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congestion along these vital routes. While the promise of faster rail moves will benefit passengers, the improvements for freight will be even more substantial.” On the terminal side, Perrone expects the Port of Prince Rupert to increase its capacity to 1.8 million TEUs, while Vancouver plans to add 2.4 million TEUs annually. The Port of Montreal is also slated for a potential expansion. “These developments are heavily influenced by mode shifts to greener transportation methods, capacity requirements, and changing consumer needs,” he said. A persistent challenge in the trucking industry, as Perrone points out, is the labour shortage, which accounts for 63 per cent of open positions in the logistics sector. “This is putting pressure on smaller companies, where unfilled positions can significantly impact revenue, particularly in sectors reliant on long-haul transportation,” he said. “Without increased recruitment and retention efforts, projections suggest that vacancies in trucking and logistics could surpass 25,000 positions in the coming years, potentially compromising supply chain efficiency and economic productivity across Canada.”
Warehouses Warehouse operations are among the largest adopters of AI and robotic technologies. Bill Stenger, head of sales for the Americas region at Swisslog, said there is a shift toward highly adaptable technologies that use data to drive greater efficiency. “Collaborative robotics will play a key role in adapting to labour availability and productivity challenges,” said Stenger. “These technologies will allow operations to run longer, helping meet customers’ expectations for service levels.” Stenger also emphasized AI’s growing importance in addressing the global labour shortage. “You don’t have employees with 10, 15 or 20 years of experience who know the ins and outs of operations,” he said. “We need to empower employees who will be with us for one, three or five years with data and decision-making tools. AI will play a crucial role in providing suggestions to operators, helping them make smarter decisions and boosting their confidence.”
Sustainability Perrone noted that many companies are realizing that sustainability
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also drives operational efficiency. “Today, ESG (environmental, social, and governance) concerns may feel imposed through regulation and external pressures, but over the long term, logistics companies will see sustainability as a crucial source of savings and a competitive advantage,” he said. Magel echoed this sentiment, adding that technology helps improve efficiency across the entire supply chain, enabling manufacturers to produce less and create less waste. Magel believes government will continue to play a role in shaping companies’ approach to sustainability, alongside pressures from customers and internal operations. “As such, technology will remain essential for collecting, parsing and sharing data in the required formats,” he said. “Whether it’s the government, your customers, or your own company, technology will be vital for tracking the vast amounts of data involved.” However, Perrone pointed out that one area where the supply chain sector is lagging in sustainability is the electrification of trucking fleets. “While EV technology has spurred innovation in sustainable transportation, the lack of charging infrastructure remains a barrier to adoption, especially for heavy trucks,” said Perrone. “In 2025, with Canada’s vast, sparsely populated landscape, I expect more research and investment in alternative fuels and clean energy sources beyond just electrification.” Magel expects the consumer products industry to continue leading the way in adopting advanced supply chain technologies. He noted that sectors like fashion, footwear and accessories face increasing pressure from compliance requirements related to labour and material sustainability, while customers continue to demand lower-cost goods. Technology will help companies address these challenges.
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The bottom line AI and other technologies are generating significant buzz about their potential to help supply chains navigate the challenges of 2025. But, as Trino cautions, one of the biggest challenges suppliers will face is separating the hype from the reality of what AI can deliver. “There’s plenty of opportunity for success, but also a lot of hype that could lead to failed initiatives. It’s important to have a team that understands the technology and sets realistic expectations for what it can do today,” he said. “AI initiatives should be driven by clear business objectives. It’s essential to identify areas where AI can have the most impact and align these with strategic goals.” INSIDE Logistics DE C E MB E R 2024
2024-11-28 4:47:13 PM
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