Download the PDF Version of This Issue
Total Page:16
File Type:pdf, Size:1020Kb
AUGUST 2016 AUGUST CANADA’S SUPPLY MANAGEMENT MAGAZINE DON’T SIT BACK! Larry Berglund on the case for continuing education Managing RISK • Fleet Excellence WINNER • The rise of BIG DATA Global Sourcing PB2B_Aug2016_AMS.indd 1 2016-08-09 10:35 AM Workplace Studio Inspire productivity. When it comes to planning a workspace, Staples Business Advantage™ works side by side with your business on every step, from creating a custom design to furniture and fixture installation. With cubicles and nesting tables, modular storage and beyond, our dedicated furniture experts bring you nationwide solutions from over 250 top manufacturers. Plus, with our unmatched buying power, you always get competitive pricing. So you can keep your team moving every day. Get started today. Visit StaplesBusinessAdvantage.ca/Furniture or call 1.877.272.2121 to learn more. PB2B_Staples_August.inddPB2B_Aug2016_AMS.indd 21 2016-07-142016-08-08 2:341:00 PM Vol. 58, No. 4 • AUGUST 2016 Table of Contents Features 8 6 SUPPLIER RISK What’s shaping risk for global procurement? 8 GLOBAL SOURCING The challenges and advantages to sourcing overseas. 11 BIG DATA Here’s what to do with all that information. 13 THE 2016 SCMA NATIONAL CONFERENCE Managed services and the merits of electronic bidding. 14 14 NEVER STOP LEARNING SCMA names Larry Berglund as the 2016 Fellow. 32 PERSONAL PROTECTION EQUIPMENT Tips for buying PPE and other safety gear. Also inside 4 UP FRONT 32 5 BUSINESS FRONT 34 THE LAW Workplace Studio 16 33 Cover photo: Brice Ferré Connect With Us Online We encourage you to visit us online to stay in touch Inspire productivity. with what’s happening in your industry and to .ca PurchasingB2B.ca @PurchasingB2B Michael Power view enhanced articles. When it comes to planning a workspace, Staples Business Advantage™ works side by side with your business on every step, from creating a custom design to furniture and fixture installation. Features With cubicles and nesting tables, modular storage and beyond, our dedicated furniture experts SMART INVOICING IT’S ALL IN THE NUMBERS bring you nationwide solutions from over 250 top manufacturers. Improving the efficiency Applying standard deviation calculations in and effectiveness of RFP evaluation scoring. accounts payable systems. www.PurchasingB2B.ca/features Plus, with our unmatched buying power, you always get competitive pricing. So you can keep your www.PurchasingB2B.ca/features team moving every day. HOW DOES YOUR SALARY STACK UP? Visit the PurchasingB2B online salary calculator to Get started today. find out where you stand compared to other Visit StaplesBusinessAdvantage.ca/Furniture or call 1.877.272.2121 to learn more. supply chain professionals. www.PurchasingB2B.ca/features PurchasingB2B Weekly eNewsletter Sign up today for regular industry news and insights. www.PurchasingB2B.ca/e-newsletter-subscription PurchasingB2B.ca | August 2016 | 3 PB2B_Staples_August.indd 1 2016-07-14 2:34 PM PB2B_Aug2016_AMS.indd 3 2016-08-08 1:00 PM Up Front 80 VALLEYBROOK DRIVE TORONTO, ONTARIO M3B 2S9 www.PurchasingB2B.ca PUBLISHER/ADVERTISING SALES Dorothy Jakovina 416-510-6899, [email protected] A World EDITOR Michael Power Of Contrasts 416-442-5600 ext 3259, [email protected] ART DIRECTOR Andrea M. Smith ACCOUNT COORDINATOR oday’s business world moves so fast, it seems to shrink and get bigger at the same Tracey Hanson time. Challenges lead to opportunities, while situations designed to provide 416-510-6762, [email protected] opportunities—business travel, for example—are also full of risks for both the CIRCULATION MANAGER T Barbara Adelt organization and the employees doing the travelling. 416-442-5600 x 3546, [email protected] On the one hand, the global economy—and sourcing from across that globe—has lengthened supply chains while bringing more goods and services to consumers than ANNEX PRINTING & PUBLISHING INC. VICE-PRESIDENT: T im Dimopoulos (416)510-5100, ever before. [email protected] The accumulation of massive amounts of information (known as big data) has led to PRESIDENT & CEO: Mike Fredericks, [email protected] insights we couldn’t have arrived at otherwise. At the same time, all this information raises questions regarding what that data actually means and how it should be used. For over 58 years, PurchasingB2B has been a trusted source of These are some of the contrasts in the world of procurement and supply chain today information for Canadian purchasing/supply chain management professionals in the private and public sectors. Special features that you’ll find in this issue of PurchasingB2B. On page 8, we take a look at how global and supplements include Fleet Management, Canadian Automotive sourcing has changed in recent years, including the ways in which technology affects Review (CAR), PurchasingB2G, and Travel Management Canada. the process. We also explore how big data (page 11) is providing organizations with PurchasingB2B is published six times a year, except for occasional opportunities to shape customer decisions in a way that access to information never combined, expanded or premium issues which count as two subscrip- tion issues, by Annex Business Media. has before. Along with this coverage, I’m also pleased to profile Larry Berglund, SCMP, © Contents of this publication are protected and may not be reproduced, in whole or in part, without the written consent of the MBA, FSCMA, in this issue. Larry was awarded the designation of fellow at the publisher or editor. SCMA National Conference in Niagara Falls in June. Each year, the Supply Chain NOTICE: PurchasingB2B accepts no responsibility or liability for claims Management Association recognizes individuals and organizations for their contri- made for any product or service reported or advertised in this issue. butions to the field, through innovation, dedication and leadership. The distinction PurchasingB2B receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to is the highest honour that SCMA gives to its members, and Larry has been a practi- time.PurchasingB2B, its affiliates and assignees may use, reproduce, tioner and educator in the field throughout his long career. I’ve been PurchasingB2B’s publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, editor for six years and have been pleased to have Larry as a regular contributor and without compensation of any sort. interview subject for much of that time. He as always been generous with his time and SUBSCRIPTION SERVICES: To subscribe, renew your subscription, knowledge of procurement and supply chain and never misses a deadline when con- or to change your address or information, contact us at 416-510-5713 or tributing articles—an important attribute in any writer. PurchasingB2B is happy to fea- 1-866-543-7888, ext 3258, [email protected], or visit us at www.PurchasingB2B.ca. Subscription price per year: $99.95 CDN; ture him on page 14. Outside Canada per year: $172.95 US; Single issue Canada: $18 CDN. Along with Larry’s honour, TELUS won the Supply Chain Management Excellence Annual Supply Chain Survey issue, Canada: $45; Outside Canada: $70 Award for using its supply chain management to enhance its competitive advantage. US. Taxes extra. The company has recently developed several initiatives to transform its procurement From time to time we make our subscription list available to select and supply chain functions. Hats off to Larry and TELUS. companies and organizations whose product or service may interest you. If you do not wish your contact information to be made As always, I hope that you enjoy this issue. As a side note, another contrast famil- available, please contact us via one of the following methods: iar to most of us is the short Canadian summer, so I hope that you enjoy get a chance Phone: 1-800-668-2374, Fax: 416-442-2200 to enjoy it. Mail to: Privacy Officer, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Printed in Canada. ISSN: 1497-1569 (print); 1929-6479 (digital) Publications Mail Agreement No. 40065710 We acknowledge the [financial] support of the Government of Canada 4 | August 2016 | PurchasingB2B.ca PB2B_Aug2016_AMS.indd 4 2016-08-08 1:00 PM Business Front Toronto-based Much Ado Michael Hlinka provides business commentary About Nothing to CBC Radio One and Is the Brexit vote to leave the EU a column syndicated as disastrous as some say? across the CBC network. By Michael Hlinka ’m certain you’re aware that William Shakespeare economic confidence—is hitting new all-time highs almost daily. was an English poet and playwright who was Even more surprisingly, if you look across the pond at the FTSE 100 Iborn about 450 years ago. There is a general con- (England’s most important bourse), it is also reaching never-before-seen sensus that he’s the greatest writer in the English levels. Yes, you read that correctly: stocks in the UK are valued higher language. I’m not here to dispute that. Wild Bill than they’ve been, demonstrating that with the benefit of 20/20 hind- penned some memorable tragedies: Corialanus sight, we can understand that the vote to leave the EU was much ado is my favourite. Several others, particularly King about nothing. Lear and Julius Caesar are terrific. But along the It’s important to remember that England embraced the idea of union way he laid a bunch of eggs. Most of his comedies somewhat reluctantly. It always maintained its own currency, which are not as funny as a really bad episode of the 1970’s meant that it had an independent monetary policy. True, the nation sitcom, Three’s Company. And maybe the worst of enjoyed (or not) free trade, similar to the arrangement that Canada has all is Much Ado About Nothing. with the US through NAFTA.