November/December 2014 $8.00
Vision 2015 Supply chain pros look up the road for next year
Inside 3 Taking Stock 4 Supply Chain Scan 20 Supply Chain Success Tips 28 Vision 2015: Experts look ahead 44 Shifting Gears 48 Datacapture 49 Forktrucks & Accessories 50 Problem? Solution! 52 Legal Link 53 Learning Curve
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Versacold.indd 1 14-12-02 4:25 PM TAKING STOCK Success gets success www.mmdonline.com nother year on the books. And it’s been a great one. On behalf of the whole team at MM&D, I’d like to PUBLISHER/EDITOR-IN-CHIEF: Emily Atkins A (416) 510-5130 [email protected] thank all our supporters, both long-running and new. Your support has meant MM&D had a stellar year in ART DIRECTOR: Stewart Thomas (416) 442-5600 x3212 [email protected] 2014, and we are very excited about going into 2015. We’re going to kick it off with a splash at the 2015 Cargo SENIOR ACCOUNT MANAGER: Catherine Martineau Logistics Canada Conference and Expo in Vancouver at (647) 988-5559 [email protected] the end of January. If you are based in the West please do PRODUCTION MANAGER: Karen Samuels drop in to our booth at the expo to say “hello”. (416) 442-5600 x5190 [email protected] Regardless of where you’re coming from, please do sign up for our presentation CIRCULATION MANAGER: Barbara Adelt (416) 442-5600 x3546 [email protected] of the DC Cost Benchmarking Study results. We’ve lined up a superb panel of DC operations specialists who are preparing to offer their insight into the num- BIG MAGAZINES LP bers, and their advice on how to make your operations even more successful. Executive Publisher Tim Dimopoulos Vice-President of Canadian Publishing Alex Papanou Our presentation is “W14 - What your Warehouse Costs”, at 1:30 pm on January President of Business Information Group Bruce Creighton 28. For more details and registration links visit www.cargologisticscanada.com.
HOW TO REACH US: Book early—last year we sold out! MM&D (Materials Management & Distribution), established in 1956, On pages 50 and 51 of this issue you’ll find a new feature we’re launching, and is published 6 times a year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. we could use your input. It’s called “Problem? Solution!” and it’s intended to offer
EDITORIAL AND ADVERTISING OFFICES: a forum for DC and logistics managers to pose an operational problem or issue 80 Valleybrook Drive, Toronto, ON, M3B 2S9; they need to solve. Could be equipment-related, human resources, financial, Tel: (416) 442-5600; Fax (416) 510-5140. real-estate or security—send them all—we’ll help find the solutions. SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information, contact us at We need your help in getting this started for 2015. Please send me your thorny 416-442-5600 x3258 or 1-866-543-7888. problems and I will find the answer, with help from expert practitioners and suppli- SUBSCRIPTION PRICE PER YEAR: ers. Email me your ideas, and we’ll get started on the January-February edition! Canada $84.95 per year, Outside Canada $159.95 US per year. Single copy price: Canada $15.00, Outside Canada $32.65 CDN At the end of this year, I’d also like to thank my team here at MM&D. As the MM&D is published 6 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. publisher, as well as editor, I count on many people to make sure we are consis- tently producing the best magazine we can, on time and on budget. ©Contents of this publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. So to Catherine Martineau, our extremely hard-working and brilliant senior
DISCLAIMER: This publication is for informational purposes only. You account manager, Stewart Thomas, our creative and dedicated art director, Karen should not act on information contained in this publication without seeking specific advice from qualified professionals. MM&D accepts Samuels, our accurate and organized production manager, and Barb Adelt, our no responsibility or liability for claims made for any product or service responsive and creative circulation manager, a huge thank-you for your hard reported or advertised in this issue. MM&D receives unsolicited materials, (including letters to the editor, press releases, promotional work and attention over the past year. items and images) from time to time. MM&D, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store Together we made it great, and I’m really looking and archive such unsolicited submissions in whole or in part in any forward to continuing our success in 2015. form or medium whatsoever, without compensation of any sort.
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Printed in Canada 20 28 44 50 Publications Mail Agreement #40069240, ISSN: 0025-5343 (Print) ISSN: 1929-6460 (Digital). We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage for our publishing activities. MM&D is indexed in the Canadian Magazine Index by Micromedia Limited. Back copies are available in microform from Macromedia Ltd., 158 Pearl St., Toronto, ON M5H 1L3
Success Tips Vision 2015 Shifting Gears Problem? Our experts share Supply chain How a 3PL Solution! their secrets for leaders offer made itself into New column success in 2015 their outlook an automotive solves DC for the sector powerhouse operations issues
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CHFTA SNITCH LINE MOVERS + SHAKERS Free trade south TSB promoting its transportation safety reporting Appointments and promotions in the supply chain of NAFTA, p 12 line, p 13 sector, p 14 Angel at the wheel Canada Cartage driver wins award for selfless actions
an Fleury’s bosses think he’s a full-time truck driver Imoonlighting as a superhero. The Canada Cartage driver has a knack for being at the right place at the right time whenever someone needs help. He has come to the aid of several people he’s encountered on the road in his 25-year career, but this past winter he found himself rescuing two separate drivers in as many weeks. Fleury’s most recent actions earned the Guelph, Ontario resident the title of the 2014 Bridgestone- OTA Truck Hero award, which was presented to him at the OTA Convention & Executive Conference at the Ritz Carlton in Toronto. The award recognizes a truck driver who has exhibited courageousness, Ian Fleury accepts his award. selflessness and integrity in the face of an emergency. “Bridgestone has been a proud sponsor of this award for over half a century and takes great pride the Poconos, Fleury was called upon by fate once again. He was crawling in traffic on in recognizing true Canadian heroes in the trucking Hwy 401 just after a snowstorm. Up ahead, he saw smoke rising. As he approached industry,” said Jim West, director, Commercial Tire closer, he noticed smoke from the hood and flames emerging from underneath a Sales, Bridgestone Canada Inc., “Mr. Fleury’s inspiring stalled car. The driver was still inside. actions make him extremely deserving of this award.” Sensing the danger to other drivers who had nowhere to escape, Fleury blocked This past March, the 25 year-trucking veteran was two lanes to create a barrier and force traffic to the left lane furthest from the cruising along Highway 81 in the Poconos Mountains. fire. He then got out of his truck and opened the door of the burning car. The Up ahead was another Canadian truck driver. Suddenly, driver, apparently unaware flames were sprawling from underneath his vehicle, a pickup truck merging onto the highway inexplicably climbed out at Ian’s command. veered into the other truck driver’s lane, causing a As Fleury walked the driver back to his truck, the car became completely engulfed collision. The driver tried to maintain control, but his and the tires blew out. By the time fire crews snaked their way through traffic, there tractor-trailer overturned after both vehicles hit the was hardly anything left of the car. But everyone on the highway was unharmed. guardrail. Ian approached the scene and pulled over “Honestly, I didn’t think what I did was that special,” he says. “I think I just did to the side of the road. No other motorist stopped ini- what anybody who would come across something like that would do—at least tially. Neither driver appeared severely injured. Inside you would hope they would.” the crumpled cab, however, the other truck driver was It took a bit of convincing from company management, but Ian eventually responsive, but visibly shaken. agreed to be nominated for the Truck Hero award. “The passenger door was jammed shut so I ran back “He’s a gentle giant who always puts others first. We’d clone him if we could,” says to my truck and grabbed a cell phone and load bar. I Canada Cartage president Jeff Lindsay. “Ian always seems to put others first. He wears returned to the (crashed) truck and told the guy to a baseball cap instead of a cape, but other than that, he’s Superman around here.” watch out. Then I smashed the window,” Fleury recalls. David Bradley, president of the Ontario Trucking Association, said that when He helped the driver climb out and applied a towel truckers are on the road across North America, they never know what situations to some lacerations. He then called 911 and driver’s they might find themselves in. dispatch to explain what happened. Satisfied the fel- “Ian always appears ready to answer the call to lend a helping hand or come low he saved was now safe, Ian got back on the road to the rescue of someone in need. It takes a special person to put themselves at as emergency crews arrived. “I had a load to deliver.” risk for the sake of strangers. OTA is proud to present this award to such an Less than two weeks later after his heroic actions in extraordinary driver. He does the industry proud.”
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Hewitt Material Handling Inc has opened a new branch in Ottawa, Ontario. This new branch allows Hewitt to serve the entire territory of the urban community of Ottawa for lift trucks from Caterpillar, Mitsubishi, Jungheinrich, Kalmar, Manitou and Cushman. The 14,292 square-foot Ottawa Branch complements the existing four Branches (Hamilton, Kitchener, London, Concord). Stéphane Guérin, President and Chief Operating Officer, Hewitt Equipment Limited; Gary Kingsbury, Field Technician; Dave Garneau, Field Technician; Cory Radford, Sales Representative; Nancy Hartley, Service Manager; Benoît Caron, FieldTechnician; Amanda Coulson, Manager, Sales Administration, Rental and Used Equipment; Suzanne Bergeron, Senior Administrative Assistant; Jarrett Wright, Parts Counter Salesperson; Jim Hewitt, Chairman and Chief Executive Officer, Hewitt Equipment Limited; William Botshka, General Manager, Hewitt Material Handling; Jamie Caswell, Shop Supervisor; Jerett Rooney, Parts and Service Sales Representative; David Ingram, Parts Supervisor; Frank Jurca, Sales Manager, Machines, Parts and Service; and Robert Lebel, Vice President and General Manager, Material Handling.
BENCHMARKS Kriska Holdings Limited (Kriska) won the 2014 Volvo Trucks Safety To qualify for the award, a carrier must have shipped at least 500 Award in the large fleet category at the American Trucking loads of sugar and received no more than five customer complaints Associations Management Conference & Exhibition in San Diego, within a 12-month period. In 2014, Con-way Truckload shipped California. This award is given out on an annual basis based on 659 loads and received no complaints. The award was presented the recipient’s safety and training programs, as well as their safety at United Sugars¹ recent carrier conference in Fargo, North Dakokta. scores in Canada and the US. “This award is a testament to the calibre of driver we have at Linde Material Handling North America Corporation will change Kriska,” notes Mark Seymour, CEO of Kriska. “Our company driv- its corporate name to KION North America Corporation, effective ers and owner operators are true professionals, who treat the on or about January 1, 2015. This change will allow the company safety of the motoring public with the utmost of care and impor- to better align itself with its European parent company, The KION tance. Our drivers represent the very best of the trucking industry, Group, and serve as a platform for the company’s KION 2020 and this award is something all of our employees at Kriska—both North American growth strategy. inside the office and over the road—should be very proud of.” Kriska provides its new drivers with at least four weeks of in-cab Already the only six-time winner of the American Trucking training from one of 16 veteran driver trainers. Drivers also have the Associations President’s Trophy, ABF Freight now has earned the ability to enhance their skills and knowledge through the use of the award an unprecedented seventh time. company’s in-house driver simulator. Kriska also developed a Safety The President’s Trophy is awarded each year to carriers in three & Performance Bonus Program, which rewards Kriska operators with categories based on cumulative miles driven annually: less than cash incentives for driving three months without a safety incident. 25 million miles; 25 million to 100 million miles; and more than 100 million miles. ABF Freight has now earned recognition in the Con-way Truckload, a full-truckload carrier and subsidiary of “more than 100 million miles” category in 1984, 1989, 1993, Con-way Inc has won the Service in Excellence Award from United 1998, 2003, 2010 and 2014. Sugars Corporation for 2014. It’s the seventh consecutive year The award was presented during the ATA Safety Management the company has earned this distinction from North America’s Council’s Safety and Human Resources National Conference and leading marketer of industrial sugar. Exhibition in Orlando, Florida.
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CITT Toronto Area Council elects 2015 executive On November 17th, 2014 the CITT’s TAC turned 50. not-for-profit, volunteer run association. Going into 2015 the Toronto Area Council will be its new executive council was acclaimed for the year 2015. Returning for celebrating 50 years in existence, a milestone for the another term on the council are Chair: Tom Pauls, CCLP, senior recruitment consultant at Stoakley-Stewart Consultants Ltd; GLOBAL FOCUS Vice-Chair: Denise Ponte, CCLP, logistics coordi- K+N expands in Sydney nator at Effective Logistical Solutions; Secretary: Kuehne + Nagel has extended its logistics infrastructure in Greater Sydney, Sal Ali, CCLP, agent pricing coordinator at ITN Australia. Placed in the developing logistics hub area Eastern Creek, the facility Logistics; Events Chair: Katherine Boodhoo, FMA, is strategically located within short distance to the intersection of Sydney’s CCS, CCLP, customs assistant at Home Hardware major motorways. Based on a built-to-suit concept, the state-of-the-art Stores Ltd. logistics centre offers 20,000 square metres of warehousing space with eight New to the TAC executive are Treasurer: Michael loading docks and levellers. Technical features include pick by voice technol- Upwood, CCLP, manager of national accounts ogy and RF scanning which help to improve workflow processes, reduce time at Fastfrate. required to pick, pack and ship items. Events Chair: Michael Zhiltsoff, logistics coordina- tor at 3PL Links Inc. CEVA operating for Gulfstream Returning in an appointed role is Executive Advisor Gulfstream Aerospace Corporation has appointed CEVA Logistics to operate Duane Chiasson, CCLP, senior sales at Effective a new European Parts Distribution Centre at London Heathrow Airport. The Logistical Solutions. new facility will support Gulfstream customers in the UK, Ireland, mainland Leaving the council are James Nguyen, CCLP and Europe and the Nordics with urgent high-usage items. It will also provide Le Luong. rapid-response support for technicians from Gulfstream’s service centre at London Luton Airport and Gulfstream Field and Airborne Support Team (FAST) members based throughout Europe. The new facility, operated by CEVA within its main London Heathrow com- Orbis plex, comprises approximately 8,000 square feet of dedicated space, and is continuously operational. It is Customs-bonded, providing Gulfstream with the opportunity to eliminate duties on inventory being held for re-export. rebrands The facility replaces a previous operation at Madrid Airport. CEVA has worked with Gulfstream for over 10 years in the USA, where it ORBIS Corporation is re-branding its entire has provided domestic and international freight management from its line of protective dunnage to ORBIShield. The Atlanta facility. company’s full suite of dunnage products and solutions will now be available under one, Transmission maker transforms comprehensive brand name. Interroll recently installed a Dynamic Storage system at the Liverpool factory ORBIS provides systems of containers, of Getrag Ford Transmissions. As part of major investments, a decision was pallets, bulk containers and protective dun- taken to centralize and store palletized parts closer to the production lines nage. Custom-designed and constructed in racking fitted with Interroll Pallet Flow. with durability in mind, ORBIShield dun- The new Interroll Pallet Flow system provides space and energy saving FIFO nage provides part protection during transit, (First-In-First-Out) storage for a total of 228 pallet positions in rack structure assembly and storage. four pallets deep, three tiers high with 19 lanes. Previously, the ORBIShield name was used Neil Hodgkinson, contract manufacturing engineer at Getrag Ford by the reusable packaging company for a soft, Transmissions headed up this project to improve parts storage as part of a versatile foam dunnage material for Class A wider lean logistics project to centralize logistics operations within the plant. surfaces. That dunnage material will now be “The new Interroll Pallet Flow system has been located closer to our produc- referred to as CLA-1, and available within the tion area and has provided compact, space saving cubic storage, enabling line of ORBIShield dunnage offerings. identical products to be grouped in the same lane and bays. This in turn ORBIShield dunnage designs include custom simplifies location and order picking of parts to support production of some die-cut plastic corrugated divider sets, saw- 1,600 to 2,000 gearboxes daily,” he said. cut foam inserts, sealed-edge divider sets, Getrag is the world’s largest independent supplier of transmissions and pigeon hole dunnage, custom thermoformed drive systems for passenger cars and light commercial vehicles with around trays, sewn fabric bags, foam rails and molded 13,250 employees spread across 24 sites. foam inserts.
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Packsize.indd 1 14-12-02 4:27 PM SUPPLY CHAIN SCAN Raymond celebrates anniversaries
The Raymond Corporation is commemorating the used to produce them. He also would be pleased that many Raymond products 75th anniversary of two inventions that revolution- still are manufactured at the plant in Greene, New York, where he founded ized the material handling industry: the hydraulic the company.” hand pallet truck and double-faced wooden pallet. Originally established as Lyon Iron Works in Greene, the small foundry pur- These innovations were developed by George chased in 1922 by George Raymond, Sr, marked the beginning of Raymond¹s Raymond, Sr, founder of Raymond, and William contributions to the material handling industry. In its 92-year history, Raymond House, the first engineer for Raymond, and patented has developed and patented technologies that have become industry standards, on Nov. 7, 1939. including the hydraulic hand pallet truck and the double-faced wooden pallet. “On occasions such as this, I reflect on the many Raymond celebrated this milestone at its main locations in Greene, Syracuse, achievements of my grandfather,” says Steve Raymond, New York and Muscatine, Iowa. grandson of George Raymond, Sr, and president of Raymond Handling Concepts Corporation, an autho- Lufthansa Cargo turns 20 rized Raymond Sales and Service Center. On 30 November two decades ago Deutsche Lufthansa AG pooled its cargo “Although my grandfather was a man of great activities in a separate company and Lufthansa Cargo was born. A few weeks later vision and ingenuity, he would be astounded by Lufthansa Cargo started operating with a fleet of five McDonnell Douglas DC8 today’s technological innovations—both in the freighters, ten Boeing 747-200Fs and two Boeing 737 freighters. company’s broad line of products and the methods
DONE DEALS Dicom Transportation Group, a provider of expedited transpor- the new Zebra offers visibility and connectivity solutions for the tation services based in Montreal, QC, has expanded into the US retail, healthcare, manufacturing and travel and leisure industries. by acquiring Time Logistics Couriers, LLC. Based in Norcross, Georgia, Time Logistics is an asset-free provider of B2B third- CEVA will operate a new national distribution centre in the UK for party-logistics services with a broad network of agents and 12 Caterpillar dealership Finning. The service partnership replaces an strategically located transfer centres. Time provides truckload earlier Finning in-house operation based at five separate locations. and less-than-truckload transport, last-mile delivery, distribution, The new DC houses all of the dealership’s engine stock, plus and warehousing services to customers across the US. 60,000 separate product lines, all of which are required for next Dicom’s acquisition program focuses on acquiring courier, LTL day delivery. CEVA has committed to next-day delivery of all and transportation providers in Quebec, Ontario and the US. In orders, with expected overall traffic of some 10,000 items per addition, Dicom is seeking 3PL providers who manage transporta- week. Thirty-three staff will operate it over extended business tion, logistics and supply chain functions for businesses in Canada, hours six days per week. The building covers 120,000 sqf and the US and Mexico. incorporates wide-aisle and cantilever racking, floor-level storage and a two-tier mezzanine floor. Newark Farmers Market has expanded its investment in hydrogen fuel cell technology, and will be integrating a full GenKey solution Vanderlande has acquired Smatec GmbH. Smatec has over 25 from Plug Power Inc to support material handling operations for years of experience in the development of warehouse automation a new food distribution building now under construction at its technology and concepts. The Bielefeld-based company’s primary Newark, New Jersey site. focus is to develop innovative warehouse automation systems in Newark Farmers Market has purchased an additional 110 many variations, such as the pocket sorter. Smatec’s former owner GenDrive units, more than doubling the size of its fuel cell-powered and founder, Ralf Schneuing, and his experienced team have been lift truck fleet at the Newark location. This order is comprised of secured by Vanderlande as part of the acquisition. 25 class-2 standup reach truck units and 85 class-3 pallet jack units. Plug Power will deliver the GenDrive units to Newark Farmers Independent Beverage Corporation (IBC), a North Carolina-based Market in the fourth quarter of 2014. Fleet deployment will be soft drink company, has completed its conversion from a standard completed in the first quarter of 2015. wooden pallet product distribution platform to a full system integration of iGPS Logistics plastic pallets. The iGPS system not Zebra Technologies completed its acquisition of Motorola only allowed IBC to increase its footprint to the more truck-friendly Solutions’s Enterprise business. By combining Motorola Solutions 48x40 GMA size, it also allowed the company to move to the Enterprise’s capabilities in data capture, mobility, wireless and pro- sturdier plastic pallet without the cost of replacing the entire fleet fessional services, with Zebra’s tracking and monitoring technologies, of wooden pallets.
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06MMD-NewsV3.indd 10 14-12-03 4:20 PM © 2014 C.H. Robinson Worldwide, Inc. All Rights Reserved. www.chrobinson.com
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South of NAFTA By Christian Sivière CITT elects board CITT elected its Board of Directors in October during the Canada Logistics anadian companies wanting to expand beyond Conference 2014. The appointments are as follows: CNAFTA have new opportunities south of Mexico, with the implementation of the Canada-Honduras Officers Free Trade Agreement (CHFTA) on October 1, 2014. Chair - Robert Ramsay, CCLP, director of transportation, Princess Auto This is Canada’s third FTA in Central America, fol- Ltd, Ontario; Vice Chair, Operations, - Ginnie Venslovaitis, CCLP, direc- lowing Costa Rica and Panama. tor, transportation operations, Hudson’s Bay Company, Ontario; Vice With the exception of a few agricultural goods, the Chair, Finance - Perry Lo, CCLP, managing director, Canaan Transport CHFTA will essentially eliminate Customs duties Group Inc, Ontario. on all imports from Honduras, either immediately or through a tariff phase-out. Negotiations for this Directors FTA were concluded during Prime Minister Harper’s Geoffrey Barlow, CCLP, director, marketing and business development, visit to Honduras in August 2011 and it was formally ContainerWorld Forwarding Services Inc, British Colombia; Dallas Beal, signed in November 2013. CCLP, general manager, Ghost Transportation Services, Saskatchewan; It was approved by the Canadian Parliament and the Tim Buchinshi, CCLP, general manager, Loblaw Companies Ltd., Alberta; Honduran Congress following the usual legislative Donald Connolly, CCLP, global trade & compliance specialist, Monsanto process, then made reality on June 19, 2014 by our Canada, Manitoba; James McKay, CCLP, sr. director, supply chain, Walmart Parliament, via Bill C-20. Canada, Ontario; Valerie McSween, CCLP, vice-president, Eastern Region, What does this mean in practice? Mactrans Logistics, Quebec; Jacquie Meyers, CCLP, president, Meyers Effective October 21st, our Canadian exports to Transportation Services, Ontario; Warren Sarafinchan, CCLP, vice-pres- Honduras enjoy preferential treatment when entering ident, supply chain / information services, Sun-Rype Products Ltd, Ontario; Honduras. Likewise, products from Honduras will Daniel Smedo, VP & GM client solutions, Metro Supply Chain Group, get the same benefits when entering Canada. Quebec; George Tannahill, CCLP, production coordinator, Keyera, Alberta. To this end, the Canada Border Services Agency is introducing a new preferential Customs tariff treatment, the Honduras Tariff code: HNT Code 29. Entitlement to the Honduras Tariff treatment is determined in Cargo Logistics Canada accordance with the rules of origin and the required proof is the Canada-Honduras Certificate of Origin Meet us in Vancouver, January 28 & 29, 2015 (form BSF747), filled out and signed by the exporter.The document can be found at: http://tinyurl.com/nzaabhd. Come January, MM&D will once again be packing up and heading for Vancouver The rules of origin are in chapter four of the Agreement to present a seminar at the second Cargo Logistics Canada conference and expo. and specific rules of origin are in Annex 4.1. As with any Editor-in-Chief Emily Atkins will be presenting the results of the DC Cost trade agreement, these rules vary according to the HS Benchmarking study, with a stellar panel of industry commentators along Code and need to be looked into closely, to determine to offer their expert opinions. We hope you’ll join us on January 28th and if a particular product is eligible or not. Goods may be pick up some key data on how your DC operations measure up against your shipped from Honduras to Canada and vice versa with Canadian counterparts. or without trans-shipment. But if you can’t make the con- This is our third agreement in Central America, plus ference, the January-February we have three trade agreements in South America, with issue of MM&D will have the Chile, Colombia and Peru. Although they are relatively key take-aways to share. small markets compared to the US and Mexico, this Other presentations at the undoubtedly opens new opportunities for exporters. show include: Intermodal More generally speaking, the three-year time-frame Supply Chains, Global Trade, it took between the agreement in principle and its Creating a Mature Supply implementation gives us an idea of what we may Chain, Industrial Real Estate, expect for a much bigger trade agreement like the one Trends in Asia and other recently signed with the European Union. regions, and lots more. For the complete program go to: Christian Sivière is at Import Export Logistics http://www.cargologistics Solutions, Montréal. [email protected] canada.com.
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TSB promoting safety snitch line The Transportation Safety Board of Canada is launching a campaign to raise ing systems, not all transportation companies have such awareness about its SECURITAS program. systems and some employees may not feel comfortable The independent arm of the federal government is encouraging the Canadian using them. SECURITAS offers an additional way for public and transportation industry employees to confidentially report unsafe people to share safety concerns in the aviation, marine, transportation acts and conditions through SECURITAS. railway and pipeline industries which the employee or While employees are urged to use existing internal company-specific safety report- public believes are not being addressed or when they believe there is no other recourse. When the TSB receives a confidential report, inves- tigators analyze the information and determine the appropriate action to be taken. The TSB may forward the information, often with its suggestion for correc- tive action, to the appropriate regulatory authority. The TSB can contact specific transportation organiza- tions, companies and/or agencies directly if they are the ones best placed to correct the problem. In other cases, the TSB may choose to launch its own investigation. However, the TSB will not take any action that might A screen capture from the TSB’s reveal the reporter’s identity. The identity of the person safety video. It can be seen at making the report always remains confidential. http://tinyurl.com/lcwjodd. See the SECURITAS web page (www.tsb.gc.ca/eng/ securitas) for more information.
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MOVERS + SHAKERS Nick Klein Schiphorst has joined Dematic detail design engineer, project and sales engi- Canada as district sales manager. In this role, neer for mechanized and fully automated system he is responsible for sales of the entire Dematic configurations in all industries. product line, in the provinces of Quebec and Legere brings 16 years of consulting and direc- Atlantic Canada, with a special focus on inte- tor of distribution operations experience. During grated systems across Canada. his 12 years in consulting, he played key project Klein Schiphorst comes to Dematic with 20 management roles in distribution network strat- Nick Klein years of experience in logistics and materials egies, facility re-engineering and optimization Michel Legere Schiphorst handling with a focus on convey and sort appli- and greenfield designs for companies through- cations, automatic storage and retrieval of pal- out North America & Europe. For the past four years he was lets, cases and pieces, as well as goods-to-person director of operations in a distribution centre. systems. Nick reports to Vera Friedrich, CEO Tinnefeld and Legere both report to Matt Osler, operations and VP of sales for Dematic Canada. manager of Dematic Canada. Lars Tinnefeld and Michel Legere have also joined Dematic Canada as solution concept spe- Duane Chiasson, CCLP, has joined Effective Logistics Solutions cialists in Toronto and Montreal as part of Dematic’s (ELS) an Independent Contractor of Yusen Logistics, both members Global Solution Development Team. of the NYK Group, where he will take on a lead sales role. Chiasson Lars Tinnefeld Tinnefeld has over 13 years of experience in comes from Maisliner Transport, where he was general manager Europe, South Africa and North America as a of the Ontario Division.
PROFESSIONAL DEVELOPMENT DIRECTORY
Advertorial What has the biggest impact on the profitability of your supply chain? You do
As a supply chain pro, you understand way of boosting your company’s bottom Transportation Law, and Transportation the impact your abilities can have on your line. Specialized training and earning a Economics). They’ll give you the best employer’s bottom line. And you know professional designation—like the CITT- technical foundation for profitably managing it’s significant. Now there’s proof of the Certified Logistics Professional (CCLP®) stable and reliable multimodal supply chain corporate need and payback for supply chain designation—can mean better career logistics operations available today. logistics expertise. Studies have shown that outcomes for you, including higher salary and an uninterrupted supply chain has a bigger being qualified for more job opportunities.3 No other professional credential says impact on financial performance than any It’s a win-win for you and your employer. “Logistics Expert” as decisively as CCLP other input.1 And a recent study from MIT CCLP is chosen 3:1 over all other non- found that supply chain performance is Add CCLP to your credentials with CITT’s purchasing supply chain credentials, and more sensitive to the skill set and expertise expert-level 5-course suite of specialized was rated industry’s most relevant logistics of a company’s supply chain logistics logistics courses designation/program.4,5 And CITT believes professionals than any other operational CITT’s online courses will equip you with in making professional certification attainable factor—including commodity and fuel costs.2 a depth of understanding that is more for anyone who is prepared to meet our high, complete and comprehensive than any industry-recognised and respected standard That’s great news for your employer— other logistics PD program. Take three core of proficiency. That’s why all of our courses, professional development puts control into courses (Transportation Systems, Logistics designation and certification maintenance the hands of businesses. But deepening Processes, and Integrated Logistics), and two requirements are affordable and accessible your expertise isn’t just an important electives (from Logistics Decision Modelling, to anyone with internet access.
Visit www.citt.ca/logisticsprofitability for more information. Or contact us at [email protected] or 416-363-5696. Add “Logistics Expert” to your professional credentials. And more profitability to your supply chain logistics. CITT’s fall semester starts January 12th. Register now at www.citt.ca to guarantee your spot.
® CCLP is a registered trademark of CITT 1 Hendricks K, Richard Ivey School of Business, University of Western Ontario, Singhal VR, DuPree College of Management, Georgia Institute of Technology. Supply Chain Disruptions & Shareholder Value, 2005. 2 Simchi-Levi, D, Kyratzoglou IM, Vassiliadis CG, Supply Chain and Risk Management: Making the Right Decisions to Strengthen Operations Performance, Study by MIT Forum for Supply Chain Innovation and PwC, 2013. 3 Canadian Supply Chain Sector Council. http://c366462.r62.cf0.rackcdn.com/CSCSC_HR_Study_Report_2012.pdf, “2012 HR Study Update” Pg. 38. 4 “2010 Salary Survey Results”, Canadian Manufacturing, Materials Management & Distribution, September-October 2010. 5 “12 Annual Survey of the Canadian Logistics Professional”, Canadian Transportation and Logistics, 2011.
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06MMD-NewsV3.indd 14 14-12-02 4:22 PM SUPPLY CHAIN SCAN
MOVERS + SHAKERS Prior to Maisliner, Chiasson held many succes- Manac Inc and Peerless Limited, its wholly owned subsidiary, have sively senior roles on the buying side of logistics made several appointments . with companies such as LG Electronics, Innovage Andy McEachern joined Peerless as senior vice-president fol- Group of companies and Interwood Marketing lowing the acquisition by Manac. McEachern is responsible for group. He has also been a staunch supporter of overseeing all the Canadian and US activities of Peerless and the Toronto Area Council through the CITT (TAC) leading the development and growth of its operations. He is a having been chair for four years and has also held recognized leader within the trailer manufacturing industry with Duane Chiasson roles on the national council of the CITT. 28 years of experience (including more than 18 years of past experience working in managerial positions at Peerless). Matt Goodman, formerly vice-president of Livingston Manac also announced the return of Denis Gosselin as director International’s Global Trade Management operation, has been of product engineering. From 2005 to recently, he held a product appointed president of the division. development role with a major US based specialty trailer manu- Goodman joined Livingston in January 2012 when the company facturer. He rejoined Manac in early July. His appointment follows acquired the Customs and trade compliance operation formerly the relocation of industry veteran Marc Berthiaume to Peerless known as Vastera from JP Morgan. in the role of vice-president, operations. Goodman served in both the US Army and National Guard, and Manac also welcomes Joel Stanwood to its board of directors. is a Six Sigma Black Belt. As a member of the Council of Supply Chain Stanwood, a Lean and Six-Sigma Black Belt, is a partner at American Management Professionals and the American Association of Importers Industrial Partners (AIP). Manac also thanks Eric Baroyan, who and Exporters, he is also active in his professional community. recently stepped down as director of Manac, for his significant
PROFESSIONAL DEVELOPMENT DIRECTORY
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06MMD-NewsV3.indd 15 14-12-02 4:22 PM PROFESSIONAL DEVELOPMENT DIRECTORY
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06MMD-NewsV3.indd 16 14-12-02 4:22 PM SUPPLY CHAIN SCAN
MOVERS + SHAKERS service as director of Manac. Baroyan is also a partner at AIP and Paul Middleton, CPA, has been appointed Plug Power Inc’s chief remains actively involved in managing AIP investments. financial officer. Middleton comes to Plug Power from Rogers Corporation, a global manufacturer and distributor of polymer NACCO Materials Handling Group’s (NMHG), vice-president of composite materials and components, where he worked for over aftermarket, Paul Laroia, has indicated plans twelve years. Throughout his tenure, Middleton served in a number to retire. Laroia will stay with the company of senior financial leadership roles. through the end of the year to ensure a Before Rogers Corporation, Middleton managed all financial smooth transition. administration for the $900 million tools division of Cooper Laroia joined Hyster Company in 1970, and Industries. Middleton has shown expertise in growing companies by the age of 25 had become the youngest through innovative and strategic financial leadership. manager in the company, overseeing advertis- ing and sales promotions for the Hyster Martin Augustyn is the new vice president, southwest regional Paul Laroia European Headquarters. sales and operations for Intelligrated. Augustyn has more than Later Laroia became the director of group 25 years of experience in the automated material handling marketing and Latin American operations at NMHG America’s industry, with approximately 16 years in the southwest Headquarters in Greenville, North Carolina. From 2005-2009, territory. he served as president of Hyster Company, and following a To complete the senior leadership team, Augustyn appoints subsequent restructuring, as NMHG’s vice president of after- Kyle Brock as sales manager, Jim Gnacinski as operations manager market, his current position. and Heather Smith as office manager.
PROFESSIONAL DEVELOPMENT DIRECTORY
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CIFFA Associate Members: connect with the freight forwarding community participate in networking events sponsor and attend social events enjoy cost reduction programs
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www.mmdonline.com | November/December 2014 17
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Informa.indd 1 14-12-02 4:30 PM 2015: REACHING HIGHER Supply Chain Vision
Inside 20 Improve your fortunes Success tips roundtable
28 Executive Vision Supply chain leaders share their outlook
06MMDVision-Cover.indd 19 14-12-03 11:21 AM THE TIP JAR Secrets of successful supply chain managers
Compiled by Kara Kuryllowicz We canvassed a cross-section of experienced supply chain professionals, asking them Need a little inspiration? Looking to boost for their top suggestions for supply chain your business in 2015? business success. Their answers fill the Dip into our tip jar to find the idea that pages that follow; we hope you’ll enjoy their will help you contain costs and enliven your responses and will be able to put into practice bottom line. some of their ideas.
Here’s what we asked:
1. Please share with MM&D’s readers your top three tips for supply chain success. 2. Which of these would you rank as the most crucial? Why? 3. What’s your top tip for supply chain managers seeking to keep costs in line for 2015?
To manage productivity, take control of the two key cost and efficiency drivers: labour and space
anaging productivity is key, and since labour ductivity and efficiency. This technology is invari- “Mand space are the two main cost and effi- ably very expensive so companies need to do a ciency drivers, focus on those first. A number of our thorough cost-benefit analysis. I’m frequently clients emerged from the economic downturn (2008 surprised at how often clients start implementing to 2010) relatively unscathed because they cross- new technology in anticipation of the benefits and Kerri Plexman trained employees rather than downsizing. When the possibility of growth without really looking at Partner, the economy recovered, human capital costs were when, or even if, they’ll get a measurable return on BDO Canada LLP contained (severance, overtime, temporary staff) by that investment. using existing employees instead of hiring additional Before you make that commitment, contact a pro- pickers, packers or labelers. This forward thinking fessional advisor who consults exclusively with this provided a boost to productivity through improved industry, to determine whether you’re buying more morale and engagement levels. Most employees appre- or less than you need and if there is a reasonable ROI. ciated the company protecting their jobs while Right now, our industry is facing a lot of uncertainty enhancing their skill levels and employability. due to the trend to e-commerce, as firms figure out A creative, flexible approach to space can cover how to deal with it and what it means to their busi- some, if not all, of the fixed costs, such as rent or ness. As a result, the most important thing a company mortgage payments, tax, insurance and utilities. For can do to achieve supply chain success is to be aware, example, clients with more space than required have as well as willing and prepared to adjust quickly.” successfully sublet it to short-term tenants, such as a discount Christmas retailer. BDO Canada LLP, in Toronto, is an accounting and Firms will fall behind if they’re not taking full advisory firm focusing on entrepreneurs and advantage of available technology to augment pro- mid-market organizations.
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06MMD-Roundtable.indd 20 14-12-03 10:46 AM SUPPLY CHAIN VISION 2015 VISION CHAIN SUPPLY
To maximize efficiency, establish strong partnerships with your best suppliers, review your storage methods as your inventory requirements shift, and outsource whatever you don’t do well
o succeed and maximize efficiencies establish previously considered. Get to know your suppliers and “Tstrong partnerships with your best suppliers determine which ones have the expertise and knowl- Paul Haggett and review your storage methods relative to your chang- edge required to help you reach your objectives. Partner, ing inventory requirements. Know your strengths and A good partner/vendor needs less oversight and can 3D Storage outsource your weaknesses for maximum efficiency. follow a project through from start to finish, which Solutions For example, if a distribution centre is laid out for full frees up the managers’ time and allows them to focus pallet picks and put-aways, it might be best to outsource on other areas of their business. Early involvement the “each picks” required to fill Internet orders. with a team of trusted vendors during project plan- Having strong partnerships and using them well is ning stages will minimize potential problems and crucial, because a good partnership is a win-win for will result in cost savings.” both parties. Vendors will learn about the key areas of your business and continually work with you to 3D Storage Solutions in Burlington, Ontario designs, develop long-term solutions and cost savings within supplies and installs a broad range of warehouse their areas of expertise. storage products, including pallet racking, drive-in Experienced suppliers, who have typically seen hun- and drive-through racking, push-back racking, pallet dreds or even thousands of varied applications, are flow racking, cantilever racking, carton flow racking, able to bring a substantial knowledge base to the table shelving, mezzanines, pick modules and associated and may be able to suggest designs and solutions not material handling and storage accessories.
Commit to cycle counts, go mobile for real-time data and use the Internet to maximize visibility
t’s surprising how many companies still rely on and customers and track their products beyond their “Iquarterly and annual counts instead of regular own distribution centres. Connected systems allow cycle counts, which are less disruptive and resource visibility across the supply chain and are essential as intensive, while identifying warehouse process issues same-day delivery becomes more commonplace. much sooner. To ensure the greatest cycle count system We’ll always have bricks and mortar DCs, but retailers accuracy, count all of your pick locations at least weekly. of the future will look to any point on their distribu- Jeff Lem You can also determine and use sales volume-based tion channel to fulfill orders. Vice President – categories, counting your high-volume categories My best advice is to take your Internet use to the next Systems and monthly, mid-volume every six months and low-volume level. Plug into partners’ shipping systems, join online Solutions, annually. The more frequently a product turns, the logistics communities and forums, and look at Cloud- ViascanQdata Inc more often it should be counted, so you’ll need to based technologies and services to see in-transit inven- readjust your count frequency as volumes shift. tory and levels across the entire supply chain. Current mobile technology ranges from traditional Most small- to mid-size warehouses still rely on ruggedized handheld terminals to consumer devices paper processes—which are not scalable and create like smartphones and tablets. Bluetooth low emission silos of information—for key functions such as cycle (BLE) beacons that will be used to track assets and counts, receiving, or shipping. Process automation people and offer previously unimaginable levels of is a critical first step for any warehouse looking to supply chain visibility are coming soon. Collecting stay relevant in today’s supply chain.” real-time data as it happens will become more afford- able and convenient than ever before. ViascanQdata Inc, based in Toronto, Ontario, is a Best-in-class supply chains are investing in elec- leading provider of warehouse management software tronic technologies to communicate with key suppliers and related hardware products and services.
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06MMD-Roundtable.indd 21 14-12-03 10:46 AM Firms must modernize processes and procedures if they want to thrive in the e-commerce environment
bout two years ago, the omni-channel e- Most firms haven’t looked at such intimate details “A commerce explosion caused a paradigm shift, or inventory placement in several years, but in my forcing companies to accommodate the growth of experience, you need to perform reviews and analyze ever smaller and each orders in addition to more inventory slotting at least every 12 months to optimize traditional bulk case and pallet orders, which drove location planning based on today’s actual needs. SUPPLY CHAIN VISION 2015 Scott Deutsch a real need for better distribution centre (DC) The new realities of e-commerce and evolving cus- Director of processes and innovative, flexible technologies— tomer expectations will force companies to change Marketing, like voice. how their warehouses are organized and operated. Vocollect Solutions, When e-commerce orders account for just one to Assessing and challenging the processes, workflow, Honeywell Scanning three percent of sales, companies can devote a small and standard operating procedures may lead to change & Mobility warehouse section to that niche. As e-commerce sales that’s as fundamental as reorganizing, eliminating, reach three to five percent of sales, many will out- replacing or amalgamating several steps and mecha- source it, which is fueling the explosive growth of the nizing or automating certain tasks. 3PL market. When e-commerce volumes approach In the end it’s all about a solution that better stream- the 10 percent level, this is the tipping point where lines operating environments and reduces overall e-commerce fulfillment needs to become a core com- inefficiencies and costs.” petency in-house. It will be interesting to see how this plays out. Honeywell Scanning & Mobility, based in Fort Mill, To get more out of their existing real estate, busi- South Carolina, makes voice technology solutions nesses must review processes and improve their slot- purpose-built for industrial environments and ting and use of space to ensure scalability and the designed to integrate with existing ERP and WMS growing number of SKUs needing storage space. technologies.
Businesses need to prepare now for the coming significant skills gap
s Canada heads into a growth period, supply to carry the exiting staff’s deep knowledge and “A chain managers must stay vigilant on cost experience forward. structure, be innovative around opportunities and The fact more growth opportunities are expected ensure they have the right staff to handle the opera- to appear on the horizon could make this a good tions today and in the future. time to really assess the costs and margins associated Ross Reimer Of the three strategies, the right staffing is the most with each of your current clients. An in-depth analy- President, crucial, since many operations are now exposed to sis will be required to determine whether costs can Reimer Associates significant skill gaps, particularly in senior, client be lowered or price increases are the only way to relationship type positions as a result of streamlining improve margins. their operations following the 2008 financial turn- If you identify customers who are actually driving down and the fact they now have a number of senior a negative margin, what can you do to justify keeping leaders who are quickly approaching retirement age. them as clients, or do you need to exchange them for Right now, Canada’s supply chain has about 1,000 customers who have a positive, rather than a negative, or so senior executives, the bulk of whom are 55 to effect on your bottom line?” 65 years of age, so it’s time to hire their eventual replacements and start getting them up to speed. Reimer Associates, based in Milton, Ontario To build bench strength for the imminent and concentrates exclusively on recruitment within the inevitable changes in staffing, hire for growth in a supply chain to provide the skills, experience and manner that gives the new staff the time required personality required to fill critical positions. to learn from senior staff who are likely in their last five years of full-time employment. Be sure your firm and its new staff are doing what’s required
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06MMD-Roundtable.indd 22 14-12-03 10:46 AM SUPPLY CHAIN VISION 2015 VISION CHAIN SUPPLY
Manage your suppliers effectively to ensure everyone benefits from the relationship
o succeed in 2015, supply chain managers must rics-based performance trends and discuss the results “Tinvest in supplier management initiatives ensure with your suppliers. The more costly or critical the everyone involved profits from the relationships. product or service, the more frequent those sessions Get your existing and prospective suppliers working need to be. If a metric doesn’t affect your service, pro- for you by asking their in-house experts for input and ductivity, safety, quality or bottom line, eliminate it. let them know what’s ahead for your firm in the short Look to every database in each of your departments, Dawna Peat and long term so they can align their resources and then to your suppliers and customers before setting Strategic processes to accommodate your growth. up new systems to capture the required information. Development, Effectively communicate your firm’s immediate and Engage your entire workforce by making sure they TFT Global Inc. future needs in RFQs and clearly show that performance fully understand their responsibilities and roles and metrics based on the agreed-upon service/savings levels can easily share their “hands-on” insights around poten- are as important as competitive pricing. tial issues and opportunities. Standardize and develop Knowledge is power, which means performance a communications process to capture suggestions from metrics are vital to a successful supply chain. Unless each department and recognize positive contributions. you have an accurate and objective understanding of Ultimately, this will improve productivity and efficiency where you are, where you are going, and where you as well as morale, while ensuring your firm is leading- need to be, costly mistakes will be made. edge and competitive in a volatile, demanding field.” Establish comprehensive performance metrics for every aspect of your supply chain to allow you to pro- TFT Global Inc, in Ingersoll, Ontario, offers logistics actively and systemically manage and prioritize busi- and distribution, which includes warehousing, ness trends rather than falling into a knee-jerk, reaction transportation, supply-chain analysis and route management style. Regularly assess and address met- design as well as production and quality services.
Success requires an approach that uses software and automation to add efficiency, reliability and speed
hallenge the status quo, think outside the box investment. Distributed order management software “Cand discover new ways of improving efficiency is capable of managing inventory across all channels because your customers already expect more from you. of distribution and can make real-time, automated Assess current processes and consider more effective sourcing decisions based on the constant analysis of ways to conduct business, respond to today’s chal- order priority, inventory availability, labour and process lenges and position operations for the fuutre. and equipment information to optimize fulfillment. Steve McElweenie Take a holistic approach that includes both software Software solutions also add a layer of business intel- Vice President & and automation, because singly and together, they play ligence that ties everything together to help manage- General Manager, crucial roles in delivering efficiency, vital information ment analyze and understand the entire operation Intelligrated and customer satisfaction. Make the effort to ensure and supply chain efficiency. These tools can help Canada all facets of the business are coordinated and aligned, identify the operations’ best-performing parts and including sales, sourcing and marketing teams. This opportunities for improvement. After the system breeds efficiency at the corporate office, inside the diagnosis, managers can adjust workflow, implement warehouse and through the rest of the supply chain. process improvement and invest in new automation Use automation to improve operational efficiency solutions to drive future success. and ensure service levels meet customer expectations. Automated solutions are more reliable, efficient and Intelligrated Canada, based in Mississauga, faster than the manual processes they replace, and Ontario, is a North America-based, single-source they also capture key data points to build a complete provider of intelligent automated material handling understanding of the supply chain. solutions, including automation equipment, “Rely on software to monitor the performance, com- software, service and support for retailers, manufac- pare against historical data and ensure the return on turers and logistics providers.
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06MMD-Roundtable.indd 23 14-12-03 10:46 AM Plan and work with a reputable provider because profitability comes from more than selling your product or service
rofitability is as much about cost control as Sourcing locally is ideal, but not always possible. “Pbuying or selling a particular product or ser- Work with your freight or third-party logistics pro- vice, so plan and develop a strong working relationship vider to fully understand the door-to-door transit SUPPLY CHAIN VISION 2015 Jason Dacosta, with a reputable provider to meet targets and goals. path and transportation modes. What are the potential General Sales Determine the inventory levels required to meet cus- bottlenecks? Customs, taxation? What are the inherent Manager – Global tomers’ needs, then ensure your supply chain capabilities constraints with each shipping mode? In each mode, Partnerships, and inventory levels support your delivery, profitability what is the ideal size and weight for each skid? Security Air Canada Cargo and customer satisfaction commitments. Rush orders requirements, dangerous goods controls and skid size can result in a loss or breakeven on a sale, so look at how parameters will vary from truck to passenger or cargo- the additional delivery costs affect the bottom line and only plane. Wrong-size skids, even just two inches of be sure the extra cost guarantees the deadline will be met. added height, can double air-freight costs. By planning for express airfreight, you reduce deliv- Consider the opportunity cost of every dollar! ery times, tie up fewer dollars in inventory and can Getting your goods to market faster can help preserve build the additional cost into the final sales price. By your cash for use elsewhere, which means airfreight offsetting an increase in the cost-of-goods-sold with can help businesses thrive.” a lower inventory value, the greater cash flow can be used to improve your profitability in non-traditional Air Canada Cargo, in Mississauga, Ontario offers ways. For example, you may be able to take advantage direct cargo services to over 150 Canadian and more of vendor discounts for prompt payment, which could than 300 international destinations in markets such have a significant cumulative impact at year end. as Europe, Asia, South America and Australia.
Integrated sales and operations planning (S&OP) will help manage volatility, fluctuations and costs
upply chain providers support their partners’ tomers and channels. With this data, organizations “Sgrowth by understanding and constantly squeezing can make rational choices about how they serve their out end-to-end supply chain costs to drive profitability. customers and identify the loss-generators. KPMG estimates supply chain benefits double with an Detailed knowledge of the cost-to-serve allows sup- integrated approach to transformation and sales and ply chain executives to support sales negotiations and Jérôme Thirion, operations planning. Integrated S&OP requires end-to- transformation plans with facts, options and solu- Partner, end collaboration with everyone (e.g. finance, sales, logis- tions, while addressing the root cause of cost increases National Lead, tics, key suppliers) to provide the visibility needed to rather than taking non-sustainable, random actions. Supply Chain control costs, provide flexibility and manage demand According to a KPMG survey the supply chain’s top & Procurement volatility. It effectively manages demand volatility and two challenges are aligning operations to real-time Advisory Services, reduces fluctuations and costs better than forecasting in fluctuations in customer demand and managing risk, KPMG Canada silos. It can also lead to more business and savings. reliability and quality. Track key performance indicators for an immediate To manage demand volatility, supply chain execu- impact on results: on-shelf availability (CPGs), fill tives must drive forecasting visibility to customers rate measured by customers versus suppliers, working and suppliers to facilitate proper supply and demand capital measurements with clear, communicated planning. Increasingly, supply chain executives are inventory measurements. looking at cloud computing to streamline collabora- Understand supply chain costs’ key drivers by prod- tive forecasting and planning. uct, customer, channel, regional hub, order and cases/ pallets. Control costs and increase profitability by KPMG Canada in Montreal provides tax, audit and knowing their drivers inside-out, which includes the advisory services with more than 700 partners and exact cost to serve across each line of product, cus- 34 locations across Canada.
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06MMD-Roundtable.indd 24 14-12-03 10:46 AM SUPPLY CHAIN VISION 2015 VISION CHAIN SUPPLY
Find the right people and give them the right technology to work efficiently and productively
ut the right people in the right jobs with the with the least impact on your key processes. “Ptools that allow them to work as efficiently Well-chosen technology can enhance employee and effectively as possible and success is virtually engagement and morale by automating the repeti- guaranteed in any industry. The skills and compe- tive, low-value and often tedious tasks. This allows tency levels must all be there, but beyond that make employees to focus on the higher value activities sure they fit the team, department and firm from a that are more engaging and have a more noticeable Kevin Squires personality and culture perspective—or risk long- impact on the firm’s performance, which often Vice President, term performance, morale and engagement issues. results in them being significantly more invested in Business Technology, Your firm will face everything from daily opera- the success of the organization. Konstant tional adjustments to massive market shifts—so Rely on information that is accurate, timely and make sure your business model is flexible enough relevant to make smart, informed business decisions to accommodate change and quickly turn it into a that help contain costs and manage the bottom line financial or competitive advantage. With the right more effectively. Too many companies still rely on resources, your people and processes can easily information from individual employee’s data silos, shift course and realize the full capabilities of your usually Excel, or departmental reports that don’t business model. reflect the whole picture. When you have all of the I’m dismayed at how often businesses quickly buy facts in an integrated, well defined repository, the into the super-cool, sexy new technology without decisions are made more easily, quickly and are first establishing if there is a true business need and generally much better.” whether it offers real value and/or revenue growth. Look at what your people and your business really Konstant, in Oakville, Ontario, provides innovative need, then find the technology that meets those needs solutions for storage and material handling systems.
Corporate trade, a system that allows businesses to use their assets as payment for business expenses, can help manage financial risk
reate alignment and strengthen partnerships In today’s uncertain environment, effective risk “Cby opening up the lines of communication management is especially crucial; research suggests across your organization to develop a culture of companies with more mature risk practices not only innovation between the supply chain, procurement, do better financially, they can better navigate and Andrew Bulmer brand management, sales and marketing, then reduce their exposure in the face of disruptions. Senior Vice extend it to your suppliers and customers. They can By better managing inventory risk with corporate President and be a source of tremendous insight and support with trade, organizations are empowered to focus on Managing Director, a unique vantage point across competitors and indus- business growth drivers such as new product Active International tries. Beyond price, they can offer data, benchmarks development. and best practices and share unique approaches on Look at your supply chain through the lens of how to fill the gaps missed by monthly reports and sustainability and corporate social responsibility fill rates. because reducing waste and emissions, and managing Risk management is key, but even the most sophis- consumption typically equates to cost savings, effi- ticated inventory planning and management systems cient processes, and increased customer confidence can’t predict all of the market variables. The various and loyalty.” unknowns, such as raw material and currency price fluctuations, unseasonal weather, environmental Active International, in Toronto is a corporate trade catastrophes, global and political events, changing broker helping businesses recognize and realize the consumer shopping patterns, and other disruptions true value of their assets to make every dollar and can all impact inventory levels. every asset count.
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06MMD-Roundtable.indd 25 14-12-03 10:46 AM Select your outsourcing partner taking into account culture, processes and metrics, as well as price
hen you outsource, there are tangible ben- Examine the providers’ metrics because otherwise “Wefits associated with close, strategic rela- it’s just a nice conversation. What is the employee tionships with providers, but only if you’ve carefully turnover rate? What are the employee satisfaction selected a supplier you know and understand as well levels? Service levels? Damage rates? as your own firm. The numbers will speak volumes, but whenever SUPPLY CHAIN VISION 2015 Douglas Harrison, We’re seeing a move away from RFPs, because you and wherever possible, also meet with the companies’ President & CEO, can only get so far with a price-based relationship; leaders. VersaCold Logistics RFPs simply can’t demonstrate a culture of continu- Technology is a marvelous way of taking out cost Services ous improvement, the ability to partner, or a com- while simultaneously providing the additional data mitment to innovation and future investment. required to better understand the business and drive Key questions to ask a potential provider include: Do higher levels of efficiency and service. Whatever they know and understand your specific market and technology you have today won’t be good enough in products? Are they aware of your firm’s unique require- two years, so be sure your provider has the capital ments? What tools will they use to drive continuous and commitment required for current and future improvement and cost reduction in your supply chain? critical investments.” Every firm has access to people, technology, equip- ment and real estate. Do they manage and structure VersaCold Logistics Services in Vaughan, Ontario is a these critical resources to deliver the most efficient, supply chain solutions company dedicated exclusively cost-effective, reliable quality service? Do they develop to servicing temperature-sensitive products: transpor- processes and practices that position them as best- tation management and 4PL, 3PL (warehousing and in-class and true leaders or do they meet only the dedicated carriage), cross-border and domestic LTL required standards? and TL, warehousing, distribution services.
To control costs and improve processes, firms must establish baseline metrics and hire strong staff who have ongoing access to training
hile there are myriad top tips for supply will always be any company’s greatest asset. “Wchain success that can be targeted to the Lastly, it’s equally important to embrace innovation specific industry being served, regardless of the and apply it to services to add value and help dif- Dan Garside sector, there are consistent requirements that bridge ferentiate the firm, attract new business and secure General Manager all industries. established customers for the long term in a crowded – Canada, First and foremost, supply chain professionals must marketplace. Frazier Industrial surround themselves with knowledgeable advisors, Only mediocre companies continue to do the same Company whether internal or external, to access new and proven thing year after year and still expect to be properly as well as visionary ideas, concepts, processes and positioned for the future.” technologies. The more they demand of their partners, the more competitive they will be. Frazier Industrial Company, with locations in Knowledgeable, trusted management and well- Trenton (manufacturing) and Vineland, Ontario trained staff are the most important factor because (sales), produces structural steel storage solutions, they will drive change, introduce improvement, estab- from standard pallet rack systems and complex lish metrics and take care of your customers. pick-to-belt towers, to AS/RS installations and rack Companies must also establish a baseline of metrics supported buildings, all in structural steel, which is to control costs, establish margins and help develop more resistant to damage than roll-formed products. process improvements. In order for the processes to work effectively, the right staff must be in the right places, because they
26 MM&D | November/December 2014
06MMD-Roundtable.indd 26 14-12-03 10:46 AM SUPPLY CHAIN VISION 2015 VISION CHAIN SUPPLY
Leverage the latest technology to stay ahead of competitors
o achieve supply chain success, consider out- production, all of which allow the finished goods to “Tsourcing all of your logistics requirements to be shipped on time to keep customers happy and buy- a local third-party logistics provider with the expertise ing. Not paying attention here can cause costly inef- that allows your firm to focus on its core business ficiency along the operational channels and may result and strengths. in lower profit margins and unhappy customers. By outsourcing logistics operations, companies allow In my opinion, utilization of the latest technologies Bob Trojnar, dedicated professionals to execute their logistics strategy is the most crucial tool in the quest for supply chain Sales Manager – in the most efficient and cost-effective manner, gaining success. Once an organization decides to handle logis- Material Handling substantial savings that may be reinvested in other areas. tics internally and establishes their strategy, aligns the Division Canada, You can also stay ahead of your competition by using flow of goods with the operational planning, produc- Schaefer System the latest technologies to handle storage, distribution tion and sales, their focus shifts to improving their International Ltd and communication needs. Today’s successful com- operations. Implementing suitable technologies will panies implement semi-automated or fully automated result in increased efficiency and the reduction of systems to store, handle and ship their products with operational costs while increasing profit margins. the focus on effective and quite often mobile warehouse Supply chain managers need to make it a top priority management systems. By investing in these technolo- to be aware of the latest technologies and how they can gies, companies can significantly reduce their opera- positively influence the company’s profitability.” tional costs while improving their labour management and increasing their profit margins. Schaefer System International Ltd in Brampton, Align your logistics with your company’s planning, Ontario offers semi- and fully automated systems production and sales operations to ensure precise plan- for storage and distribution, materials handling, ning, the smooth flow of materials and uninterrupted logistics software, and waste technology solutions.
Supply chain managers need to track costs and efficiencies to identify the issues, then be open to technology solutions from new suppliers
ver the past few years, prospects and custom- colleague, customer, a supplier’s sales agent or a mar- “Oers across Canada, the US, New Zealand, keting rep whether they’re close to home, across the Australia, the Netherlands, Mexico, Spain, Sweden, country or abroad. Singapore, Colombia and Venezuela, have all indicated Many firms have already cut labour to the bone, so Richard Kat, they’re facing remarkably similar challenges: cutting they’re targeting one of the next biggest costs—real estate. Vice-President – costs, boosting productivity and efficiency and doing That means turning to technology and equipment to get Sales and Marketing, the best job possible for their customers. the most out of their existing space, for example, different Engineered Information is so often the key to continuous improve- racking and unloading products, new lift systems or Lifting Systems ment and cost management. You can’t develop a strategy even new scanning software. A new system can allow & Equipment Inc or a solution until you have the facts, and that means the employee to do more or do something different. accurately tracking all of your costs in real-time. To Be prepared to leverage existing and new technology drive out or eliminate costs, you must know exactly and be willing to take a carefully calculated chance what they are, and where, at a micro level. with a new provider who is outside your own region Look at what the status quo is actually costing—then or country.” challenge it. Once you’ve targeted specific costs, start doing the research. So often, there are solutions that Engineered Lifting Systems & Equipment Inc, based you’ve never imagined and that you were told didn’t in Elmira, Ontario, provides standard and custom exist—you just have to search, ask lots of questions and overhead material lifting systems and equipment as listen carefully. well as the Destuff-IT and Restuff-IT line of Be open to finding the answer online or through a ergonomic end-of-conveyor lifts.
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06MMD-Roundtable.indd 27 14-12-03 10:46 AM Special Advertorial Section
2015: REACHING HIGHER Supply Chain Vision
Supply Chain Vision 2015 is MM&D We are really pleased to be planning such magazine’s annual outlook forum, where a great year in 2015, and we are looking supply chain executives have the opportunity forward to having you join us. Our partners to share their vision for business in the year are key to the success of the magazine— to come. In the pages that follow you’ll be we anticipate a strong year of profitable able to read how leaders from various parts business as we work together to serve the of the sector see the coming year. Canadian supply chain community with a meaningful and compelling editorial product. From our perspective, 2015 is a year with tons of promise. We are planning a year Please get involved with MM&D next year. jam-packed with interesting editorial It’s your magazine and we look forward to content and innovative opportunities working with you on projects of all kinds. We for marketers to reach our readers. can be reached at the contact details below.
Emily Atkins, Catherine Martineau, Publisher/Editor-in-Chief, Sr. Account Manager t: 416.510.5130 t: 647-988-5559 e: [email protected] e: [email protected]
28 MM&D | November/December 2014
06MMDSCV-Cover.indd 28 14-12-03 11:20 AM SUPPLY CHAIN VISION 2015 29 14-12-03 11:18 AM , Partner [email protected] Kerri Plexman Kerri T: 416.369.3104 To learn more about how BDO can learn BDO how about your transportation, help more To BDO for the the is name brand BDO network for and each of the BDO Member Firms. successful in this different environment. limited guarantee, by and forms part the of international that together will we find forward a way remain and officesmore in than countries.100 adviceand service with national resources and experience. alsoaccess have advisors to around the globe with 1,000 over addressing and confident overcoming these issues. We’re is International BDO a member of Limited, a UK company challenges, contact Partner BDO and Industry Leader Kerri About BDO About BDO International BDO is one of the of isBDO one leading accounting and advisory firms in CanadaBDO a Canadian LLP, limited liability partnership, networkBDO independent of member firms. we serve.we Ourprofessionals combine personalized, local warehousing distribution or business with these and other Plexman or [email protected]. at 416-369-3104 Canadawith our strengths firmly rooted in the communities Asmembera firm of the internationalBDOnetwork, we Advertorial Financial recovery Tax advisory Risk advisory Financial advisory Technology solutions Transaction advisory (SRED) advisory(SRED)
Scientific Research and Experimental Development Audit andAudit assurance services To help clients help address the chain keyTo supply and logistics We have extensive have experience We in the transportation, This revenue uncertainty has forced companies to business sectors across Canada. Our international network businesses want may acquire to additional space, invest services specifically for theirneeds: leaders in the sector exposed have strategies and tools for top thetop list theof industry’s growing concerns. turn their focus cost to while control they hard work to enables us be to responsive emerging to industry issues of industryof professionals has a wide range financial of offerings, they canbe surelonger no that those investments opportunities their improve to business. As a result, cost How can BDO help? BDO can How and better serve our clients. andadvisory expertise provide global to problem-solving facing challenging and uncertain times. Customers are meet these increased expectations – potentially missing Serving the industry industry groups and a multitude global of organizations industry and subsequent involvement conversations with in efficienciesand service new or develop improvements, issues prevalent in their industry, tailored have we our issues, space utilization, inventory and staffing currently capabilities and support our clients addressing by their changing needs. changing business conditions will — nor be it the last. Our distribution sector has faced a period challenging, of demanding from their more prices providers and lower at warehousingand distributionworking sector, closely with clients as their auditors, tax advisors and corporate will off. pay finance consultants. Our active participation in national Canada’s warehousingCanada’s and distribution companies are Investing in theInvesting future conditions business changing overcome can industry chain supply Canada’s How This not is the first time warehousingCanada’s and At BDO, we work with work we BDO, thousandsAt clients of in various – yet offer only yet– offer commitmentsshort-term return. in While www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 29 06MMDSCV-MagPages.indd 30 SUPPLY CHAIN VISION 2015 30 to incentivize high-performing employees and identify new new employees identify and high-performing to incentivize improvement.continuous and self-management productivity, incentivizes that aculture fosters and workforcerequirements forecasts performance, tracks (LMS) software management labour GoalPost® efficiency. TheIntelligrated labour increase to of tools variety a with software management in: supply chain, the throughout productivity drives and enterprises large and of small demands the to meet solution scales the model, cloud-based on aflexible Built processes. over manual productivity in up to a35 in percent increase result and rates accuracy percent order 99 fulfillment achieve can Voice Datria demand. in increases sudden and seasonal workforceto meet their scale that for operations ideal – for acceptance rapid user training minimal requires pool. labour skilled shrinking the with cope operations to help productivity retention and improve training, that solutions software and offers picking Intelligrated resources. labour existing from value most the gets and capacity operational increases automation. This with tasks manual repetitive replace and jobs to moveoperations employees to value-added many driving attractive, automated solutions increasingly make technology in advancements and situation labour This workforce. high-performing a and retaining finding have difficulty and costs training rising face they result, a employees. As part-time and on more temporary rely operations them, workers to young replace skilled –over old. age 55 of retirement workforce is years 2018. existing However, through of the year each aquarter jobs new 270,000 to add expects industry the for Logistics, of Center Innovation Georgia to the According beyond. 2015 developments in supply and to shape chain primed are shortage labour agrowing and technology in Advances to shape future supply chain set labour technology, Advanced methodology picking any Virtually service Mobile field Replenishment Slotting replenishment Slotting retail In-store Putaway Receiving Extensive performance data and analytics allow operations operations allow analytics and data performance Extensive labour offers Intelligrated suite, of software its part As Voice Datria™ easy-to-use solution Intelligrated’s to automated robotics, equipment addition and In of ashortage and to retire set baby boomers With Advertorial challenges in 2015. in challenges distribution and more manufacturing to solving forward looks Intelligrated on promises, to deliver commitment acompany-wide and projectexecution reliable support, operations. fulfillment and distribution productive smarter, more build and efficiency to increase together and lineup, working automation suite of software its rest the with seamlessly solutions integrate LMS voice and Intelligrated’s supply approach chain. to the aholistic take necessary. as coaching with to intervene supervisors and enables and weaknesses, strengths of identification earlier to leads improvement. projected This and facility the in for account time that curves on training based employees evaluates labour, GoalPost For ornew temporary productivity. overall increasing retention and improving workforce, of the rest the to implement with techniques With best-fit solutions backed by total lifecycle lifecycle best-fit by total solutionsWith backed must operations success, supply chain for true course, Of T: 905.813.5001 Steve McElweenie intelligrated.com Vice President & President Vice General Manager, steve.mcelweenie@ www.intelligrated.com Intelligrated Canada Intelligrated MM&D | November/December 2014 ,
14-12-03 11:18 AM SUPPLY CHAIN VISION 2015
31 14-12-03 11:18 AM
www.vocollect.com Mobility Software Solutions Pittsburgh, 15235 PA [email protected] Vice President & GM Taylor Smith Taylor T: 1.412.349.2515 1.412.349.2515 T: 703 Rodi Road 703 tasks. Together, we’lltasks. your evolve workforce from capable… Together, confident.to Are ready run to you a better business with voice? visit or If so, give us a call today +1.412.349.2515, at www.vocollect.com. Even theEven most successful DC operations continue for look to ways fine-tune to theirorganization. VocollectHoneywell is thevoice most trusted technology and voice deployed in the – in fact, world installations more have we than all of our competitors combined. Our award-winning portfolio includes the industry’s only and voice scanning solution. gain to We’ll you enable greater insight your about performanceworkers’ and find help simplifyto ways their Advertorial As we finish 2014 we makeAsand finish are we plans all for 2015, 2014 reviewing our organizationalgoals and team objectives getto an accurate pulse the of business. If are you still asking, “What our else worker improve to do should we performance and efficiency? What else to do we can make gooda team better? can our How make most we 2015 successful year ever?” I believe the have we answer. requiresContinuous improvement continuous review and consideration. Honeywell is committed find you help to the beyond ways go to status and quo make your efficient business successful. even more that do providing by We withyou the most trusted in solution and voice deployed the Honeywell’s world. smart and innovative technology are solutions designed make to yourDC operations run efficientlymore – streamliningprocesses worker to gain greater workforce productivity. Are you ready to run a run to ready you Are voice? with business better www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 31 06MMDSCV-MagPages.indd 32 SUPPLY CHAIN VISION 2015 32 support to name afew. to name support recall and customization report &monitoring, reporting temperature EDI connectivity, full with applications We TMS and supply WMS deploy chain. world class resources. andcompliance safety specific other as well as science food and safety food in backgrounds deep with we members employ of resources team team of our part As recommendations. and goals improvement continuous to establish customers our with we workclosely reviews ongoing solution. Through ideal the configure and optimize we can tools modelling chain supply advanced of use the Through customer’sour needs. VersaCold resources. the line, has bottom the improving or capital reducing quality, product revenue, improving itincreasing be Whether products. sensitive temperature their solutions for specific to provide customers our with we work closely globally as well as United States the into extending services with and Canada throughout Operating products. sensitive solutions for temperature VersaCold of provider supply chain Canada’s is largest products sensitive temperature Supply chain solutions for Technology and information is a key enabler to any enabler to any akey is Technology information and solution. of any part acritical is assurance Chain Cold understanding with approach begins consultative Our Advertorial Services Distributor VersaCold Solutions Logistics VersaCold VersaCold Third Logistics Party VersaCold Transportation Management Solutions &4PL Transportation Solutions VersaCold include: divisions Our solution. outsourced element to afully asingle from of services arange provide &replenishment planning Inventory &merchandising support Marketing temperature and of frozen Distributor Specialized management Inventory management &recall logistics Reverse packaging, treating, Value-added including warehousing refrigerated and Frozen Services Logistics Integrated Fully solutions (4PL) supply chain managed Fully &Freight Brokerage Management Transportation & LTL border TL &cross Domestic ambient) refrigerated, (frozen, TL Intermodal refrigerated) and (frozen TL LTL refrigerated) and (frozen sensitive food products food sensitive docking Cross &labelling processing Carriage Contract Dedicated facilities Dedicated ambient) refrigerated, (frozen, Carriage Contract Dedicated Through our five operating divisions we are able to we divisions five operating our Through T: 905.265.7176 President &CEO President Douglas Harrison Douglas www.versacold.com MM&D | November/December 2014
, 14-12-03 11:18 AM SUPPLY CHAIN VISION 2015 33 14-12-03 11:18 AM , Partner, , Partner, [email protected] Jerome Thirion Jerome Management Consulting Management M: 514.983.9277 Advisory Services T: 514.840.2316 514.840.2316 T: Proprietary tools and strategic technology relationships transformations in companies around the world Global Chain Supply and Procurement Centers Excellence of Global reach; are are we you where chainEnd-to-end supply transformation capabilities Measurable and P&L operational performance impacts Experience leading of chain supply and operations
How we are different are we How Advertorial Our mission is to support the Supply Executive’s Chain agenda KPMG Supply Chain & Operations Chain Supply KPMG In a continuously changing market environment, chainsupply management the of is one cornerstones of an organization’s performance, providing competitive advantages the company needs succeed. to Long considered cost chainscenters, supply strong are differentiation now drivers and an integral part corporate of strategy. Chain Supply professionals canKPMG’s assist with you the full range process, of technology and change people levers essentialbuilding to durablea competitive advantage through these key services: Chain Supply Transformation, Distribution Network Optimization, Integrated Business Planning, Lean Operations, Enablement, and Technology Change Management. Recognized their for in-depth knowledge operations, of chainsupply andlogistics, our professionalsextensive have experience in industry and advisory services. With the abilityextended team leverage to KPMG’s around the they world, serve Canadian, Americanand international companies all of sizes, both private and public. www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 33 06MMDSCV-MagPages.indd 34 SUPPLY CHAIN VISION 2015 34 like working with the tools – they’re fun. –they’re fun. tools the with working like employees bonus, our added an as And benefit. immediate an get customers and levels, service and on productivity functionality. export and import full with stations our out to all rolling be 2015, we’ll Toronto Montreal, in Vancouver. and In functionality deployed It’s forabout shipments. import currently information real-time provide also It can warehouse. the in right waybills or air containers scan can –they hands employees’ our in right app, of and form an the in iPod ramp. up picked onbe the to is ready freight when the vehicles to right notifications It sends times. at all are vehicles to monitor where the us allows and aircraft, to the facility the from run is warehouses. our in efficiencies to maximize technology, of mobile pieces two iLynx, and We iRamp developed processes. own our streamline and to enhance technology mobile use also We notifications. receive shipments and track to them allowing customers, with popular appmobile is Our how we do business. changing is Mobile technology Moving Forward with Mobile Technology critical. is costs, reduce and improved service, deliver wecontrol to processes the improving industry, heavy regulation- this In for customers. our value create and efficiencies to maximize innovation on using focused also we’reexpansion, network for in us opportunities are there routes. new upgauges and capacity of aircraft, new advantage full we’reand taking mode expansion in is airline The innovation. centric customer- on fixed sight its has Cargo 2015, Canada In Air Cargo Canada Air at innovation Customer-centric Both applications have had a significant, positive impact impact positive have asignificant, had applications Both iPhone onor an system operating full puts our iLynx how freight manages that tool adispatching is iRamp while efficiency, and and about speed all is freight But air Advertorial to technology and opportunities to grow their businesses. their to grow opportunities and to technology access their facilitate for to doors open customers, our want we’re 2015. innovation in embracing Wecustomer-centric of type of the examples –are devices GPS tracking and aircraft. on for our use devices GPS tracking of several approval the announced we recently demand, To shipments. or sensitive high-value this meet for their visibility maximum who want by shippers more frequently used being are devices GPS tracking transit. shipments in about information tracking –real-time expecting 2015. in availability their extending be will covers and of the result the We’ve with pleased very been stations. select from shipments originating perishable for option avalue-added as Covers Cargo Tyvek® Air Dupont™ we introduced aresult, As it. to enhance ways for solution, looking AC about our Chain feedback Cool marketplace. of the demands the anticipate, evenand with, alonggrow can offering service our that We level. ensure must commercial at the innovating We’re ways. multiple in constantly customers our also benefit that innovations operational are iLynx and iRamp Innovative Solutions www.aircanadacargo.com These initiatives - the DuPont™ Tyvek® Air Cargo Covers Cargo DuPont™the Air - Tyvek® initiatives These and for – asking increasingly is marketplace The for customers our we asked year this For example, Vice-President, Cargo Lise-Marie TurpinLise-Marie MM&D | November/December 2014
, 14-12-03 11:18 AM SUPPLY CHAIN VISION 2015 35 14-12-03 11:18 AM , tftglobal.com Dawna Peat [email protected] Strategic Development Strategic T: 519.926.0012 Obvious are the benefitsreal-data canbring to a client’s Moving forward TFT is bringing this technology level of systems a higher at level than any their of competitors. This interface results in live-reporting systems. Theybeen have designed allow to their customers real-time data regarding inventory levels, min/max alarms, cube utilization, route schedules, and more. ability ensure to proactive and productive decisions within their business, live-reporting but TFT tools hold accountable, as a service provider their to own performance thanmore any KPI written or about procedure. isn’t It whethermistake a not or will happen because know we it will all at levels within all parties and all departments a of chain.supply What is critical is the transparency such of financiala issues avoid to impact ensure“alland hands valuableare more deck”. on is Even the aftermathof being perform to able true root-causeanalysis with objective documentedinformation future and prevent occurrences. In addition holding to accountability a new to standard TFTcan use this information their improve to own internal communications across departments. theto Quality Services their of side business. Theirnew softwareVantage has been fully in implemented all brings live containmentlocations 2015 as October of 2014. sortdata, reject counts, billing information, and onscreen instructionswork the to hands every of client with internet accessibility. Performance metrics are incorporated into their reporting tools which can be customized each to client and industry. TFT is eager see to the impacts on and will 2015 their for KPI’s continue challenge to their processes under this new software for further efficiencies Bringalong the the on Year! New way. Advertorial Any company canquality offer containment logistics and In 1989 TFTIn 1989 Global Inc. started as a small quality sort company in Tillsonburg, Ontario with location one andhandfula TFT is globala Today employees. full- of service Third-Party Logisticsprovider withlocations, 8 flexible serviceofferings, over and The employees. 200 most impressive point is that they are still growing and prospering economic uncertainty. in today’s ask If you what they attribute their success long-term they to will reflecton principlestheir People, Passionate of core Responsible Growth, and a Solid Reputation. Underneath all that lies the true secret their to business… exceeding their customers’ expectations and ensuring transparency thoseto clients. This allowed reachto of levelthem a trust that farexceeds the competition. services, niche TFT’s is but their priority “listen” to to their customers and incorporate needs” “customer into high-levelbusiness plans year afteronly Not do year. they the have abilitysoftware develop to in-house that is fully customizable and that can communicatewith ease with their customers’ systems, they but a dedicated have Progressive team Development looks solely who ways at increaseto reduce efficiency, liability, serviceand improve throughTFT leads the technology. in Today way the distribution industry with privately-developed customer portalsthat a offer direct interface withOEMproduction TFT takes and visibility accountability 2015! for levels new to www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 35 06MMDSCV-MagPages.indd 36 SUPPLY CHAIN VISION 2015 36 our clients. our to That’sbenefit great or months. a of weeks instead days in searches we fill relevant, and fresh is research our and industry, of the pulse to the close so we stay Because of slate candidates. possible best the receive clients our to ensure search, new every in target to companies specific we identify database, our from to working addition In way. come our that referrals to numerous responding and advertising, one-on-one networking, personal associations, industry media, social using industry, the within headhunting and research constant through resource day. every We this and each grows expand and thousands tens of numbers candidates of qualified database Our continually grows database intelligent Our years. over many with relationships whom we have developed with candidates passive but with clients, with credibility not only us gives experience Our positions. industry-related to fill seeking when industry the worked within for having no simply substitute is There needs. recruitment clients’ our to satisfy knowledge – unprecedented team Reimer entire the – and them gives background Their recruiters. as Associates Reimer joining before industry or transportation supply chain the in experience career substantial gained associates of our All experts chain industry supply and transportation We are industry. the inside from effectively and Wepositions. confidentially operate critical to fill it takes personality and experience skills, of kind what firsthand learned has team our companies, supply chain and for transportation numerous success of drivers Simplyput,as seven-memberof team. our experience industry extensive the leveraging chain, supply within We on exclusively recruitment concentrate Specialists in supply chain recruiting Advertorial
final confirmation or rejection of our short list of candidates. list of our short of orrejection confirmation final the as reference-checking We exhaustive our see candidate. the with familiar people who are with candidly speak can so thereferences supplied we beyond us to reach allow often connections and knowledge industry extensive our addition, In client’s to our person new organization. of each importance we’ve never the forgotten careers, industry previous our in of people dozens hired we have all because And interaction. important an as interview We personal each list. see short an proficientoutstanding developing at they’re highly so candidates, multiple through to sort ability their and skills people substantial of their basis on the associates Reimer all haveWe selected questioning. behavioural significant incorporate that interviews personal we thorough conduct to you, acandidate Before presenting professional. highly and honed well are skills reference-checking and interviewing Our interviewed. to be of candidates develop abroad list we can targeting, laser-like to our addition in database, supply chain up-to-date and extensive of our Because you for works process Our You can count on us for the long haul long the for You us on count can T: 905.844.6424 T: Ross Reimer www.reimer.ca [email protected] MM&D | November/December 2014 with you! with to working forward We companies. look most well-respected industry’s some of the with relationships term long- developed having We on ourselves pride industry. chain supply the within known well is clients to our value outstanding delivering and workour seriously for reputation taking Our , President , 14-12-03 11:18 AM
SUPPLY CHAIN VISION 2015 37 14-12-03 11:18 AM , Sales Manager, Sales, Manager, large operations with diverse complexity. Our core belief is that can we provide the most effective storage and efficient and operations solutions; we have built our reputation than more on years 70 of experience in doing just that. Contact Schaefer today for a turnkey that solution our team will design specifically unique suitto your company’s storage and logistics needs. International Ltd. [email protected] www.ssi-schaefer.ca Bob Trojnar Bob Material Handling Division Canada, M: 416.998.8874
Schaefer System T: 905.458.8874 x33 905.458.8874 T: storage and retrieval has solution a unique application which is specifically tailoredto needs the ourof customers. service,SSI Schaefer provide to complete is proud from dataanalysis and consulting, manufacturing complete to allof storage technologies-including plastic and steel containers-toinstallation and service. The Schaefer team is dedicated delivering to superlative customer solutions. DynamicSchaefer’s Storage Solutions can operate in a stand-alone configuration or can be seamlessly integrated with WMS. a customer’s When integrated with other logistics they equipment can become fully automated storage and retrieval systems. Schaefer is an internationally recognized leader in the material handlingindustry with a presence in fiftyover countries providing custom-tailored small for solutions and very Advertorial SSI Schaefer isdedicated providing to our customers with Dynamic StorageSolutions designed specifically for semi- automated warehousing applications. Our creative and analytical along approach with our keen attention detail to makes us very successful. By customizing each specificto solution customer storage andoperational requirements, our offer we customers turnkey These a premium at solutions ROI. are keythe thatelements set Schaefer apart from our competition. Consideringtrend minimizingof today’s the footprint for storage and operations, the developing requirement new for and advanced storage increases solutions exponentially. That includes need for efficiencythe in labour management. By changing the paradigm from “man goods” to “goods to storage semi-automated solutions Schaefer’s man”, to address customers’ demands efficientnot for and yet fully systemsautomated which function successfully and now will continue so do to in the near future. an increasing number small of Today, and medium-size companies are seriously considering the implementation storage semi-automated of solutions. SchaeferDynamic Storage Solutions are a perfect fit thanksto their scalability. Our DSS product line includes VLM Logimat, an automated storageand retrieval system, a newly developed AutoCruiser and technology.a E-Pick, conveyor All Pick-to-Light three warehousing systems are designed efficientstorage for and fast, accurate picking small of and medium parts. Mobile Pallet Racking and the Deep Channel are Storage Orbiter exclusively designed condensed for pallet storage. Each SSI Schaefer designs and implements efficient warehousing solutions. www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 37 06MMDSCV-MagPages.indd 38 SUPPLY CHAIN VISION 2015 38 logistics solutions. Customer feedback is paramount in the the in paramount is feedback Customer solutions. logistics and interactions sales to evaluate customers Redirack promptssystem Konstant/ survey customer automated This AKCESS decision. educated an make can work they so systems how see and Konstant’s products to visually customer the allows DigiDetail and believing, is customer.for Seeing the inappropriate are that solutions offering without productive, and informative efficient, are visits customer field to ensure the in DigiDetail use experts Sales presentation. interactive auto-configured, content an relevant most in the displays intelligently customer’s and appropriate to the requirements products selects system The database. segmentation customer aself-updating, with equipped tool demonstration services and tablet-based product interactive, an is This DigiDetail experience. customer the maximize to created tools digital by customized supported is process the to installation, requirements handling From material for customers. end-to-endto improve experience the “customer-centric”.truly be to what it means redefining awhole, as industry for the benchmarks technology new to set striving continuously is Konstant design. at smart doesn’t stop success to customer Konstant’s commitment But warehouse environments. customized fitspecific, to solutions engineered shelving and racking on our 27 years. past for the services and products innovative through market storage warehouse the for efficiencies designing been has TechniRack, and RediRack/Econo-Rack as Konstant/ known better Group Inc., Econo-Rack The Where customer focus is built in Konstant – The organization invests heavily in integrated technology technology integrated in heavily invests The organization rely can they know U.S. customers and Canadian Advertorial contact us at (905) us contact 337-5700. please needs, storage warehousing your help you with customer! to the on directly passed are which costs decrease and efficiencies increase helped also Technology level. has next to the commitment that take us simply helped has vision;technology andmanagement staff work, dedicated hard practices, working smarter satisfaction, to customer commitment of tireless on afoundation built focus. primary the is customer the sure –making mind in one goal to keep continues organization the that ensured he has team, technology and management help of aproactive the with and industry, to the practices and systems ground-breaking innovative, introduced has Squires to bear, Kevin experience of Pharmaceutical years over 23 Bringing alone. technology with accomplished isn’t systems envelopecustomer-centric in the to pushing dedication Konstant’s that understands who Technology) of Business (VP Squires of Kevin leadership visionary wheel. at the manager account connected awell- with process buying the throughout informed be to expect can Customers systems. automated notifications through events important other and deliveries shipping, to orders, reps alert tools these database, customer the with Integrated Systems. help of Inquiry the developments with and on projects top stay reps of customer Sales Systems Inquiry area of opportunity. identified to any response aprompt to ensure customer plans action driven digitally seriously, with taken is survey Every process. improve the to commentary to provide the opportunity offered is customer every ensures AKCESS and Company’s strategy, For more information on how Konstant/RediRack can can on howFor more Konstant/RediRack information solutionswas storage warehouse in leader industry The the of result direct the are advancements These T: 905.337.5737 T: konstant.com Vice President, President, Vice Business Technology Business Kevin Squires Kevin kevin.squires@ MM&D | November/December 2014 , 14-12-03 11:18 AM SUPPLY CHAIN VISION 2015 39 14-12-03 11:18 AM www. activeinternational.com Director - Canada M: 416.671.0155 abulmer@ activeinternational.com SVP, Managing SVP, Andrew Bulmer Andrew T: 416.218.2370 In all likelihood your organization is faced with untapped To learn contact more, an us for assessment.To buys your assets full at value trade for credits are (they transaction yourself). transaction through a reduction business on expenses time over typically recorded as a prepaid expense) advertising space, business travel, research, and 3pl, more negotiated with your corporate who trade provider, ActiveInternational Canada has set the standard for company (or you can you choose manageto company (or that re-sale Theyre-sell your assets channelsyourinto by approved businessuses Your the trade credits with cash purchase to result The realizingis the full market valueyourof asset
shareholders is everyone’s top priority. top shareholders is everyone’s helping companies meet their bottom line commitments. opportunities, and challenges that can by be overcome or marketing,or delivering target EBIT company to including corporate trade chain into your supply strategy. corporate trade close 30 to for years. During thattime we’ve executed thousandswe’ve successful of transactions, Whether in chain, work supply you finance, sales Advertorial November/December 2014 November/December | Historically companies liquidated have stale assets (like Many leading companies around the are planning world Using corporate trade can you way is one that recover loss, You’re likely finding ownyourin business You’re that the underperforming asset inventory or As as all much we wish a crystal for ball, even the most you no longer need, longer no a contractyou is Once you’ve identified Once you’ve an
successfulcompanies predict can’t all market variables, strategic maximize tool to value such assets. on sheets suffer; liquidation typicallyonlyrecovers one-third leading inventory turnover. slow to level to ensurelevel to an organization’s continued success. take a loss your books. on themselves in a constant state beta of with new product It seems every day the business world is becoming becoming is world business the every day It seems Why leading brands use corporate trade corporate use brands leading Why of transitioningof sku from one another. to of anof asset’s original many Fortune wonder no value. It’s How it works it How for inventory risksfor using corporate trade as a safety net. factory machinery incurs carrying costs, causing to you market in meet to demand order from companies that want remain to Companies can’t afford to keep assets on the books that that books the on assets keep to afford can’t Companies nervousconsumers and globaluncertainties all impact aren’t contributing to the bottom line. line. bottom the to contributing aren’t improved’, comes theimproved’, cost andchain supply implications inventory and old capital equipment). However, balance However, inventory and capital old equipment). inventory, capital andinventory, equipment real estate). corporate trade providers across competitive andprofitable. can be in found small variances in linein items (often development. Anddevelopment. with and a continuous cycle ‘new of difference between profitable year a one and not that is A rapidly growing industry more competitive. competitive. more Excess inventory sitting inyour warehouse, outdated or Everything everybody) (and needsa high at produce to North America the entered have In the era innovation, of consumer goods brands find while driving cost savings in other areas the of business. Corporate trade is thriving. Over the past 30 years, new Canadian organizations. Canadian Active International Technological advances, flat markets,new competitors, 1000 companies are embracing corporate trade as a www.mmdonline.com 06MMDSCV-MagPages.indd 39 06MMDSCV-MagPages.indd 40 SUPPLY CHAIN VISION 2015 40 Beacon. These beacons are in reality small computers to small in reality are beacons These Beacon. aBluetooth called device inexpensive an is aid to our coming be will that tools key move. One ofinventory the it when to every comes machines and of humans terms in both of resources amount the to measure tools the manager request? capital the who wins Guess repairs. from recent record its of truck fork anew lift he needs say only can manager warehouse the hand, other the On conserve. will machine new the savings output or energy how much more CFOexactly the tell she can machinery for of a piece new asks manager production the when that No surprise around. product to moveequipment that used transaction. inventory go atypical into time and you how tell much only labour can manager warehouse the product, afinished go making into labour and time, material, cycles, how machine many of exactly knowledge who have the counterparts, manufacturing our Unlike next. to the one from location inventory an go moving into how resources many of knowing IoT promise real truly are open. doors the when and docks trailer the when you tell actually can sensor but a is recorded, scan first the when arrives truck the that You unloaded. maygets think it when actually and of atrailer arrival the gap between time a often is there For example, supply your chain. in spots blind known are that gaps filling be it will means This safety. and of cost shouldn’t and by virtue reach Industry? Supplyfor Chain the mean that But does what Internet. the through connected be will devices over billion by 26 2020 predicts Gartner Making the Unknowable Knowable Internet of things in the supply chain IoT will level the playing field by giving the supply chain thesupply chain giving field by playing IoT the level will handling material the is analysis the from Missing the and management of inventory grail” “holy For me the can’t humans that go places IoT will of things) (Internet Two words: GreaterVisibility. Advertorial billion – it will be much be more. –it will billion me. contact please include: will project participants analytics. and of trove metrics new atreasure uncover we will data, warehouse’s transaction inventory the with paired When warehouse. the equipment in handling material other and of fork lifts direction and speed location, the to track field. the in up years to four last devices these and seconds in happens Connectivity a connection. to establish up took to aminute typically which past, of the devices the Bluetooth like are not They radios. Bluetooth and power supplies, have processors, they that extent the percentage Equipment Utilization foot of travel linear per Output by equipmentOutput type Equipment utilization by function by utilization Equipment assets of Location Scanners On! Scanners 26 on the wrong is here’sAnd Gartner my prediction: pilots of our results more the or see to learn youIf want pilot able our to be provide we’ll insights Some of the pilots beacon three starting be we will At ViascanQdata, T: 1.800.900.7226 x2286 Systems Solutions and Jeff Lem Jeff [email protected] www.viascanqdata.com MM&D | November/December 2014 , VP, 14-12-03 11:18 AM
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paulhaggett@ www.3dstoragesolutions.com Paul Haggett Paul 3dstoragesolutions.com T: 905.634.0027T: T: 1.877. 557. 2257 Damage Storage Resistant – 3D X-Bracing Tubular When purchasing your pallet rack storage system, RX Pallet Racking Features Racking RX Pallet Strengthand Greater Impact Resistance - Any engineer willconfirm the fact a that tubular column is stronger than an open section column. A closed column also increases torsional resistance than more 200 times any relative over open shape. All RX 3D columns, beams, horizontals and diagonals are tubular. superior pallet That’s rack! Solutions frame provides x-bracing support in both and Closedtension compression. tubes reduce catch points palletsfor and loads when loading and unloading, and are cleaner than open backed channels. think safety, think product damage, think liability and think peace mind. of we’ll and 3D, Then contact help designyou a pallet racking system that meets all your of warehousing needs. Speaking cost, of Storage pricing Solution 3D is comparable lessor in cost standard to open channel pallet rack. Advertorial rack. This tubular column also has much greatermuch resistance fork to Combined with in ordinary pallet truck impact. combined with a superior spring locking clip and you’ve tubularbracing X instead of standardinstead of open channel diagonals thegot very safest pallet point beam connection beam connection point on theon uprights, the 6 channel columns found rack can money buy. resistance torsional to than forces comparable open No one should argue one No that pallet racking capital costs are Storage Solutions has3D developed RX pallet racking Superiority the to belongs strongest, safest pallet rack. Planning and sourcing retrofitted a new or Distribution canCentre Storage Warehouse or be a daunting challenge. numerous There are essential factorsto take into consideration; space utilization,process workflow labourproductivity, efficiency, future scalability and yes, the resounding factor most oftenheard- cost. immaterial in theconstruction a warehouse of storage a case cansystem; however, subsequent be made for andreplacement maintenance expenses associated with the pallet racking system. Wherever there lifts, are fork there will be pallet racking damage. with profile (Figure Tubular that 1) will greatly mitigate the inevitable expensive replacement, repairs and decommissioning attributed pallet to rack damage. Open section standard withstand rack roll-formed just doesn’t the rigorsday day to operations of in thewarehouse storage environment. By strongest only not mean we load bearing, strength but withstandto impact and torsional (Figure forces 2). upright The steel column is backbonethe of palletany rack system. can None Storage Solutions compare 3D to exclusive closed tubular column which has 200 times more 3D Storage Solutions RX Pallet Rack Rack Pallet RX Solutions Storage 3D – investment your protects tomorrow… today, www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 41 06MMDSCV-MagPages.indd 42 SUPPLY CHAIN VISION 2015 42 commented, “I honestly mean this when I say, this is is Isay, when this this mean “I honestly commented, Manager) (Production 2014,August Hart David allocations. space floor and docks facility storage, scheduling, impacting team, centre distribution the for productivity all on effect a significant has This for ELS. &Marketing of Sales VP Kat, rate”, Richard case says or higher a900/hour achieve to realistic it is docks, at inbound “As unloading as far base. customer ELS’s wide highlight but also returns, to investment relating numbers real understanding only in not assist studies These ELS. with results their share to willing very have been customers and developed USA. Ohio, in sites industry selected in conducted being is It efficiencies. and ergonomics qualifies and measures study Loader. The theRestuff-IT™ & Unloader Destuff-IT™ the both of benefits on the focusing ergonomic study an conducting reduced andinjuries. worker efficiencies increased gains, productivity include: machines of the Benefits countries. several in organizations logistic party third and centers distribution warehouses, in used being currently are They features. and reliability performance, improvementundergone continuous for enhanced have machines these 2009, (ELS) in Equipment Inc. floor conveyorto top from container. of and position worker that optimize solutions unique are They trailers. out-ofand and into product containers handling manually with Used by workers place. tasked market the in unique are Loaders andRestuff-IT™ Unloaders Destuff-IT™ A Better Way to Handle Container Contents Loaders Restuff-IT™ Destuff-IT™ Unloaders & In a client testimonial about a Destuff-IT™ installed installed about a Destuff-IT™ testimonial a client In have been units Destuff-IT™ for several Studies Case currently is ofDr. Ohio University Lavender of Steve the & Systems Lifting by Engineered launched First Advertorial will be available as listed on www.destuffit.com . on www.destuffit.com listed as available be will Destuff-IT™ to the topics relating other and calculation capabilities. bi-directional has that machine a of model Restuff-IT™, current most the exhibiting be will and IL Chicago, Promat in attend again 2015 In will ELS demands. market into insight gain and products innovative these to showcase years three past the ahead.” years the in success to continued forward look and again facilities our We to expand excited are employees. and customers products, to our committed are of Waterloo (Ontario, “Wepart Canada)”, Region Kat. said been has company our 4decades, “For more than demand. to accommodate capacity manufacturing expanding is installation].” we were it [pre-Destuff-IT™ doing way the about 3hours right is time unload normal Our it. of hang the get once 1hour we really in acontainer unload we can that Weyears! absolutely love think it! Ihonestly for company 26 the with I have been and area, Receiving QA the we and havein made ever investment best the Upcoming webinars related to product description, ROI description, to product related webinars Upcoming for tradeshows logistic and supply chain attended has ELS ELS sales, growing and interest of increased aresult As T: 519.669.5545 x225 519.669.5545 T: ELS VP Sales &Market Sales VP ELS Kat, Richard www.destuffit.com [email protected] MM&D | November/December 2014 14-12-03 11:18 AM SUPPLY CHAIN VISION 2015 43 14-12-03 11:18 AM Rack SupportedRack - Building Commercial Printing 3PL/Warehousing Food Processing & Dist. Cold Storage Retail Pharmaceutical www.frazier.com High-Bay VNA System - Cold Storage/3PL Facility Dan Garside Dan [email protected] General Manager General T: (905) 562-4500T: “We equip our company with “We the tools needed provide to Manufacturing E-Commerce Beverage Automotive Specialized Applications by Industry the highest quality products, delivery and service,” says Dan Garside,Canadian General Frazier Manager, Industrial“Our investment Company. in manufacturing technologies, and in product development our expert staff hashelpedFrazier provide the best in custom storage acrosssolutions all business sectors.” - Advertorial Glide-In® Push-Back Rack Glide-In® Pallet Flow Rack Supported Buildings Deep Lane Pallet Shuttle Mole® SelecDeck® Carton Flow
& Retrieval Systems Selective Pallet Rack Drive-In/Drive-Thru Multi-Level Pick Modules National Installation Teams Strategic National Manufacturing Storage Automated Project Management & Site After SaleSystem Support Advanced System Design & Engineering Material Handling Systems Integration Semi-Automated, Deep Lane Pallet Mole - Water Bottle Production facility Flex Manufacturing and Saves Time Money Frazier provides a superior a competitive product at price by relying a highly on productive network and U.S. of Canadian “mini-mills” and strategically located fabrication facilities. This allows to us deliver material quicklyas as topossible any geographic region. Frazier manufacturing has 10 plants strategically located throughout North America as well as our Canadian Sales/Logistics offices in Vineland,Ontario. Frazier Storage Systems gineering, testing and expertise, implementation channeled to yoursolve toughest storage and material handling challenges. THIS is what customers keeps Frazier’s coming back. standardFrom pallet modules rack pick complex and to AS/RS installations, Frazier Industrial each helps customer thedevelop to mostsolution cost-efficient maximize space and achieve optimal productivity. Customers throughout theand U.S. Canada benefit extensive Frazier’s from support teams across sales, design, engineering and project management, each providing expertise comprehensive from systemearly to installation, concept development including: Is it the brains, or is it the brawn?… the it is or brains, the it Is Back? Coming Customers Frazier Keeps What Actually, know takes we it just the right mix both of - the brute strength and durability our of structural 100% steel storage systems and, importantly, more everything else that stands behind the steel; almost years 65 system of design, en www.mmdonline.com | November/December 2014 06MMDSCV-MagPages.indd 43 The early years When TFT launched in Tillsonburg, Ontario, in 1989, it provided quality control services to the automotive industry. And for 20 years, that was the company’s main focus—quality control. But in 2009, everything changed. “That’s when we started to get our legs; when we started to really have an expansive growth opportu- nity,” says Greg Lorch, director of sales and engineer- ing with TFT Global. What was the opportunity? One of its customers, CAMI Automotive, which at the time was a joint venture between General Motors and Suzuki, was looking for a new third party logistics provider. TFT had been handling its quality control needs since the late ’90s, and expanded that in 2006 to include sequencing services—ensuring parts were delivered Shifting to the plant in the proper sequence for the assembly line. The company also handled a variety of short- term storage needs for the CAMI plant. It was at this point that TFT went from being an “indirect service provider” to being a third party logistics provider, and business took off.
gears A period of growth TFT moved into CAMI’s cross-docking facility in Ingersoll, just outside of Tillsonburg, over a six-week How does a 3PL with 75 to 80 percent of its business in the shutdown period in 2009. At this time, with the help automotive industry grow—significantly—during the industry’s of Mississauga, Ontario-based Automation Associates, most difficult years, and handle multiple transitions along the way? a warehouse automation and inventory control solu- Mary Del Ciancio has the story. tions company, TFT was able to set up its new ware- house management system (WMS)—RF Pathways. he year 2009 was a difficult one for many com- “A number of items attracted TFT to this WMS. The Tpanies in Canada. The country was experiencing WMS had a number of tools designed for a 3PL com- an economic downturn, sales were slow and jobs pany, multiple company setups, multiple warehouse were cut. It was the beginning of the end for many configurations and extreme flexibility,” says Lorch. Canadian companies. Originally, the software was designed to handle But for TFT Global, a third party logistics provider cross-docking for TFT, but as business evolved to based in Tillsonburg, Ontario, it was the year business include both warehousing and distribution services, really took off. so did the features the company required from its From 2009 to 2012, TFT Global tripled its sales, qua- WMS. RF Pathways was flexible enough to accom- drupled its number of facilities, and increased its modate the changes. employee count five fold. That’s no small feat considering Flexibility is key, says Gordon Smith, vice-president this explosive growth occurred during a recession. and general manager with Automation Associates, During this period, the company also experienced because the system must be able to be modified to several major warehouse redesigns and expansions suit TFT’s—and its customers’—needs. to deal with this growth. The move into the cross-docking facility coincided How’d they do it? How did TFT grow its business, with GM’s release of the second generation of the particularly when the majority of its customers were Chevrolet Equinox. The plant also produced the in the hard-hit automotive industry, and at the same GMC Terrain. It wasn’t long before demand for the time deal with multiple redesigns and expansions? vehicles grew, and the plant increased production to The company listened to its customers’ needs, meet the demand, moving from one shift to three ensured open communication between all parties, shifts within a year. and deployed technology that provided complete “During that time it meant that we had to expand visibility into all of its operations. our operations to match that second shift and third But it wasn’t easy. shift operation,” says Lorch, adding that this included
44 MM&D | November/December 2014
06MMD-TFTV4.indd 44 14-12-02 4:24 PM changes to TFT’s facility layout. “Very quickly we had layout to accommodate to expand. Very quickly we had to ensure we had the the extra volume. necessary resources—people—in order to do that.” “Due to the popularity More vehicles meant more product to store, and of the vehicles and the more non-finished goods being brought into the facil- introduction of support ity. As a result, TFT expanded with an additional two plants in Tennessee and facilities in Ingersoll to support this growth. Oshawa to meet North Then, in 2010, General Motors took ownership of American demand, TFT the CAMI plant, and the plant migrated from using Global had to constantly the CAMI production materials system to the General adjust and or physically Motors system. And for TFT, that meant connecting expand our operations to its WMS to the new GM system. accommodate,” says “One of the things that was able to help us was the Lorch. “This movement fact that RF Pathways was able to adapt from using one of material all had to hap- type of system that CAMI Automotive was using, to pen while at the same time the system that General Motors was [using],” says Lorch. operating six days a week, What made the situation unique, he adds, is that not 24 hours a day—assuring only was the system new to TFT, but it was new to the our customer no impact employees in the CAMI facility, too. And while this to their production.” transition happened, and all parties adapted to the new And each additional system, they still had to maintain the production plant also meant that requirements—running 24 hours a day, six days a week. TFT, with support from “For the first three weeks of the launch, there were Automation Associates, many hours put in by all parties. But we were able to had to make some get through it with minimal impact to the plant,” says changes to the WMS. Lorch, giving the credit to all parties—General Motors, “Every time we asked TFT and GM’s lead logistics provider—for working Automation Associates together to ensure the plant continued to operate. to do that, they’ve been able to work with us in order Racking storage at a This transition involved training, it involved sup- to make that happen,” says Lorch. TFT facility for maximum port from General Motors, and it involved Automation “[With] this type of implementation, communica- space utilization. Associates doing the necessary programming to the tion is key,” says Smith. “Let me talk to the guy from WMS to allow TFT to migrate to GM’s system. receiving, let me talk to the guy on the production As demand for the vehicles continued to grow, General floor, let me talk to the cross-docking supervisor to Motors decided to expand Equinox production to its understand what all the needs are to tie them together. Oshawa assembly plant in 2011. This required TFT to And if you don’t communicate that way and put it in be able to support not only specific inventory require- writing and get sign off, it’s an opportunity for disas- ments for the CAMI assembly plant, but also the inven- ter, especially in a company this size.” tory requirements for the Equinox in Oshawa. TFT went Since 2012, TFT has continued to grow with addi- from supporting one plant to two, and had to modify tional facilities across North America to support its facility layout to accommodate the extra volume. its customers. And then in 2012, General Motors announced it would Today, the company has facilities in Tillsonburg, build the Equinox in Spring Hill, Tennessee, and just Ingersoll, Brampton, Woodstock and London, Ontario, like that, TFT went from supporting two plants to three. in addition to operations in Spring Hill, and Kansas This, once again, included changes to the warehouse City, Missouri. While the Ingersoll facilities provide support to GM’s CAMI, Spring Hill and Oshawa assem- bly plants, the other facilities support other customers in automotive, retail, packaging and construction.
Keys to success Proper planning and support from partners was key to the success of these transitions, says Lorch, adding that ongoing communication between all parties is also essential—even after the transition. That is why TFT Global’s service parts TFT provides customers with visibility into what is repackaging operation happening inside its operations, so customers are aware of how much inventory they have on-hand.
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06MMD-TFTV4.indd 45 14-12-02 4:24 PM CONGRATULATIONS TO OUR 2014 GRADUATES OF THE SUPPLY CHAIN MANAGEMENT PROFESSIONAL (SCMP) DESIGNATION PROGRAM
Juline Akobundu, SCMP Edith Fatima Botelho Dias, CSCMP* Brant Lu, SCMP Michael Ritchie, CSCMP* Mohammad Abul Ahsan, CSCMP* Amy Dolomount, SCMP Qin (Linda) Lu, SCMP Berkley Rogers, SCMP Rosekate Osayimese Akinreti, CSCMP* Lesley Dovichak, SCMP Millie R. Lynch, CSCMP* Teng Rong, SCMP Clarke Anderson, SCMP Arnold D’Souza, SCMP Craig MacTavish, SCMP Briana Rudolph, SCMP Samira Armanfar, CSCMP* Joanna Mengjie Du, CSCMP* Patrick Magee, CSCMP* Sanjay Sahoo, SCMP Dennis Au, SCMP Nadiya Dubinina, SCMP Allan Mah, SCMP Bassam Salem, CSCMP* Tamara Austin, SCMP Rebecca Duguay, SCMP Naïm Manouchi, p.g.c.a. Sarabjeet Kaur Saral, CSCMP* Raja Ayaz, SCMP Nazim Elmekki, SCMP Dilyan Marinov, SCMP Jesse Saunders, SCMP Ashkan Ayyubi, CSCMP* Curtis Evans, SCMP Cindy Massey Straus, CSCMP* Lee Anthony Scherbinsky, CSCMP* Joen Azarcon, SCMP Thea Felix, SCMP Gilbert Matembe, SCMP Ryan T. Scott, CSCMP* Usman Bajwa, SCMP Lisa Fenton, CSCMP* Thomas Mathews, SCMP Jennifer Scott-Tinney, CSCMP* Nicole Battaglia, CSCMP* Suzanne Ferenczi, SCMP Jean McHugh, CSCMP* Erisa Seggumba, SCMP Bernard Bégin, p.g.c.a. Ron Fox, SCMP Mary Meadows, CSCMP* Jitesh Shah, SCMP Daryl Behr, SCMP Colin Frederick, SCMP Darryl J Melvin, CSCMP* Darcy Shannon, SCMP Johannes Jurgens Bekker, SCMP Daisy Fuentes, SCMP John Mercer, SCMP George S.S. Siha, CSCMP* Carrie Bellamy-Sutherland, SCMP Kayley Fulton, SCMP Eva Michalowski, CSCMP* Laura Simonsen, SCMP Riffat Ali Shahzad Bhatti, CSCMP* David William R. Gillies, CSCMP* Ken Miller, SCMP Terminder Singh, SCMP Courtney Bickell, SCMP Matilda Gjini, SCMP Antwan Moawad, CSCMP* Alper Somyurek, SCMP Sheena Bonczak, CSCMP* Robert Daniel Goodsell, SCMP Deanna Laura Monaco, CSCMP* Paul Spagnuolo, CSCMP* Charlene Bowman, SCMP Victor Granados, SCMP Ramses Munoz, p.g.c.a. Oleg Sribny, SCMP Sherry Lynn Boxall, CSCMP* Danny Greenfield, CSCMP* Stepan Muranets, SCMP Rachelle St. John, SCMP Jennifer Bray, SCMP Yasser Hammoud, SCMP Andrew J. K. Murray, SCMP Paulette Stoddard, SCMP Stephen Bronneberg, SCMP Zeeshan Hanif, CSCMP* Susan Murri, SCMP Pan Su, SCMP Mathew Brown, SCMP Paula Hawkins, SCMP Caroline Nichol, SCMP Matthew Sutherland, SCMP Suzanne Brown, SCMP Vicki Hillie, SCMP Carol D. Norrie, CSCMP* Matthew Swinarski, SCMP Lindsay Bruce, SCMP Qin (Jamie) Hu, SCMP Marin Nosic, CSCMP* Maria Szilagyi, CSCMP* Belinda Brunet, CSCMP* Shelly Huang, CSCMP* Tara Nunes, SCMP Shalini Talwar, CSCMP* Codrut Buretia, SCMP Luther Itael, SCMP Michelle R. Nurse, CSCMP* Heather Tannash, SCMP Joanne Janet Burke, CSCMP* John Janjic, SCMP Karen A. O’Brien, CSCMP* Muhammad Saqib Tariq, SCMP Leah Burton, CSCMP* Jingyan Jiang, CSCMP* Adebukola Onasanya, SCMP Michael Taylor, SCMP Phil Caperchione, CSCMP* Todd Johansen, SCMP Wilson Oteri, SCMP Arseni Temirov, SCMP Shane T. Castle, CSCMP* Alex Kane, SCMP Megan Otteson, SCMP Craig Totten, CSCMP* Peter Chan, SCMP Nathan King, SCMP David Overland, SCMP Kyle F. Tout, CSCMP* Sanjay Chand, SCMP Ekaterina Korneyashenko, SCMP Jillian Parisee, SCMP Emad Uddin, SCMP Daniel Chao, SCMP Jerry Kowalczyk, CSCMP* Kanti Patel, CSCMP* Beckey Unrau, SCMP Yogendrasinh Brijpalsinh Chaudhari, CSCMP* Bev (Beverly) Kowdrysh, SCMP Ashish Pawar, SCMP Amedeo Valentino, CSCMP* Rachel Chen, SCMP Stephen Kushniruk, SCMP Donalda Penley, SCMP Maria Agnes Vandermeer, SCMP YuZhuo Chen, SCMP Cheu‐Oui Lam, SCMP Caroline Penrose, SCMP Antonio Vazquez, SCMP Chi An Chen, SCMP Navdeep Lamba, CSCMP* Valerie Ann Pereira, CSCMP* Fang Wang, SCMP Chun Hao (Baron) Chen, CSCMP* Amanda Lance, SCMP Marc Perreault, SCMP Mabel (Zhihong) Wang, CSCMP* Jason Y. Chen, CSCMP* Lisa Larson, SCMP Deanna Pitirri, CSCMP* Brent Willett, SCMP Jinyu (Ricky) Chen, CSCMP* Steven Laschowski, SCMP Hamed Pourchi, SCMP Rose M. Williams, CSCMP* Alex Chik, SCMP Olivia Laughren, SCMP Marilia Prudente, SCMP Wade Wilson, SCMP Nnenna Chukueke, SCMP Adam Lecznar, CSCMP* Aneta Pytel, CSCMP* Denise Wilson, CSCMP* Katie Chung, SCMP Rick William Leung, CSCMP* Nazia Quazi, CSCMP* Min Wendy Wu, CSCMP* Darius Chung, CSCMP* R. Bruce LeVan, CSCMP* Daniel Rafuse, SCMP David (Wei) Xie, CSCMP* Vance Clark, SCMP Lynda Lewis, CSCMP* David R. Rajwanth, CSCMP* Vera (Shixia) Xu, SCMP Dawn Conrad, SCMP Anjela Li, SCMP Shankar Rao, SCMP John Yang, SCMP Leeanne Tracy Croteau, CSCMP* Isabella (Yu Hong) Li, SCMP Stephen Rasch, SCMP Li Yun You, CSCMP* Iris Dandoo, SCMP Wei Li, CSCMP* Azhar Rasheed, SCMP Josephine Youdeowei, SCMP Chris Davidovich, SCMP Roman Limon Bello, SCMP Jawwad A. Rashid, CSCMP* Luyang Zhang, SCMP Sarah Davis, SCMP Katherine Litke, SCMP Erik Ratajczyk, CSCMP* Xiao Dan Zhao, SCMP Chris Davis, SCMP Li (Daisy) Liu, SCMP George Read, SCMP Julia Xiao Ping Zhu, CSCMP* Lauren Dexter, SCMP Scott Lovas, SCMP Monique Rideout, SCMP
scmanational.ca
*SCMA's professional designation is CSCMP (Certified SCMP) in Ontario and SCMP in the rest of Canada and internationally.
SCMA.indd 1 14-12-03 10:56 AM TFT provides this information via a customer portal— a custom system it developed to provide the information its customers want to see in real time. Information is pulled from the WMS and placed in the portal. “They can see at any point inside our operations for any of the commodities or parts that we manage— where we’re sitting as far as on-hand inventory, and where we’re sitting as far as the min-max requirements,” says Lorch. “I can provide them the history of how many times parts would hit a min, or how many times parts would hit a max. And the reason why that’s an attractive feature for them is it allows them to manage their on-hand inventory considerably better.” The portal also includes routing schedules. “If I have a truck that’s 10 minutes late to arrive at our door, the system identifies that, notifies our employees on the floor, and we can then make the which in turn reduces logistics costs considerably. An overview shot of the enquiries as to why that particular truck is late. It’s TFT scans everything that comes into its facility, Ingersoll Cross Dock. an important feature because, with limited space and so the company and its customers have complete TFT operates small-lot a 24-hour-day, six-day-a-week operation, we can’t traceability. pick and pack operation, afford to have trucks falling out of schedule.” “Our goal around here is to be completely elec- freight consolidation There are many factors leading to delays that are out tronic,” says Lorch. “That allows for efficiencies [and] services, quality services, of TFT’s control—border delays, weather conditions reduces the manpower requirements, so you don’t and basic warehousing and road closures. Weather, in fact, was TFT’s biggest have data entry.” services. challenge last winter, says Lorch. That’s why contin- Another technology, TFT’s quality control software, gency planning is so crucial. There may be times when also provides visibility. It allows the company to track the company will need to increase the amount of on- everything that’s been sorted and everything that’s hand inventory to plan for these challenges. been inspected, right down to the licence plate of “We have to be aware of that situation, and we have what box that came out of. to react and respond the minute that particular product shows up,” says Lorch. “Theoretically there are cars Words of wisdom going down that line every 90 seconds. If I’m five What advice does Lorch have for companies going minutes late in what I do, that impacts three cars. If through periods of transition? you sell a car for $35,000, that’s $100,000 in sales that “You need to communicate, communicate, com- the plant has just lost. Even though I’m not the creator municate, because changes happen so quickly and so of the problem, I have to react as if I am, and that dynamically inside this environment,” he says. “If creates a lot of pressure on the employees. That’s why you’re not constantly communicating between your- the visibility, tracking, the inventory control, is such self and other stakeholders, the ability for success a critical aspect in keeping this plant running.” drops dramatically.” The system also identifies if there is extra space on He also highlights the importance of listening to the truck. If it notes outbound trucks that are not full, what the customer’s needs are. TFT can notify the customer that there’s an opportu- “The more you listen to your customer and come nity to add additional freight or consolidate a shipment back with solutions or ideas [for] some of their con- to reduce the amount of shipments needed overall, cerns, the greater opportunity for continued growth you will have,” Lorch says. Ensuring transitions are successful is about more than making the customer happy—though that’s very important. There is something bigger at stake here. “We want to make sure we give these plants every opportunity to succeed, because the pressure is to go elsewhere,” says Lorch. “We have to make this work if we want to continue to have automotive production Handheld technology in Canada or in Ontario. That’s always in the back showing live inventory and of our minds. We can’t fail, because if we do, it’s a quality containment data. reason for somebody to look elsewhere, and we want to keep jobs in Canada.” MM&D
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06MMD-TFTV4.indd 47 14-12-03 10:56 AM DATA CAPTURE News from the scanning frontier The latest in datacapture products and systems
Laser scanning on the way out strategic relationship with Total Soft Bank Ltd (TSB), 2013 was a mixed year for handheld barcode scanner a global port and maritime information technology vendors, as evidenced by VDC Research’s recently solution provider. The new venture will deliver wireless concluded research on the global market. According tracking solutions to the marine terminal operations to VDC’s published data, revenues contracted one market. It will provide supply chain stakeholders with percent from 2012 to US$943 million. access, control and sharing of trade data, asset visibility VDC anticipates continued softness in the market, and real-time security. primarily due to rapidly declining laser scanner shipments. Industry leaders—Datalogic, Honeywell, and Motorola Short-distance specialist from SICK Solutions—are particularly feeling the pinch with a small, SICK has introduced CLV610 fixed-mount 1D barcode but not-so-insignificant drop in overall market share. scanners for warehouse and distribution centre appli- On the other hand, several new and emerging market cations. The CLV610 is a compact, industrial, laser- participants, including Code and Fujian Newland, based scanner that is meant for short reading distances have seen significant revenue and share increases in with a large reading field height. Using SICK’s SOPAS the past 12 to 18 months—at the expense of these configuration software, these high-resolution scanners traditional incumbents. are easy to install and simple to integrate into conveyor This research indicates that enterprise end users’ systems. An optional configuration cloning module migration from legacy laser scanning infrastructure and quick-release mounting bracket enable fast to the less proprietary camera-based imaging technol- replacement time. ogy is helping level the competitive playing field. The CLV610 has an adjustable scanning frequency of up to 1,000 scans/second Zebra replacing ZM series printers and a fixed-focus feature that enables Zebra Technologies has launched the new ZT400 series, simple and fast commission- a mid-range printer to replace all ZM series printers. ing. These scanners can The ZT400, like the current ZM, is intended to offer be used for tote reading, flexibility to address a broad range of applications stacker crane and box including those in harsh environments. The ZT400 will reading applications as offer easier loading, simpler set up, increased connec- well as in medical ana- tivity, Link-OS capabilities and on-pitch radio frequency lyzer applications. Short-, identification (RFID) encoding. mid- and long-range scan- Zebra says the new line offers better print quality, ners are available as well as improved up-time, reliability, and durability, simplified CAN and fieldbus versions. serviceability and maintenance and a more intuitive interface. Datalogic unit can replace computer Datalogic has added the PowerScan PM9500-DK 2D Long-range scanning for the DC imager to the PowerScan line. It has a display and a The new Granit 1280i laser scanner from Honeywell 16-key keyboard. goes the distance, reading barcodes from as far as The PM9500-DK model offers a cost-effective alterna- 16.5m (54’) or as close as 8.9cm (3.5”). The unit has tive to a more expensive mobile computer. The phone- an industrial-grade cable option, capable of with- like keyboard allows operators to manually enter data standing 300,000 90-degree bends at -30°C for easy management of simple code-quantity applica- (-22°F). Its custom built IP65 rated housing is able tions such as picking, inventory and receiving. to withstand 5,000 one-metre tumbles and survive The PM9500-DK imager includes the latest genera- 50 drops from 6.5 feet (2m) at -30°C (-22°F), reduc- tion of the Datalogic STAR2.0 Cordless System narrow ing service costs and increasing device uptime. band radio. The technology provides high-speed wireless mobility from 433MHz and 910 MHz radio Merger for marine terminal tracking communications. It can handle simple point-to-point Globe Tracker International, a global asset tracking, applications and has networking capabilities combined monitoring and data sharing provider, has entered a with seamless roaming two-way communication.
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06MMD-DataCaptureV3.indd 48 14-12-02 4:11 PM EQUIPMENT FOCUS Forktrucks & Accessories
1 Tire handlers Hyster Company has introduced a new series of tire-handling trucks for applications in the mining, ports and intermodal industries. Hyster now offers 21 tire handler configurations ranging from 5,000- to 1 36,000- pound capacity on the Hyster H120FT through Hyster H700HDS trucks. These are designed to handle tire diameters up to 164 inches, and are available in a number of models for dedicated tire handling, as well as hang-on quick-connect options for flexible transition between forklift and tire handler modes. Tire handler attachments feature grab pads that firmly grip the tire in the required position for changing. Hydraulically actuated fallback arm protection is standard on most models for safe handling of tires in the horizontal position, while in park. The trucks also offer a minimized turning radius—a benefit for operations with tight workspaces. All models are designed to be “plug-and-play” for easy on-site installation.
2 Electric truck 3 Thin plate batteries Mitsubishi Caterpillar Forklift America Inc EnerSys recently introduced NexSys (MCFA), the provider of Jungheinrich lift 12NXS120 and 12NXS158 Thin Plate Pure trucks and narrow-aisle products in the Lead (TPPL) batteries. Thanks to the US, Canada and Mexico, introduced a power-dense construction, NexSys 7,000-pound capacity model to its large batteries typically occupy 30 percent less electric pneumatic tire lift truck series. space than equivalent lead-calcium cells. The new EFG 535k-S50 series is In multi-shift operations, NexSys equipped with three-phase AC batteries allow for rapid charging during technology, resulting in increased shift breaks, with extended battery run productivity and the ability to run up to times beyond conventional batteries. two shifts on a single battery charge in 3 Virtually maintenance-free, they are well most applications. Additionally, these suited for small traction applications forklifts have a maintenance-free including floor care and cleaning regenerative braking system, which feeds machines, pallet trucks, shuttle personnel energy back into the battery. carriers and industrial utility vehicles. The TPPL construction uses compressed Absorbed Glass Mat (AGM) plate separators with high electrolyte 2 absorption and stability to enhance cyclic capability and provide extreme vibration resistance. The NexSys 120-AH battery measures at 13.31 inches in length, 6.81 inches in width, 10.71 inches in height and weighs 94.8 pounds. The NexSys 158-AH battery measures at 17.9 inches in length, 6.66 inches in width, 10.75 inches in height and weighs 117 pounds.
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06MMD-Forktrucks.indd 49 14-12-02 4:13 PM Problem? By MM&D Staff safety equipment—like a football player wearing a helmet and pads,” adds Ellis. Problem: Damage to racking from Most of the damage in warehouse pallet rack occurs mobile equipment at the row end, where lift truck operators have to turn Mobile equipment operators aren’t perfect, and a lot into the aisles, according to Ellis. If they miscalculate of damage to your racking system can occur as a going around the corner, they will swing into end result of collisions by forklifts. With space at a pre- row pallet rack. mium, there is less and less room for maneuver in Rack damage is also common along an upright’s first most DCs and warehouses. six to 12 inches of column from the floor due to lift The damage caused by these collisions can be costly truck impact, particularly at tunnels, drive thrus and and result in injuries and lost time. intersections, where maneuvering is tight. Additional So how can the warehouse manager prevent damage can occur when lift truck operators push pal- accidents? lets, empty or with product, against end row uprights, which can bend their diagonal or horizontal bracing. Solution: Rack guarding “To prevent pallet rack damage from lift trucks at end “As managers try to bring as much rack and material rows and intersections, one of the cost effective methods into the warehouse as possible, lift trucks run tighter is to install low-profile, high-strength, safety steel angle in the aisles, making impact more likely,” says John as protection along high-traffic routes,” says Ellis. Ellis, a regional sales manager at Steel King Industries, To be most effective in these areas, he suggests the a Stevens Point, Wisconsin-based manufacturer of safety steel angle should protect three- or four-inch wide pallet rack and warehouse safety products. upright columns, and offer right, left, or double-ended “Even the best of plant operations can expect some guards so it works with virtually all end row racks. forktruck impact, so it is important to minimize any Such pallet rack protection can be particularly damage and production downtime with the proper important in freezer applications where space is very
50 MM&D | November/December 2014
06MMD-Problem.indd 50 14-12-03 11:01 AM Solution! restricted, the floor can be slippery, and reaction Problem: Loss of heated air when dock times slowed by the cold. doors open and close. For more universal plant and warehouse protection As trucks come and go at dock doors, they can be from lift truck damage, more comprehensive pre- opened and closed multiple times a day, allowing engineered industrial guard railing systems can offer exchange of the building’s heated or cooled air with more complete safety. the outside air. Obviously this will increase power Pre-engineered, prefabricated industrial guard rail- bills as the HVAC systems will need to work much ing systems can protect a whole range of plant and harder to keep the building’s interior at a comfortable warehouse applications. These applications can range temperature for workers and product. from worker, production, inventory, and loading areas to walkways, aisles, mezzanines, and in-plant offices. Solution: “Pre-engineered industrial guard railing systems can A recently released study by the Door and Access Systems serve as a visual and physical barrier between staging Manufacturers Association found that high-speed door and work areas, including machinery such as convey- operation can contribute cost savings and environmental ors, computer consoles, electrical panels, HVAC equip- benefits by closing up the building envelope seal. ment, and freezer-cooler controls,” says Ellis. While a high-speed door may not offer a high Standard construction of the pre-engineered railing R-value itself, the speed with which it opens and closes systems consists of corrugated steel rails that bolt to can make up for the losses when it’s closed. square tubular columns. The columns are pre-welded If the doorway is used frequently, the study found to heavy steel base plates, which are anchored to the that quickly closing doors can be more effective at concrete floor. Anchor bolts, steel post caps and rail saving energy than those with heavily insulated pan- hardware are usually included in the package. The els. The study showed that high-speed doors become rails and posts are usually painted a bright safety more efficient when cycled 55 or more times per day. colour for easy visibility. High-speed operation controls the air exchange so less energy is required to maintain building temperature. An added benefit is that quick doors make it harder for unauthorized personnel to enter the building. On the basis of this new research, the 2015 International Energy Conservation Code (IECC) will recognize the contribution of high-speed doors to energy conservation.
Rytec is one company that manufactures high-speed dock doors like this that can help cut energy costs.
Do you have DC operations problem or a solution that we can feature in this new column? Please send a note to editor Emily Atkins at [email protected]
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06MMD-Problem.indd 51 14-12-03 11:01 AM LEGAL LINK Perform contracts honestly “Always be sincere, even if you don’t mean it.” —Harry S. Truman
n November 13, 2014, the Supreme Court of It held that Hrynew breached his duties to perform OCanada released its precedent-setting decision contractual obligations honestly, and the court assessed in Bhasin v. Hrynew 2014 SCC 71, which recognized and awarded damages against them in the amount of there is a general organizing principle of Canadian $87,000 for breach of this new duty. The court considered Marvin Huberman contract law, and established a new duty of honest this duty to be fair, in accord with the expectations of performance of contracts. the commercial parties, and sufficiently precise that it In the lower courts, the Alberta Court of Queen’s will enhance, and not diminish, commercial certainty. Bench held there was an implied term of the agreement The court stated that the organizing principle of good between the parties, that decisions concerning the faith “exemplifies the notion that, in carrying out his renewal of the contract would be made in good faith. or her own performance of the contract, a contracting It found that in the period leading up to the non-renewal party should have appropriate regard to the legitimate of the contract, Hrynew acted dishonestly with Bhasin. contractual interest of the contracting partner”. The Alberta Court of Appeal found the contract was While the court confirmed this organizing principle clear and contained an entire agreement clause. In that is manifested in existing types of circumstances, includ- context, it held there was no implied term of good faith. ing employment contracts, it also recognized that the In the Supreme Court of Canada, the questions principle of good faith should be developed incremen- presented were whether the common law of Canada tally. The court recognized a duty of honest performance imposes a duty on parties to perform contractual as an example of this incremental development. obligations honestly and, if so, whether Hrynew This new duty of honest performance, which oper- breached that duty. ates irrespective of the intentions of the parties, Before the Bhasin decision, a duty of good faith was according to the court, “means simply that parties generally restricted to insurance contracts, employ- must not lie or otherwise knowingly mislead each ment contracts, and franchise agreements, as well as other about matters directly linked to the performance certain situations involving fiduciaries and uncon- of the contract.” scionable conduct. This duty does not, however, include a duty of full dis- In Bhasin, where the appellant argued that his con- closure like an insurance contract; neither does it obligate tractual counter-party had caused him to lose the a party to subordinate its interests to those of the other value of his business as a result of dishonest conduct, contracting party like in a fiduciary relationship. the court expressly held that parties must act honestly The court also made it clear the principle of good in the performance of contractual obligations, and faith must be applied in a fashion that recognizes the failure to do so can constitute a breach of contract. long-standing principle of freedom of contract which permits a party to pursue economic self-interest, which may cause—even intentionally—loss to another. The court stated that the duty of honest performance may be relaxed by the parties through express con- tractual terms “so long as they respect its minimum core requirements.” It further cautioned that the principal “must be clear not to veer into a form of ad hoc judicial moralism or palm-tree justice.” Given that concepts of reasonableness and honesty are extremely fact-specific, only time will tell whether or not this landmark decision will result in a positive incremental development in the case law dealing with the duty of honest performance or in palm-tree justice. MM&D
Marvin J. Huberman, LL.B., LLM, is a Toronto trial and appellate lawyer, mediator and arbitrator. www.marvinhuberman.com.
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06MMD-ll.indd 52 14-12-02 4:14 PM LEARNING CURVE Trucking’s driver shortage starts at home
shortfall of up to 33,000 commercial delivery driv- and everything will be fine,” Easson told the CBC. Aers is expected in Canada by 2025, unless some Whether Easson’s Nova Scotia operation and other drastic new solutions can be found and implemented. recently sanctioned companies are guilty of wrongdo- That’s what we’ve been hearing for a few years now. ing or not, it is safe to say any negative publicity about Tracy Clayson Approximately 40,000 drivers are reaching retirement the program makes the job of finding and hiring age in the next 10 years and that’s not good. But it’s foreign workers even tougher. really only half the story. The other half is the simple Many sectors are being affected by the truck capacity fact that the trucking industry is not attracting enough crunch, including those in mining, forestry, agriculture new Canadians and foreign workers. and construction. Within the trucking industry, there The 2011 Canadian Trucking Human Resource are roughly 31,000 firms employing 300,000 people Council (CTHRC) Survey, that used Statistics Canada with an average annual turnover rate of 35 percent. data from 2006 and 2009, shows only 7.5 percent of The need for a major action plan has never been truck drivers are considered recent immigrants. greater. Thankfully the Canadian Trucking Alliance’s The shortage hits certain industries pretty hard, “Blue Ribbon” task force, especially in Western Canada. There, many compa- formed in 2011, is working nies in the oil and gas sector are targeting recruiting hard to develop strategies efforts at non-Canadians. Unfortunately, there have to build up the driver pool been complications. by focusing on the root One is that truck driving is not considered a skilled causes of driver hiring and trade. As a result, qualified foreign truck drivers can retention problems. experience problems trying to enter Canada to con- David Bradley, of the tinue their careers on our roads. CTA, has even pledged to Further, a program actually designed to solve this enhance the driver train- problem has experienced challenges. The Temporary ing and licensing stan- Foreign Worker Program (TFWP), which companies dards to move the job title can use to prove there is a shortage of qualified avail- from semi-skilled to able citizens of Canada for the truck driver role, has skilled worker, as a way of earned its share of negative media attention. boosting the likelihood of In fact, a CBC.ca story posted on May 8, 2014, a successful foreign worker “Temporary Foreign Worker Program sanctions Nova program and increasing the funding for training. Scotia trucking company”, described an example After all, many foreign workers—and young from the trucking industry. Eassons Transport in Canadians for that matter—want to be assured that Berwick, NS was sanctioned, pending an investigation driving a truck will lead to a good career, not just a into the company’s requests for Labour Market short-term assignment. And certain key barriers to Opinions, which are required to prove the need for attracting drivers are not going away, including low hiring a temporary foreign worker over a Canadian. earning potential, physically demanding work and The owners of Eassons saw its permits to hire work- the lack of opportunities for advancement. The ugly ers through the TFWP program suspended by the truth is that, in the current era, few truck drivers go department of Employment and Social Development on to other roles in the trucking business after they Canada on May 1, 2014 because, the department said, tire of the long hours on the road. “there are reasonable grounds to suspect that the That’s a shame, but it’s a secondary problem. First, the employer or group of employers provided false, mis- industry needs to figure out how to get the people who leading or inaccurate information in the context of are willing into the country and behind the wheel. the request for that opinion.” MM&D The company, which operates a fleet of 125 tractors and 150 trailers, says it didn’t break protocol. “We Tracy Clayson is managing partner, business feel that we haven’t done anything wrong and we feel development of Mississauga, Ontario-based that when the audit is finished that will be proven In Transit Personnel. [email protected]
www.mmdonline.com | November/December 2014 53
06MMD-lc.indd 53 14-12-02 4:13 PM MATERIALS HANDLING When do you tell the customer?
n the concluding paragraph of the last column we these cases the amount of the delay and cause are Ileft an important issue unanswered. If you have a both factors in determining when and how you should problem with a shipment in transit, when do you tell communicate to the customer. the customer? First as a general observation, all transportation In a world that emphasizes increasing amounts of companies today except possibly forlocal delivery, transparency there is still a significant opportunity need an automatic track and trace system. This should Dave Luton for management decisions. Important among these be equipped at a minimum to provide in-transit loca- is when to notify the customer that there is a problem tion and time of arrival at key points and be available with their shipment. Too early and you drown them to the customer 24-7. Upgrading from a purely passive with too much information. Too late and you have reporting system to report on unusual cases of delay an upset customer. or if a shipment goes off route for some reason is a First, we have to look at the various types of problems worthwhile investment. that can occur with a shipment. Probably the best As supply chains get longer and international, many place to start is to review the definition of what has shipments can be subject to the routine delays of been termed the “perfect order”. international commerce. An example is a shipment A perfect order has the following characteristics: The that is pulled aside for more detailed Customs inspec- order is shipped complete, on time, and undamaged. tion. Since Customs inspection is a regular part of There are problems that can occur in transportation international commerce and the goods are usually and the question remains when and who do you inform. promptly released, passive reporting should be suf- There is also the choice of active or passive forms of ficient except in high service modes like air freight. communication. Active communication is when you When corrective action is required, so too is prompt contact the parties, and passive is where the customer notification. In the Customs example incorrect paper- finds out through an automatic tracing system for work requires further action and the responsible which you record that a railcar has been bad ordered. parties should be informed. Protocols should also be First let’s look at extreme cases. established in advance on when to inform other links Complete loss or heavy damage to a shipment is an in the supply chain, and who will perform that task. obvious case for early and complete proactive commu- For non-routine delays such as port delays caused nication with all parties. including both supplier, user by strikes or lockout, or weather in parts of the world and receiver regardless of who will bear the in transit loss. that a receiver does not normally monitor (eg a hur- For the supplier and user the concern is that the goods ricane in the South China sea) a transportation com- are no longer available and they need to determine pany should be prepared to communicate these. It quickly if replacement product is needed and to take should be communicated if the delay is significant the best corrective action both short and long term. or exact timing is critical. The earlier they know this information the more time Assuming a good track and trace system, flagging they have to ship replacement product. For some types it initially maybe be sufficient. If the delay is expected of product the need to take corrective action from an to be lengthy a more proactive approach is called for. environmental perspective is also a consideration. For a critical piece of machinery required to meet a The receiver needs to know even if the transporta- construction schedule this requires more attention tion vehicle can still deliver to destination because and follow-up. there may be extensive damage to contents. Both In conclusion, some simple rules are a good starting from a claims and a receiving personnel safety per- point for a transportation when you communicate spective, management attention is obviously needed. with the customer about a shipment problem. It’s Years ago, a boxcar of soap powder derailed and was time to pick up the phone when these things happen: just rehoisted onto the track and shipped into the Catastrophic loss or heavy damage; unexpected or receiving warehouse. Needless to say, when the receiver significant delay; a delay that requires corrective opened the door he was almost buried—a little advance action to resolve. communication would have been appreciated. It’s best to overcommunicate if the shipment or its While extreme cases can be easily quantified, a less timing are critical. MM&D more clear situation occurs with in-transit delays for which a shipment is eventually received, but not in Dave Luton is a consultant in the greater Toronto the originally scheduled delivery time window. In area. [email protected]
54 MM&D | November/December 2014
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