Supply Professional June 2025

Procurement with purpose

Dimitri Fleitman on working across an organization’s various functions

Innovative packaging

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GREEN TRADE

One happy change since the COVID-19 pandemic faded has been the re-emergence of industry conferences and events that take place in real life, rather than online.

I’ve enjoyed this return to pre-pandemic normality. I’ve always benefited from the chance to connect with readers and others in the field, while also learning about what’s happening in supply chain.

The two conferences I’ve attended so far this year have been the ProMat 2025 show, focusing on materials management, in Chicago and the NAFA 2025 Institute & Expo in Long Beach, California. And of course, looming tariff threats and the trade situation dominated much of the discussion by speakers and among attendees alike.

With all the tariff and trade talk – and the predictions of their affects on supply chains, the economy, employment and so on – there’s limited discussion of their effects on sustainability and the environment.

And yet, as an outcome of these trade talks, there’s potential to affect the environment for either good or bad. We’re taking a look at some of these affects in this issue. Please see our article on page 8 regarding packaging and tariffs for an analysis on how tariff uncertainty impacts packaging within the supply chain.

But packaging isn’t the only aspect of supply chain hit by the tariff issue in terms of potential sustainability effects.

For example, while it’s still on the books, the CUSMA (or USMCA, if you prefer) trade agreement may see revisions when it comes up for joint revision next year.

That agreement includes several sections related to the environment and sustainability. There are provisions in the accord designed to fight illegal fishing and wildlife trafficking, manage forest sustainably, and administer various environmental laws. Such enforcement is never easy, but worth defending. I hope Canada, Mexico, and the US keep in mind environmental protection if and when the agreement is reopened.

Energy and resources are another area in the trade and tariff crosshairs. As recently as 2023, Canada exported over 80 per cent of our total crude oil supply to the US, and roughly 45 per cent of our natural gas. That’s a total value of US$163 billion, according to the Canada Energy Regulator. There are opportunities to promote renewable energy sources, but trade talks may also complicate those efforts.

Cross-border trade tensions also affect the auto sector. Canada hit the US with a 25 per cent tariff on non-CUSMA compliant vehicles and parts made in the US. The US had already announced a 25 per cent tariff on vehicles and auto parts. Domestic production of vehicles may have benefits, but doing so exclusively can also increase carbon emissions while slowing the switch to more sustainable technology.

These issues, with the back-and-forth, “now-your-tariffed-now-yournot” nature of trade discussions, will likely continue to have environmental impacts. While it’s tough to keep our eyes on the ever-bouncing trade ball, we must not lose sight of sustainability in the process.

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MICHAEL POWER 416-441-2085 x7 michael@supplypro.ca

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MICHAEL POWER, Editor

AMERICA’S TARIFF STRATEGY EXPECT A FLURRY OF TRADE DEALS WITH THE US IN THE COMING WEEKS

It matters very much that I am submitting this column on May 11, 2025. Three days ago, the United States and United Kingdom struck a major trade deal with each other. The UK was granted “most favoured” nation status. Yet tariffs of 10 per cent will remain in place and these are minimums. As well, there are export constraints imposed on Great Britain with respect to automobiles. The UK is limited to sending over 100,000 vehicles to the US annually. That is approximately one-half of one per cent of American new car sales in any given year.

In this column several months ago, I predicted (correctly) that Donald Trump would be going after China with tariffs, guns a-blazing. What I completely missed was that he would be using a shotgun approach aimed at the entire world instead of a more focused sniper attack. Soon after his election, Prime Minister Mark Carney travelled to Washington to meet with President Trump in order to hash out a new trade agreement between our countries. Nothing tangible seems to have come out of it. But the UK deal tells us something important: It is highly likely that in the foreseeable future we will see a managed trade deal with the USA.

TRADE WAR

Donald Trump seems to have got a great deal of what he wanted by starting this so-called trade war. Honda made an important announcement right after the US imposed tariffs on Japan. The company announced that it would be

switching automotive production from Mexico and Canada and moving it to American-based factories. Honda is looking to increase its US production by as much as 30 per cent in the next two to three years. That will translate into thousands of well-paying jobs. This is what Donald Trump promised his base. Nvidia, the world’s leading AI chip maker, made several stunning announcements after Donald Trump came out with his prohibitive tariffs. This company committed to produce $500-billion worth of AI infrastructure over the next four years in the US. Nvidia has commissioned in excess of one million square feet of manufacturing space in Arizona and Texas, and it has already started production of its Blackwell chips in America. None of this would have happened had Trump not thrown down the trade gauntlet in the dramatic method he did.

On May 5, Trump signed an executive order that incentivizes drug manufacturing in the US There are several elements to the executive order. Perhaps the most important one is that now the Food and Drug Administration is empowered to reduce the time it takes to approve the building of new drug manufacturing facilities. The response: several major pharma companies including Eli Lilly, Johnson & Johnson, and AbbVie have already announced investments in American domiciled facilities.

LOYALTIES

What Donald Trump seems to realize, at a gut level, is what drives the CEOs of publicly traded com-

panies. Their loyalty is not to any political party or nation. They work to maximize the value of their companies because there is a direct link between that market capitalization and the compensation and job security that those top executives enjoy. In the 1950s Charles Wilson, former CEO General Motors, could unironically say during a Senate confirmation hearing: “I thought what was good for the country was good for General Motors and vice-versa.”

This is what I expect to see in the weeks to come. Trade deals will be struck between the US and other countries. Trading with the US means that tariffs are the new normal. I think that rival economic super-power China will take a very different tack. It will attempt to strike deals that appear to support free trade, even while the Chinese government will very carefully protect the industries it perceives to be most important to achieve economic dominance. Countries will have to take sides. Which power do you ultimately want to work with? The US or China?

Canada is in a uniquely difficult position. Geography dictates that the US must be our leading trading partner. So, we have to figure out how to make it work with our southern neighbour. It looks like the best we can hope for is a UK-style deal which would give us most favourable status and hopefully eventually extend the relationship to allow the free flow of labour across the 49th parallel. SP

“Trade deals will be struck between the US and other countries. Trading with the USA means that tariffs are the new normal.”

Toronto-based Michael Hlinka is a tenured professor at George Brown College. His website is www. michaelhlinka.com

UNDER THE RADAR WHY SUPPLY CHAIN REMAINS UNDERAPPRECIATED

“Out of sight, out of mind” resonates deeply with many supply chain professionals. However, the reality is often more like “out of sight, out of credit.” Despite being the backbone of businesses, supply chain professionals remain overshadowed by more visible departments like marketing, sales, or product development.

It is time to explore why this critical function is often overlooked – and what organizations can do to give these vital teams the recognition and visibility they deserve. The lack of recognition and appreciation is not just an oversight, it’s a missed opportunity to create more resilient, efficient, and strategic operations. So, why does supply chain frequently remain in the background? What can organizations do to rectify this?

Today’s landscape demands more than just brainstorming sessions or training workshops. Leveraging modern technologies like augmented reality, virtual reality, the Internet of Things, AI, and learning management systems can help transfer knowledge.

Several factors contribute to supply chain’s underappreciation, including that its invisible until a problem arises. Colleagues and management frequently misjudge and minimize challenges. The work is often behind-the-scenes, while success can be invisible because efficiency is not always apparent. As well, supply chain leaders often lack representation, and there is a perception gap between how professionals communicate their roles. Legacy mindsets, crisis bias, and a lack of visibility further complicate the situation. Management can identify supply chains as cost centres and

changing market conditions add to the challenge of evaluating their strategic impact. Other barriers include siloed thinking, underinvestment in technology, and an overwhelming focus on short-term results.

Consider this: on average, supply chain professionals can spend 60-to-80 per cent of their time on data cleaning and preparation –tasks like correcting typos, missing values, and correcting inconsistencies likes formatting. This is particularly true in businesses with local units under a corporate parent. Without clear processes, automating this data amplifies inefficiencies, giving less time to demonstrate their strategic contributions. Modern technologies such as AI, AR, VR, IoT, and LMS can shift perceptions by connecting data to decision-making, simulating the complexity of supply chain roles, and demonstrating clear, measurable outcomes. These technologies show that supply chain roles are not only operational but also strategic, making them more difficult to overlook or undervalue.

To raise supply chain’s profile, organizations and supply chain professionals can implement several initiatives. These include showcasing success stories through case studies and short-form content, highlighting achievements in company newsletters, town halls, or leadership meetings, and creating “Supply Chain Hero Spotlights” to recognize exceptional work. Promoting supply chain influencers on platforms like LinkedIn and using infographics and animations to illustrate the journey of products from raw materials to consumer hands can also increase visibility.

Additionally, tying supply chain efforts to consumer impact, demonstrating how these professionals affect price, availability, and sustainability helps demonstrate their strategic value. Organizations can highlight supply chain by introducing awards like a “Supply Chain MVP of the Month,” increasing leadership visibility, and providing recognition during professional development events.

Cross-functional collaboration can foster understanding of the role through offering job-share days with employees from other departments. Company-wide communication channels and performancebased incentives or extra time off can celebrate achievements. Personalized appreciation like thank-you notes also play a crucial role in acknowledging the contributions of supply chain professionals.

HELP FROM TECH

Modern technologies can elevate recognition. AI can offer performance analytics, talent mapping, and predictive insights that highlight the strategic value of supply chain decisions, making them more visible and appreciated. AR/VR can enhance training by simulating supply chain environments, offering firsthand experience, and building awareness. IoT can bridge the data gap by linking worker input to system performance, making the impact of decisions more transparent. Additionally, Learning Management Systems (LMS) can address outdated or undervalued training by introducing custom skills development programs and integrating recognition tools, ensuring that innovation gets recognized, celebrated, and shared

“Lack of recognition and appreciation is not just an oversight, it is a missed opportunity to create more resilient, efficient, and strategic operations within an organization.”

with the organization, colleagues, and management.

It is time to bring recognition to the supply chain profession and create roadmaps. By embracing modern technologies and implementing strategic initiatives to highlight their value, boost visibility and recognition internally, foster cross-functional awareness and collaboration, formalize appreciation and support, and strengthen knowledge sharing and professional development, companies can ensure that supply chain professionals receive the credit and visibility they deserve, and more importantly, strengthen the overall business in the process. SP

Lisa Fenton, NISCLCSCL/CSCMP/MCIPS, is global supply chain & inventory manager, Custom Plastics International Ltd.

Geotab launches freight tracker

Amid supply chain uncertainty, Altitude by Geotab’s Tariff Trend Tracker is offering data insights into US-Canada commercial freight traffic.

The recently launched Tariff Trend Tracker uses anonymized data to provide an aggregate view of commercial vehicle movement across major bridge crossings and ports. Updated weekly, the Tariff Trend Tracker highlights cross-border transportation volumes, offering a data-driven perspective on the impact of tariffs and other variables.

Altitude’s analysis of major border crossings shows that while tariff discussion raised concerns, commercial vehicle volumes showed some localized shifts, showing minor variations rather than considerable fluctuations. This highlights the complexity of isolating tariffs from other variables, and underscores the need for nuanced, data-driven analysis.

DP World pilots hydrogen crane at Port of Vancouver

Material purchases drop in

April

There was an accelerated reduction in global manufacturers’ demand for inputs (raw materials, components and commodities) in April, signaling a contraction in purchasing activity by region, according to the GEP Global Supply Chain Volatility Index, an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs.

April’s drop in buying across global manufacturers was the sharpest of 2025 to date – specifically in North America and less so in Asia – as manufacturers scale back in anticipation of weakening future demand as a direct result of tariffs.

Panama Canal Railway Company sold to APM Terminals

Canadian Pacific Kansas City Limited said CPKC and the Lanco Group/MiJack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, a global terminal operator and independent division of A.P. Moller - Maersk.

PCRC provides ocean-to-ocean freight and passenger services along the Panama Canal and has been a joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since 1998.

PCRC was formed when awarded a concession from the Republic of Panama to reconstruct and operate the Panama Canal Railway, a 47mile railway adjacent to the Panama Canal. It is a north-south railway.

DP World has finished initial testing of a hydrogen fuel cell rubbertired gantry (RTG) crane at the Port of Vancouver. The RTG is now undergoing field testing as the company assesses the feasibility of electrifying its global fleet of 1,500 RTG cranes. The adoption of hydrogen technology promises to reduce or even eliminate the greenhouse gas emission impact

of the cranes, says DP World.

DP World launched the pilot in October 2023, and the RTG has entered its second phase, a one-year field trial to track performance parameters like hydrogen consumption, energy generation, and regenerative energy capture rates.

DP World partnered with TYCROP Manufacturing Ltd., H2 Portable, and HTEC for the project.

What’s holding up AI adoption for businesses?

There’s a disconnect between perception and reality in enterprise artificial intelligence adoption, says a new AI research report by EPAM Systems, Inc.

The report, called From Hype to Impact: How Enterprises Can Unlock Real Business Value with AI, surveyed of 7,300 participants across nine countries (including Canada) and eight industries.

Nearly half of respondents rated their companies as “advanced” in AI implementation, with five per cent identifying as “disruptors,” 32 per cent as “competent” and 14 per cent as “beginners.” Only 26 per cent of those who self-identified as advanced companies and disruptors have successfully delivered AI use cases to market.

“The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged.” said John Piatek, vice-president, consulting GEP. North American manufacturers sharply increased inventory buffers in April, warehousing front-loaded Q1 purchases in response to rising tariff concerns and a renewed focus on supply chain resilience.

BY RACHEL KAGAN

PACKAGING AND TARIFFS

TARIFF UNCERTAINTY COULD IMPACT

THE PACKAGING SUPPLY CHAIN, AND THE ENVIRONMENT

Ongoing tariff directives continue to create uncertainty for businesses, including Canada’s paper packaging supply chain.

While the original United States proposal to add 25 per cent tariffs on Canadian imports – including paperboard and cardboard – has been paused, the Government of Canada implemented a 25 per cent tariff to a list of goods worth $30 billion imported from the US, including cartons and boxes made from corrugated and paperboard.

For companies across the paper packaging supply chain, the ongoing “will-they-or-won’t-they” nature of US tariffs – and the unknown duration of Canada’s countermeasures – presents more than cost and sourcing challenges. It also impacts packaging decisions, planning, and sustainability goals. As businesses manage supply chain risks, it’s also important to examine how trade policy disruptions could influence environmental outcomes and sustainability planning.

The following analysis by the Paper and Paperboard Packaging Environmental Council (PPEC), which represents the environmental interests of Canada’s paper packaging industry, explores how tariffrelated uncertainty could unintentionally affect decisions around packaging materials and sustainability efforts across the supply chain.

SEIZING UNCERTAINTY

When it comes to the packaging choices available, if tariffs were to make certain materials more expensive, some brands might begin to explore alternatives.

For example, on a February earnings call, Coca-Cola CEO James Quincey suggested that the beverage company could consider moving to PET bottles for some products if aluminum cans were to become less affordable due to tariffs. At the same time, he cautioned, “we’re in danger of exaggerating the impact of the 25 per cent increase in the aluminum price relative to the total system.”

While no packaging changes have been confirmed, some suppliers have seized on the uncertainty. In a blog titled Future-Proofing Your Packaging: PET as the Strategic Response to Aluminum Tariffs, Husky, a plastics industry supplier, claims that switching from aluminum to PET (Polyethylene Terephthalate, a common type of plastic polymer) could create a more resilient supply network.

This is just one example of how materials are being positioned in an unpredictable trade environment. But switching packaging materials isn’t a simple or solely cost-driven decision. While tariffs may cause some businesses to review their packaging, brands must weigh many factors, including availability of materials, regulatory requirements, and whether strong recycling infrastructure and end markets exist.

For materials like recyclable paperboard and cardboard, which are already integrated into domestic supply chains and supported by mature recycling systems, these considerations matter. Trade policy may introduce short-term uncertainty, but long-term sustainability

planning relies on stable, circular systems – and not all materials can offer that.

We’ve seen before how external policy decisions can have impacts on local markets. China’s National Sword Policy, implemented in 2018, reshaped global recycling by restricting imports of certain waste materials.

Yet, as PPEC member company and Emterra’s chief sustainability officer Paulina Leung explained in a recent Q&A, China’s policy “opened up new markets in new countries and highlighted the need to ‘onshore’ recycling in Canada and in North America,” adding that “the need for recyclers to have a diversified customer base can never be underestimated.”

While not a tariff, China’s ban on importing certain recyclables had a significant impact, affecting recycling markets, changes in packaging material choices, and the development of more local recycling solutions.

“For decades, our industry has relied on recycled content, not just because it’s good for the environment, but because it makes business sense.”

SLOWED PROGRESS

In addition to the complexities that come with packaging decisions and ensuring stable markets for materials, the threat of tariffs also creates uncertainty that can complicate business planning. This could impact or even delay progress or investments in corporate waste reduction and sustainability initiatives. And there has already been a slowdown in progress on various sustainability targets, with some North American companies

25_004317_Supply_Professional_JUN_CN

highlighting difficulties in sourcing sustainable feedstock and materials, and a lack of infrastructure for sorting and recycling.

At a time when policymakers and businesses are investing in recycling systems through extended producer responsibility (EPR) and working to reduce plastic waste, the unintended environmental implications of tariffs are something that deserve consideration.

For Canada’s paper packaging industry, environmental sustainability is built right into its business model. For decades, our industry has relied on recycled content, not just because it’s good for the environment, but because it makes business sense. Using and reusing recycled fibres isn’t just an input decision, it’s a valuable resource that keeps materials in use and supports Canada’s recycling system.

Regardless of how trade policies evolve, one thing remains clear: recycling has never been more

important to ensure that clean, high-quality fibres are recovered and reused to support resilient, domestic recycling systems. SP

Rachel Kagan is executive director of the Paper and Paperboard Packaging Environmental Council.

BY MICHAEL POWER

CHALLENGING THE STATUS QUO DIMITRI

FLEITMAN

TAKES A GLOBAL VIEW IN HIS SUPPLY CHAIN CAREER AND PERSONAL LIFE

Dimitri Fleitman’s career in supply chain and procurement has taught him the value of being nimble. That’s especially true in a world in which geopolitics is affecting trade agreements, shifting manufacturing practices, and forcing supply chain and procurement practitioners to look at supplier diversification. “You have to be proactive so you can pivot, because if you’re reactive, you’re going to fall behind,” he says.

Fleitman, a 20-year veteran of the field, began his career in logistics – specifically in freight forwarding. He migrated to working within dedicated fleet at Canada Cartage, a 3PL, mostly for Sobeys Inc, looking after their direct-to-store (SSD) distribution. He worked as a logistics coordinator for the national supermarket chain’s account from 2009 until 2013.

“I was always drawn to the intersection of operations and strategy,” Fleitman says. “I was always hands on, very operational in the early stages of my career. And where that came in is with Sobeys, through Canada Cartage. That’s where I was managing at the early onset of my career. We were working collectively with peers

and colleagues to orchestrate backhaul programs to deliver efficiency, because we had a very large fleet that was going out and delivering product to the various DSDs. One of the things that we had an issue with was entire fleets coming back empty, so I took pride in helping orchestrate various backhaul programs with our suppliers and vendors that serviced us there.”

Fleitman moved up, taking on progressively more complex duties. He eventually began working for Gay Lea Foods, spending about 10 years with the company. He held several positions there, starting in a transportation management role and eventually rising to become director, logistics & procurement. He orchestrated the company’s end-to-end supply chain, including procurement, logistics and transportation, supply and demand planning, and looking after customer service and warehousing.

In 2022, Fleitman moved to Dole Packaged Foods Canada, his current company. He has since risen to head of supply chain & strategy, looking after the company’s global supply chain, mainly the Canadian marketplace. Fleit-

man must develop resilience amid the geopolitical turmoil affecting supply chains. Sustainability is another priority that aligns with his company’s commitment to the environment –focusing on people, planet and the community.

Among the skills he has used over the years, Fleitman points to procurement as among the most relevant, as it spans a company’s functional areas. Logistics, for example, involve procuring services in indirect type of vendor spend. Or, if a company is implementing a digitization strategy – putting in an ERP or TMS system, for example – procurement skills are handy. He’s also responsible for procurement of finished goods globally, putting him in charge of products as well as services.

“I spend quite a bit of my time from a strategic perspective, looking at global ocean freight procurement, looking after 3PL procurement from the warehousing side of things,” Fleitman says. “That ties into the operational element; to understand procurement, you need to understand operations in terms of some of the underlying structural elements of what you’re looking for. If you don’t know how things operate, you can’t procure those services.”

Fleitman’s education also focused on supply chain. He completed a three-year, advanced diploma in business administration at Seneca Polytechnic in Toronto. From there, he also earned multiple professional designations. Since his supply chain career began in logistics, he first earned the CITT-Certified Logistics Professional (CCLP) designation from CITT.

Fleitman’s career became more invested in procurement. He earned the Supply Chain Management Professional (SCMP) designation, and also has his NISCL-CSCL and MCIPS Chartered from the National Institute of Supply Chain Leaders (NISCL) and the Chartered Institute of Procurement & Supply (CIPS), with which NISCL has an exclusive partnership in Canada. He spent two years earning an MBA from the Richard Ivey School of Business at Western University, completing it in 2022.

VIEW FROM THE TOWER

Like many, no two days are the same for Fleitman. He typically starts his day by reviewing global supplier reports and control tower performance dashboards. He manages his operation through a proprietary, orchestrated control tower KPI that he developed. The control tower looks at every pillar, and he typically has two or three different KPIs for transportation, ocean freight, and procurement, through which he monitors purchase price variance reports.

“As an example, we look at the last mile,” Fleitman says. “We look at our warehousing

reports in terms of the inventory and the inventory valuations that we have. And those KPIs serve as the guiding principles for me in terms of how I meet the space, how I navigate the enterprise for success. So again, tying it all back to the main control tower as my guiding beacon of light in terms of where I need to focus my time and efforts.”

Since he’s a member of his company’s leadership team, Fleitman typically spends his mornings in cross-functional meetings. Those meetings can include with sales, finance, logistics, and marketing, among others. They can focus on global trade, the status of the company’s warehouses, and so on. Short- and medium-term goals are among the topics explored.

“In the afternoons I typically carve out time to look at strategic planning with all the geopolitical issues that are happening,” he says. “We’re consistently looking at supplier diversification. That’s a major pillar of my time. We’re looking after any trade agreements that the marketplace may be fostering from a political standpoint.”

Fleitman spends time mentoring team members. He sets aside time each week for market research, and professional development on a monthly or quarterly basis. As well, there are always contracts coming due, he says. Whether in warehousing or transportation, there are several RFPs or RFQs to go through. These get staggered along different timelines, so as not to deal with every business element simultaneously.

“It could be warehousing in a certain year, a certain timeframe, and then you’re dealing with logistics at a different timeframe,” Fleitman says. “Our focus is to diversify as much as possible. If any element breaks down, we have the ability to still maintain supply chain resilience while focusing on correcting that one element and not reorchestrating our entire supply chain.”

Several career highlights stand out to Fleitman. Notably, he was part of a team at Gay Lea Foods that helped grow an enterprise by four times over a decade, through various mergers and acquisitions. The supply chain networks that he helped develop over that 10-year span still operate at that enterprise.

As well, during the COVID -19 pandemic, Fleitman worked to secure scarce products, which became increasingly important as supply dried up. Personal protective equipment was sometimes in especially short supply during that time, he recalls. Enacting social distancing measures, temperature control monitoring for certain employees, and creating best practices to ensure safety were all challenges.

“The entire supply chain was paralyzed, and being in the food sector, or in the food chain,

we were considered an essential industry,” Fleitman says. “For our operations to be ongoing and maintain continuity, that was very important for us. Being part of that orchestration was a great highlight of my career.”

During his time in the field, Fleitman has garnered a few awards of which he is especially proud. Earlier this year, he was recognized for a Supply Chain Excellence Award with DOLE through a consortium called Supply Chain Leaders in Action (SCLA). He won the honour for spearheading sustainability strategies in the community. These strategies include repurpos-

ing E&O inventory, eliminating waste, and creating enterprise value by eliminating costs that would otherwise come from product destruction. While the award was announced earlier this year, it will be handed out in June.

In 2024, his team received the Trailblazer Award from the Daily Bread Food Bank that

recognized Dole’s supply chain leadership and support for the community – the company created a wasteless network where E&O inventory was repurposed, resulting in over 1.5 million servings provided to underserved people.

“This value was both for the enterprise and for the community, and it wasn’t just the food banks that we worked with,” he says. “We’ve actually done some work with various school districts as well, with school programs where we donated the repurposed product directly to the schools and underserved communities.”

Global instability, inflation, and the increasing pressure to realize sustainability goals are among the major challenges that supply chain professionals face, Fleitman says. Supply chains produce waste, and those in leadership positions must keep sustainability at the forefront of their roles.

GLOBAL SKILLS

In response, practitioners must build resilient supply networks, invest in data analytics for better forecasting, and collaborate with suppliers to find innovative solutions, he says. Supplier diversification and an emphasis on understanding global trade in terms of trade agreements that countries and markets operate within are strategic advantages. Understand which countries are relevant in your marketplace – knowing that, and keeping abreast of global trade currents, is especially important.

Finally, Fleitman notes that supply chain and procurement professionals must be ready to challenge the status quo. Pushing for innovation, staying informed, and being proactive will foster success. When he started his career, the existing workflows and systems meant a slightly more stable environment. Professionals could work to manage what was already in place.

“Today, it’s about challenging the status quo,” he says. “I can’t underscore that enough – you have to be extremely proactive. You have to consistently look at different themes about what’s happening. You have to stay well informed, and you have to be ahead of the curve.”

Supply chain, Fleitman says, is foundational to the economy, especially in North America. Over the past 30 or 40 years, we’ve morphed into a consumption economy in which, from a global trade perspective, we now consume more than we produce. It’s now a diversified landscape with agreements, manufacturing, and other factors constantly shifting.

“Supply chain is the backbone of the economy today,” Fleitman says. “I think it’s more important than it was in any given year of my career. And having the right supply chain or global trade expertise, that’s what will set successful enterprises apart in the future,

“You always have to be proactive so you can pivot, because if you’re reactive, you’re going to fall behind.”

whether it’s procurement, logistics, or any type of supply chain you can think of.”

Regarding the tariffs that the US has imposed on various countries, including Canada, Fleitman stresses the need for calm. Global trade will always see shifting landscapes and diversions. This level of disruption is unsustainable. “I wouldn’t panic because it’s a shortterm disruption that’s not going to be the new baseline.”

Fleitman looks forward to continuing to engineer and orchestrate global supply chains. It’s about providing value to an enterprise through a supply chain lens, helping to create jobs, while fostering resilient supply chain models that address inflationary pressures. “This is something that really drives me,” he says. “I really enjoy creating resilient workflows, resilient supply chains.”

Fleitman is interested in teaching and mentoring the next generation of supply chain professionals. He has considered creating a toolkit or even writing a book for supply chain professionals. Fleitman has also appeared on a podcasts to share thoughts on leadership.

Outside of work, Fleitman spends time with his family. With a wife and three kids, he has little time for other hobbies. But the family likes to travel and seek out outdoor adventures. As well, working in global trade has fed Fleitman’s passion for exploring the world.

“So, I travel professionally, but also we like to explore and travel on our own in new environments,” he says. “And I’m trying to get my own kids to think about the fact that the world is so big. It’s bigger than the bubble that you know within the community. I would advocate for everyone to get out and explore a little more. We’re a big hockey family. I have three kids, 11, eight and four. Both my boys are in hockey four days a week, and my daughter is in gymnastics. Between travel and exploring the world, it’s 100 per cent putting my efforts into the kids.”

THE VALUE OF NETWORKS

In terms of advice for other supply chain professionals, Fleitman recommends staying curious and adaptable. Supply chain and procurement are constantly evolving, and success depends on learning quickly, working cross-functionally, and thinking strategically. A solid network

helps, and Fleitman recommends building one early on. Attend annual events, participate in forums and chat groups, and network with as many people as possible. Always look for ways to add value while thinking of cause and effect, rather than just cutting costs. And if nothing else, supply chain is a field that offers variety.

“If you’re getting into supply chain and you’re expecting something repetitive, there’s always a new firefight to deal with,” Fleitman says. “There’s always a new challenge to oversee. The field is constantly evolving, and success depends on your ability to evolve quickly and work cross functionally with different team members, because it is a very cross functional environment, whether you’re working with logistics, whether you’re working with procurement, and you have to understand the drivers that are important. Only if you can find something that solves your issues and theirs at the same time, and it’s not being selfish, then you can build a network that’s truly resilient.”

Also, look for ways to add value, he advises. For Fleitman, it’s not just about finding cost savings. Supply chain and procurement are understood as cost centres, yet it’s important to deliver value beyond that. Engineering best practices, removing firefighting, or working on sustainability can all create enterprise value.

Along with leveraging your own expertise, call upon the expertise of your network, whether it’s your suppliers, service providers or someone else, Fleitman advises. That cross functional element is important, he adds, as it’s important to actually spend time on the factory floor, the truck driver’s cab, and other realworld supply chain locations.

For his own part, Fleitman says he worked from the ground up, starting in junior functional roles before progressing to more senior and critical functions. That has allowed him to relate more directly to those working in different supply chain functions.

“Go on that ride along to really understand the end-to-end,” he says. “I find today, in supply chain, we have a lot of subject matter experts, and they’re managing certain functions, but have never really done the function that they’re managing. But that lacks appreciation. I’ll give you an example, if I’m talking to my transportation provider, if I never would have gotten in the truck and gone through the motions that they have – like going to pick up that load, dealing with the shipper-receivers, understanding what the bottlenecks are, understanding some of the nuances that happen over the road – I wouldn’t be able to speak the language that they speak and relate to the challenges that they experience.” SP

BY GLYNN HANCOTT

SUPPLY CHAIN CAREERS

TODAY’S ROLES OFFER CHALLENGES, INNOVATIONS, AND OPPORTUNITIES

A supply chain career is a rewarding journey. Yet the labour market faces challenges due to global political and economic trends. The restrictions on working abroad and obtaining citizenship have become more stringent, contrasting sharply with the ease of such processes in the past. As companies brace for an anticipated economic downturn, people must consider the industry they wish to enter. Supply chain roles, including manufacturing, warehousing, and trucking, are seeing a shortage of qualified candidates. This is attributed to unattractive working conditions, limited career advancement opportunities, and a perception that the work is strenuous or poorly compensated. Many supply chain roles are fastpaced and involve operations and logistics that run 24/7, which can be daunting for those unprepared to make high-pressure decisions with

significant impacts. Many roles are on-site and may not offer the flexibility of hybrid work, posing challenges to work-life balance.

The skills required in the modern supply chain are more complex than ever. Professionals must balance resilience and perspective. Flexibility is essential in an environment where change is constant. Communication skills are critical, and soft skills have become increasingly important. Understanding the interplay between art and science, and the impact of AI on business, is also vital. Modern supply chain professionals need a mix of technical and soft skills. Key areas include data analysis, risk management, adaptability, communication, collaboration, and problem-solving abilities. Skills such as understanding AI, machine learning, and cybersecurity are becoming increasingly important due to the growing reliance on technology.

A BETTER BALANCE

Remote working typically provides greater flexibility and autonomy, improving work-life balance. Blurred boundaries between work and personal life can lead to overworking and reduced well-being. Research shows that remote workers may experience lower stress levels, likely due to their enhanced flexibility and autonomy.

One of the issues contributing to rising freight rates is the 220,000ton container ship that blocked the Suez Canal for six days in 2021, initiating a trend of increasing freight rates. Demand reached record levels in Q1 2024, up 9.2 per cent compared to Q1 2023, coinciding with the Red Sea situation, which puts increased pressure on shipping capacity. This is all occurring while the chaos of port congestion and lack of available capacity during the COVID-19 pandemic remains fresh in shippers’ memories. Lessons will have been learned from the pandemic. If shippers fear a squeeze on capacity

during the peak season in Q3, they will likely start importing more goods now.

Supplier reliability impacts our supply chains. Contributing factors include the tariffs applied by President Trump. Specifically, tariffs can disrupt already vulnerable supply chains by forcing organizations to seek alternate sources of supply. New sources can also test quality and extend lead times, depending on the source of supply. On a positive note, new suppliers can improve quality and foster better business relationships.

Port congestion in Canada significantly impacts the supply chain, causing delays, increased costs, and disruptions in the flow of goods. Major ports like Vancouver and Halifax see extended wait times for inbound and outbound containers, leading to longer transit times and higher expenses for demurrage and storage. These disruptions affect various sectors, from holiday inventory to manufacturing inputs, and can lead to shortages and difficulties in procuring time-dependent materials. Some consequences are higher transportation costs, increased demurrage and storage fees, and affected customer service. Due to congestion, weather, and transportation link issues, Canada’s Vancouver, Halifax, and Montreal ports are already at capacity.

By harnessing the power of advanced algorithms and automated systems, ports can streamline processes, enhance decision-making, and improve efficiency. These technologies offer the potential to mitigate the challenges faced by port operations, such as congestion, delays, and rising labour costs.

AI IN SUPPLY CHAINS

AI is poised to revolutionize supply chains, enabling greater efficiency, resilience,andsustainability.AI-powered solutions can automate tasks, improve forecasting, optimize operations, and enhance risk management, creating more adaptable and responsive supply chain eco-

is

systems. Students entering a career in supply chain should understand how AI can impact it by automating routine tasks, demand forecasting, enhancing supply relations, and many other tasks.

A strong understanding of supply chain fundamentals involves comprehending the entire process, from sourcing raw materials to delivering finished products to customers. This includes key aspects such as inventory management, demand forecasting, risk management, and collaboration with suppliers and customers. Practical supply chain management aims to optimize the flow of goods, reduce costs, and improve customer satisfaction. The labour market presents significant challenges, and employees’ expectations regarding remote working and work-life balance are increasingly important. Customer expectations rise constantly – they demand faster and cheaper services, pushing the industry to focus on continuous improvement and process refinement. The supply chain is a high-pressure industry, not for the faint of heart.

– This article includes contributions from Shannon Skinner, director of supply chain optimization with Metro Grocery Stores, and Melissa Pryszlak, vice-president of DC Operations at Pet Valu SP

Glynn HancottNISCL-CSCL-MCIPS,

an instructor at the National Institute of Supply Chain Leaders (NISCL) and partialload professor at Seneca Polytechnic.

BY JACOB STOLLER

replace people, but to boost their productivity by increasing the value-add from their processes. This requires a holistic strategy that’s not just about layering technology onto existing processes, but redesigning processes in order to leverage the strengths that technology can bring.

CONFRONTING THE TECH ADOPTION PROBLEM SMES KEY TO TURNING AROUND CANADA’S LAGGING TECHNOLOGY USE

In a 2023 study commissioned by Canadian Manufacturers & Exporters (CME), the authors confirmed a decades-old concern – that Canadian manufacturers have been slow to take advantage of advanced technology. “Unfortunately, as detailed and documented by CME and other organizations including the Government of Canada, Canadian industry is a global laggard in technology adoption,” wrote Alan Arcand, CME’s chief economist, in the executive summary. “This has hindered growth in the manufacturing sector and in the economy overall.”

It’s ironic that while many of the world’s top tech innovators are Canadian, they have to look outside our borders to find adopters. DarwinAI, a highly successful startup that originated at the University of Waterloo, is a prime example, notes Sheldon Fernandez, AI strategist and founder and former CEO of DarwinAI.

“I was recently on a panel discussing Canadian productivity and pointed out that of 12 clients we had

at DarwinAI, only one was Canadian,” says Fernandez. “So here we are, Canadian company, Canadian IP created by professors and funded in part by the Canadian government, but it’s corporations outside Canada, with the exception of one, that are benefitting from our automation.”

Fingers are often pointed at government, with some justification. Economic incentives, elimination of excessive regulation, and government-funded training programs can all help. But businesses will have to step up as well, and the barriers they face in doing so are significant and by no means unique to Canada.

LONG-TERM PROBLEM

The challenge has a long history. In the 1980s, there was wide concern throughout the industrialized world that companies weren’t getting a reasonable return on their technology investments. The phenomenon was so prevalent that it was dubbed “Solow’s Productivity

Paradox”, named for Nobel laureate economist Robert Solow, who famously quipped that “you can see the computer age everywhere except in the productivity statistics.”

That paradox still persists. A key contributor to this perennial failure, according to studies by the Industrial Performance Center at MIT, has been a myopic mindset that regards automation only as a vehicle to reduce headcount. What’s needed, the researchers conclude, is a more holistic approach that applies technology to increase the value-add as well.

“What we find in study after study is that when companies automate, they’re having a really hard time cutting those direct costs,” says Ben Armstrong, the center’s executive director. “When companies adopt robots, for example, they become more productive, but they don’t ever really cut costs. They end up hiring more people.”

The center advocates an approach called positive-sum automation in which technology is deployed not to

To achieve this, companies will have to become a lot more tech savvy and as well, gain a deeper understanding of their own processes. According to the above-cited CME study, the majority of small-to-medium manufacturers, which account for the vast majority of Canadian manufacturers, stated that their knowledge of advanced technology solutions available for their business is fair to poor.

The learning journey, notably, has to be bi-directional. “There’s a gap between people that are developing these AIs, and people that are ensconced in these industries that can understand them and can understand where the technology can deliver value,” says Fernandez. “Some of the challenges are just ignorance. But another big issue is processes. Many of these existing business processes were just not designed to be automated at the speed of AI yet.”

POINT SOLUTIONS

Attendees at the Automate 2025 trade show in Detroit in May were exposed to hundreds of advanced solutions targeted towards small-tomedium-sized companies. This marks a significant shift from a time not long ago when only very large companies could support leading-edge automation.

“If you look at DarwinAI, most of the customers are small-to-medium-sized businesses,” says Fernandez. “And that’s because they’re more agile and can test it and adopt it more quickly. With larger companies, there’s a much longer decision and implementation cycle.”

DarwinAI’s solution involves the final stage of printed circuit board production, which was previously done manually because of the complex board geometry at that point. “We were able to do it quicker, faster, cheaper than a human being,” says Fernandez, “so that’s an exam-

ple where we’re really seeing value in technology, and where you’ll continue to see that type of disruption.”

Smaller companies can draw on a growing number of focused solutions with well-defined ROI potential. Automated machine loading, palletizing, and machine tending have become fairly common as these solutions have become more flexible and easier to implement.

Another area involves tools to make existing automation installations more effective and easier to use. Seattle-based startup Olis Robotics is based on a solution created at University of Washington for remotely monitoring robotics platforms to detect and correct

“When companies adopt robots, they become more productive, but they don’t ever really cut costs. They end up hiring more people.”

problems. The product, distributed by robotic integrators, is a simple smartphone download, but it can reduce robotic downtime by 80 per cent of the company claims.

Fredrik Ryden, CEO at Olis, believes that in the current climate of uncertainty, companies will be trying to maximize the value they get from their current technology deployments.

“I think in the short term, people are going to want to do more with less,” says Ryden, “and do more with what they already have. So, we’ve been positioning our product as a very convenient retrofit. People who already have robotics might not want to invest in another cell because

of all the uncertainty, so our approach is ‘Let’s make the ones you have run even better.’ I think that is the game right now.”

Ryden also believes that governments could be more effective if they took a more participatory role. “I think government should lead by example,” says Ryden. “Governments are running fairly sizeable operations. So rather than the traditional grants, if they could become demanding customers of automation, that would sure stimulate the innovation economy. I’d rather see the investment go toward purchases than be directed toward grants.” SP

BY MARIETE F. PACHECO

EMBRACING INNOVATION TECHNOLOGY HELPS TO ENSURE SMOOTHER MRO MANAGEMENT

In today’s dynamic supply chain management world, maintenance, repair, and operations (MRO) inventory management is a critical component for manufacturers. Ensuring that inventory levels are consistently maintained while mitigating the risks of stockouts and overstocking is a delicate balance. There are innovative technologies and strategies that can help manufacturers to address inventory challenges while still aligning with financial needs such as maintaining solid working capital levels.

MRO inventory includes a variety of items, from spare replacement parts for equipment, tools, safety devices and consumables. Effective inventory management of these items is important for maintaining strong operational efficiency, minimizing downtime, and controlling operating costs. However, manufacturers frequently face numerous challenges, such as conflicting priorities between operations and procurement, data quality issues, and the risk of stockouts which may result in impacting customer commitments and incurring penalties and fines.

3D PRINTING

One of the most promising emerging technologies for improving MRO inventory management is 3D printing. This technology allows manufacturers to fabricate spare parts on-demand, reducing the need for large inventories and min-

imizing lead times. Traditional manufacturing processes are often time-consuming. That is especially true for low-volume and custom parts. 3D printing enables relatively quick production, ensuring that parts are available when needed without tying up valuable warehouse space. On-demand production also allows companies to store fewer parts, which reduces warehousing costs. This can free up capital, and reduce the risk of parts obsolescence, which supports the organization’s sustainability mandate as part of their waste reduction strategy.

Lastly, 3D printed spare parts can extend an equipment’s lifespan if the replacement parts are difficult to obtain or are no longer available due to the age of the equipment. As well, 3D printing allows for ease of use for customizing parts tailored to specific business requirements. This would replace having to make do with standard parts or having to rework them upon receipt to meet any unique needs, which in turn can greatly improves the overall fit and function of the components.

When evaluating the possibility of adding 3D printing to an operation, consider several factors such as investment, environment, availability of talent, and obtaining intellectual property rights. Investment includes not only the cost of the printers themselves, but also the consumables that go along with it, such as printing filament.

Quality of the printing filament can vary dramatically, just as its related price can also vary. The quality of the filament can drive costs up dramatically if poor materials are used, which generates waste due to defective parts or non-compatibility with the printer. Setting up the space for the 3D printer could also be a significant investment depending on the type of printing materials used. In some cases specialty ventilation systems and temperature-controlled environments are required to maintain space working conditions or uphold the integrity of the printing filament.

With 3D printing still a relatively new function, the availability of qualified and experienced personnel is limited. The limited talent base could result in either a long recruiting process to find strong candidates or an organization having to invest in training their existing employees. Both of these options would negatively impact the timeline to deploy and benefit from 3D printing. Lastly, depending on the types of parts that a company considers for 3D printing, that company must conduct thorough research to determine if there are intellectual property rights associated with the parts, such as design trademarks. It’s a good idea to consider possible licensing agreements with the trademark owners to allow for 3D printing of their replacement spare parts.

Mariete F. Pacheco, MBA, PMP, is managing director at FRW Services Ltd.

OTHER OPTIONS

Other technology solutions that companies can consider as part of an MRO inventory management program are implementing advanced inventory management systems, such as an enterprise resource planning (ERP) or a computerized maintenance management system (CMMS). Both systems provide real-time visibility to usage patterns and inventory levels. These systems can help to streamline inventory tracking, reduce errors due to manual processes, and optimize stock levels.

By using data analytics, manufacturers can also gain insights into their inventory trends, predict demand, and identify possible operational inefficiencies. Predictive analytics through artificial intelligence can help to forecast future inventory needs based on historical demand data, helping to prevent both stockouts and overstock situations. Internet of Things (IoT) devices can help to monitor the condition and usage of equipment in real-time, providing valuable data for maintenance planning and inventory management. Sensors can alert maintenance departments when parts are nearing the end of their useful life, ensuring replacements are available in a timely manner.

“3D printed spare parts can extend an equipment’s lifespan if the replacement parts are difficult to obtain or are no longer available due to the age of the equipment.”

With the vast amounts of data generated by IoT devices, artificial intelligence can analyze the data to optimize inventory levels, predict future maintenance needs, and improve overall procurement strategies. This technology can help speed up purchasing by automating the decision-making process and reduce the dependency on manual intervention. The result is enhanced overall process efficiency.

Lastly, the commonly used just-in-time (JIT) inventory management strategy, which focuses on minimizing inventory levels and ordering replacement parts only as needed, faced significant challenges during the COVID-19 pandemic and continues to face new challenges. Supply chain disruptions highlighted the vulnerabilities of relying solely on JIT inventory management practices, leading some manufacturers to recon-

sider their inventory strategies. In the current uncertain supply chain environment, due to higher purchasing costs caused by tariffs and raw material shortages, a hybrid plan that combines both just-in-time and just-in-case strategies is gaining popularity. This hybrid approach consists of maintaining a level of buffer or safety stock for critical parts while also continuing to leverage JIT practices for less critical parts. By balancing just-in-time and just-in-case, manufacturers can improve their overall supply chain resilience, reduce the risk of stockouts and manage their operating costs more effectively.

OPTIMIZATION

Managing MRO inventory effectively is vital for manufacturers to maintain operational efficiency. By leveraging innovative technologies such as 3D printing, inventory management systems, data analytics, IoT devices and artificial intelligence, manufacturers can optimize their spare parts management and address inventory challenges. As manufacturers navigate the complexities of MRO inventory management brought on by supply chain challenges, embracing these technologies and strategies will be fundamental to remaining competitive and ensuring smooth operations in the face of evolving market conditions. SP

BY MICHAEL POWER

DELIVERING THE FUTURE AI AND ROBOTICS LEAD THE WAY AT RECORD-SETTING PROMAT 2025 SHOW

The manufacturing and supply chain community came together again this year for a recordsetting P roM at exhibition in March. With a registration count of 52,223 and 1,160 exhibitors, P roMat included 659,000 net square feet of exhibit solutions and 215 educational sessions across three show halls at Chicago’s McCormick Place Convention Center.

This was the largest ProMat to date, with three per cent more registered attendees than the last show, in 2023. Attendees came from the US and 143 countries around the world.

“ProMat brings this industry together to connect and share the best equipment and technology, the leading trends, and the latest innovations. The success of ProMat 2025 is proof of the central role the supply chain plays across industries,” said John Paxton, CEO of MHI “ProMat’s unparalleled solution-sourcing, educational, and experiential offerings provide attendees with a one-stop shop for the information and connections they need to thrive in this constantly changing marketplace.”

Some of the dominant trends at ProMat included automation, robotics, artificial intelligence (AI), and their impact on end-to-end transparency and resiliency. These new technologies work in conjunction with traditional material handling solutions that were also on display.

“We’re seeing a big acceleration in the adoption of these technologies in manufacturing and supply chain operations,” added

Paxton. “The variety of solutions on display this year were evidence of this trend.”

Paxton and Deloitte’s Wanda Johnson released the findings of the 2025 MHI Annual Industry Report: “The Digital Supply Chain Ecosystem: Orchestrating End-to-End Solutions” during a panel discussion with four industry thought leaders. The report details the adoption of supply chain technology, predicted to make operations more responsive, agile, and responsible.

The report found that 55 per cent of supply chain leaders are increasing their supply chain technology and innovation investments, with 60 per cent saying they plan to spend over $1 million. As well, 19 per cent plan to spend over $10 million.

This investment includes orchestrated, endto-end solutions between tech and human workers. Adoption of the 11 categories of technology the report covers is predicted to rise over the next five years.

Artificial intelligence adoption is expected to rise dramatically, with 28 per cent reporting that it’s in use today, while another 54 per cent said they plan to have it in use within five years, making the five-year total nearly triple, 82 per cent by 2029.

“These are exciting times for the supply chain industry as we see the orchestration of technology and talent coming to the forefront,” said Paxton. “The future of supply chains will centre

around striking the right combination of human talent and technology to enhance efficiency, transparency, and sustainability.”

INNOVATION AWARDS

MHI announced the winners of the 2025 MHI Innovation Awards during MHI Industry Night. The MHI Innovation Awards serve to educate and provide insights on the latest manufacturing and supply chain innovative products and services. The awards had 234 submissions from ProMat 2025 exhibitors, and the winners were:

•  Best New Innovation - Anyware Robotics

•  Best Innovation of an Existing Product – Concentric, LLC

•  Best IT Innovation – Fidus Global

•  Best Innovation in Sustainability – GRI Inc. In addition to these awards, the MHI StartUp Award was announced. This winner was selected from companies that were featured in the ProMat 2025 StartUp Pavilion, a specialized area on the ProMat show floor where companies showcased emerging supply chain tech. This year’s StartUp Award winner was Freespace Robotics.

PRODUCTS ON DISPLAY

Among the over 1,000 companies that exhibited, several held events to showcase their products to media. An example of one such company was Murata Machinery USA (Muratec USA), which debuted its Double Reach Shuttle, an automated storage and retrieval system (ASRS), engineered

2. Jungheinrich demoed its 3,000-3,500lbs EKX 516k man-up turret trucks.

3. Flexcon highlighted its HDPP container material for bins and containers.

4. Raymond showcased its 4880 Sit-Down Counterbalanced Truck.

for high-density storage and efficient product handling. The shuttle integrates a narrow shuttle vehicle with a double-reach transfer mechanism, allowing it to retrieve and transport loads stored at greater depths within a compact footprint. The system features high-speed throughput and seamless goods-to-person (GTP) picking. “With the increasing demands of e-commerce, retail, and high-volume distribution, the need for smarter, more efficient storage solutions has never been greater,” said Masatoshi Wakabayashi, GM of Muratec USA’s Logistics and Automation Division. “The Double Reach Shuttle offers a space-saving, high-speed ASRS solution that empowers businesses to maximize productivity while maintaining flexibility in their operations.”

Jungheinrich demonstrated its new 3,0003,500lbs EKX 516k man-up turret trucks, which feature lift heights of up to 689 inches and can run up to two shifts on one battery charge. The driver and forklift work according to the “man-up” principle, where the driver’s platform and forks are always at the same level. Patented vibration damping, RFID ground control and smart assistance systems guarantee optimal handling and maximum safety, and drivers can work while sitting or standing. The trucks also have electrically adjustable control panel (height and tilt), intuitive operator controls with thumb-activated drive and hydraulic controls, electronic power steering, soft keys, and a large LCD full-colour display.

Raymond displayed its 8510 Center Rider Pallet Truck, built for heavy-duty order picking and long-distance transport. The truck offers comfort, control, and efficiency to maximize pallet moves. With integrated technologies like the Pick2Pallet LED Light System and Raymond Advance Operator Assist, it boosts productivity by 24 per cent. It has a capacity of 6,0008,000lbs, a 24V battery, and a loaded travel speed of 6.5mph and 6.2pmh. Its unloaded travel speed is 9mph. The company’s 4880 Sit-Down Counterbalanced Truck, also displayed at ProMat, is ideal for heavy-duty outdoor applications. Its capacity is 8,000-17,5000lbs and it has a 90V integrated lithium-ion battery. It features dual AC drive and dual AC lift motors.

Among the new products displayed by AutoStore was its CarouselAI, an AI-powered workstation solution enabling fully autonomous picking capabilities. CarouselAI is self-learning, adapting to changing SKU and order demands without human intervention. It combines the CarouselPort component, a robot picking arm, and intelligent vision technology to optimize SKU handling. Its high-speed performance suits high-throughput and e-commerce fulfillment and store replenishment and handles over 90 per cent of typical piece-picking SKU profiles.

Dematic displayed its goods-to-person (GTP) AMR Solutions. The Dematic Tote Mover AMRs and Masted Tote Shuttle AMRs are transforming order fulfillment with innovative

“goods-to-person” technology that increases productivity, maximizes space utilization, and future-proofs operations. The Tote Mover AMR streamlines tote transport by automating material flow with precision, promoting efficiency and safety while eliminating single points of failure. Its design adapts to dynamic warehouse environments and supports just-in-time logistics. The Masted Tote Shuttle AMR elevates tote handling with high-speed, automated storage and retrieval capabilities measuring up to 12 metres high, maximizing efficiency in high-density warehouse environments.

Flexcon, a manufacturer and provider of totes and containers for manufacturing, distribution, and warehousing applications, highlighted its HDPP container material, which the company says can meet almost any container need. The bins are long lasting, the company said, with a high strength-to-weight ratio. HDPP containers can meet needs ranging from lightweight use to up to 150lbs. From handheld to ASRS, multi-pick bot totes to standard hopper bins, HDPP containers have a wide application range and can be outfitted with custom dunnage to store anything. “We have been using this material to meet the needs of the material handling industry for over 35 years,” said Ken Beckerman, President of Flexcon. “It is extremely versatile, strong, and lightweight. If built properly it can meet the needs of almost any material handling application.” SP

1. ProMat 2025 saw a registration count of 52,223 and 1,160 exhibitors.

BY CHRISTIAN

SUSTAINABLE LOGISTICS THE ROLE OF 3PLS IN THE GREENING

OF CORPORATE ACTIVITY

Sustainability has various definitions. These definitions usually emphasize an environmental dimension – the goal is to co-exist on our planet and avoid depleting its natural resources. Its economic and social dimensions combine to form what we call the pursuit of global environment sustainability. But it’s not simple to achieve, as in a free market economy, shortterm economic imperatives, unfortunately, often prevail.

Hence, there’s an important role that governments play in helping us achieve it, by providing education, leadership, incentives and, last but not least, regulations. One of the challenges we face today is the economic pressure leading us to want to go higher, faster, be more efficient and/or profitable, leading to the continuous economic growth that is supposed to benefit all.

A good example of the negative impact of growth from a sustainabil-

ity point of view is e-commerce. Selling online provides great opportunities for SMEs to expand and grow their business, literally opening the world to them. And e-commerce was essential for everyday supplies during the pandemic, as physical stores were closed. But is also enabled giants like Amazon, Alibaba, Temu, Shein and others to become dominant, killing independent brickand-mortar retailers in the process, encouraging overconsumption, creating waste, and putting more trucks on our roads, at great cost to the environment – in the end, not an extremely sustainable activity.

E-COMMERCE AND 3PLS

E-commerce has been a major boon for 3PLs, as businesses rely more and more on them to manage their logistics needs, including warehousing, order fulfilment, shipping, and the handling and processing of returns. A classic form of outsourcing, 3PLs allow e-commerce vendors and merchants to focus on product development, marketing, and sales. In fact, the growth of 3PLs has been fuelled by the continuous expansion of the e-commerce market. As e-commerce continues to grow, so does the demand for efficient and reliable logistics solutions, as evidenced in several industry market growth projections. This activity has become a large portion of many 3PLs volumes, if not their primary one.

For 3PLs to play a role in sustainability requires innovation, some outside-the-box thinking, dedication, and investment. A sustainable 3PL will strive to prioritize eco-friendly operations and practices, with the objective of reducing carbon emissions, maintaining a balance between operational efficiency and environmental responsibility, while also staying competitive. Some of the tools available to achieve this include optimizing transportation routes, consolidating shipments, utilizing green shipping solutions, and using energy-efficient warehousing.

“E-commerce has been a major boon for 3PLs, as businesses rely more and more on them to manage their logistics needs.”

For many companies, implementing carbon-neutral shipping options has meant investing in electric delivery vehicles to reduce emissions. More and more of these electric vehicles can be seen on our streets and roads, operated by the likes of DHL, UPS or Fedex. They all have publicly broadcasted very laudable goals to achieve carbon neutrality by a certain date, or cutting CO2 emissions by a certain percentage, and so on. Some challenges in this respect include whether the power grid will sustain the increased demand for electricity and whether charging stations will become readily available. The stability of equipment manufacturers has also become an issue. A US pioneer of electric trucks, Nikola, went bankrupt in February 2025, while Canada’s own Lion Electric entered creditor protection in December 2024. Adding to this volatility was Sweden’s high-profile battery manufacturer Northvolt, filing for bankruptcy in March 2025. Its Canadian subsidiary, Northvolt Batteries North America, is building a plant in Québec, with $7 billion in federal and provincial aid.

Being green and sustainable inside the warehouse requires investments in renewable energy. Implementing energy-efficient technologies like LED lighting and solar power systems will lower energy consumption. Optimizing storage solutions and recycling materials contribute to minimizing the production of waste, contributing to the sustainability of warehouse operations. Yet in the end, customer satisfaction is what drives many industries, including 3PLs. Customers’ expectations of environmentally friendly solutions and

alternatives will be key to improvement, helping companies achieve ESG goals. Using sustainable packaging solutions is another avenue available to reduce our environmental impact. This includes using recyclable or biodegradable materials and optimizing package sizes to minimize waste.

CONSUMERS

Consumers must be more environmentally conscious of the consequences of purchasing habits. Do we need this rush delivery via Amazon Prime or can it wait? How about planning and grouping our purchases? Can we use a hand tool to rake garden leaves? Can we limit SUV use to long-distance travels? Industrial and individual customers play a role. Efficiency, speed, and profit aren’t everything, as sustainability is also crucial.

One challenge facing Canada is the trend towards less regulation south of the border, where many rules are being relaxed or thrown out the window, be they financial, regulatory, relating to diversity, equality or inclusion, or to the environment. We’ve all heard Trump’s motto: drill, baby drill (even if it kills the planet?). Regulations are often necessary, but they do have an impact on costs. With the US doing away with so many regulations, lowering costs for businesses, including tax cuts for corporations and the wealthy, are we going to be able to continue to have higher standards? Sustainable practices will contribute to preserving our planet, but we cannot act alone. It has to be a collective, global effort. SP

Christian Sivière is president at Solimpex.

By Michael Power Fleet Management

Propelling fleets NAFA’s 2025 I&E offers tech, safety, sustainability and more

The NAFA Fleet Management Association (NAFA) wrapped up its 2025 Institute & Expo (I&E) event in Long Beach, California in April, bringing together fleet management professionals from Canada and around the world.

The event, which explores the future of fleet management, had “Propel Your Fleet” as this year’s theme. The event focused on innovation, sustainability, and the evolving fleet management landscape across North America. This year’s I&E provided insights and solutions to help professionals manage their fleet operations.

The expo hosted over 225 exhibitors presenting fleet products and services, with an Innovations Showcase offering an immersive experience for attendees to discover products and updates from exhibitors. Canada’s Geotab won the People’s Choice Award for their Geotab Vitality product.

This year’s Ride & Drive allowed attendees to test electric and alternative fuel vehicles. NAFA also introduced the new Indoor EV Test Track.

Each year, the event features education sessions, keynote addresses, and other learning opportunities, and this year was no exception. There were 45 education sessions looking at topics like technology, sustainability, safety, and more. Artificial intelligence expert Timothy Papandreou’s keynote address looked at the role AI plays in fleet management, while leadership coach Jack Becker’s talk pro-

1.

vided leadership strategies from the world of elite military aviators to optimize performance and push for continuous improvement.

The event also featured the popular annual OEM Panel Discussion, which featured leaders from GM Envolve, Stellantis, Ford Pro, and Nissan. The panelists shared insights on their fleet strategies for 2025.

2.

Among the topics that panelists discussed were the effects of tariffs on the automotive industry, along with disruption more generally. All companies are trying to figure out the situation, said Eric Swanson, VP, commercial sales, east region, at Stellantis, while focusing on doing what’s best for their companies, employees, and customers. The COVID-19 pandemic taught organizations the value of staying nimble, he said, adding that 95 per cent of what happens is out of anybody’s control. “It’s outside influences. It’s changing demands. And then you have this five per cent that you can control. If you have that five per cent, you had better figure out how to control it. And that’s through communication and being open.”

When asked about the path going forward for electric vehicles, Gabriel Slack, sales enablement manager for GM Envolve, said vehicle manufacturers should focus on their portfolios and giving customers options to choose the vehicles they want. And while it may not be happening as quickly as many wanted, we’re beginning to see more adoption of EVs. “It’s a matter of keeping the portfolio fresh and giving the customers

options as we continue to inch towards more electrification,” he said.

Technology will continue to support each type of power train, said Greg Wood, commercial & government sales general manager at Ford Pro. Batteries and other technology will continue to advance, he noted. And whether it’s gas, diesel, hybrid, or electric, OEMs will look to help customers make the choices that are best for them. “We’ve all invested heavily in this new frontier to help support what our customers need,” he told the audience.

View to the North

In a separate education session, Michael Taylor, senior advisor at HillStaffer, provided a Canadian fleet policy update. As he spoke during the session, the automotive industry in Canada faced a 25 per cent flat tariff on automobiles, Taylor said. The industry would feel the effects of such a tariff through increased costs, as well as supply chain disruptions.

For example, determining domestic content of automotive parts – a target of tariffs – was complex, Taylor noted. The North American automotive industry is highly integrated, and some parts cross the border multiple times before getting to production.

Taylor also discussed the remission program for automotive tariffs in Canada, which allows Canadian automakers to import a certain number of US-assembled, CUSMAcompliant vehicles tariff free if

It’s a matter of keeping the portfolio fresh and giving the customers options.

they maintain production and investment in Canada. There’s no official word on how the program will work, Taylor said. While the final program hadn’t yet been released, it appeared to focused on maintaining both production and importation at current levels. To qualify for the program, automakers must continue to produce cars in Canada at current levels while limiting imports from the US

Audience members during the session gave their own examples of challenges for Canadian fleets, which included transitioning to EVs, increasing auto theft, along with cybersecurity, data privacy and telematics.

Overall, the Institute & Expo offered a unique and varied set of insights for fleet professionals to take back to their workplaces. Next year’s I&E takes place in Cleveland, Ohio, April 13-15, 2026. FM/SP

By Howard J Elmer

Length of service The right upfit on a new electric van may outlast the vehicle

When upfitting your new delivery or service van, there are always two decisions you must make. The first one involves the van purchase itself. Two, the actual upfit, how complex it is, and at what price. Sounds obvious, right? However, let’s also introduce the sometimes-overlooked variable to the mix: time.

Time dictates how you will use your van and what its lifecycle will be. As for the upfit, the right upfit will save time on a daily basis and, if built right, will outlive its current body and transplant to whatever vehicle comes next.

For most larger fleets the lifecycle of an ICE van is around fiveto-eight years. For the small operator it might stretch to 10-to-12 years. However, studies have shown that in practice, this is costly in terms of maintenance towards the end of life.

Electric vans typically last 10 to 20 years. Many models can expect to run 300,000km or more before their battery needs replacement. This lifespan is influenced by a range of factors, including battery health and overall maintenance. A key reason EVs may last longer than gas vans is mechanical simplicity. Gas engines contain hundreds of moving parts such as pistons, belts, valves, and more, not to mention a cooling and exhaust system. All these parts require regular maintenance or replacement. In contrast, EVs use electric motors with far fewer components. There’s no need for oil changes, timing belts, or exhaust repairs. This mechanical simplicity

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means fewer opportunities for breakdowns and less down-time, translating to lower long-term costs and potentially longer vehicle life.

Lower TCO

In April of this year, Michiganbased Vincentric released an updated Electric Vehicle (EV) Cost of Ownership Analysis for 2025. They report that 24 of 54 (44 per cent) of EVs studied had lower total cost of ownership over five years than a similarly equipped gasoline alternative. This is a slight decrease from the 2024 study in which 49 per cent of the EVs studied had lower ownership costs.

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The Vincentric study analyzed eight cost factors that comprise a vehicle’s cost of ownership: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs. The biggest advantage for EVs was their fuel costs. The electricity cost for all 54 EVs was lower than the gasoline vehicles, with average fuel cost savings of just over US$7,500. Maintenance costs were also lower, with 43 of 54 EVs costing less to maintain over the study’s five-year timeframe.

In today’s market you must be looking at electric powered vans. This is a transition that is coming. It’s no longer an “if” question, it’s now a question of “when.” If there is hesitation at adoption, most potential buyers report their key concern revolves around batteries. It shouldn’t. EV batteries are designed to last a long time, with

warranties covering eight-to-10 years, or 160,000kms. A global collection of real-world data suggests they often last even longer.

OK, let’s get to the upfit part –same as always, right? Not quite.

Several companies specialize in upfitting electric vehicles (EVs) for various commercial applications. These companies offer customized solutions for shelving, flooring, and other accessories tailored to the unique requirements of EV fleets. Some key players in this field include Commercial Truck Equipment, Morgan Canada Corporation, Ranger Design, and Roshel.

Features that really matter in an EV upfit are weight and type of installation attachment.

Most upfitters are going with a no-drill design (the floor being no-drill for sure) and composite van shelving systems that are over four times lighter – yet twice as strong –as steel alone. A company, like Sortimo, is offering aerospace grade aluminum in all its products and solutions, making them strong and light. As a result, they have increased their warranty on all new products from three years to five years.

So, with the potential longer life of an electric van, the upfit must also last as long. And frankly, if done right, it can be transferred to the next van you purchase.

EV challenges

If there are disadvantages to the upfit of an electric van, it’s the depreciation. Vincentric says that 44 of the 54 EVs it studied had a

Mechanical simplicity means fewer opportunities for breakdowns and less down-time, translating to lower long-term costs and potentially longer vehicle life.

higher purchase price than their gas-powered counterpart. Only nine per cent of EVs analyzed had lower depreciation costs than their ICE alternative. That’s down significantly from last year’s study in which 24 per cent of EVs had lower depreciation. Other challenges include range, battery weight, and ability to charge.

Time will resolve some of the teething problems around these electric vans, but even with these disadvantages the electric van will last longer and have a lower maintenance cost. The length of service you can expect can also be factored into how much you will spend on the upfit which, if all goes well, will easily outlive the van. FM/SP

When the math finally adds up.

(tco) Total Cost of Ownership

(esm) Expert Service and Maintenance

(hrv) High Resale Value

(ds) Driver Safety

The equation is simple: when you factor in what truly matters— safety, high resale value, and long-term efficiency— Subaru solves your fleet needs with precision. It’s not just smart, it’s mathematically sound.

For results that add up, the solution is Subaru.

(tco) + (ds) + (esm) + (hrv) = (tco)

By Katherine Vigneau

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Distractor or enabler

The reality of safety technology

The use of technology in vehicles presents a dichotomy between potentially contributing to crashes and enhancing driver safety. The determining factor between the two outcomes is whether the technology distracts the driver from their main task, which is to focus on the road and surroundings and adjust their driving behaviour as needed. The key for fleet managers is to ensure technology complements, rather than detracts from, driver attentiveness and vigilance on the road, and to ensure all drivers understand how to use safety technologies, without becoming distracted and causing harm.

There are three aspects to vehicle safety – the vehicle, the road and surrounding conditions, and the driver. By far the largest contributor to vehicle crashes is the latter. Behaviours such as speeding, inattention caused by drowsiness, and distraction cause a high percentage of crashes. The use of technology can assist drivers in reacting to issues with their vehicle or the surrounding environment without increasing risky behaviours. There is a fine line,

however, between technology that helps and technology that harms.

Technology that benefits safety

Some technologies clearly benefit safety and have data and evidence to substantiate their use. These include automated driver assistance systems, advanced driver assistance systems (ADAS), advanced headlights and driver monitoring systems (DMS).

Driver Assistance Systems include features like front and rear automatic emergency braking (AEB), lane departure warning (LDW), and blind spot monitoring (BSM). They are designed to automatically assist drivers without the driver’s intervention.

AEB is a safety system that uses sensors to detect potential collisions and automatically apply the brakes to avoid a collision. Front auto braking prevents more collisions between vehicles, while rear AEB prevents backing collisions, usually with stationary objects or people.

LDW uses cameras, typically located near the rearview mirror, to detect lane markings on the road and

to alert drivers when their vehicle is drifting out of its lane. When the system detects that the vehicle is drifting out of its lane without the driver signaling or steering, it sends a visual or audible alert to the driver, warning them of the potential danger.

BSM systems use radar sensors to detect vehicles in a driver’s blind spot and alert them with visual or audible warnings. The sensors, usually located on the rear bumper, scan the areas surrounding the vehicle, and provide an alert if another vehicle enters the blind spot.

Advanced driver assistance systems can help avoid crashes by detecting hazards and automatically applying brakes or steering to avoid them. The system uses sensors and cameras to detect the hazard and then alerts the driver or automatically takes actions to prevent a crash.  These systems use technology such as radar, lidar, and cameras to monitor the vehicle’s surroundings.

Higher rated headlights and the use of high beam assist are proven to reduce crashes. Automatic high beam systems take over the task of turning high beams on and off, which increas-

es the use of high beam and nighttime visibility for drivers.

Driver Monitoring Systems (DMS) collect data on driver behaviour which can be used to reward safe drivers and identify risky drivers. Individual programs can be developed to address adverse behaviours in risky drivers.

Technology that compromises safety

Not all technology is beneficial. Advancements such as infotainment systems, hands-free calling and heads-up displays may present more distraction than benefit.

Infotainment systems can divert the driver’s attention away from the road and increase the likelihood of crashes. Touchscreens, in particular, cause drivers to interact in a manner that takes attention from the road and hands off the wheel. They can be used for diverse needs from getting directions to controlling radio settings. When drivers are looking at the touchscreen, they are not looking at the road, and that is a problem.

Regarding hands-free phone calls, hands-free does not equate

Katherine Vigneau, CAFM, is vicepresident, fleet, at MCG Consulting Solutions, mcgconsulting solutions.ca.

to engagement free. Driver interaction with someone not in the vehicle is a serious distraction. David L. Strayer in the article “Is the Technology in your Car Driving you to Distraction,” explains that voice-based interactions in the vehicle are associated with surprisingly high levels of mental workload. A much safer option is Motor-on, Mobile-off (MOMO). Heads up Display (HUD) systems project information, like speed and fuel, onto the windshield. While manufacturers claim that this technology can reduce the distraction of looking down to find the required information in various

places, HUD systems still add complexity to the driving experience.

Mitigation strategies

There is little doubt that technology is here to stay, and that fleet managers need to embrace the good and develop strategies to avoid or reduce the impacts of the bad. Adopting systems that minimize distraction and encourage driver attentiveness is critical. Policies and education can help: Educate drivers about all risks and benefits of available technology to help them make informed choices and use technology responsibly.  Standardize the technology that

is used across the fleet so that drivers can move between vehicles without requiring a complete re-orientation.

Disable features that cause distraction while vehicles are in motion. Infotainment options, or mobile calling may be used prior to starting a trip and be inaccessible while in motion. Develop policies and regulations that will foster innovation and safely guide implementation without restricting progression. Enforce a culture of undistracted driving where drivers understand that multitasking while operating a vehicle is impossible.

“Technology is here to stay, and fleet managers need to embrace the good and develop strategies to avoid or reduce the impacts of the bad.”

Above all, the parties involved in putting drivers on the road and the drivers themselves must realize that technology is not going to prevent all crashes. Decisions on what technology to install and use in a given situation will help determine the effectiveness of systems in enhancing safety. Ultimately, however, it is the mindset and behaviour of the driver that continues to be the primary factor in crash avoidance. Fleet managers can have a significant influence on driver behaviour by equipping drivers with the right technology, but more importantly, the right attitude behind the wheel. FM/S

By Stephanie Wallcraft

Outstanding value

The Toyota Corolla L offers tough-tobeat drivability

This may seem like a strange thing to get excited about, but it’s a rare treat to test drive the bare-bones version of one of Canada’s most affordable new cars.

To get a little inside baseball: automotive journalists drive upwards of 50 or more new cars every year on average, and these are almost always the full-zoot top trims. Automakers want us to experience all the premium features available and talk about how great they are. They hope buyers agree and it drives transaction prices up. In the unusual cases where a manufacturer makes a base-model vehicle available for testing, it’s typically because that car offers an exceptional standout value within its segment.

And that’s precisely what we’re looking at here with the 2025 Toyota Corolla L. Stripped of all its frills, the Corolla is affordable, durable, driveable, and relatively efficient. And with all of us currently weighing how we can cut expenses if needed, this review is also well-timed.

Under the hood, the base Corolla’s 2.0-litre four-cylinder engine makes 169 horsepower and 151 pounds-per-square-feet of torque, connected to front-wheel drive (FWD) by a continuously variable transmission (CVT). For the Corolla’s size and weight, this does the job. It rarely feels underpowered – in a tense highway merge, perhaps, but not in city driving – and the CVT helps fuel

economy without being as intrusive and droning as others can be.

Fuel value

And while the Corolla L can’t match the Corolla Hybrid on outright fuel economy with a rating of 6.7L per 100kms combined (as opposed to the latter’s 4.7L/100km), it also costs roughly $3,000 less with its fees-in price of $26,909. According to figures in Natural Resources Canada’s Fuel Consumption Guide, it would take nearly five years for the hybrid’s fuel savings to make up for that difference in price. Depending on your fleet’s ownership cycle, the up-front savings may make more sense.

Some features are more conspicuous in their absence here than

others. The lack of heated front seats is the most glaring example in Canada, especially given the Hyundai Elantra Essential and Kia K4 both include them for less money. Another missing feature in the Corolla is a push-button start. Instead, you’ll need to use the key tucked into the fob. This is more common at this entrylevel price point.

There’s no trunk release button on the Corolla’s exterior. Opening its 371-litre cargo capacity requires either using the release by the driver’s seat or the button on the key fob. There’s also no interior handle for pulling the trunk closed.

With seatback tilt and a height adjuster included for the driver, it’s easy to find a comfortable seating

1. The base Corolla’s 2.0L fourcylinder engine makes 169hp and 151lbs-ft of torque, connected to front-wheel drive (FWD) by a continuously variable transmission (CVT).

2. The eight-inch touchscreen infotainment system with wireless Apple CarPlay and Android Auto, 4.2-inch LCD instrument display, and six-speaker audio system either match or better what’s offered by most competitors.

position. The cloth upholstery conveys a sense of quality.

The eight-inch touchscreen infotainment system with wireless Apple CarPlay and Android Auto, 4.2-inch LCD instrument display, and six-speaker audio system either match or better what’s offered by most competitors, though the K4 does offer a larger 12.3-inch infotainment screen.

There’s no wireless charging pad in the Corolla L, which is also normal for this price. But the angled shelf installed in its place is a convenient place to stash a smartphone, which can be charged from the one USB-C port located just to its right.

There are no other USB ports in the cabin, which makes the ameni-

ties for the second row somewhat sparse. A small storage cubby is integrated into the back of the centre console and bottle holders in the door pockets. No pull-down centre armrest is included. This is all par for the course in an entry-level compact sedan. What does stand out, though, is the second row’s 60-40 split rear seatbacks, which are not a given at this price point.

Reliability and value

It’s impressive to note the list of safety features included with the base Toyota Corolla. The Toyota Safety Sense 3.0 suite of technologies includes adaptive cruise control with a full speed range, lane departure assist and lane tracing assist, automatic emergency brak-

ing with pedestrian and cyclist detection, and automatic high beams. This suite also includes road sign recognition, a feature many brands keep exclusive to their top trims. The Corolla does skip blind spot monitoring and rear cross-traffic alert, which is standard on the Nissan Sentra.

The true differentiator here, though, is Toyota’s legendary record for reliability and retained value. Add that to the rest of the package, and the value in the 2025 Toyota Corolla L really is outstanding. It is missing a couple of key features – most notably the previously mentioned heated seats – but its overall efficiency, build quality, and daily drivability make it tough to beat. FM/SP

The true differentiator here, though, is Toyota’s legendary record for reliability and retained value.

As Tested

Price (incl. freight and PDI):

Starts at $26,909

Engine: 2.0-litre I4

Power: 169hp, 151lbs-ft

Transmission: CVT

Rated Fuel Economy (L/100km): 7.4/5.7/6.7

Observed Combined Fuel Economy (L/100km): 7.6

(2025

Toyota Corolla L)

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CAN THE BAN US BIDDER BAN HARMFUL TO CANADA

Imposing a long-term US bidder ban would create widespread confusion and uncertainty and grind the Canadian government procurement system into gridlock. In addition to harming Canadian suppliers who get caught in the logjam created by the bidder ban, public institutions will still be compelled to award to US suppliers in many areas to support the delivery of public services, rendering the ban both counter-productive and ineffective.

PARALYZING THE SYSTEM

Government procurement does not work the same way as a consumer boycott. While consumers can make individual choices on how boycotting US suppliers and products would impact them personally, government institutions that try to impose similar boycotts risk unintended consequences that can inadvertently harm the Canadian suppliers they are trying to protect while seriously damaging critical government operations.

If a US supplier ban is imposed, Canadian suppliers will be quickly drowning in a tsunami of red tape filling out forms to prove that their companies and products are sufficiently “Canadian” (whatever that means) to be eligible to bid on contracts that they were previously winning before the ban came into effect. For example, how would we establish that a company is Canadian? Would a physical presence operating on Canadian soil be the test to qualify as Canadian? Would US-owned companies with US head offices that also operate Canadian offices and facilities and employ Canadians qualify as Canadian? Would it make a difference

whether they were operating directly from the US parent company or operated in Canada through a wholly US-owned Canadian subsidiary? Either way, would banning that company and forcing it to lay off its Canadian employees count as a win or a loss in a trade war?

As complicated as it would be to define and differentiate a Canadian company from a US company, trying to identify and ban US products gets even more complicated. There are literally thousands of products purchased from our globally integrated supply chains by public institutions across Canada every week. Those public bodies lack the internal staff and expertise to figure out how to apply US bidder and content analyses in real time prior to each contract award. It is no exaggeration to say that each new procurement could easily be delayed by at least three to six months and likely longer as public institutions try to figure out how to properly apply a US supplier ban. It doesn’t take too much foresight to see how a ban on US suppliers, if implemented, would paralyze our public procurement system.

REDUNDANT AND SELF-DEFEATING

How would this help the Canadian suppliers who are supposed to benefit from the ban? Those Canadian suppliers would be stuck in the same logjam as all other bidders while government institutions try to sort out this bidding boondoggle.

Further, the Canadian suppliers we were originally trying to help are unlikely to be pleased when they find out that the US bidder

ban was never fully enforced even when the bids were “too American” since public institutions will still be required to purchase US products that are critical to government operations and any alternatives, if they exist, are too expensive or low quality or will take too long integrate into current operations.

Unfortunately, bid boycott advocates tend to forget that government procurement is not a subsidy program full of frivolous spending that can be switched on or off without any operational impact on the purchasing institution. When US suppliers win Canadian government contracts, they do so since non-US alternatives do not exist, are lower quality, or are more expensive. Like all other successful bidders, they win contracts when they offer the best deal. Banning US bidders means we would be substituting inferior alternatives, would be banning US bidders who wouldn’t be winning the bid in the first place, or would be bending the rules and not enforcing the ban when there are no feasible alternatives.

In addition to causing widespread confusion in the government procurement system, the ban would put Canadian lives at risk if critical government systems fail because we cut ourselves off from critical US supplies.

Supply chains are both complicated and critical. Politicians should stop interfering in public procurement since blindly implementing US bidder bans risks harming Canadian suppliers and government operations. In conclusion, Canadian public institu-

Paul Emanuelli is the general counsel of The Procurement Office and can be reached at paul.emanuelli@ procurementoffice. com.

“If

a US supplier ban is imposed, Canadian suppliers will be quickly drowning in a tsunami of red tape filling out forms to prove that their companies and products are sufficiently ‘Canadian.’”

tions should avoid playing politics with government procurement and our senior-level governments should focus on ending, rather than escalating, this nonsensical trade war. SP

Beyond racking. Beyond limits.