Wisehart says.

Wisehart describes EPRA as a fairly small organization, but with strong in-house logistics expertise that is available wherever it is needed. “Dennis Neufeld, our program director, EPRA Manitoba and I help set up the EPRA program in Newfoundland. Dennis is a logistics professional with over 20 years of experience. I did conceptual work in Quebec. Gayleen Creelman, our program director, EPRA Saskatchewan was previously logistics manager with Cargill, and has almost 20 years logistics experience. We get together every two weeks by phone, and periodically in person to discuss issues. As I said, it is a logistics business.” CS Carroll McCormick is an award-winning writer who has been covering transportation industry issues and technologies for more than a decade. He is based in Quebec.

www.canadianshipper.com

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BIG DATA AND IOT PROMISE TO SPEED UP THE INFORMATION HIGHWAY

SMOKE SIGNALS

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BY KEN MARK

B

ig Data and the Internet of Things (IoT) promise to help firms separate the signal from the smoke within the endless stream of bits and bytes flowing into their data centres. Working together, they are raising the speed limit on the information highway.

In anatomical terms, Big Data technology and processes are the brain and IoT sensors serve as the electronic eyes, ears and nervous system. By connecting the unconnected, the latter also provides a voice for all the linked physical world objects to speak directly to expanding group analytical systems in today’s digital tool box.

The recent DHL and Cisco Internet of Things Trend Report concluded that there will be 50 billion devices connected to the Internet by 2020, up from 15 billion today. Cisco’s economic analysis states that IoT will help the supply chain and logistics sector generate US$1.9 trillion worldwide in Value at Stake over the next decade. Along the way, the number of computer applications (apps) that enable smartphones or tablet etc. tools to access information, pay bills or lock doors remotely will jump from the current one million to five million by 2020.

Says Bill McBeath, Newton, MA-based chief research officer, ChainLink Research Inc., “The IoT will revolutionize decision making. By connecting the previously unconnected, we create incredible potential for businesses to improve the speed and accuracy of decisionmaking through the analysis and application of digital information. It enables dramatically faster cycle times, highly dynamic processes, adaptive customer experiences and, through the ecosystem of people and technology, the potential for breakthrough performance gains.”

Big Data is the catch-all term for emerging analytical systems and processes that extract business value from all those petabytes of data. A concrete example of its impact is how analytics has revolutionized sports statistics. Today, when NHL executives talk about performance metrics, they pay less attention to old-time stats related to individual scoring, defence and goalkeeping.They now focus on newfangled concepts such as team puck management. It calculates the probability of winning games by measuring when, where and how long their team controls the puck.

Analysts claim that the key indicator of winning games is holding the puck in their opponent’s end longer and closer to their goal crease than vice-versa.That insight is based on the age-old hockey adage -you can’t score without the puck. And if you can keep the puck away from the other team in your own end, they can’t score either. Coming soon are enhanced player- and action-tracking systems featuring infrared cameras capturing the position and movement throughout the game from RFID chips imbedded in players’ jerseys and pucks.

The breakthrough in Big Data is timely because organizations need all the help they can get to handle torrents of data from the explosive growth in social media sources and electronic gadgets. Despite the almost daily arrival of new analytical tools, more than 90% of data stored in corporate databases sits untouched.

But decision makers now realize that their firm’s competitiveness and even its very existence may depend on converting the contents of their databases into reliable predictions and insights. They must update their internal operations and move faster to adapt to everchanging world events, market forces, customer preferences and behaviour. To succeed in today’s marketplace, they must leverage data to create new processes, products and services.

Last-mile delivery The Big Data/IoT combination can lead to strange logistics bedfellows. For example, European automakers such as Volvo and Audi have started working together with e-vendors such as Amazon and carriers including DHL, a unit of Deutsche Post DHL, to deliver consumer parcels to car trunks.

At the 2014 Mobile World Congress, Volvo showcased a system, aka “roam delivery”, that notifies consumers through their smartphones or tablets when a carrier plans to drop off or pick up items from their car.Volvo’s digital key system permits access to car trunks by enabling a carrier driver to locate them on its corporate GPS system and open the trunk using a single-use, digital key sent to the driver’s hand-held device. Car trunks are the latest addition to the growing list of consumer delivery destinations.

To stay competitive, German auto giant Audi has combined with Amazon and DHL to test-drive its own version of car-trunk delivery.

Besides becoming a reverse logistics station for product returns similar to the Volvo system, Audi’s service will also serve as a novel pick-up and delivery spot for properly paid letters and parcels for Deutsche Post.

Many of today’s cars are already connected to the IoT by automakers’ telematics systems such as Volvo’s On Call, Audi’s MMI, or General Motors’ OnStar etc. Newer Volvo models already offer the necessary trunk-delivery technology. Audi is busy developing special equipment, which can be easily installed on both current and future models.

“By turning the car into a pick-up and drop-off zone through digital keys, we solved a lot of problems delivering goods to people, not places,” said Klas Bendrik, Group CIO at Volvo Car Group. This IoT-aided solution will benefit European logistics and transportation sector players since the cost of missed parcel deliveries in the region totals about 1 billion euros (C$1.44 billion) per year.

All these transactions and encounters create more data about individual consumers, where they live, how much they spend etc. After undergoing Big Data analysis, all the participants - vendors, car makers, carriers, government agencies etc. - will have more solid inputs at their disposal for developing future business plans and strategies.

Beyond track and trace In the brave new world of Big Data/IoT, geographic positioning systems, (GPS) found on dashboards of almost all commercial vehicontinued www.canadianshipper.com

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E-COMMERCE

cles are no longer a stand-alone tool. They are becoming two-way links that both send and receive continuous streams of data.

On the receiving end, they receive up-to-the minute traffic and weather traffic reports as well as the latest news on instructions about when and where to pick up or deliver goods.

Such messages help drivers optimize their routes and work schedules to boost efficiency, productivity and customer service.

Similar to optimal asset utilization in warehousing operations, a connected fleet could also pave the way for predictive asset lifecycle management. This approach leverages analytics to predict asset failures and automatically schedule maintenance checks.

One example is MoDe (Maintenance on Demand) a research project involving Volvo, DHL, and others to create a commercially viable truck that independently decides when and how it requires

“If we learn that that our deliveries to a receiver are not working out, we can talk to the client to fix it with more accurate data. It can be as simple as having the wrong postal code.”

Graeme Aitken, Plantation FL-based vice-president business controlling, DHL Express maintenance thanks to sensors imbedded in the oil and damper systems, which identify material wear and tear. Data is sent first through a wireless network to a central unit in the truck and then for analysis at a maintenance platform. Finally, drivers or maintenance crews receive alerts of potential damage. The solution increased vehicle uptime by up to 30% and decreased potential danger to drivers.

Driver safety gets a further boost as carriers monitor drivers’ habits and behavior more closely. Caterpillar, the construction and mining equipment maker, has introduced this technology to prevent sleepy truck drivers from causing accidents. If it senses the driver’s focus is wavering, it activates audio alarms and seat vibrations. An infrared camera can analyze a driver‘s eye movements through glasses and in darkness.

All executives, not just those in the logistics and transportation sector, are being bombarded by studies and reports touting Big Data as a miracle worker. Since it is still very early days, decision makers need to remember that IT’s basic role is to analyze data that will help them to create more business value. Big Data is just the latest version of the long line of its forebears-decision support, data mining and business intelligence solutions.

A 2012 Wall Street article concluded, “Many CIOs believe data is inexpensive because storage has become inexpensive. But data is inherently messy- it can be wrong, it can be duplicative and it can be irrelevant -which means its requires handling, which is where the real expense comes in.”

Show me the money DHL’s INSIGHT system that includes the Teradata Value Analyzer as a costing and profitability engine enabled the carrier to abandon its former standard costing program for more specific processes that ensure that customers, lanes and contracts are indeed profitable. According to Graeme Aitken, Plantation FL-based vice-president business 48

September/October 2015

controlling, DHL Express, each package is scanned between 50 to 100 times between pick up and final delivery. He says, “The data arrives about five minutes after being scanned which we feed into the costing system where algorithms can tell us if we are making money on the shipment.

“If we learn that that our deliveries to a receiver are not working out, we can talk to the client to fix it with more accurate data. It can be as simple as having the wrong postal code.”

The new approach can also pinpoint problems with its existing processes. Before, many Canadian B2C deliveries were held up because consumers did not know about or pay duties and taxes on imported goods. But now they can either receive electronic notices or check online and pay electronically to speed up deliveries.

The decision to install the original INSIGHT solution was based on savings from lower IT costs and staffing cuts with no promise of other benefits. Says Aitken, “Those amounted to about $500,000.

But the analyzed data enabled us to improve our business processes and productivity, margins and profitability many times that amount.

“Now as we update the system, we can no longer claim those earlier cost reductions. But we now know that better, more accurate data leads us to better business decisions.”

To ensure that organizations extract what they need from sensorsourced data flows that matter most to their business and for long it will remain relevant, executives and analysts must ask the right questions.

“Once you set up structural efficiencies [that include linking and integrating the various different IT platforms that serve different functions] benefits will start to roll in," said Shaun Connelly,Teradata Corp.’s Annapolis MD-based International Program Director, Transport & Logistics. “The Holy Grail becomes listening to and analyzing every bit of data all the time. As those insights become more accurate, they make predictions more reliable, so you can make decisions in real time that will help employees do their jobs better. “True success results in building predictive maintenance algorithms," he said.

Such advanced statistical tools have also launched business-expanding opportunities in aircraft support and repairs. Says Howard Woody, Irving TX-based president, AirLease International, “Aircraft OEMs such as Boeing now offer 10-year fixed or variable cost maintenance contracts of their Dreamliner aircraft to carriers. Buyers have an option, bring in a third-party service provider or sign with the OEM. Another option is to have the lessor which owns the asset include fixed-cost maintenance as part of the leasing contract with the carrier.

“It’s becoming more popular because engine performance data is now more accurate.”

Such "power-by-hour" leasing makes more sense because such expenses are treated as off-balance-sheet, operational costs not as capital costs with outright purchases. It also protects carriers from unforeseen engine failure or possible losses when the asset is finally sold. Lessees are paying for output and performance, not just buying an asset.

The dynamic duo has all the makings of a disruptive technology.

Proceed with care, but proceed. CS Ken Mark is a veteran technology expert, who has covered supply chain management since it was called distribution and has documented its legitimization as a critical business function. He holds an MBA from York University.

www.canadianshipper.com

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COMPANY PROFILE

Mullen Group’s trucking companies do SmartWay their own way How they’re managing sustainable transportation practices across the group If you think optimizing fuel economy and managing emissions across a fleet of 10 trucks is challenging, try doing so for 10 trucking companies.

Okotoks, Alta.-based Mullen Group operates a trucking and logistics segment that is comprised of 10 carriers, as well as an oilfield services segment made up of 16 additional companies, many of which provide trucking services. Each individual company in Mullen Group is granted the autonomy to make decisions that work best for its own operations; but best practices are shared across the group.

This is also how Mullen Group has approached the SmartWay program. Since as far back as 2006, cross-border trucking firms within Mullen Group have been signing on to the SmartWay program, tracking their fuel performance and benchmarking their operations. Now that the program has come to Canada, Mullen Group is looking to get its domestic fleets such as Jay’s Moving & Storage on-board as well.

“It originated with our cross-border fleets, so when you look down the list you’ll look at companies like Mill Creek, Kleysen, Payne Transportation, Tenold and Mullen Trucking being involved. That was kind of the start of our introduction. With the launch of SmartWay Canada by Natu-

ral Resources Canada, that opens up the door for some of the other companies within our group,” said Randy Mercer, director of Health, Safety and Environment for Mullen Group.

Getting individual carriers signed on to the SmartWay program can be an onerous process at first, but once they’ve joined, it becomes easier to maintain their SmartWay status, Mercer explained.

“When you first participate in the program, there’s a lot of up-front paperwork and documentation that you have,” he said.

“Fleet truck counts, trailer counts, APUs, idle policies - you have to go through the whole gamut. But after the initial application, it’s more of a yearly update, so it’s very time-consuming to start off with the program but after that, it’s mostly maintenance.”

Despite the administrative challenges that joining SmartWay initially incurs, the benefits of belonging to the program are obvious, since SmartWay’s objectives to help fleets manage and improve their fuel economy while transporting goods in the cleanest most efficient way possible are aligned with a carrier’s own goals to reduce costs and improve profitability.

“To get buy-in from our senior leadership has been relatively easy,” Mercer said.

COMPANY PROFILE Mullen Group consists of 26 companies within two business segments: oilfield services and trucking/logistics. Its trucking/logistics segment provides a range of transportation services to shippers on a for-hire basis, including bulk hauling, truckload, less-than-load and general freight services throughout Canada and the US. The segment also provides direct service to and from Mexico through interline agreements with certified Mexican carriers.

Mullen Group’s total fleet consists of 4,500 vehicles and 7,500 trailers deployed across a network of 70 terminals.

“Most people are on-board with it. It’s not a difficult sell.”

The trucking companies in Mullen Group will travel about 250 million kilometres this year, so even a seemingly small reduction in fuel consumption will deliver big savings when extrapolated across the entire business.

Because Mullen Group’s trucking companies run a mix of company-owned and lease/operator-run trucks, it was imperative that owner/operators also supported the program if it was to achieve success. Mercer said they have been receptive to the program and eager to participate because in the end when owner/operators follow best practices in fuel efficiency that helps them save money. “A good part of the SmartWay program is reducing fuel and, of course, that equates to saving cash,” Mercer said.

Mullen Group companies who are part of SmartWay have also found their involvement has resonated with customers.

“Absolutely, we use it in our marketing,” said Mercer. “We’ve got a SmartWay logo on our websites throughout our business units. SmartWay is a joint venture between the shipping and transportation communities so there are a lot of big names in the shipping community that participate in this program as well.”

In participating in SmartWay, Mullen’s trucking firms have focused on spec’ing fuel-efficient equipment, properly maintaining it and reducing idle-time. “General maintenance is a big component to a fuelefficient vehicle, but you also look at other things,” said Mercer. “You look at APU (auxiliary power unit) usage, idle policy.

Do you have an idle policy? Do you govern your vehicles’ speed?”

Driver training is another important component of Mullen Group’s SmartWay strategy. By training drivers on defensive driving skills using the Smith continued

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2

COMPANY PROFILE

System and other available training programs, Mercer said drivers have become safer and more fuel-efficient.

“It doesn’t matter which defensive driving course you teach, progressive shifting is a key to good fuel savings. Backing off the

accelerator when approaching a light, maintaining good following distance - all these things are key contributors to brake wear, tire wear and fuel consumption. A good defensive driving program pays incredible dividends back to you. You get a

good, defensive driver, plus you’re reducing the maintenance costs on the vehicle and you’re saving fuel.”

Because Mullen Group operates such a diverse fleet - and fleets within the fleet - it allows each company to make its own choices with regards to SmartWay. “We try to give them a lot of latitude to run their own organization the way they see fit and decide which policies they want to jump onto and not paint every company with the same brush and the same colour.

They’re all independently run and operated,” Mercer pointed out.

“Progressive shifting is a

• Direct access to Asian and European markets • Import and export friendly: Take advantage of on-site Canada Customs clearance and our Foreign Trade Zone designation with Port Alberta • No shipment too specialized: Move high-value, time-sensitive and temperature-sensitive goods quickly and securely • No shipment too big (or too small): Leverage our heavy weight and project cargo expertise, including handling of the world’s largest cargo aircraft • Capacity ready: Multiple cargo aprons and 24/7 operations with no restrictions

flyeia.com/cargo

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when approaching a light,

C

maintaining good following distance - all these things

H

consumption.”

M

P S

Randy Mercer, director of Health, Safety and Environment, Mullen Group

Still, the trucking companies within Mullen Group are happy to share what has worked best for them and which initiatives failed to meet expectations.

“One of the benefits of being such a large organization is that we can share best practices amongst each other and we do that as best we can on a weekly basis,” Mercer said.

Another advantage of belonging to the SmartWay program, and one that’s easy to overlook, is that employees feel good about being associated with a company that’s actively looking to reduce its impact on the environment. “I think it’s important and I think our employees grasp onto it and also think it’s important,” Mercer said. “The more you can think about the future of our planet, the better off we’ll all be in the long run.” CS

www.canadianshipper.com

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E C V R A

M

wear, tire wear and fuel

Use our expanding network to ship anything, anywhere in the world.

R

Backing off the accelerator

are key contributors to brake

EDMONTON INTERNATIONAL AIRPORT CARGO

B C

G

key to good fuel savings.

Announcing Air China Cargo’s first Canadian freighter destination: Edmonton

Jo

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M

Jo

C

M

This

29

th

Annual Conference on Transportation Innovation and Cost Savings

Wednesday, September 30, 2015 9 a.m.- 6 p.m The Bram & Bluma Appel Salon Toronto Reference Library 789 Yonge Street 2nd Floor, Toronto M4W 2G8 www.transportconference.org Featured Speakers

John Anderson, Advisory Director, Greenbriar Equity Group, New York “Transport Company Valuations - a Private Equity Perspective” Bruce Bowen, Sr. VP, Scotiabank “Economic Forecast” Captain Stephen Brown, President, Chamber of Shipping of British Columbia “Western Canadian Port Development - Opportunities and Challenges” Ron Cuthbertson, Chief Operating Officer, Luxury Life Brands, former President & CEO, The Source “Retail Challenges for the Logistics Industry” Evan Garner, Sr. VP, Marsh & McLennan “Insurance Liability for the Canadian Transportation Industry” Claude Jolicoeur, Director Regulatory Affairs, McKesson Canada “New Pharmaceutical Logistics Regulations” Vee Kachroo, VP, Supply Chain Solutions, CN “Railway Challenges 2015-2016” Robert Lande, CFO, FXCM Inc., New York “Foreign Exchange Currency Forecast” Anthony Lannon, Director, Supply Chain and Logistics, Sun Products Canada “Do More With Less: A Shipper’s Perspective on the Fight to Stay Competitive Greg Simpson, President/ CEO Simpson Seeds Inc., Saskatchewan “Supply Chain Innovation - A Western Canadian Perspective Mark E. Samis, Vice President, Environmental Sciences, Pario “Environmental Issues with Transportation Spills and Cargo” Catherine Pawluch, Partner, DLA Piper & Simon Casimir, “Drones - Applications in the Transport Industry”

Food Safety Breakout Hasan Afroz, President, Approved Cold Storage “Refrigerated Warehousing Challenges” Mark FeDuke, Director of Operations, VLM Foods “Recent CFIA & FDA Regulations for Transport of Food Between Canada and US” Pamela Johnston, Esq., VP Financial and Risk Services, Transplace, Arkansas “US Food Safety Modernization Act - Impact on the supply chain”

Automotive Breakout

Transport Law Breakout

Mark Andrews, Partner Strasburger Attorneys at Law, Washington “U.S. DOT vs. Trucks A Report from the Regulatory Battlefront” Tom Keast, Partner, Watson Goepel, BC “Recent Rail Transport Jurisprudence” Ron Maurice, Senior Partner, Maurice Law, Alberta “Railway Expropriation of First Nation Lands” Carlos Sesma Jr, Lawyer, Sesma, Sesma & McNeese, Mexico “Mexico-North American Transportation Regulations”

Moderators

Mike Riggs, CEO, Jack Cooper Holdings, Georgia “North American Automotive Industry Trucking Review” Jon Haselwood, Assistant VP, Auto, CSX, Florida, “Automotive Industry Rail Review” Chuck Clowdis Jr., Managing Director, Transportation, IHS Economics & Country Risk, New York “Automotive Volume Forecast & OEM Service Report” Mark Anderson, COO, United Road Services “Inefficiencies in the Car Hauling Sector”

The Honorable David Collenette, PC, Senior Counselor, Hill+Knowlton (Former Canadian Minister of Transport) Doug Munro, President, Maritime Ontario Freight Lines Ltd. John Fiorilla, Chair, Transportation Department, Capehart & Scatchard, New Jersey Greg Keenan, Auto & Steel Industry Reporter, Globe & Mail Dave Corcoran, Director, National Transportation & Distribution, Nestles Canada Hank Seaton, Seaton & Husk LLP, Virginia Christine Brown, Consultant

Shipper - Carrier Breakout

Check our website regularly as we add the names of the manufacturers who will be participating in this popular networking forum This one day conference has become the largest educational event for shippers and supply chain practitioners in Canada.

The cost of the event is $1,050 plus HST or $2,000 for two. Booth space is available. For more information contact Richard Lande at 905-319-1244 or e-mail rlande@cogeco.ca

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INSIDE THE NUMBERS

SIZE MATTERS

Size of fleet

Our annual Equipment Buying Trends Survey, conducted across Canada earlier this summer, sheds light on the equipment purchasing habits and intentions of the nation’s motor carriers. The survey includes responses from every region and fleet size as well as from for-hire, private, government and lease/rental fleets. Last year carriers of all sizes started re-investing in fleet renewal. Small carriers began investing in new equipment to a large extent for the first time since the Great Recession. Class 8 truck sales up to May in the Canadian market have been strong enough to make for the fifth best sales results YTD going back to 1999. But plans for next year’s Class 8 truck purchases appear dependent on fleet size. Large (over 100 tractors) and medium sized (10-99 tractors) fleets appear to be staying the course for 2016. Only 6% of large carriers and 9% of medium-sized carriers have no plans to purchase new trucks next year, similar to their 2015 responses. But small carriers (fewer than 10 trucks) are showing a considerable difference from the previous year with 55% having no plans to purchase new trucks compared to 22% who said likewise last year.

Type of operation

48%

28%

19% 100+ vehicles

69% of respondents SMALL

28% 49% 47%

LARGE

32%

20% 2%

MEDIUM

Owner/ operator

3%

Private fleet

10-99 vehicles

Percentage of heavy duty fleet expect to replace remainder of 2015 comparison by fleet size For-hire fleet

Government fleet

1-9 vehicles

31% 26%

15%

Lease/rental fleet

20% 9% 4% 0%

10%

54%

51%

2% 20%

30%

MEDIUM LARGE

6-7 years

4%

20% 13%

9%

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11%

6% 10%

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20%

5%

2% 30%

10 years or more

28%

12% 2%

0%

More than 30%

2-3 years

11% 24%

19%

2% 2%

4-5 years

SMALL

39%

0%

Current trade in cycle for heavy duty vehicles

Percentage of heavy duty fleet expect to replace in 2016 comparison by fleet size 55% of respondents

15%

14% 10%

Other

12% 2%

8-9 years

More than 30%

www.canadianshipper.com

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WE CHANGED OUR LOOK...

NOT OUR SERVICE! Today, change is constant.

We all evolve and adapt as required. Becoming part of the TransForce family was one of those changes. As a result, we have a fresh look and a new perspective as part of the largest transportation company in Canada.

We are here for a single purpose, to serve you, our valued customers. We continue to be hands-on and highly responsive to your individual needs!

Regional. National. Transborder.

Our multi-modal service offerings provide superior coverage, flexibility and consistent performance for your LTL and Truckload shipping requirements.

Vitran.com

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THE BIGGER PICTURE

FINAL REFLECTIONS ON FREIGHT BIDS Over the past two decades, freight bids have become one of the most commonly used methods of sourcing freight transportation services. They have become popular with shippers for obvious reasons.

When done well, they produce good results. Manufacturers and distributors can strengthen their supply chains by selecting a dedicated group of professional transportation companies and save money on freight costs.

The carrier perspective on freight bids is often quite different from that of most shippers.They tend to dislike them for several reasons.

1 | Many bids are not well done.

2 | The process of responding to these bids is a lot of work and they often don’t produce any business.

3 | Shippers often tend to focus more on price and less on service and capacity.

4 | Freight bids tend to breed tactical, adversarial relationships rather than collaborative long-term partnerships.

Frankly, from what I see and hear, these are often legitimate concerns. Poorly conducted freight bids produce weak or no results. Some shippers conclude that the process doesn’t work since they do not achieve the results they were seeking. On the other side, carriers are frustrated for the reasons outlined above. It is this feedback that was the in54

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spiration for this series of freight bid tips.

A freight bid should not be used to bludgeon carriers into submission. Being an aggressive, selfish shipper does not guarantee low rates. On the contrary, a poorly conducted freight bid can end up costing the shipper in terms of poor quality transportation companies and bad service.

The freight market is expected to be quite different in the next few years. Many pundits predict that rates will rise significantly as capacity tightens, new regulations take effect and the economy strengthens. These are the headwinds that shippers will face as they seek to procure transportation services. A well conducted freight bid project combined with methodical implementation and compliance tracking take work. It has been our experience that the ROI is worth the effort.

In fact, the level of success achieved correlates directly with quality of the bid. Take the time to do it right.

Over the past eleven years, my colleagues and I have worked on a variety of successful freight RFP or freight bid projects. During that time, we

have observed a number of factors that are the keys to success.

For shippers who follow these eleven tips and avoid the temptation to take shortcuts or bul-

lying tactics, freight bids can produce excellent results. They can be a stepping stone to building solid partnerships with a company’s core carriers. CS

Top 11 Freight Bid Tips 1

Obtain Buy-in and Participation from the Operating Divisions

2

Obtain Accurate Product Descriptions and Density Calculations

3

Obtain quality data on the company’s shipment activity

4

Cast a Wide Net in Selecting Carriers and Freight Management Companies

5

Conduct Multiple Rounds of Bidding

6

Meet Face-to-Face with Potential Carriers and Perform Due Diligence

7

Establish Backup Carriers

8

Perform a Market Test with New Carriers

9

Sign Contracts with your Large Core Carriers

10

Implement Robust Compliance Tracking Processes

11

Conduct Ongoing Performance Review Meetings with your Carriers

Dan Goodwill, president of Dan Goodwill and Associates, has more than 20 years of experience in the logistics and transportation industries in both Canada and the US. Goodwill is currently a consultant to manufacturers and distributors, helping them improve their transportation processes and save millions of dollars in freight spend. He has held several executive level positions in the industry.

He can be reached at dan@dantranscon.com.

www.canadianshipper.com

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