LAST-MILE CHALLENGES
Courier services navigate continued tariff and trade policy changes
› AI transforms procurement › Connecting Canada › Top industry concerns
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The longest mile is the last mile
THE GROWTH OF E-COMMERCE has been staggering over the past decade. In 2013, e-commerce sales were around $7.8 billion. By 2019, that figure had grown to more than $25 billion. By 2023, following the pandemic, sales had skyrocketed to $76 billion—and that trend hasn’t stopped. This year, projections suggest it will reach $90 billion and surpass $100 billion by 2028.
Amazon Canada remains the dominant player in the e-commerce market, generating roughly $11.5 billion in business. Walmart and Costco follow, with $4 billion and $2.5 billion, respectively.
This level of demand certainly presents challenges for couriers and last-mile delivery. Whether it’s pressure for on-time service, navigating deliveries through expanding urban centres, or curbing emissions through the adoption of electric or alternative fuel vehicles, the last mile may be the shortest distance a package travels on its journey—but it can often feel like the longest.
Having a reliable, sustainable and proactive last-mile delivery system has never been more vital. Technology plays a significant role in optimizing delivery models. Route optimization, dynamic dispatching, communication, data analysis and warehouse and fulfilment integration are just a few areas where AI and other technologies are helping improve last-mile performance.
One of the newer challenges e-commerce businesses face is trade policy changes and the introduction of tariffs on several products. Online shoppers primarily purchase clothing and apparel, with more than $6 billion in sales in 2023. Groceries and food delivery ranked second at $5 billion. Many of these goods—particularly clothing—are manufactured outside Canada, so it’s important for the federal government to establish robust trade policies with a range of global partners.
Challenges for last-mile delivery seem endless, and consumer behaviour is unlikely to change. People expect free shipping and delivery, a hassle-free return policy (reverse logistics is a whole other conversation and an increasingly critical part of the industry) and the ability to research products before making a purchase.
Adding to this is the ongoing financial struggle of Canada Post, which has spent years trying to remain competitive with giants like Amazon and Walmart. Someone in B.C. mailing a birthday card to a loved one in Ontario may find it arrives more slowly than a gift ordered on Amazon and shipped directly.
The world of home delivery has changed dramatically over the past decade—and just wait until drones become the norm.
Postal strike threat: Canada Post rejects CUPW call for binding arbitration
By Inside Logistics Staff
SHEDDING JOBS
Trucking and logistics see job losses, but drivers spared
Historic building to be transformed into logistics hub
SHAKERS
CANADA POST rejected a request from the Canadian Union of Postal Workers (CUPW) June 1 to send ongoing contract talks to binding arbitration, saying such a process would be too slow and exacerbate its financial problems.
CUPW argues arbitration would end the long-standing labour dispute immediately, bringing certainty for all parties. It says Canada Post’s push for a government-imposed employee vote on its final offer will not result in lasting labour peace.
“A forced vote may fail to end the labour conflict and risks further division,” the union said in a statement.
“Arbitration would end the labour dispute immediately and create certainty for all Canadians.”
Canada Post, however, contends arbitration would take more than a year and delay resolution.
“[Binding arbitration] would also continue to leave employees without a contract – and strip them of their right to vote on a new collective agreement,” the corporation said.
CUPW has previously opposed binding arbitration.
In an October 2024 bulletin, CUPW national president Jan Simpson said: “It’s evident that Canada Post is focused on pushing many of their issues to binding arbitration. This approach would delay the finalization of a complete collective agreement and redirect funds towards lawyers and arbitrators rather than investing in you.”
CUPW said Canada Post is seeking to alter several hard-won collective agreement rights and work practices with its offers.
The union broke down the offers as follows:
■ Wages: A 13 per cent wage increase over four years, which falls short of CUPW’s previous demand of a 19 per cent increase to offset rising living costs.
■ Cost of living allowance (COLA): CUPW said the 13.59 per cent inflation trigger is too high, making COLA payments unlikely. The offered six per cent wage increase should be considered retroactive pay to compensate for previous high inflation, as COLA payments in 2022-2023 were insufficient and not part of base wages.
■ Part-time parcel delivery: For urban workers, Canada Post proposes increasing part-time positions to about 20
Photo courtesy of Canada Post
“[Binding arbitration] would also continue to leave employees without a contract - and strip them of their right to vote on a new collective agreement.”
– Canada Post
per cent, up from the current 10 per cent. Some “flex” part-time employees would be required to work up to 30 hours weekly, replacing regular full-time workers and current collective agree-
ment provisions for seven-day delivery.
■ Dynamic routing: Canada Post wants to introduce dynamic routing in select areas without agreed-upon rules governing the system. While the corporation claims routes will comply with route measurement systems, it has not demonstrated this to the union and admitted it lacks the software and technical capacity to implement it.
■ Load levelling: For both RSMC and urban employees, Canada Post proposes load levelling, where mail volumes and delivery points would be redistributed among workers daily by supervisors without extra compensation. CUPW criticized this as an ad hoc process managed by supervisors who may not fully understand route measurement systems.
■ Two-tier benefits: Canada Post aims to delay health and pension benefits for new hires until after six months of continuous regular employment, creating a two-tier system.
■ Personal days: The union called the inclusion of six personal days in the collective agreements “window dressing,” noting these days already exist under the Canada Labour Code.
■ Wash-up time: Canada Post plans to eliminate the current five-minute wash-up period.
Canada Post said the offers reflect recommendations from the Industrial Inquiry Commission (IIC). The commission was established by to address the impasse after CUPW launched a national strike in November 2024. Postal operations resumed in December after the Canada Industrial Relations Board ordered workers back and extended contracts to May 22.
flexibility.
knapp.com
Trucking and logistics sector sheds 25,000 jobs in Q1, but truck drivers spared
CANADA’S TRUCKING AND logistics sector experienced a significant drop in employment during the first quarter of 2025, losing 25,000 jobs compared to the same period last year — yet truck drivers were not among those affected, according to new figures from Trucking HR Canada.
This is the first instance where the industry has recorded such substantial job cuts without impacting the transport truck driver segment. While the overall Canadian job market grew by 1.9 percent during the quarter, the trucking and logistics sector remained on a concerning trajectory, continuing a pattern of decline seen in the first quarters of both 2021 and 2023.
The hardest-hit occupations included management, administration, finance and human resources roles, which saw a 17 per cent decline — amounting to 16,400 jobs. Shippers and receivers lost 6,900 positions (down 6.7 per cent), while courier and delivery drivers dropped by 3,600 jobs (three per cent).
In contrast, employment among transport truck drivers increased marginally by 1.5 per cent, or 4,800 workers. However, the number of unemployed drivers also rose by 1.6 per cent (5,500), suggesting a growing labour pool.
Despite the employment churn, the sector’s overall unemployment rate remained relatively stable. But with both employment and
Photo courtesy of MikoFox/Flickr
unemployment falling overall, Trucking HR Canada warned that the total supply of labour in the sector is shrinking — likely due to workers exiting the industry or the workforce altogether.
Historic paper mill to become logistics hub in Northern Ontario
THE FORMER ABITIBI PAPER Mill in Iroquois Falls is undergoing redevelopment into a multimodal logistics hub through a new project spearheaded by BMI Group.
Named Abitibi Connex, the initiative seeks to enhance Northern Ontario’s logistics capabilities by utilizing the site’s current infrastructure and its direct rail connections to serve sectors such as natural resources, agriculture and food.
“We’ve had people ask us, ‘why now?’” said John Veldman, chief operating officer of BMI Group. “For a long time, the market lacked the drive to invest in idled assets. That’s changed. Today, industrial sites with multimodal capabilities are key to strengthening Canada’s supply chain resilience.”
The 838-hectare site includes 144,000 square feet of warehouse space, eight loading docks, storage silos, two rail bays and land designated for industrial, agricultural and forestry use. An anchor tenant has already been secured to support major construction projects in the region.
Since acquiring the property in 2016, BMI has restored power and upgraded infrastructure. The redevelopment gained momentum in September 2024 with a $20-million investment from the Northland Participation Fund, a joint venture between BMI and Dutch investment group Business EQ.
Ontario Northland is set to upgrade the 11.5-kilometre rail line connecting Porquis Junction to Iroquois Falls to support the hub.
“We are delighted to support this initiative with track upgrades and look forward to providing BMI’s Abitibi Connex with rail services,” said Chad Evans, CEO of Ontario Northland. “This investment will enhance connectivity and support economic development for Iroquois Falls and businesses throughout the
“For
a long time, the market lacked the drive to invest in idled assets. That’s changed. Today, industrial sites with multimodal capabilities are key to strengthening Canada’s supply chain resilience.”
– John Veldman, chief operating officer of BMI Group
region.”
The project is being developed in collaboration with the Town of Iroquois Falls and J.L. Richards & Associates, who are leading the master planning process.
“Iroquois Falls is proud to partner with BMI. This innovative use of the mill as a logistics base will attract investment, businesses, and jobs to our community,” said Mayor Tory Delaurier.
BMI says Abitibi Connex is set to become a cornerstone of Northern Ontario’s evolving logistics network.of services we offer to our global shipping customers.”
PCRC was formed after securing a concession from the Republic of Panama to rebuild and operate the 47-mile railway running parallel to the Panama Canal. The line provides a key land bridge between the Atlantic and Pacific oceans.
APM Terminals has operated container terminals globally for more than 50 years. It runs 60 terminals in 33 countries and employs approximately 33,000 people. In the Americas, it operates 14 terminals across eight countries.
Photo courtesy of BMI Group
Canadian Tire to acquire Hudson’s Bay Company brand assets for $30M
CANADIAN TIRE CORP. has finalized a definitive deal to purchase the intellectual property of the Hudson’s Bay Company, encompassing well-known Canadian trademarks like the HBC Stripes, company logos, design elements, and the historic coat of arms.
“Canadian Tire and the Hudson’s Bay Company are among the nation’s longest-standing companies, with a combined Canadian heritage measured in centuries,” said Greg Hicks, president and CEO of Canadian Tire, in a statement. “Some things are just meant to stay Canadian and we are honoured to welcome many of HBC’s leading brands – including the iconic HBC coat of arms and the Stripes – into our Canadian Tire family.”
Hicks called the acquisition both “strategic” and “patriotic,” noting it aligns with the company’s new True North strategy and expands its portfolio of owned brands.
“It’s disheartening to witness the final days of another great Canadian retailer, and while the circumstances are unfortunate, we’re proud to step in for customers,” he said. “We are proud to steward these iconic brands into our – and their – next century.”
The $30-million deal is subject to court approval and other customary conditions. Canadian Tire has also placed separate bids on a handful of HBC lease locations. The transaction is expected to close later this summer.
Rail congestion, weather delays impacting Canadian port dwell times
CANADIAN NATIONAL RAILWAY plans to invest approximately $3.4 billion this year in capital projects focused on increasing capacity, improving safety and promoting sustainable growth throughout its North American network.
As part of its 2025 capital program, about $2.9 billion is earmarked for maintenance and key infrastructure work in both Canada and the U.S., including over 225 miles of new track and eight capacity-expansion projects currently in progress in Western Canada.
The company is also investing more than $500 million to upgrade and expand its rolling stock, reinforcing its focus on safe, reliable and efficient service.
“At CN, we believe investing in our network is investing in the future of North American supply chains,” said Tracy Robinson, president and CEO of CN. “Our 2025 capital program reflects a clear focus on strengthening the resilience, efficiency, and sustainability of our operations. These investments are about delivering exceptional service today — and building a safer, more connected tomorrow for our customers, employees, supply chain partners and the economy.”
Last year, CN invested approximately $3.5 billion, including $1.7 billion directed at maintaining the safety and integrity of its network.
Highlights from 2024 included a $75 mil-
“These investments are about delivering exceptional service today - and building a safer, more connected tomorrow for our
customers, employees supply chain partners and the economy.”
– Tracy Robinson, president and CEO for CN
lion siding extension in Greater Chicago, a $7.6 million initial investment in the Holdom Overpass project in Greater Vancouver and over $60 million toward the MacMillan Yard fuel terminal in Vaughan, Ont.
Photo courtesy of CN Rail
Manitou o ers gas/diesel models with multiple mast options and attachments to meet all industrial material handling needs.
Manitou means forklifts. Manitou means industrial.
Logistics sector posts longest workdays, highest burnout risk, data says
WORKERS IN THE LOGISTICS industry put in the longest hours and face the greatest risk of burnout compared to all other sectors, according to new findings from the ActivTrak Productivity Lab.
The study reveals that logistics employees average nine hours and 10 minutes of work per day — 26 minutes more than the overall industry average. Additionally, 20 per cent are classified as overutilized, and 15 per cent are identified as being at risk of burnout.
Overutilization refers to surpassing daily productive hour targets by more than 30 per cent, while burnout risk applies to those who spend more than 75 per cent of their time in an overutilized state over the course of a year.
The findings are based on anonymized data from 774 companies and 218,900 employees across 23 industries between Jan. 1, 2022 and Dec. 18, 2024. Among 2,190 logistics employees studied, workers logged the most daily productive time at seven hours and three minutes and ranked second in daily collaboration time at 56 minutes.
The report also found that 72 per cent of logistics workers adopted AI tools in 2024 — the highest rate across industries — and used them
nearly three minutes more each day than the average.
“Logistics leaders face a double-edged sword: their teams demonstrate the highest daily productivity and AI adoption in the workforce, yet they’re also at the greatest risk of burnout,” said Gabriela Mauch, ActivTrak’s head of productivity lab and chief customer officer. “Amid external pressures like rising tariffs, sustaining performance requires smarter workload design — redistributing tasks, managing collaboration overload and ensuring AI isn’t just adding efficiency,
CBSA’s CARM transition period for importers ended May 20
AS OF MAY 20, the Canada Border Services Agency (CBSA) has ended the transition period for its new Assessment and Revenue Management (CARM) system.
The CARM system, launched in October 2024, allows importers to post financial security electronically and continue using the Release Prior to Payment (RPP) Program. Importers not enrolled in RPP must pay duties and taxes in person at a CBSA office before their goods can be released.
The CBSA is urging importers to register in the CARM Client Portal and post their security to avoid delays at the border. More than 99 per cent of Canada’s 29 million commercial goods released annually use RPP due to its streamlined process.
To assist with the transition, the agency has implemented measures such as installing 117 CARM kiosks at commercial sites, reallocating support staff, offering webinars and publishing user guides and a list of accredited financial secu-
but also alleviating pressure.”
“Workforce analytics isn’t about control. It’s about aligning the needs of the business with the needs of your employees. When expectations are clear and met on both sides, you end up with a stronger culture, a more productive team and ultimately a high-performing company,” added Scott Friesen, executive vice-president of strategic analytics. “We’ve realized over $600,000 in labour savings so far due to better workforce allocation and that number is just going to continue to grow.”
rity providers.
Customs Notice 25-22 outlines further details, and importers, carriers and freight forwarders are encouraged to review it and take steps—such as obtaining bonded status or registering for eManifest.
Photo courtesy of CBSA
Image: Drazen Zigic/freepik.com
movers + shakers
FedEx
FedEx Corp. announced several leadership roles as the company makes progress to separate its less-than-truckload (LTL) freight division. John A. Smith, chief operating officer, U.S. and Canada, of Federal Express, has been selected to serve as the president and CEO of FedEx Freight, and R. Brad Martin, vice-chairman of the FedEx Corp. board of directors, has agreed to serve as chairman of the board of FedEx Freight. Both appointments will be effective upon completion of the previously announced
separation of FedEx Freight from FedEx Corp. Plans for the spin-off, which is expected to occur by June 2026, remain on track.
Retail Council of Canada
Retail Council of Canada’s (RCC) board of directors announced the appointment of Kim Furlong as the new president and CEO, effective Sept. 2. Furlong joins RCC with a career that spans more than two decades at the intersection of government, industry and advocacy—making her uniquely equipped to lead our organization into its next phase of growth.
Currently serving as CEO of the Canadian Venture Capital & Private Equity Associ-
ation (CVCA), Furlong has established herself as an advocate for Canada’s private capital sector, successfully influencing public policy and shaping the national investment landscape.
Generix
Generix, a global business software company offering a portfolio of SaaS solutions for supply chain, finance, commerce and B2B integration, announced the appointment of Jean-Baptiste Valeyre as their new chief operations officer. In this role, Valeyre will focus on operational excellence and accelerating the global transformation throughout the organization to better serve customers in a SaaS-driven world.
The solutions behind the
Swisslog automates e-grocery intralogistics with solutions designed to increase the speed, accuracy and e iciency of order fulfillment.
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THE LOGISTICS LOWDOWN
WITH DEREK CLOUTHIER
SCAN TO LISTEN
CURRENT STATE OF THE LOGISTICS SECTOR AND HOW THE CITT HELPS ITS MEMBERS WITH PRESIDENT AND CEO PINA MELCHIONNA
Discussing the topics that impact the supply chain and logistics sector
COURIER SERVICES NAVIGATE EVOLVING CHALLENGES
Continued tariff and trade policy changes force last-mile delivery providers to adapt
The last leg of a product’s journey to its final destination is as important as the first, and with recent ripples sent through the global trade landscape, courier and last-mile service providers must be able to respond to uncertainty and confusion.
Geoff Walsh, CEO of DHL Express Canada, said his main priority is to protect DHL’s core service commitment to its customers and minimize any disruptions stemming from continued tariff and trade policy changes — all while remaining compliant with customs rules and regulations.
“We have expected the shifts in tariff and trade policy to impact U.S. trade flows and prepared for different scenarios, while also ensuring that we stay responsive to new developments in this fast-changing environment,” said Walsh.
One of those recent developments occurred in their B2C (business-to-consumer) segment, when shipments from all countries with a value over US$800 required formal entry processing into the U.S.
“This regulatory change caused a significant increase in formal customs clearances, and DHL implemented the temporary suspension to ensure we could maintain our high service quality commitment for our customers,” said Walsh, adding that shipments valued under the threshold, as well as B2B (business-to-business) shipments, were not impacted by the suspension.
“Following constructive dialogue between the express industry in the U.S. and the government, the temporary suspension was withdrawn on April 28 and DHL Express resumed the transport of B2C shipments addressed to private individuals in the U.S. where the declared value exceeded US$800.”
Examples like this are why Canadian exporters should be ready for the new normal — the only certainty is uncertainty — particularly when it comes to the trade relationship between Canada and the U.S.
“A great number of Canadian exporters export exclusively to the U.S., and after many years of consistent and predictable trade activities, there is now a level of uncertainty and confusion about what to expect,” said Walsh. “This has resulted in SMEs evaluating what logistics model to leverage to maintain cost efficiency while maintaining their quality of service.”
But sometimes, as Walsh said, identifying a single prevailing strategy to deal with tariff and trade policies is difficult.
“A lot depends on the specific characteristics of individual retailers, their product range, sourcing and distribution networks,” he said. “The changing landscape has reinforced a trend that we have seen in recent years — the need for greater resilience and flexibility in supply chains.”
Much of that resilience stems from a company’s ability to diversify its distribution channels and be familiar with how those channels operate.
“Last-mile delivery, whether automated or traditional, often involves utilizing various distribution channels and partners across a business’s supply chain ecosystem,” said Frank Kenney, director of industry solutions at Cleo. “It is also likely that the companies operating those various distribution channels have different delivery tracking and planning systems, capabilities and requirements.”
Kenney pointed to the importance of data and integrated technology to bring clear communication between partners and logistics companies.
“To have full visibility and control of final-mile deliveries, businesses must invest in an ecosystem integration platform that enables real-time sharing of data and updates across partner systems and workflows,” he said. “This enables enhanced tracking
Image: Drazen Zigic freepik.com
and communication across all distribution channels and stakeholders involved in the last mile.”
Integration software helps companies navigate hectic and changing supply chains, including during last-mile delivery.
“By connecting business systems between suppliers and partners that enable final-mile delivery, organizations can gain full visibility into what is happening in outsourced or partner-provided logistics operations,” said Kenney.
At DHL, a proprietary version of a global application allows the company’s couriers to be more efficient, productive and knowledgeable about customer needs during last-mile delivery.
“Our global courier application ‘learns’ alongside our couriers,” said Walsh. “With the benefits of AI, we will be able to improve our efficiencies on every route over time, which will result in our customers getting deliveries at more predictable times.”
Customers can also use the “Follow my Parcel” feature to get delivery time windows in real time.
Sustainable courier services
DHL currently has nearly 100 electric vehicles active across Canada — more than 25 per cent of its owned fleet — a step toward the company’s goal of at least 66 per cent electric by 2030.
“Deploying an electric fleet has various challenges, which includes the winter weather affecting the longevity of vehicles,” said Walsh. “However, recent developments in EV technology have vastly improved winter battery performance and because of this, we are now able to revisit our electrification plans for our fleet in the country with hopes of accelerating it.”
Also helping to balance the growing demand for faster delivery with the environmental costs associated with vehicle use and packaging waste is the addition of more efficient air transport, carbon-neutral buildings and sustainable fuels like biofuels, solar energy and sustainable aviation fuel.
DHL has also prioritized fostering partnerships with its customers to achieve greener, low-emission logistics through its GoGreen Plus service.
“It uses the ‘book and claim’ concept, allowing fuel to be used anywhere in the world,” Walsh explained. “Emission reduction credits related to the use of this fuel are transferred to investing customers, allowing them to report these emissions reductions as part of their own environmental goals.”
The GoGreen Plus service is available to customers who want to reduce emissions from the air transport portion of their shipments.
Adapting to change
With no certainty in the global courier industry, Canadian businesses will need to embrace the advice of former Oakland A’s general manager Billy Beane — adapt or die.
“Prior models typically fit a relatively predictable set-up: import from China, export to U.S.,” said Walsh. “As tariffs change and global economic situations develop, DHL Express will act as an ally to our customers to assist them in diversifying their supply chains and expanding their reach to new markets they may not have considered before.”
“The changing landscape has reinforced a trend that we have seen in recent years — the need for greater resilience and flexibility in supply chains.”
– Geoff Walsh, CEO of DHL Express Canada
Image: freepik.com
AI TRANSFORMING PROCUREMENT
Megatrends in the industry highlighted at Gartner event
Artificial intelligence (AI) has become a game changer in the supply chain sector, and the field of procurement is no exception.
Ryan Polk, senior director analyst with Gartner, underscored three key megatrends that are helping to shape procurement. With the adoption of AI surging across the industry, he believes the main challenge is that AI is becoming more agentic.
“The challenge isn’t the tech — it’s the people,” said Polk. “We’re trying to run AI initiatives like IT projects, but they require a total operating model shift.”
Agentic AI models are able to expand the overall context of an operation, apply advanced reasoning and integrate multiple modes or types of information to communicate, process or understand something.
“Yesterday’s models were largely trained on the accuracy of their
output,” said Polk. “Today’s models are being trained on how they reason their way to that output in the first place.”
Because of these capabilities, Polk said AI agents will be able to automate routine tasks.
“When we say an agent, what I’m referring to is an AI model that has the ability to, one, perceive an environment, and two, act on that environment, independent of a human,” said Polk. “There are agents that can help with negotiating supplier contracts. There are other agents that are coming online that can help prepare market research reports based on publicly available information and provide those back to category managers and sourcing managers.”
The use of multiagent systems is also on the horizon, which Polk said will automate entire processes in procurement.
A human worker will input a user prompt, or request, and an orches-
“Yesterday’s models were largely trained on the accuracy of their output. Today’s models are being trained on how they reason their way to that output in the first place.”
– Ryan Polk, senior director analyst with Gartner
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trator agent will deliver a goal prompt and output to a sourcing, negotiations and contracts agent. Once that output is received, it is reviewed by a human and passed on to a compliance agent before deployment.
Working in unison
While there’s plenty of talk about how AI will replace humans in the workplace, Polk highlighted the need for both to work together to achieve the highest levels of efficiency.
With AI agents taking on routine tasks within an organization, humans will always be needed for edge cases and exceptions that consistently occur in the supply chain sector.
“There’s typically data somewhere within the organization that describes how we go from point A to point B,” said Polk. “It usually exists in policies and procedures. We believe that agents are going to be best suited to support and take over, or at least augment in some way, shape or form, that work because there’s data somewhere within the organization that we can use to train AI models.
“But there’s another portion of work that we all do as well — non-standard, atypical work that doesn’t follow established rules or procedures.”
As the volume of work increases with the use of AI agents for common tasks, the skills required in procurement roles will also shift.
Skills such as human-AI collaboration, data literacy, prompt engineering, inductive analysis and strategic thinking will be more sought after, while data visualization, negotiation and legal and financial acumen may become less in demand.
Geopolitical uncertainty
Polk said three major factors are impacting the geopolitical landscape, one being a rise in regulations across various regions of the world.
“There are new regulations popping up in different locations related to better risk manage-
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ment, more protectionism, more sustainability and more consumer protection,” he said. “We’re seeing the sheer volume of regulations really challenge what we all do — challenge us to comply in different ways.”
Polk also noted that regulations are not only increasing in number but also emerging in different areas.
“What I mean by that is, we’re seeing different regions, different countries around the world regulate toward the same sorts of things, but in slightly different ways,” he said. “Data, data privacy, digital sovereignty offers a great illustration of different countries releasing the same sort of regulation, but in slightly different ways that it’s making it a little bit complex from a compliance aspect.”
And, of course, the elephant in the room is trade and protectionist policies.
Polk said businesses need to reassess their strategies in the face of geopolitical turbulence by considering four options:
☐ Divesting: moving all procurement activities away from their current supply locations;
☐ Decoupling: splitting operations and creating a separate ecosystem that is independent;
☐ Diversifying: adding suppliers outside of current locations while maintaining part of the existing sourcing strategy; or
☐ Doubling down: expanding the supplier network to build robustness.
Not feeling the energy
Polk said the macroeconomics of energy are becoming highly uncertain, with demand rising due to AI data centres, economic expansion and population growth.
He went so far as to say that energy instability will lead to rationing in high-demand countries, such as the U.S., India, Australia, Brazil — and possibly Canada.
“If the current trajectory holds true, what we’re likely to start seeing is more and more electricity rationing,” he said. “We need to think about our energy strategies much more strategically than we are today.”
As energy undergoes a transformation toward more decarbonized, decentralized and digitized sources, Polk said businesses will need to mature their energy management strategies. It will become a critical spend category, and developing strong partner connections will be essential.
Ryan Polk, senior director analyst with Gartner, discusses how AI is transforming procurement during the Gartner Symposium and Expo in Orlando.
Photo by Derek Clouthier
CONNECTING CANADA
Chambers call for unified action on trade, talent and infrastructure
As Canada navigates ongoing challenges around tariffs and trade policy, it’s important for groups in various industries that impact the economy to work together to identify issues and propose solutions.
Shauna Feth, president and CEO of the Alberta Chambers of Commerce, is working with her colleagues across the country to do just that—addressing the varying needs of businesses whether they are located in Alberta, Quebec or elsewhere.
“It’s a group of us getting together to strategically identify the priorities around what is happening with our economy, and what supports we need to put in place for our businesses,” Feth said in April during the Western Manufacturing Technology Show in Edmonton. “It took us from November to April to come up with our priorities.”
Forming what is known as the Chambers of the Federation—and recognizing that each province, and the companies doing business in those provinces, have different priorities—the group identified four key issues to focus on moving forward.
Free trade and economic opportunity are focal points, with the goal of reducing interprovincial trade barriers to make it easier for Canadian businesses to thrive.
“What do those critical corridors look like—and not just around energy, but additional resources?” said Feth. “How can we get some of those created, and how can we start getting all of our products to market?”
In addition to east-west trade corridors, Feth said Canada should also look north, expanding critical infrastructure and underutilized ports like those in Churchill and even Prince Rupert to im-
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CANADA
“We
know businesses are telling us over and over again that finding talent to grow their business—and finding local and domestic supply chains—is critically important going forward.”
– Shauna Feth, president and CEO of the Alberta Chambers of Commerce
prove market access.
Procurement and near-shoring was another area identified, encouraging local sourcing of products at all levels of government.
“Near-shoring and shoring up our procurement processes—not just in Alberta but across the country—in terms of making sure that wherever possible, avenues are procuring from local providers,” said Feth.
Rounding out the top four—alongside free trade, infrastructure and near-shoring—was labour mobility, which Feth said should address barriers that prevent skilled workers from moving freely between provinces.
The Chambers of the Federation council met on March 2, and as Feth explained, was quickly met by Alberta and Saskatchewan premiers—Danielle Smith and Scott Moe—making policy announcements that aligned with the chambers’ priorities.
“This is one of the moments that will stand out for me in terms of how impactful our advocacy can be when we combine our collective voices,” said Feth.
The Chambers of the Federation is a business-led organization that complements the Council of the Federation, a multilateral congress made up of premiers from each province. The Chambers works on a broader range of economic issues, such as trade, investment and supply chain resilience.
Finding talent
Through the course of its research, talent acquisition remains a recurring issue, according to the chamber.
Alberta has launched the Alberta Talent Development Initiative to help overcome this hurdle. Launched in 2021 in collaboration with the Alberta Post-Secondary Network—comprising 27 institutions—and the Alberta Chambers of Commerce, which represents approximately 24,000 businesses, the initiative focuses on strengthening relationships between education and business, expanding access to work-integrated learning, and improving labour market data
and information sharing.
“We know businesses are telling us over and over again that finding talent to grow their business—and finding local and domestic supply chains—is critically important going forward,” said Feth. “How are we getting our students into those opportunities earlier, so that when they do graduate they are ready to hit the ground running?”
The next phase of the initiative will implement the Talent Pipeline Management system, which Feth said has already been adopted in 42 states through the U.S. Chamber of Commerce Foundation, to better align workforce supply with employer demand.
Alberta supply chain
Developed with the support of Alberta Jobs, Economy, Trade and Immigration, the Alberta Supply Chain Publishing Network aims to make it easier for businesses to access information.
“We’ve been developing an online network that’s going to be able to communicate supply chain demands and demand data,” said Feth. “This will be a fit no matter what size of manufacturer you are or what type of database you’re working with, if you choose to publish your data in terms of your products and your services.”
The network will be an open-source, browser-searchable platform, compatible with existing databases. It is intended to increase the visibility of local suppliers and reduce dependency on foreign supply chains.
Feth said Canada has strong fundamentals for business success, including competitive tax rates, market access, a talented workforce and quality training systems.
By addressing interprovincial trade barriers and infrastructure gaps, she believes GDP growth would thrive—and better protect Canada against potential tariffs.
“If we had the infrastructure in place and could open those economic corridors,” she said, “it would have alleviated overnight the hit to GDP that tariffs would have impacted our country.”
Shauna Feth, president and CEO of the Alberta Chambers of Commerce, talks trade, infrastructure and talent at the Western Manufacturing Technology Show in Edmonton. Photo by Derek Clouthier
ACCELERATING
The last mile is one of the supply chain’s most complex and costly segments. Whether it’s a delivery van racing across a city or a regional carrier pulling up to a distribution centre, time is money. Many warehouse executives focus on delivery technology or route optimization. But seasoned logistics leaders know last-mile issues often begin in the warehouse.
If outbound orders aren’t picked, packed and staged on time, couriers are forced to wait—or leave with partial loads. This delays deliveries, increases labour costs and erodes customer trust. Warehouses must be orchestrated to enable faster, more reliable delivery.
The hidden upstream problem
Most logistics teams look to tracking apps or routing algorithms to fix delivery issues. But what if the problem starts when the driver arrives at 4 p.m. and the warehouse isn’t ready?
Static schedules, limited labour visibility and missed pick times frequently disrupt warehouse operations. Without
real-time coordination between order management, labour and dock schedules, even the best transportation plan fails.
Warehouse orchestration: the missing link
To bridge the gap between fulfillment and lastmile delivery, warehouses need more than a WMS. They need orchestration—software that acts like a control tower to dynamically plan operations, adjust for real-time constraints and sequence tasks for maximum efficiency.
Modern orchestration platforms forecast delivery expectations over the next six, 24 and 72 hours, identifying potential constraints across labour, inventory and docks. This foresight allows for proactive scheduling that minimizes driver wait times and maximizes throughput.
These platforms don’t rely on static plans. They use machine learning and AI to adjust task prioritization in real time, responding to late inbound loads or last-minute order spikes. The result: consistent on-time, in-full (OTIF) performance and fewer courier delays.
Real-world benefits for last-mile success
With orchestration in place, benefits ripple across operations: couriers experience fewer dock delays; outbound volume is distributed more evenly; fast-moving products are replenished automatically; missed pickups decline; delivery windows are better utilized and labour schedules become more predictable.
This kind of executional precision enables companies to meet today’s delivery expectations while reducing overtime, improving service and driving profitability.
The future: agentic AI and autonomous execution
As same-day and next-day delivery become standard, execution must get smarter—not just faster. This is where agentic AI enters.
The agentic AI supply chain re-imagines how decisions are made. Each supply chain function—planning, warehousing, transportation—is supported by a generative AI-powered agent. These agents sit on top of your existing systems, make domain-specific decisions and coordinate with each other in real time.
Agentic systems don’t require a full overhaul. They’re modular and scalable. Start with one agent, prove the value, then expand.
This model delivers the flexibility and speed today’s logistics require—where every node in the supply chain becomes smarter, faster and more resilient.
In logistics, last-mile success starts upstream. Optimizing delivery isn’t enough— you must orchestrate the entire chain. The future is agentic.
Image:freepik.com
TRUCKING HR CANADA EVENT
Trucking HR Canada was in Calgary recently for its Western Women With Drive event, where survey results highlighting the top concerns of CEOs and C-suite-level professionals revealed that operating costs continue to weigh heavily on the minds of those in the trucking and logistics sector.
“That’s not news to us — we’ve been hearing this for a couple of years now,” said Craig Faucette, chief program officer at Trucking HR Canada. “That had replaced the driver shortage as the top concern in the industry around 2023 and 2024, and it’s continuing today. It makes sense... the cost to run your business and the operating costs you have are going up, and that’s having an impact on your bottom line.”
Of those surveyed, 68 per cent said rising operating costs were “very concerning,” while another 23 per cent listed them as a
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top concern.
Driver training was also high on the list, with 44 per cent “very concerned” and 35 per cent keeping an eye on the issue.
“Trying to find ways to solve that driver pathway — to be able to bring in entry-level drivers in a very meaningful way — is a concern we’re seeing even at the CEO level,” said Faucette. “A lot of eyes are on that driver training issue, and it’s been a tough nut to crack.”
Related to proper training, CEOs are also concerned with Driver Inc., the practice of misclassifying drivers as independent contractors rather than employees to avoid paying taxes and providing benefits.
“I know from the provincial associations — from the BCTA all the way through to MTA here today — this is a top concern for them,” said Faucette. “It’s something they have been lobbying on and making strides
and gains with their provincial governments, and we’re seeing the same thing at the national level with the Canadian Trucking Alliance, as well.”
Sixty-three per cent of respondents voiced concern over the Driver Inc. model, while 52 per cent said the shortage of qualified truck drivers was also a concern.
Rounding out the top concerns of CEOs in the industry was the possibility of a recession or broad economic downturn in Canada. The new Trump administration in the U.S. also raised red flags, with 58 per cent of Canadian CEOs saying they were either concerned or very concerned moving forward.
Other concerns in the trucking and logistics sector include changing skill requirements for non-driving roles, reductions in the number of foreign temporary workers, and the use of autonomous and electric trucks and green technologies.
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SUSTAINABILITY IS RESHAPING CANADIAN SUPPLY CHAIN OPERATIONS
AS ENVIRONMENTAL CONCERNS
around climate change and ecosystem disruption continue to grow globally, the supply chain industry is shifting its approach to the future by adopting more sustainable practices.
As one of the largest contributors to environmental degradation—particularly through the carbon footprint of the shipping industry—energy consumption and greenhouse gas emissions have become focal points in the push for green energy solutions.
From sourcing and production to transportation and distribution, the Canadian supply chain collectively contributes approximately 60 per cent of global carbon emissions and accounts for around 90 per cent of Canadian companies’ environmental impacts.
The federal government is supporting green warehousing and sustainability initiatives through a range of programs, including the Greening Government Strategy, the Net-Zero Challenge and targeted funding. These initiatives aim to reduce greenhouse gas emissions, promote green procurement, and encourage businesses to adopt more sustainable practices throughout the supply chain.
The Greening Government Strategy specifically targets the National Safety and Security Fleet, which includes aircraft, marine vessels and land vehicles operated by the RCMP and the Department of National Defence. The government is also collaborating with provincial, territorial, municipal and international governments, Indigenous Peoples, Crown corporations and key stakeholders to reach shared environmental goals.
Examples of this collaboration include Buyers for Climate Action—a coalition of large, green public-sector buyers in Canada—and the Greening Government Initiative, launched in partnership with the United States. With more than $30 billion in annual procurement, the Government of Canada is the country’s largest public buyer
VICTORIA JONES is a supply chain specialist at Tyers Foods
and is well-positioned to stimulate market demand for low-carbon products and drive investment in Canada’s clean technology sector.
The Net-Zero Challenge encourages businesses to develop and implement credible, effective plans to transition their operations to net-zero emissions by 2050. While currently a voluntary program, many Canadian companies acknowledge that the complexity of the supply chain presents a significant barrier to achieving net-zero goals. Managing emissions across diverse supplier networks creates challenges in data collection and collaboration. Smaller suppliers, in particular, may struggle to align with decarbonization efforts without support from larger partners.
Industry leaders are also exploring roadmaps for more sustainable transportation. Shifting to electric fleets, biofuels, hydrogen-powered vehicles and rail transit is helping reduce carbon emissions. However, battery range remains a top concern—especially for refrigerated transport, where maintaining specific temperatures is critical. Solar-powered technologies have emerged as a viable solution, allowing carriers to overcome some of the limitations associated with electric vehicles alone.
For companies not yet ready to adopt electric or alternative fuel vehicles—or for those without their own fleet—optimized route planning can make a meaningful impact. Properly charted delivery routes reduce fuel consumption and emissions. The integration of GPS and real-time data allows carriers to avoid traffic congestion while enhancing customer satisfaction through on-time and accurate deliveries.
Green warehousing is also playing a significant role in lowering the environmental impact of operations. More third-party logistics providers and warehouse operators are incorporating features such as solar panels, LED lighting and advanced insulation to reduce energy use. The adoption of solar technology is also helping to create new jobs in the warehousing sector.
Other areas where Canadian companies are advancing sustainability include the use of eco-friendly packaging materials, participation in carbon offsetting programs, digital transformation to reduce waste, and investment in reverse logistics—which focuses on the return, reuse and responsible disposal of products. These initiatives support a circular economy and, when implemented effectively, deliver both environmental and financial benefits.
In the growing age of artificial intelligence, AI has become a vital tool in transforming logistics operations. It helps identify inefficiencies, minimize waste and risk, and improve inventory management, thereby reducing unnecessary storage and freight usage.
Despite progress, several roadblocks remain. Transitioning to eco-focused operations can be costly, and companies face technological gaps and a lack of alignment with international partners that haven’t yet embraced sustainability. With Canada positioning itself as a leader in climate action and aiming for exponential growth in the green energy sector, government support for businesses making the transition to sustainable operations is more crucial than ever.
FOUR ESSENTIAL TIPS FOR SAFETY LEADERS
Improve your ability to integrate safety into every aspect of your warehouse and distribution centre operation
THIS WILL BE MY LAST column for Inside Logistics as I move onto another role. However, this space will continue to provide important safety tips for warehouse and distribution centres from the experts at WSPS.
As a safety professional specializing in warehouse and distribution for more than a decade, it has been an immense pleasure to promote safety and help ensure that workers make it home to their families without injury at the end of the day. Along the way, I’ve learned some important lessons about how safety professionals can ensure they are on top of their game and that safety messages are having the intended impact.
I’d like to share a few lessons with my fellow safety professionals who are dedicated to reducing incidents and injuries in warehouse and distribution centres.
Embrace continuous learning. Our learning never ends. In the field of occupational health and safety, technology is moving at a rapid pace. Safety professionals need to stay abreast of new and innovative approaches to solve complex business and safety issues.
I was recently in a manufacturing plant with a warehouse component that was having difficulty in attracting and retaining staff. Their plan is to automate some work processes to reduce the need for staff, including adopting autonomous mobile robots. The side benefit of this technology is that it will reduce repetitive tasks among the existing workers at the plant, which lead to pain, discomfort, exhaustion and potentially musculoskeletal disorders (MSDs).
Safety leaders need to have a futuristic mindset and support their business by learning and embracing new technologies. This role includes carrying out research to purchase optimum equipment, developing a practical understanding of how the equipment will be used, determining all applicable written standards (starting with manufacturer’s recommendations), supporting adoption through communication and training and mitigating all new hazards that the equipment may introduce into the workplace. All of
NORM KR AMER, CRSP, P.MM, provides expert, in-depth health and safety consulting services for Workplace Safety & Prevention Services (WSPS) as a warehouse specialist in the Greater Toronto region.
this involves continuous learning.
Talk to your greatest asset, your employees. Employees who perform the work have valuable insights to share on how to improve their work and make it safer. Tap into this knowledge by taking the time to talk to your workers, not just in a group setting, but one-onone. Ask for their ideas. The message you are sending is that they are important and you want to hear from them. Take all their suggestions seriously and review them with your internal decision-makers. The exercise of soliciting ideas from employees will boost morale significantly, and as we all know, morale is linked to engagement and commitment.
If you do implement a specific suggestion, thank the employee again. If you don’t, also thank them and explain why their idea was not implemented. When you finally do make business improvements, including safety, you have already attained buy-in because workers were part of the change-management process.
Walk the talk. As a safety leader, it is of the utmost importance that you are authentic. In other words, your actions must match what you say. If you drive too fast in the parking lot, don’t wear high-visibility apparel, use cell phones near mobile equipment, or subtly convey the message that production is more important than safety, you lose all credibility. Workers may ignore your safety communications or training, thinking, “They don’t follow safety rules, so I guess it’s not important.” Safety leaders and management must not fall into this trap.
Make sure everyone walks the talk regarding safety, from the most senior person who signs the cheques to the person performing cleanup. Keep your safety culture strong.
Make safety relevant and engaging. A production worker told me about a safety meeting he recently attended. “The safety manager read from health and safety legislation, but didn’t apply it to our workplace. I heard the words coming out of the manager’s mouth, however, I had no idea what it meant.” As a safety leader, your job is to take the boring written standards, and make it relevant, understandable, engaging and motivational.
There are many ways to do this. A training session can include a video of an incident from security surveillance camera, followed by a discussion of how the incident occurred and what should be done differently. Or a photo of a hazard and a control, and discussion of how and why the control keeps workers safe.
Or, as one safety professional I know did, host a jeopardy game. Divide participants into teams, provide answers and have them work together to guess the correct question. For example, the answer is: pre-use inspection on lift truck. The question is: what should every operator do before using mobile equipment?
The ways in which safety leaders can make safety relevant and engaging are endless. Don’t skimp on preparation and make your messaging meaningful so that employees walk away from meetings and training smarter and safer.
THE FUTURE OF INTRALOGISTICS IS INTEGRATED
