OCTOBER 2017
CANADA’S SUPPLY MANAGEMENT MAGAZINE
2017 Annual
Purchasing & Supply Chain Professional Survey
SUPPLY CHAIN
JOURNEY Glenn Gray on four decades in procurement HELP WANTED: Procurement Jobs Roundtable Celebrating Supplier Diversity
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Table of Contents
Vol. 59, No. 5 • OCTOBER 2017
Features 6
THE RESULTS ARE IN! Our annual survey looks at salary, gender equity, job satisfaction and more.
11
HELP WANTED Our experts discuss procurement and employment.
15
CELEBRATING DIVERSITY CAMSC hosts its 13th annual Business Achievement Awards.
16
ALL ABOUT THE JOURNEY Glenn Gray receives the 2017 SCMA Fellow Award.
20
PARTY TIME A look at products for the party season.
Also inside
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6
11
Supplement Inside
16
UP FRONT BUSINESS FRONT THE LAW
18
Cover: Dan Harper
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PurchasingB2B.ca
@PurchasingB2B
Michael Power
Features SEPTEMBER 10-11, 2018 CAREER UPGRADE TIPS
This article provides tips and tools to help procurement professionals make the most of their professional development. http://bit.ly/2wt83u5
PurchasingB2B is hosting Canada’s premiere procurement technology solutions event. www.ProcureTechCanada.com
PURCHASINGB2B ENEWSLETTER
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PURCHASINGB2B IS ON FACEBOOK! Visit us on Facebook to friend us, comment on a post or simply catch up on our online content. facebook.com/PurchasingB2B PurchasingB2B.ca | October 2017 |
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Up Front 80 VALLEYBROOK DRIVE TORONTO, ONTARIO M3B 2S9
www.PurchasingB2B.ca PUBLISHER/ADVERTISING SALES
Dorothy Jakovina 416-510-6899, djakovina@PurchasingB2B.ca
Tapping Into Talent
EDITOR
Michael Power 416-442-5600 ext 3259, mpower@PurchasingB2B.ca ART DIRECTOR
I
t’s become sort of a cliché that taxi drivers in big cities like Toronto often have advanced degrees in areas like engineering. Or, as Michael Hlinka notes in his page-five column, sandwich makers with honours English degrees. Nothing wrong with that kind of work—trouble is, an engineer behind the wheel or an English major who makes sandwiches is doing a job that simply doesn’t match their professional skills. Many of these people are newcomers to Canada. This appears to be the situation for a number of procurement professionals new to the country as well. PurchasingB2B held a roundtable in September focusing on employment within the field (See page 11). Near the end of the roundtable, the conversation shifted to a discussion of difficulties that new Canadians face in finding a procurement role here. As Neil Drew of Winchesters pointed out during the discussion, the job-hunting process is made even more difficult by the modern focus on “soft skills” like communication. The process of communicating with colleagues, clients and so on can be confounded by differences in language and culture. As Drew asked, “What should we do with those people? Do they just leave the industry?” Several other participants on the roundtable picked up on this theme, with Sean Naidu of Hays noting that about 90 percent of the applicants for any one job are either new to the country or currently located outside of Canada. A lack of experience here in Canada tends to be a barrier to getting hired. But there are success stories out there. Also in this issue, we cover the CAMSC Business Achievement Awards, which took place on September 28. Several of the diverse suppliers and small businesses that received an award were (or were run by) immigrants. Kacee Vasudeva, who spoke during the awards as the CAMSC supplier spotlight speaker, came to Canada from India in 1971 and was able to build a $100-million group of six automotive manufacturing plants. Overall—through technology, globalization and other developments—the world of work is facing changes and challenges previous generations of work haven’t faced. These challenges can be compounded for new Canadians (with limited or no Canadian experience), Aboriginal workers and others. The efforts of groups like CAMSC, as well as corporate supporters of supplier diversity like RBC, EY, TD, CIBC and others can go a long way to tapping into some of that latent talent. Speaking of talent, we’re on the lookout for the shining stars of Canadian procurement. PurchasingB2B is partnering with ProcureCon Canada on the EPIC Awards. The awards recognize and celebrate accomplishments in procurement in the categories of individual and team innovation, rising star, lifetime achievement and supplier excellence. Nominations are now open. The winners will be announced and celebrated at the ProcureCon Canada conference in Toronto next April. For information and nomination forms, visit www.PurchasingB2B.ca/Awards.
Andrea M. Smith ACCOUNT COORDINATOR
Tracey Hanson 416-510-6762, thanson@annexbizmedia.com CIRCULATION MANAGER
Barbara Adelt 416-442-5600 x 3546, badelt@PurchasingB2B.ca ANNEX BUSINESS MEDIA GROUP PUBLISHER: Martin McAnulty, mmcanulty@annexweb.com COO: Ted Markle, tmarkle@annexweb.com PRESIDENT & CEO: Mike Fredericks, mfredericks@annexweb.com For over 59 years, PurchasingB2B has been a trusted source of information for Canadian purchasing/supply chain management professionals in the private and public sectors. Special features and supplements include Fleet Management, Canadian Automotive Review (CAR), PurchasingB2G, and Travel Management Canada. PUBLICATION MAIL AGREEMENT NO. 40065710 ISSN 1497-1569 (print); 1929-6479 (digital) CIRCULATION email: apotal@annexbizmedia.com Tel: 416-510-5113 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 SUBSCRIPTION RATES Published six times per year Canada — 1 Year $ 99.95 CDN Outside Canada — 1 Year $ 172.95 USD Occasionally, PurchasingB2B will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. ANNEX PRIVACY OFFICER privacy@annexbizmedia.com Tel: 800-668-2374 Opinions expressed in this magazine are not necessarily those of the editor or the publisher. No liability is assumed for errors or omissions. All advertising is subject to the publisher’s approval. Such approval does not imply any endorsement of the products or services advertised. Publisher reserves the right to refuse advertising that does not meet the standards of the publication. No part of the editorial content of this publication may be reprinted without the publisher’s written permission. © 2017 Annex Publishing & Printing Inc. All rights reserved. Printed in Canada. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
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| October 2017 | PurchasingB2B.ca
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Business Front
Underemployment A high skills level doesn’t guarantee a satisfying work life
Toronto-based Michael Hlinka provides business commentary to CBC Radio One and a column syndicated across the CBC network
By Michael Hlinka
I
f you measure the health of the North American labour market by the most traditional measure, unemployment, things are rosier than rosy. In August, the Canadian unemployment rate was 6.2 percent, which is the lowest rate since before the financial crisis of 2008-2009. The numbers are even better in the United States: A paltry 4.2 percent of the labour force is out of work. And since the rate peaked at close to 10 percent in 2010, there has been a slow and seemingly secular decline, which is a fancy way of saying that it’s not going to reverse any time soon. This is a good thing. If you have ever been out of work—and I’ve been in that uncomfortable place at various times in the past—there is nothing worse.
famous for its photo-essays. There was one story that for some reason I’ve remembered for close to 50 years, and it was about the alienation of assembly line workers. These folks were enjoying a standard of living that previous generations only dreamt about, but they were bored on the job and ultimately dissatisfied with their lives. Here’s the reality I’m seeing for so many workers today: They are experiencing a lower standard of living and quality of life than previous generations, and they’re stuck in occupations where they are bored on the job and dissatisfied with their lives. Call it the worst of both possible worlds. An example that seems to symbolize this condition was a young lady I met several years ago at a Christmas party. She had graduated from the University of Toronto with an honours degree in English two years before, and when I met her, she was working in a sandwich shop, making $13 an hour. There’s nothing wrong with that kind of work. But she didn’t go to “Being unemployed can be absolutely crushing, so school—and a very good school at everything else being equal, low unemployment rates that—to land that position. Surely are something we should rightfully celebrate.” she was hoping for a career where the reading and writing skills she honed There are immediate financial pressures and lonthrough four years of essays would be exercised. But the only thing ger-term worries: Will I ever work again? What is she exercises are the muscles required to slice bread and meat. Then so wrong with me? Being unemployed can be absosome months ago, I ran into an MBA grad from Rotman who was lutely crushing, so everything else being equal, selling cars. An honourable profession, but did he really need to low unemployment rates are something we should spend two years of his life and $100,000 in cold, hard cash to follow rightfully celebrate. Except there’s something that that career path? I have been noticing for some time now, and it is the Okay. So let’s accept that underemployment is a problem. And I structural underemployment…not unemployment, would argue that it’s a far more difficult one to deal with than old-fashbut underemployment that I find more than a little ioned unemployment, particularly if it’s cyclical unemployment. If bit troubling. society’s resources aren’t being fully utilized, then the Central Bank I Googled the following definition of underemlowers interest rates and the federal government spends more or taxes ployment and have copied it verbatim below. less. Economic activity is stimulated, more people get working, and Underemployment: the condition in which people the unemployment rate falls. Yes, the unemployment rate is falling, in a labour force are employed at less than full-time but it doesn’t mean that those who are working aren’t underemployed. or regular jobs or at jobs inadequate with respect to It is possible that all of a country’s taxi drivers are formally trained as their training or economic needs. As you can see, engineers. there are several different ways of looking at underIt seems to me that technology is “dumbing down” a wide variety of employment. It can mean not having as many hours occupations. Which means that there are lower barriers to entry than as you would like, or it can mean working at a job once existed, which means that those who are working are less able to that is far below the skills that you possess. And it is demand high wages than they previously could. The logical reaction on that last definition that I want to focus, because it to those who want to compete in the labour force is to get more trainconcerns me the most. ing, which increases the supply of skilled workers, which leads to lower But first a step back in time: when I was growing wages…and it leads to a large cohort of skilled educated people who are up in the 1960’s, my family used to subscribe to a ultimately stuck doing lower-value added work, meaning that they will magazine called Life. It came out weekly and was be forever underemployed. B2B PurchasingB2B.ca | October 2017 |
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HEADING HIGHER The 2017 Annual Purchasing and Supply Chain Professional Survey sees salaries tick upwards By Michael Power
S
upply chain professionals have gotten a healthy salary increase over past year and—not surprising—are quite satisfied overall with their lot. This year, the average salary for supply chain professionals who responded to our survey hit $92,689—a 10-percent increase from the 2016 average of $84,078. What’s more, 85 percent of respondents have said that they are “very satisfied” or “somewhat satisfied” with their salary, which is up from 77 percent last year. Those are some of the results of the 2017 Annual Purchasing & Supply Chain Professional survey, conducted by PurchasingB2B magazine over the summer. The survey highlights what supply chain professionals make in every region and industry across Canada. At 59 percent, the majority of respondents this year have seen an increase since 2016. A total of 46 percent saw an increase of two percent of less, while 35 percent saw increases of between 2.1 and four percent. Next year looks bright for the 62 percent of respondents expecting a salary increase next year, with 52 percent expecting two percent or less. Another 34 percent are looking forward to increases of 2.1 to four percent. Similar to last year, we fielded the survey to PurchasingB2B readers over the summer months, from June 5 to July 30. With just over 300 readers respond-
SALARY BY GENDER
SALARY BY REGION
$96,615
BRITISH COLUMBIA
$73,825
ATLANTIC CANADA
$107,879 MALE
$98,796
FEMALE
$80,474
OVERALL AVERAGE
$92,689
ALBERTA
$93,097
MANITOBA/ SASKATCHEWAN
$87,793 QUEBEC
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$91,845 ONTARIO
| October 2017 | PurchasingB2B.ca
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SALARY BY AGE
UNDER 26
$46,250
26–35
$76,894
36–45
46–55
YOU SAID: “The requirement for effective supply chain management is driving the need for more executive roles within the supply chain management field. This means professionals no longer need just a designation to move forward, they also need a MBA.”
OVER 65
55–65
$91,816 $94,485 $87,620 $102,671
ing, the results of the survey have a margin of error of plus or minus 5.6 percent, 19 times out of 20. Respondent profile Based on the survey’s results, the average respondent supervises 4.7 people and has 20.9 years of experience in supply chain. A total of 12.5 of those years have been spent with the current company while 8.4 years have been spent in their current jobs. They have a personal estimated annual sourcing volume of $22.2 million— up from $20.4 million in 2016. Meanwhile, the average sourcing volume of their department is $53 million and the estimated average percentage of organizational spend under their control is 52 percent. As well, the average supply chain budget for their department for 2017 was $138 million. Among Canada’s provinces, Alberta continues to have the highest paid supply chain professionals, with the average salary at $107,879. Not only is that a 16.5-percent increase from the province’s average salary last year, but also 16-percent above the national average. British Columbia boasts the second-highest average salary at $96,615, while Manitoba/Saskatchewan is next at $93,097. Ontario’s average supply chain salary is $91,845 followed by Quebec at $87,793. Atlantic Canada supply chain professionals see an average salary of $73,825, up considerably (24 percent) from the $59,365 reported in 2016. Compared to last year, executives have reported a drop in their salaries. The 2016 executive salary was $124,050—a number that now stands at $116,241 representing a six-percent drop. The only
SALARY BY POSITION Executive
$116,241
Managerial
$98,970
Consultant
$93,241
Strategic Engineering/Professional Supervisor
$95,998 $72,906 $87,849
Analyst
$80,694
Other positions
$78,000
Operations/Tactical Clerical/Administration
$75,930 $68,029
SALARY BY EDUCATION LEVEL
High school or less
$68,953
University bachelor’s degree
$94,157
Trade/technical diploma
$87,651
MBA
$116,316
College diploma /CEGEP
$90,925
Other masters
$124,938
YOU SAID: “A higher skill set is required as is communication, strategic development, relationship building and ensuring the strategic placement of supply chain throughout the organization.”
Some university
$92,050
University degree/MBA/ masters/PhD
$99,548
PhD
$105,500 PurchasingB2B.ca | October 2017 |
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SALARY BY TYPE OF ORGANIZATION
$83,948
$93,843
$83,393
$86,479 $84,000 $98,124
Manufacturing
Trade/ Wholesale
Service
Natural resources
SALARY BY COMPANY REVENUE Up to $50 Million
$80,738
$51 Million to $1 Billion
$101,033
Greater than $1 Billion
$109,181
$97,121
Public Wholesale administration trade
Educational services
other type of position we asked about that saw a decrease was the engineering/professional category. Those job titles went from $86,043 in 2016 to $72,906 this year. Managerial positions earned $98,970, up from $90,878 last year. Consultants have also seen a salary boost from $87,873 to $93,241. There was a smaller increase at the operations/tactical level, up from $73,330 to $75,930. Meanwhile, supervisors are also getting paid more at $87,849—up 10 percent from last year.
Gender gap remains Each year, PurchasingB2B looks at what male and female proSALARY BY NUMBER curement and supply chain professionals earn. Once again, men in the field earn more than women with the average salary at OF COMPANY EMPLOYEES $98,796. Women earn an average of $80,474. Both sexes saw an increase this year over 2016, with men seeing a rise of 11 percent $80,344 1 to 99 and women getting five percent more. Other factors affect salary, for example age. Those 56 to 65 100 to 499 $90,760 years old earned the most, at $102,671. Workers over 65 had the next-highest salaries, at $94,485. The 46-to-55 bracket earned 500 $91,816, while those 36 to 45 took home $87,620. For those 26 to $101,048 or more 35, the average salary was $76,894. Perhaps not surprisingly, more education tends to mean more money. Those with a master’s degree earned the most, at $124,938. Interestingly, respondents with an MBA earned a TOTAL COMPENSATION OVER LAST YEAR bit less on average, at $116,316. A bachelor’s degree meant an average salary of $94,157 and those with a college diploma got $90,925 on average. The average salary for respondents with a technical diploma took home $87,651, while high school or less netted respondents $68,953, on average. The type of organization—along with the size of the company—also affects the amount that supply chain professionals are taking home. As in the past few years, the natural resources Decreased Same Increased sector continues to offer the highest salaries, with an average of $98,124. Close behind that is educational services at $97,121.
52%
5%
42%
WITHIN CONTEXT OF JOB FUNCTION(S) ROLE REFERRED TO AS:
8
10
21
8
11
10
11
Supply chain management professional
Procurement professional
Purchaser
Buyer
Supply phain professional
Other
| October 2017 | PurchasingB2B.ca
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ADVERTORIAL
FUELING GROWTH WITH POSITIVE CASH FLOW
T
here are some truisms in business that never seem to go out of style: The customer is always right. Cash is king. And what separates good companies from the truly innovative is their ability to see what others don’t. Financial executives today face greater challenges than ever before – and new opportunities to drive growth are getting harder and harder to come by. What’s more, fundamental shifts in the way today’s organizations operate thanks to emerging digital technologies and evolving consumers demands are changing how we see our own businesses. So, imagine your business could acquire a strategic asset that had the power to change the way you see your own organization and unlock hidden value by improving working capital, freeing up your money, and helping you find new ways to use that money to drive growth. All of this is possible by taking a long hard look at how you manage cash flow. Indeed, across corporate Canada, businesses are looking at new strategies for cash flow management to help fuel their growth strategies, and unlocking hidden value in the process. According to a recent study conducted by Canadian Financial Executives Research Foundation (CFERF) in partnership with American Express, roughly onethird of respondents said they experience a cash crunch at least sometimes due to cash flow issues like seasonal fluctuations in payables or receivables. So just how important is cash flow to
businesses looking for new avenues of growth? According to the survey, one third of c-suite executives and managers polled said that a 20 per cent increase in working capital would have significant impact on their business. Which brings us to another tried and true maxim of business, “revenue is vanity, profit is sanity, but cash is king.” It’s clear that many Canadian financial executives believe that the implementation of sound cash management practices is essential to ensuring the profitability and sustainability of any successful business. Over the past 12 months, businesses that have faced had difficulties as they relate to cash flow identified several challenges, including customer payment delays (51%), financial troubles on the part of existing customers leading to delayed payments (39%) and requests for extended credit (36%). At the same time, the executives polled said that in the coming year, the top cash operational cash business priorities for Canadian businesses are improving cash forecasting (54%), improving cash flow (52%) and managing working capital (48%). Despite challenges many still have a positive outlook and view organic growth as a top priority. So, what is driving the need to improve cash flow? According to the survey, top reasons were meeting annual cash flow targets (44%), paying shareholders (34%) and paying down debt (33%), all key contributing factors to growth. Canadian companies are beginning to look at cash flow as a strategic asset. About two thirds of respondents plan to
make changes inside the business in the next three to five years with respect to cash flow. For those businesses ready to put this strategy to work, there are a variety of payables and receivables tools to help fuel growth. As businesses plan for the future they should consider what payment networks they are going to use and new digital innovations that can help improve cash flow. Businesses can look to trusted partners like American Express to help provide them with the tools they need to manage cash flow. As organizations move to unlock new value in payment systems, financial executives will need to continue to consider new tactics to improve their cash flow to fuel future growth. Today’s financial executives face greater challenges than ever before, thanks to a fundamental shift in their operations powered by digital innovation. This shift represents a remarkable opportunity for businesses to unlock hidden working capital, better manage their cash flow, and create new potential in payments. Visit business.americanexpress.ca to find out how Amex can help you keep more cash in your business. Paul Roman Vice President & General Manager – American Express Canada
PurchasingB2B.ca | October 2017 |
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LEVEL OF INTERACTION WITH THE FOLLOWING DEPARTMENTS
Those in the service sector took home $93,843, while public administration earned $86,479. Wholesale trade has an average salary of $84,000 and manufacturing salaries average $83,948. At the same time, those working for the largest companies earned the most money. The average supply chain salary for employees in organizations with revenue greater than $1 billion saw a salary of $109,181, on average. For companies with revenue between $51 million and $1 billion, the salary was $101,033. Meanwhile, companies smaller than that had an average supply chain salary of $80,738. Regarding the number of company employees, organizations with 500 or more on staff had an average supply chain salary of $101,048. The salary at organizations with 100 to 499 employees averaged $90,760, while companies smaller than that offered an average salary of $80,344.
Human resources (HR) Information technology (IT) Finance Operations C-suite Legal Sales & marketing Meetings & events Frequent interaction
Infrequent interaction
No interaction/NA
LEVEL OF AGREEMENT WITH STATEMENT:
FOR ME TO GET AHEAD IN MY JOB I SHOULD REALLY HAVE A PROFESSIONAL DESIGNATION
81% Agree
16% Disagree
38% Strongly agree
3% Strongly disagree
44% Agree
19% Disagree
SATISFACTION WITH: OVERALL JOB Very/ somewhat satisfied Very satisfied
Somewhat satisfied
10
Not very satisfied
92%
7% Not at all satisfied
36%
2% Not very/ Not at all Satisfied
56%
8%
Experience counts Looking for a great supply chain salary? Stick around for a few years—those with longer tenures earned the most, with 26 to 30 years of experience netting supply chain professionals $107,484. Interestingly, those with 31 or more years of experience saw a dip in salary, with an average of $106,186. Those with 21 to 25 years of experience took home $93,194, while those with 16 to 20 years on the job earned $83,953. Again an interesting anomaly: those with between 11 and 15 years’ experience earned more than that, at $88,638. Moving down the experience ladder, supply chain professionals with between six and 10 years of experience under their belts earned $81,986. For anyone with five years or less experience, the average salary fell by a fair bit, to $65,501. Overall, salary remains important to supply chain professionals, with 99 percent of respondents saying that they considered a competitive salary important. Along with that, 85 percent said that they were satisfied with their current salaries. We asked about their satisfaction with other areas of their employment, and 99 percent noted they considered a healthy work/life balance important, while 76 percent responded that they were happy with that balance. Also important were: support for professional development (96 percent); benefits package (97 percent); vacation time (100 percent); job security (97 percent) and performance recognition (94 percent). A total of 26 percent of respondents report to the procurement department, while 20 percent report into finance. Another 15 percent report up to the C-suite. And a strong majority—87 percent overall—agree that the move towards finance and procurement working together has benefited their organizations. What’s more, 85 percent believe that the involvement with their organization’s finance department will increase in the coming years, while 14 percent believe it will decrease. Similar to last year, cost control was a big issue among supply chain professionals; 53 percent of respondents said it was the top supply chain issue they faced during the last 12 months, followed by supplier relationship management (24 percent) and forecasting (22 percent). Cost control was also the top issue anticipated over the next 12 months (56 percent), while forecasting and supplier relationship management (28 and 23 percent, respectively). With salaries higher than last year and satisfaction levels also relatively high, procurement and supply chain professionals appear to be in a good position this year. Hopefully, strong Canadian and global economies will help to bolster the apparent success of the field for some time to come. B2B
| October 2017 | PurchasingB2B.ca
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THOUGHT LEADERSHIP
HELP WANTED: PROCUREMENT
PurchasingB2B’s roundtable delves into changes in the procurement employment landscape and the world of work
B
All photos: Dorothy Jakovina
By Michael Power
usiness and employment are changing at what can seem like lightning speed. An aging workforce and the rise of Millennial-generation employees, Big Data, the Internet of Things (IoT) and artificial intelligence, Robotics and 3D printing—all are causing seismic shifts in the world of work. Like other fields, procurement must reassess skills to remain relevant and continue to drive value for their organizations. But which skills should be developed? How should procurement prepare for these changes? And what will procurement’s role be in the years and decades ahead?
PurchasingB2B held a roundtable in September to discuss these and other issues. Participating in the roundtable were: Rick Cleveland, vice-president, policy and professional development, SCMA; Tim Moore, president, Tim Moore & Associates; Sean Naidu, of Hays; Neil Drew, director, Winchesters; and Caroline Cole Power, president and CEO, Canadian HR Solutions. Michael Power, PurchasingB2B’s editor, moderated the discussion. To kick off the roundtable, participants discussed the future of procurement as a profession. Like many fields, procurement PurchasingB2B.ca | October 2017 |
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THOUGHT LEADERSHIP
Procurement today is morphing away from a buying function and towards contract management and category management. I think that’s going to continue and that’s probably going to escalate over the next few years. —Rick Cleveland 12
tions or changes,” Moore said. “So it’s not just, ‘Well, here’s what’s happening.’ It’s, ‘Great, how can the supply chain be exploited to the benefit of the company?’” Cole Power agreed that in the future, supply chain professionals would become greater business partners rather than a transactional function. But those professionals will also be called upon to help their enterprises drive profits, she added. The way to do that is by driving efficiencies and limiting costs. Supply chain will therefore be seen as a business partner, similar to HR, IT, finance and other functions within organizations. Drew also compared procurement to other functions like legal and HR. He added that in the future, procurement will require more sales skills than previously. “I think where procurement will evolve, and where everyone else will evolve, will be from a consultative point of view, almost a sales point of view,” he said. Procurement has become more integrated with finance in many companies, Cole Power noted, rather than seen as its own separate function as it has historically. “More and more, we’ll see that become part of the financial solution. Because the financial function needs to be a solution, much like the technology function needs to be a solution,” she said. Cleveland also saw a maturation of procurement, with the integration with finance speeding up that process. “That’s when you start to get from procurement into more supply chain thinking, which still relies heavily on procurement,” he said. “I’m not suggesting that it’s not an important component of it, but it starts to look bigger than, ‘How do I purchase stuff?’”
All photos: Dorothy Jakovina
Candidates are getting a lot better at networking and approaching people on LinkedIn and actually getting themselves in front of people to personalize their application. —Neil Drew
and supply chain are changing, due to technology, shifting corporate priorities and expectations or other factors. But what does that mean for the future of the profession? Will those working in procurement see their jobs disappear, as feared by so many in other fields? One shift is that companies—including those that previously didn’t put that much emphasis on it—are taking the profession of procurement more seriously, said Naidu. Transformation is a pressing topic for many companies, fueled by a desire to find cost-related efficiencies, become more competitive and simply do better business, he said. And while the procurement profession will exist in 20 years, more emphasis is being placed on the term “strategic” in relation to the function. “They need someone that can think outside the box—that is creative, innovative in their thought process, as opposed to someone who is just transactional,” Naidu said. While strategic thinking is important, the administrative side of the function will also continue to exist, said Cleveland. Procurement will always have a tactical and operational component—something that will remain 20 years from now. When ATM machines began gaining traction, many believed the teller role would disappear, he noted. Today— partly due to population growth—there are more tellers in Canada than two decades ago. But tellers now perform different functions and procurement will likely do different tasks in the future. “Procurement today is morphing away from a buying function and towards contract management and category management,” Cleveland said. “I think that’s going to continue and that’s probably going to escalate over the next few years.” As the procurement role morphs, change management becomes increasingly critical, noted Moore. The function is expanding and becoming more critical, sophisticated and faster, yet at the same time more integrated. Shifts towards artificial intelligence (AI) and the Internet of Things (IoT) mean realtime data that will allow organizations to monitor shipping or storage and make any needed changes automatically. “They’ll also add increased ability to predict trends and react with far superior agility and immediately to disrup-
| October 2017 | PurchasingB2B.ca
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A danger facing some procurement professionals is the attitude that if it’s always been done one way, then that’s the way it should always be, said Moore. As corporations adopt new technologies and systems, supply chain professionals must be prepared to change and adopt new ways of doing things as well. “That and diplomacy skills,” he said. “It’s like they really want polished and professional supply chain people.” Changing world of employment The roundtable focused not only on changes within the procurement field, but how employment, job hunting and the world of work were evolving as well. Fewer people appear to be searching for jobs and they seem happier with the jobs they have, Drew said. At the same time, bonuses and pay are increasing. Meanwhile, procurement job seekers have become more savvy about job hunting and are doing more research during the hunt. “Candidates are getting a lot better at networking and approaching people on LinkedIn and actually getting themselves in front of people to personalize their application,” Drew said. “You’ve got to differentiate yourself from your resume.” Rarely do the best resumes get the job now, he added, with “soft skills” having more influence on the process. Attributes like a consultative approach, common sense, challenging the employer in an interview in a professional way all help job hunters differentiate themselves. A sense of confidence in a candidate also provides an advantage, Naidu added. “If you don’t have the natural confidence of being able to hold a conversation, go
into a meeting room and work, of being able to tell them how you would actually add value, as opposed to waiting for their questions—I think the more you can create a dialogue the better,” he said. Cole Power agreed that job hunters are focusing more than ever on networking and reaching out to connections to ask not just for connections but also introductions, referrals and so on. “Candidates are being more strategic about it,” she said. Cleveland agreed that networking had become more popular and common. He encouraged job seekers to contact directly the organizations they’re interested in working for. “Who says you have to follow the automated job portal and get lost amongst thousands and thousands of resumes?” he said. “Why not make a call? It’s something we used to do. Why not make a professional introduction?” Other suggestions that Cole Power added for job hunters included presenting oneself professionally when meeting with prospective employers. “It’s the ones that realize that you actually have to look like you’re going for a job interview and take the extra effort, they stand out,” she said. She also recommended that procurement candidates get a professional designation. Not only does it help establish a candidate’s expertise, a designation keeps candidates current in their field. Cleveland added that designations help to foster relationships and consultation—not only in the job hunt but also while working. “People who have designations tend to be in more of those like-minded networking situations,” he said. Designations also act as an independent, third-party endorsement of a candidate’s abilities, added Moore. That holds more weight than a candidate, their employer or someone else discussing qualifications. It helps to prove that the candidate has the foundational skills required for the field. “You’ve got the designation already—you’ve got something you can sell,” he said. “You’ve got the education and the employer doesn’t even have to invest in it. And it’s right up to date.” Shifting demographics Our roundtable participants also discussed demographic changes in the workforce, including the recent rise of Millennialgeneration workers. The different generations in the workforce now regard work
“It’s the [candidates] that realize that you actually have to look like you’re going for a job interview and take the extra effort, they stand out.” —Caroline Cole Power
“The best way to insulate yourself is to be technologically savvy—to keep continually learning, to get your supply chain education and to get your professional designation and maintain it.” —Tim Moore PurchasingB2B.ca | October 2017 |
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THOUGHT LEADERSHIP
“You have to be able to filter through the [candidates] that would actually impact and have a great future for your businesses versus those that probably would not. But how do you assess that?” —Sean Naidu differently, said Cole Power, also noting that by 2022, only 20 percent of Boomers will be in the workforce and 80 percent will be Millennials. “Many times today the boss is a Millennial and Boomers have a different way of thinking about who should be in charge,” she said. “The value set is different. Of course, every workplace is unique, but the research shows that these groups think differently.” As well, astute companies have begun putting different generations together in a partnering or mentoring structure, noted Moore. Millennials can therefore help older workers navigate technology, while seasoned veterans can help the younger workers with issues such as office protocol, collaboration and so on. But some of the perceived weaknesses of Millennials can also be interpreted as strengths, said Drew. Most younger workers who are serious about their careers adapt and work hard to get what they want. And Millennials can also show loyalty to an organization if they’re able to grow and develop along with that company. “If you can keep giving these guys a little pay rise, keep giving them a slightly better title and they can see progression, you’ll get these guys for the next 10 or 20 years,” he said. 14
The discussion moved on to focusing on the skills and attributes needed going forward in procurement. Those skills fall into different categories, said Cleveland. The first category included hard skills like technology, data, proficiency with figures and so on. Soft skills, including communication, collaboration and problem solving, are also important. Also gaining relevance are social and character skills, which covers areas such as initiative, adaptability, leadership and attitude. “As far as the future is concerned, it’s all technology,” he said. “They need the ability to work through multiple platforms, whether it’s smartphones, tablets, enabled chips, whatever the technology is.” Candidates must also have a clear vision of what they want, said Naidu. Whether it’s procurement, logistics or other related fields, it pays to plan what steps to take regarding education, designations and so on. Education—whether a college diploma, university degree, or designations like a CMA or MBA—is becoming more important, he noted. Organizations recognize that those with formal education have gone above and beyond what others may have done. At the same time, Naidu recognized the importance of less tangible soft skills in procurement and supply chain success. “You can have the finest education but if you don’t have the smarts, unfortunately, you would not get recognized,” he said. “And that then comes down to communication, relationship building, confidence and just kind of mapping your future yourself.” But the job search is frustrating for Millennials and younger candidates, said Naidu. For them, the struggle of college, university or an MBA program is followed by being judged even before the interview starts. He recommended the HR community develop better skills when it comes to assessing Millennials. “You just have to be able to filter through the ones that would actually impact and have a great future for your businesses versus those that probably would not. But how do you assess that?” In wrapping up the conversation, participants were invited to add closing comments. Naidu said he felt that the biggest shift in procurement, and the work world generally, was the shift towards more Millennials in the workplace. Organizations must do more to identify
that cohort, for example by setting up at career workshops in colleges and universities. “From there, they will be able to build that trust with Millennials to know that this is an organization they would want to work for,” he said. Cleveland noted that going forward, procurement and supply chain professionals will be going into jobs that provide opportunities for growth and development, since some tasks will be done through technology. “That satisfies the Millennial mindset. It satisfies the onslaught of robotics and artificial intelligence that’s going to replace tasks,” he said. “And it satisfies the need of business to get greater value out of their employees.” Both employees and employers must develop their value propositions, Moore stressed. And on either side, technology will change the situation fast. “So the best way to insulate yourself is to be technologically savvy—to keep continually learning, to get your supply chain education and to get your professional designation and maintain it. Because that will help insulate you from all the changes coming down the pike,” he said. Candidates must also develop emotional intelligence to help them sell their ideas, said Cole Power. “They can build relationships, they can engender trust, they can build others’ confidence for the future,” she said. The focus on soft skills in procurement risks leaving a lot of job candidates exposed, Drew noted. Highly analytical types who can sometimes struggle to communicate, as well as new Canadians with language challenges and different cultural experiences can wind up at a disadvantage. “There are going to be some people left behind and that’s something we should think about,” he said. “What should we do with these people? Do they just leave the industry?” With developments like IoT and AI, coupled with generational shifts in the workforce, there is no shortage of uncertainties regarding what the future holds for procurement jobs. Whether it’s through education, a designation or working to develop soft and hard skills, professionals in the field would do well to ensure that they stay as current as possible to help them meet these challenge going forward. B2B
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October 2017 Vol. 19, No. 2
CHARGINGUP The rise of the electric vehicle
IN THIS ISSUE: 6 2018 Car Previews 8 2018 Truck Previews 12 Mercedes Benz Metris Cargo 14 EV Infrastructure 17 Road Test: Nissan Qashqai 18 Driver Well-Being
ADD A FEW HARD WORKERS TO YOUR CREW. The 2017 Nissan Titan XD with Cummins® Turbo Diesel Engine* offers superior capability and performance. With over 12,000 lbs of towing capacity** and 555 lb.-ft. of torque, you can trust that a fleet of Titans can handle anything your workers throw at it. Or in it.
*Available feature. **When equipped properly. The Nissan names, logos, product names, feature names, and slogans are trademarks owned by or licensed to Nissan Motor Co. Ltd. and/or its North American subsidiaries. Always wear your seat belt, and please don’t drink and drive. ©2017 Nissan Canada Inc. All rights reserved.
Fuel Saving Tips Cost-effective driving habits can make a difference to the bottom line. Picking up a few driving habits will reduce fuel consumption and save money. ACDelco offers the following fuel-saving tips:
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EDITOR: Michael Power (416) 442-5600, ext. 3259, mpower@purchasingb2b.ca ART DIRECTOR: Mark Ryan PUBLISHER/ADVERTISING SALES: Dorothy Jakovina (416) 510-6899, djakovina@purchasingb2b.ca ACCOUNT COORDINATOR: Tracey Hanson (416) 510-6762, thanson@annexbizmedia.com CIRCULATION MANAGER: Barbara Adelt (416) 442-5600 x 3546, badelt@annexbizmedia.com
ANNEX PUBLISHING & PRINTING INC. GROUP PUBLISHER: Martin McAnulty, mmcanulty@annexweb.com COO: Ted Markle, tmarkle@annexweb.com PRESIDENT & CEO: Mike Fredericks CAR, established 1991, is published twice annually (April and October), by Annex Publishing & Printing Inc. © Contents of this publication are protected and may not be reproduced, in whole or in part, without the written consent of the publisher or editor. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods. Phone: 1-800-668-2374, Fax: 416-442-2200, Mail: Privacy Officer, 80 Valleybrook Drive, Toronto, ON M3B 2S9. NOTICE: CAR accepts no responsibility or liability for claims made for any product or service reported or advertised in this issue. CAR receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. CAR, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. Printed in Canada Publications Mail Agreement No. 40065710
•L ose the rooftop carrier: these can increase wind resistance and lower fuel economy. Increase aerodynamics and boost fuel economy by storing a rooftop carrier. If possible, store the load inside the vehicle rather than using a roof rack. • I nflate tires properly: Underinflated tires can lower gas mileage. If you don’t know what your tire pressure should be, try checking your driver’s side doorjamb sticker. •C orrect oil: Using the manufacturer’s recommended grade of oil can improve your gas mileage from one to two percent. •R emove extra weight: Carrying an extra 100lbs in your vehicle can reduce your kilometre-per-litre by about one percent. • Keep engine tuned: Dealing with maintenance problems like a faulty oxygen sensor can improve fuel efficiency by up to 40 percent. •A void aggressive driving: Rapid acceleration uses gas. Anticipate traffic to brake and accelerate steadily. •C ombine car trips: Combine errands into one trip while the engine is warm.
Goodyear announces 2017 Highway Hero A truck driver who stopped a dump truck and saved the incapacitated driver’s life with CPR is the 34th Goodyear Highway Hero. Chosen from three finalists, David Webb of Billings, Montana, accepted the award during the Mid-America Trucking Show, in Louisville, Kentucky. Webb and his wife were driving through Washington State last June when they saw a dump truck in the next lane swerve. Webb noticed the driver slumped over the wheel. As the dump truck slowed, Webb parked his own truck and ran after the still-moving vehicle. He jumped onto the truck’s running board, opened the door, reached inside and applied the brakes. Webb, working with a bystander, pulled the driver out of the truck and was CHARGING The rise of the electric vehicle performing CPR on him when help arrived. The driver was hospitalized and survived. Webb receives a Highway Hero ring, a $5,000 prize and other items.
October 2017 Vol. 19, No. 2
UP
IN THIS ISSUE: 6 8 12 14 17 18
2018 Car Previews 2018 Truck Previews Mercedes Benz Metris Cargo EV Infrastructure Road Test: Nissan Qashqai Driver Well-Being
Cover: iStock
Purchasingb2b.ca | OCTOBER 2017 CANADIAN AUTOMOTIVE REVIEW | 3
Toyota and Transition Énergétique Québec to study province’s hydrogen infrastructure market
Ontario plans to crack down on careless and distracted driving with new rules and penalties designed to improve road safety. The province says it will introduce new legislation this fall that, if passed, will help protect pedestrians and cyclists and reduce the fatalities and injuries by impaired, distracted and dangerous drivers. The proposed measures include: •A new offence for careless driving causing death or bodily harm with penalties like fines, license suspension and imprisonment; •T ougher penalties for distracted driving, such as using a cellphone while operating a vehicle; • I ncreased penalties for drivers who don’t yield for pedestrians and escalating fines for drivers convicted of multiple pedestrian-related offences within a five-year window; and •E xpanding the use of rear flashing blue lights for enforcement and emergency vehicles. The province is consulting on the use of cameras on school buses that capture the offence of illegally passing a school bus, so evidence can be admitted into court without a witness.
Magna unveils autonomous driving platform Magna has unveiled the MAX4, an integrated, customizable and scalable autonomous driving sensing and compute platform that can enable up to Level 4 autonomous driving capabilities in urban settings and on the highway. MAX4 combines cameras, RADAR, LiDAR and ultrasonic sensors with a compute platform designed for integration with any automakers’ platforms—including hybrid and electric vehicles. Integration of MAX4 retains an automaker’s existing design and styling for their vehicle, the company said. Magna also said it wanted to simplify how drivers engage with autonomous driving systems, including the option of an intuitive and familiar cruise-control-like user interface. A lighted display indicates the vehicle is in autonomous mode, and drivers can disengage that mode by braking or an emergency button. 4 | CANADIAN AUTOMOTIVE REVIEW OCTOBER 2017 | Purchasingb2b.ca
National Drive Electric Week
The seventhannual National Drive Electric Week took place September 9 to 17, with countries across the globe taking part in the event. Canada, Drive Electric Week for the Waterloo Region. the US, the UK, India, Australia and New Zealand were among the countries involved. In Canada, 23 municipalities saw electric vehicles hit the road to participate. The event is a celebration to heighten awareness of the availability of plug-in vehicles and highlight the benefits of all-electric and plug-in hybrid-electric cars, trucks and motorcycles. Started in 2011 as National Plug In Day with the idea to hold events simultaneously, the event has expanded to a week and changed the name. Each event is led by local plug-in drivers and advocates and includes a combination of EV parades, ride-and-drives, electric tailgate parties, press conferences, award ceremonies, informational booths and so on. Event participants ask and answer questions, connect with other EV owners and hear from event sponsors—ranging from auto manufacturers to environmental organizations. The next National Drive Electric Week takes place September 8-16, 2018.
Image: Larry Trakalo
Ontario plans distracted driving laws
Toyota is investing in a pilot network of multi-fuel service stations that include hydrogen fuel and collaboration with groups like Transition Énergétique Québec (TEQ), the new public body that the Ministry of Energy has established to support energy transition, innovation and efficiency. Toyota Canada and TEQ announced a memorandum of understanding to study market requirements for hydrogen infrastructure needed to introduce fuel cell vehicles. Toyota and the Québec Government said they share a common goal and are looking to reduce the carbon emissions of vehicles. Toyota’s chairman, Takeshi Uchiyamada, announced that Toyota Canada’s first hydrogen fueling and service facility will be built at its Québec zone office as a first step in the development of hydrogen fueling infrastructure.
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By Lesley Wimbush
A
s fall erupts in its glorious annual display of colour, it signifies the year is winding down. But automakers are gearing up after a flurry of new car debuts, with many of their 2018 models either in dealerships now, or soon to be on their way. There’s plenty on offer, with significant refreshes to important mainstream vehicles, and some brand-new nameplates we haven’t seen before. Here’s a sampling of what’s new for 2018.
Honda Accord Honda For 19 years and running, Honda’s compact Civic has been Canada’s best-selling car. But the number of mid-size Accords moved has steadily fallen since 2004 thanks to the growing popularity of crossovers. The all-new Accord debuting this fall is still a big deal for Honda, given its status as the top US selling car. It loses the coupe, but returns with better handling and new power trains; axing the V6 in favour of a pair of turbo-charged four-cylinders and 10-speed transmission. A hybrid model should soon follow.
Hyundai Elantra GT
Ford Eco Sport
6 | CANADIAN AUTOMOTIVE REVIEW OCTOBER 2017 | Purchasingb2b.ca
Image: Ford
Image: Hyundai
Hyundai Canadians like their Elantras—so much that they’ve bought more than 500,000 of them. And now there’s the 2018 Elantra GT, a hatchback version with sportier styling, European tuning, and a more premium interior. Lower trims come with a 162hp 2.0L four-cylinder, but upper Sport models get a turbocharged 1.6L with a 201hp output. All but the Sport Ultimate can be had with a six-speed manual—it comes with a seven-speed dual clutch automatic. Hyundai’s “green” car, the 2018 Ioniq, is available as a hybrid, plug-in hybrid or all-electric. All models offer plenty of safety and connectivity tech, and the Ioniq EV boasts a 177km range and a fuel consumption rating of 1.89L/100 km.
Image: Toyota
Toyota’s new design language injects a little pizzazz into what had become rather a bland lineup, with some rather divisive new front-end treatments. Their “Safety Sense” suite of driver assist technology is now standard on most vehicles, including the brand new C-HR crossover and even the new base model Corolla. One of Canada’s perennial top 10, the Camry, now in its 8th generation, returns with somewhat polarizing styling, a more luxuriously executed interior and significantly improved driving dynamics. Available with 2.5 litre 4-cylinder, 3.5 litre V6 or a 2.5 litre Hybrid Synergy power train and optional premium sound and infotainment technology.
Image: Honda
A PREVIEW OF THE NEW CARS AVAILABLE FOR THE NEW YEAR
Toyota Camry
Toyota
Ford While Ford won’t be reintroducing the mid-size Ranger pickup nor legendary Bronco until 2019 and 2020 respectively, the F-Series trucks receive a mild facelift and new diesel option. The full-size Expedition SUV is the latest to get an aluminum body, a new 10-speed auto transmission, and slightly more power from its 3.5L turbo V6. Joining the crossover lineup is Ford’s new entry into the explosive sub-compact segment, the Eco Sport. Powered by a 123hp 1.0L Ecoboost four cylinder (FWD) or a 2.0L (AWD) mated to a six-speed automatic transmission, the Eco Sport comes standard with Apple CarPlay and Android Auto.
Kia Niro
Subaru Impreza
Subaru’s all new Impreza is their second vehicle built on the new Global Platform—the architecture that will eventually underpin all of their cars by 2025. Outward changes are slight, but the cabin quality takes a leap forward with stitched leather, and better finishing throughout. All come with a new 2.0L four-cylinder boxer engine producing 152hp. “Eyesight” safety package is optional, and includes adaptive cruise control, lane-keep assist, lane-departure, pre-collision braking, high beam assist and new “reverse automatic braking,” which senses obstacles when reversing and apply the brakes.
Kia The first of Kia’s “EcoDynamics” green initiative sub-brand, the brand-new 2018 Niro compact crossover is available exclusively as a hybrid. Together, its 1.6L four-cylinder and electric motor mounted on the six-speed dual clutch transmission produce 146hp and consumption as low as 4.7L/100km. Available tech includes adaptive cruise control, lane change assist, Apple CarPlay and Android Auto. The Korean company is taking on the Germans with their new performance sedan. Launched at the infamous Nürburgring circuit, the Stinger’s available as either RWD with limited slip differential, or AWD with torque vectoring. Canadians will get two engine choices: a 251hp 2.0L turbo-charged four, or a 365hp 3.3L turbo six, channelled through an eight-speed automatic, the single transmission choice.
Dodge Challenger Demon
Nissan The Leaf returns with substantial changes in styling and a bump in both range and power. The more conventionally attractive Leaf now boasts a maximum 241km on a full charge, and puts out 147hp. A bigger battery is in development, which will see the range increase to compete with the Chevrolet Bolt’s 380kms. Nissan’s crossover lineup grows to include the subcompact Quashqai, which will compete with the Honda HR-V, Chevy Trax and Buick Encore. Front wheel drive models get either six-speed manual or continuously variable transmission, while AWD is CVT only. All models are powered by a 140hp 2.0L four-cylinder engine, and all get heated front seats, back-up camera, and Siri eyes-free.
Image: FCA
Image: Nissan
Nissan Leaf
Image: Lesley Wimbush
Subaru
Image: Kia
Image: Mercedes Benz
Mercedes Benz E-400 Mercedes Benz Previously available only with a four-cylinder, the E-Class sedan follows coupe, wagon and convertible variants as the recipient of a new V6. Since AWD is standard on all models, the E400’s 3.0L engine puts out 329hp through a nine-speed automatic transmission to all four wheels. The same nine-speed transmission finds its way into the C-Class sedan and coupe, replacing the previous seven-speed. Backup cameras are now standard across Mercedes-Benz’s passenger car and crossover lineup.
FCA Although the venerable Dodge Caravan was due to be axed this year, its popularity has earned it a reprieve. All models from the base to the sporty Grand Caravan GT are powered by the same 283hp 3.6L V6. Another outrageous muscle car joins the Dodge lineup with the Challenger Demon. With 840hp and 770lbs-ft of torque, it’s the fastest, most powerful production car that ever hit the drag strip. As well, count Alfa among the historic marques from whom you’d never expect to see a crossover. But that’s where the profits come from to keep building beautiful sports cars. The new Stelvio boasts voluptuous Italian styling, a class-leading 280hp from a 2.0L turbo-charged four, and a host of available luxury features. Purchasingb2b.ca | OCTOBER 2017 CANADIAN AUTOMOTIVE REVIEW | 7
By Howard J. Elmer
S
peciality pickups are big business, and this will certainly continue into next year. All manufacturers now offer these unique trim and colour packages. Chevy alone has been pushing five this year—more if you count the HDspecific ones. Even Nissan is offering dealer-available equipment that will “personalize” your new Titan. Toyota is also doing it, in addition to pushing its TRD Pro models. Ram is on board, spring boarding off the Rebel and regular Ram with multiple grille treatments, hood designs, wheel treatments and wild colours. Ford already offers the most multi-level trim packages; yet for 2018 they are pushing four new special editions. From a marketing viewpoint it makes sense. Trucks just can’t be new every year—but special editions can; and they have proven to sell well.
Image: Ford
A roundup of the coming model year for trucks
2018 Ford F150 Yes, the 2018 F-150 will offer an all-new 3L Power Stroke V6 turbo diesel. However, word now is that it won’t arrive till late next year—no explanation for the delay. Changes to the sheet metal are minor; in fact what you do see is a blending of look of the F-150 and that of the Super Duty. The big changes are to the powertrains. The standard engine for 2018 will be 3.3L V6 EcoBoost (282hp and 253lbs-ft of torque). The current 2.7L EcoBoost is being updated to offer direct injection technology and improved durability. The 5L V8 will also be improved and also matched (for the first time) to the 10-speed automatic transmission. Past this all engine offerings will now include a standard Auto Stop/Start feature. Safety and electronic upgrades will include Pre-Collision Assist and Pedestrian Detection as well as 4G LTE modem and a Wifi hot spot that will handle up to 10 mobile devices at one time. The F150 will also be offered in the Limited trim next year.
Image: Howard J. Elmer
HAULING IN THE 2018s
2018 Ford Super Duty F250 to F450 The Super Duty lineup was all-new in 2017 so this year is a carryover. However this second generation of the Super Duty was packed with enough new technology that it will carry forward easily. What is new for 2018 is another top trim level recently shown at the State Fair of Texas. The “Limited” adds even more content to these heavy haulers. Limited will add Camelback two-tone leather seats, a leatherwrapped steering wheel, leather-upholstered dash and armrests, a micro-suede headliner, ash-wood trim, a specially designed grille, satin-finish tailgate trim, special badges and a unique serial number. This edition may well push the price of a Super Duty past $100,000 in Canada for the first time. Past this, the F450 retains the top max tow weight of 32,500lbs with a payload of 7,630lbs. The 6.7L Power Stroke diesel is now rated at 440hp and 925lbs-ft of torque.
Chevy’s 100th anniversary will no doubt add special appearance packages to GM’s HD trucks this year as well. These will build on upgrades like Digital Steering Assist, an available Gooseneck/5th Wheel Trailering Prep Package and spray-in bedliner. Last year the second generation Duramax was released (445hp and 910lbs-ft) It’s redesigned for better oil and coolant flow capacity and now has an electronically controlled turbocharging system. As part of this update the HD air intake was redesigned. An integrated hood scoop now traps snow, sleet, and rain, allowing cool dry air to get to the engine. 8 | CANADIAN AUTOMOTIVE REVIEW OCTOBER 2017 | Purchasingb2b.ca
Image: Chevrolet
2018 Chevrolet Silverado HD 2500 & 3500
Image: Howard J. Elmer Image: Howard J. Elmer
Image:GMC
2018 GM Canyon and Colorado The GM midsize twins continue to carry several unique features forward into 2018, including the only small diesel currently available in this segment. Past this the Colorado ZR2—an off-road version of its small truck—new in 2017 is still the big news. It’s the real deal with front and rear electronic locking differentials. An available gas or diesel engine and Multimatic’s Dynamic Suspensions Spool Valve (DSSVTM) damper shock technology.
2018 Toyota Tundra and Tacoma Tacoma was all-new for 2016 including its powertrain. For 2018, little changes—except for the continued push of the TRD Pro versions, of not only the Tacoma but now also the Tundra, being offered to off-road enthusiasts. TRD Pro’s feature Multi-Terrain Select 4WD, Crawl Control, beefed up front and rear suspension and Bilstein shocks and unique decals and colour schemes.
Image: Howard J. Elmer
2018 Nissan Titan Released last year to compete in the straight half-ton market, this one-trick pony won’t change in 2018. This pickup offers just one powertrain (5.6L V8), tows 9,390lbs and has just one bed length at 6.5 ft. A V6 was announced, but the company has since gone quiet on that addition. Nissan made a splash with its all-new Titan XD in 2016. Since then it has added a 5.6L gas engine to the featured Cummins 5L V8 Turbo Diesel that is rated to tow 12,000lbs. There are no expected changes to the 2018 model except perhaps some paint choices.
2018 Ram Truck HD 2500 and 3500 Ram Heavy Duty retains its best-in-class towing rating of 31,210lbs for 2018, only because they claim it for the 3500-series truck. Like the other builders, what they lack in new technology they cover up with more options, trim and colours.
Image: Howard J. Elmer
2018 Honda Ridgeline The year 2018 will see no changes to the Ridgeline— and being that it took Honda 10 years to get to this second-generation upgrade, I expect it to remain the same for a while yet. It features a 3.5L V6, an auto all-wheel drive system and an automatic six-speed transmission along with some unique features like its fold-down tailgate that also opens sideways and a large, lockable trunk under the cargo bed.
Image: Howard J. Elmer
Image: Chevrolet
2018 Chevrolet Silverado 1500 August 2017 was the 100th anniversary of the birth of Chevrolet trucks and in honour of that milestone Chevy has unveiled a special centenary bowtie emblem that will grace several special editions in the 2018 model year. The most sought after may be the Silverado Centennial Edition that will come in a one-off Centennial blue. So, while these models will have unique trim packages—everything else remains the same in 2018. Currently they offer an eight-speed automatic transmission on both the 6.2L and the 5.3L V8. The current max trailering is 12,000lbs.
2018 Ram 1500 The 2018 is still carrying over—though rumour has it that the 2018 Detroit Auto Show will introduce the next generation of the Ram in January. In the meantime, Ram is churning out special editions at a furious rate. The newest, shown at the State Fair of Texas, is the Tungsten Edition. It will also be offered on HD models.
Purchasingb2b.ca | OCTOBER 2017 CANADIAN AUTOMOTIVE REVIEW | 9
A friendly tip, don’t be Bill. See vehicle order status, with integrated up-fitting and accurate in-market dates in real-time, so you can avoid the guesswork.
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WELL-PRICED
sophisticate The 2017 Mercedes-Benz Metris Cargo
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aimler introduced North America to the concept of the premium Euro commercial van about 15 years ago with the Freightliner Sprinter—which became the Dodge Sprinter and now the Mercedes-Benz Sprinter. Within the past few years, the overseas commercial van has made big inroads, with dedicated workhorses from Nissan, Ram (Fiat) and Ford offering contractors and fleet buyers vans that shame the old traditional North American fare with higher plateaus of utility, durability, drivability and economy. Yes, and pricing. Compact versions of the big boys (Ram Promaster City, Nissan NV200, Ford Transit Connect) are catching on too, offering tidy functionality and frugality to the inner-city crowd. Introduced in 2016, the Mercedes-Benz Metris finds the
The Metris is available in two configurations: a cargo panel van at $33,900 and a seven-passenger van starting at $37,900.
middle ground between big and small. It offers about 50-percent more payload and cargo capacity than the other small vans, yet delivers nimble urban moves. The Spanish-built Metris is available in two configurations—a cargo panel van at $33,900 and a seven-passenger van that starts at $37,900. Here, we’re putting the basic cargo van to work, hauling some furniture, building supplies and taking a load of scrap metal to the recyclers. Ordering a 2017 Metris Cargo is a fairly low-stress affair. There is only one box height, one drivetrain and one length, although for 2018 a box that’s nine inches longer is on offer. The longitudinally mounted gasoline 2.0L turbo four (208hp, 258lbs-ft) sends power to the rear wheels through a sevenspeed 7G-Tronic transmission with paddle shifters. It offers
The Metris’s steering is quick, alert and body motions are well controlled.
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Images: Peter Bleakney
By Peter Bleakney
three programs—ECO, Comfort and Manual, for those times when you’re feeling racy on the job. This is a perky little hauler, with a smooth, eager drivetrain that is impressively devoid of turbo lag. The steering is quick, alert and body motions are well controlled. In short, the Metris feels every bit the Mercedes-Benz from behind the wheel. The cabin might be plain, but it is well built and ergonomically sound. The dashtop has three depressions for clipboards, etc. North American Metris’ get two Big Gulp-size cupholders in the lower dash where the Euro stick shift would live. With its big windshield and low cut doors, forward visibility is stellar, although I would ask for bigger rearview mirrors. The right side mirror gets a convex lens for 2017, which helps.
Fun to drive Dare I say it, I actually enjoyed driving this cubist workhorse, especially on an extended highway jaunt where superbly comfortable seats, ample passing power and straight-line stability helped shrink the miles. The ride is commendably refined for a utility vehicle, and it has a half-decent stereo too. Premium fuel is recommended, although wisely Mercedes says the Metris will run on regular, with a slight loss in performance and efficiency. Having spent most of my test week away from the inner city grind (and with relatively light loads) it turned in a heart-warming 9.2L/100km. Payload capacity is 113kg (2502lbs) and tow rating is 2250kg (4960lbs). Cargo bed length is 111.5 inches, and with 50 inches between the wheel wells, Metris will accommodate 4x8 sheets of building materials. Interior height is 53.8 inches and cargo volume maxes out at 186 cubic feet. Numerous utilitarian options are available, including a bulkhead behind the passenger compartment, box lining with a system of anchor points and extra lighting. Beware: the sliding door can hit the barn-style rear door when it is fully opened and hugging the side of the van. There is a sticker on the door jam warning of this peril. Metris comes standard with fabric seats, AM/FM, Bluetooth, air conditioning, USB, auto headlights and a couple of safety systems—Attention Assist which monitors your driving style and alerts if you’re losing focus, and Crosswind Assist that uses targeted braking to keep the rig on the straight and narrow. New for 2017 is optional blindspot assist. This tester was equipped for real hauling duties with its $330 full partition, and you’ll definitely want the $760 backup camera (now standard on 2018 models) along with the heated and
The Metris is able to accommodate 4x8 sheets of building materials.
power adjustable side mirrors ($280). The $810 Convenience Package added multi-function steering wheel, cruise control, trip computer, centre console with storage compartment, two additional master keys and pixel-matrix display instrument cluster. Absent here, but certainly worthy of consideration, is the $730 Cold Weather Package (heated front seats and auxiliary electrical heating). Other available options include auto start/ stop ($290), navigation ($670), reverse warning system ($120), roof rails ($460), hi-performance air conditioning ($1200), anti-theft alarm ($380). Indeed, the Metris seems infinitely customizable, in a strictly utilitarian way. With an 11.8-metre turning circle, the Metris is pretty easy to wheel around in tight quarters, and with an overall height of 6’3 inches, it will fit into most parking garages. The Mercedes-Benz Metris was named Vincentric’s Lowest Fleet Cost To Own in the category of mid-size commercial van. This is based on cost, fuel economy and residual value, and is certainly helped along by the Metris’ 25,000km service intervals. There’s no question this well-priced little sophisticate from Benz delivers on the marque’s promise of fine dynamics and clever engineering. The fact that it parks itself between the small and large commercial vans makes it a unique proposition. C.A.R.
AS TESTED: Price as tested: $36,080 Engine: 2.0-litre turbocharged four-cylinder Power: 208 hp 258 lb.-ft. of torque Transmission: seven-speed 7G-Tronic transmission Drivetrain rear-wheel-drive Rated Fuel Economy Auto (L/100 km): not available for commercial vehicles Observed Combined Fuel Economy (L/100 km): 9.2
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Charged Up
Range anxiety and charging station availability among considerations for those considering electric vehicles By Kara Kuryllowicz
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Photo credit: Image: iStock
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lectric vehicles continue to attract attention as air quality and extreme weather—both in Canada and globally—put the focus on emissions and climate change. Yet as much as they appeal to anyone that cares about the planet, the reality is that so far, EVs remain suitable only in certain circumstances due to their capital cost, driving range, limited model range, charge time, access to charging stations and value at resale. “Consumers are open to them and they truly believe they are coming but people are not dumb—they need them to make sense in their daily lives and right now, that’s the case for very few people,” says Ian Jack, managing director, communications and government relations, Canadian Automobile Association in Ottawa, which has over six million members and 100-plus offices nationwide. “Right now, EVs are more about signaling that you are doing the right thing.” In Canada in 2016, there were 22.4 million passenger vehicles on the road of which just 28,000 were EVs. A fully electric vehicle is powered exclusively by electricity, charged by plugging into the grid, has a range of about 200 to 400km and no tailpipe emissions. Alternatively, plug-in hybrid electric vehicles have small battery packs for driving 20 to 80km before the gasoline engine or generator kicks in. The cost of an EV is about $35,000, according to Plug ‘N Drive, a non-profit organization that’s committed to accelerating the adoption of EVs to maximize their environmental and economic benefits. To date, only Ontario, Quebec and BC offer funding to help ease the sticker shock. Ontario provides up to $14,000 off the purchase of an electric car and up to $1,000 off the purchase and installation of a home charging station. In Ontario, EV owners also get a green license plate that allows drivers to use high-occupancy/toll lanes when driving solo. In Quebec, there is a rebate of up to $8,000 off the purchase
“This technology is still being adopted almost exclusively by organizations with very specific mandates around the environment and the use of electricity, for example, government and utilities.”—Peter Nogalo, ARI of an electric car and 50 percent off the cost for buying and installing a charging station up to a maximum of $600. British Columbia offers a rebate of up to $5,000 on a fully electric car and up to $2,500 off a plug-in hybrid electric car. “This technology is still being adopted almost exclusively by organizations with very specific mandates around the environment and the use of electricity, for example, government and utilities, because the ROI and the range simply aren’t there yet,” says Peter Nogalo, marketing manager, ARI, Mississauga, Ontario, which manages 180,000
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vehicles Canada-wide. The CAA’s Jack, ARI’s Nogalo and Plug ‘N Drive all point out that in most cases, range anxiety is unfounded since most drivers regularly drive only shorter distances, but acknowledge that most vehicles that are used for work do require more range than EVs can deliver. Plug ‘N Drive, which notes most Canadians drive 60km or less daily, suggests setting one’s trip calculator to zero before starting the daily commute to track the actual distance travelled. “The increased popularity of car- and ride-sharing services indicates Canadi-
ans’ attitudes toward their vehicles are evolving,” says Jack. “For example, you could use your EV day to day, then rent a hybrid or gasoline-powered vehicle to visit a distant client, drive to the cottage or take a two-week road trip.” EVs’ upfront cost and range tend to limit their appeal, but consumers also want more choice than the approximately 10 fully electric cars currently available in Canada. Both Jack and Nogalo point out that the lack of fully electric SUVs and pick-ups leads buyers back to either a hybrid or traditional gasoline engine. Of the 1.95 million new passenger vehicles
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sold in 2016, pickups, SUVs and vans dominated the top rankings. The Ford F-Series and Ram Pickup respectively ranked #1 and #2 in 2016 and 2015 followed by the Honda Civic in third, then the Dodge Grand Caravan, GMC Sierra and Toyota RAV4 in 4th, 5th and 6th place. “If you need the EV as a work tool or really want an SUV or pick-up, an EV isn’t currently an option,” says Nogalo. “As much as you want to do the right thing, whether you’re an entrepreneur, a small- to medium-sized enterprise or part of a multinational, you have to be practical.” Range and charging are less of a concern as the range increases and the charging options continue to expand, but they’re still an issue for many buyers. In Canada, there are now more than 4,500 public charging stations, of which 150 are Level 3 fast chargers that fully charge an EV in 30 minutes or less. As well, businesses and workplaces are installing charging stations for employees and customers. For example, about 300km of north of Toronto on Georgian Bay in Pointe au Baril, Ontario, Desmasdons Boatworks’ general manager Matt French, a car and boat fanatic, learned that several customers had Teslas and EVs as second vehicles. When customers at the 200-plus slip marina said they’d drive their EVs to the cottage if Desmasdons
had charging stations, French approached Tesla which supplied and installed two Tesla chargers and one generic unit at no charge. “The chargers show we’re forwardthinking, confirm our commitment to protecting the environment and are tangible proof we pay attention to what really matters to our customers,” says French. “There is usually at least one vehicle being charged and with interest expected to increase, Tesla will soon install a fourth unit at Desmasdons.” CAA’s Jack also notes that although vehicles represent one of consumers’ most significant life investments, many focus more on the vehicle’s appearance and the monthly payment than operating costs. That’s one reason CAA offers an Electric Vehicle Cost Calculator. “Most people aren’t particularly rational about vehicle prices, but if they were, they would realize that EVs can offer good value,” says Jack. “Consumers will have to look beyond the monthly payments to lifecycle costs if EVs are to be adopted by the masses.” Fortunately, certain governments are taking a different approach as nations consider the environmental and human impact of the 1.2 billion vehicles on the road with two billion expected by 2035, as reported by automotive trade journal Ward’s Auto. There are plans to end the production and sale of gasoline and diesel vehicles, which would boost EV
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production and sales, while positively affecting cost and acceptance. Yet it’s also recognized that government plans and promises can be rescinded and that to date, not one nation has detailed exactly how their gasoline and diesel bans will be achieved. Globally, right now, Bloomberg New Energy Finance (BNEF) notes 95 percent of electric cars are sold in only 10 countries: China, the US, Japan, Canada, Norway, UK, France, Germany, Netherlands and Sweden. China, which accounts for about 30 percent of global passenger vehicle sales, will implement its policy “in the near future.” Dutch parliament voted to end all gas and diesel car sales by 2025 (yet to go through the Dutch senate); India said sales of gas and diesel cars will stop by 2030 and Norway will follow suit by 2025. France and Britain will end sales of gas and diesel vehicles by 2040 and Germany is considering action. BNEF expects within eight to 10 years, electric vehicles will be cost competitive with conventional vehicles. That’s just one of many reasons it forecasts 54 percent of new car sales will be EVs and a third of the global light-duty fleet will be electric by 2040. In short, change will continue to come and while BNEF states, “We can now envision a future dominated by electric vehicles.” C.A.R. The Canadian Automobile Association (CAA) provides several online tools for those either considering the purchase of an electric vehicle or those who already own one. For example, CAA’s website offers a handy charging station location tool: http://bit.ly/2xWlW7p As well, the site provides an online cost calculator for electric vehicles: http://bit.ly/2g6V4rV For additional information about EVs, including the types of vehicles sold in Canada, government incentives available and so on, visit the CAA’s website at www.caa.ca.
Funky Name, Great Value The 2017 Nissan Qashqai By David Miller
Images: David Miller
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he all-new Nissan Qashqai went on sale in June 2017, and within three months it has already topped the Canadian subcompact crossover charts for the month of August. For a new nameplate that’s not an easy accomplishment, as it looks to battle with an all-refreshed Subaru Crosstrek for the remainder of the year. The Qashqai name itself has raised a few eyebrows (it’s called the Rogue Sport in the US), but from a sales standpoint it’s clear that it hasn’t become a deterrent. A lot of that has to do with its impressive combination of price, comfort, design and versatility. We can talk about many features of a brand-new vehicle, but what typically attracts consumer attention starts and ends with price. Nissan’s marketing team has managed to set the cost of the Qashqai just under the $20,000 threshold, at $19,998. Great value is offered at that price, but unless you want the manual transmission, one would have to move up to at least $21,998 for its automatic continuously variable transmission (CVT). The Qashqai may be new to Canada, but it’s been a success story since its 2007 arrival, quickly becoming one of Europe’s best-selling SUV/crossover vehicles with over 2.5-million sold. For years, the Qashqai was felt to be too similar in size to the Rogue, but with a growing appetite for utility vehicles and success overseas, it was the right time to come to the North American market. The smaller crossover slots in between the Rogue and the Juke with hopes of filling that market void, plugged in most recent years by new entries in the Honda HR-V, Mazda CX-3 and Jeep Renegade. The Qashqai is built off of the same platform of the Rogue and takes on similar styling, which isn’t a bad thing. It just comes in a smaller form with reductions in length (250mm), height (98mm) and wheelbase (60mm). Many of the Rogue’s signature touches are featured on the Qashqai including its V-Motion grille, swept-back headlights and boomerang-shaped taillights. Outside of its size, discernible differences are found in its sleeker grille and circular fog lights. Along the body, sporty creases and a curvaceous hatchback rear provide character that complements its compact frame. Inside, the Qashqai offers up a healthy dose of headroom
and legroom in both rows for four adults. Its sloping roofline may appear to cut off headroom in the rear, but surprisingly my six-foot frame fit comfortably with room to spare. Versatility and cargo space can be question marks in the compact crossover segment, but Nissan turns those into positives with a 60/40 rear seat split, an available Divide-N-Hide cargo system in the trunk, and second row cargo volume at 1,730L (1,982L in the Rogue). However, when the second row is folded upward, cargo space shrinks to 643L, a drastic decline compared to 1,113 found in the Rogue, but not so much with actual competitors in the segment. Moving up trims, consumers will be treated to a heated leather-wrapped flat-bottom steering wheel, power moon roof, an around-view monitor, and a plethora of safety technology, but it should be noted that all trims have standard heated front seats and a rearview camera. Like most compact crossovers, the Qashqai’s appeal isn’t its performance. There’s nothing wrong with its 2.0L, four-cylinder engine that cranks out 141hp and 147lbs-ft of torque; there’s just nothing exciting about it. It gets the job done seamlessly, working through its CVT in a calm and quiet manner. As aforementioned, a six-speed manual is offered up only in the base trim, but unless you’re in a money pinch or simply need to have a manual, the automatic version is the smoother option with better fuel efficiency, rated at 8.8L/100km in the city and 7.3L/100km on the highway in all-wheel drive (9.1 city and 7.5 highway in all-wheel-drive). The Qashqai can be a perfect errand runner. It gets up to speed at a decent pace, while soaking up divots in the road while cruising. It’s ideal in an urban setting where it can weave its way through traffic, perform three-point turns with ease and, perhaps most important, fit its frame into small parallel parking spots. The only drawback can be felt in its steering. There were a few occasions on sweeping turns where steering correction needed to be employed. Other than that, the Qashqai performed admirably, and for a price starting at under $20,000, it’s hard to go wrong with this new crossover entry and its funky name. C.A.R. Purchasingb2b.ca | OCTOBER 2017 CANADIAN AUTOMOTIVE REVIEW | 17
DRIVER WELFARE Are you doing enough to care for your drivers’ health and wellbeing? By Martin Duval We’re moving into the cooler months of the year, which means the cold and flu season and winter driving season is fast approaching. Unfortunately, for drivers who are on the go, this means being at risk for catching a bug while also having to navigate the nasty winter roads in Canada. While keeping costs down, managing fuel spend and driver controls remain the top priorities for many fleet managers, there are additional factors that managers should consider when it comes to driver care.
Steps to wellbeing Communicating and caring for your drivers is the first step to helping build a highly competitive fleet operation. While there are a number of factors that managers should consider regarding driver wellbeing, the top four are: • Quality rest: Although it seems obvious, the importance of quality rest should be communicated to drivers on a regular basis. Driver fatigue remains a major contributor to road accidents, so it’s imperative that drivers are educated
Driver wellbeing includes the factors that keep drivers safe, happy and engaged with the job that they do. Driver wellbeing includes the factors that keep drivers safe, happy and engaged with the job that they do. This could mean offering new driver training programs or something as simple as providing tips on making healthy food choices while on the road. Research shows that companies that take an interest and create an environment where employees feel their wellbeing is a priority are better at keeping staff, something that continues to be a challenge for the fleet industry that is currently suffering from a shortfall in terms of qualified drivers.
and aware of the dangers. Managers can also provide support by putting company policies in place such as a fatigue risk management system or a stop-work policy to ensure drivers make rest a priority. • A safe environment: Education is a fundamental part of safety and drivers can never know too much about keeping themselves and others on the road out of harm’s way. Managers should ensure their drivers have completed a drivertraining course and have ongoing training refreshers. At Shell, we use a journey management plan that involves outlining
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a process that drivers follow when getting on the road. We also share this with customers who are interested in implementing one of their own. In addition to training, drivers should have a safety kit in their vehicle that contains items such as booster cables, an ice scraper, multi-tool, flashlight, blanket, snacks, reflective triangles and first aid supplies. • Keeping in touch: While managers can put many preventive measures and policies in place to help ensure the safety of their drivers, it’s important that drivers have access to a mobile device while on the road. This will allow drivers to locate the nearest service station or call for roadside assistance, if required. However, it is equally important that the proper technology be in place so that the phone isn’t being used while driving. • Access to healthy food and amenities: For many drivers, the service station is the only stopping point between the depot and their destination. When they are spending many hours on the road, finding a place to rest, stretch their legs or grab a healthy snack is vital. Shell Commercial Fleet customers have access to one of the largest station networks in the country with fresh food and coffee options at their fingertips, allowing them to enjoy the journey ahead. While some driver wellbeing suggestions may require time, planning and investment, the process of improving driver welfare is important and makes important business sense. However, there are some initial first steps that can be taken right away, including putting the topic of health and safety on the agenda of every team meeting, creating a health and safety challenge and sharing some of the driver success stories to motivate others. Both your drivers and fleet business will benefit in the long run. C.A.R. Martin Duval is a Shell commercial fleet account manager.
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on value retained from original MSRP for 2013 model year vehicles as published by CBB, as of January 1, 2017. See CandianBlackBook.com for complete details.2Data charges may apply. 3TSSTM - P is standard on all Camry models. Drivers should always be responsible for their own safe driving. Please always pay attention to your surroundings and drive safely. Depending on the conditions of roads, vehicles, weather, etc., the TSSTM systems may not work as intended. Please see toyota.ca, your local Toyota Dealer or Owner’s Manual for details.
EXPERTISE. EXPERIENCE. EASE. THAT’S FORD FLEET. When it comes to building the fleet that your success rides on, trust yours to Ford Fleet. Our experts will be by your side before, during and after sale, offering vehicle advice, customized financing and maintenance solutions, and a nationwide network of Ford-approved up-fitters and modifiers. Our mission is more than just vehicles. We’re driven to make supporting your fleet easier. FLEET.FORD.CA
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2017 ESCAPE
2017 TRANSIT
Diversity’s
STARS SHINE Diverse suppliers and corporations celebrate a year of achievement
Kacee Vasudeva, the first-ever CAMSC Supplier Spotlight Speaker, discussed immigrating to Canada, starting and growing his business as well as achieving success on CBC’s Dragon’s Den.
By Michael Power
Image: CAMSC
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here was no shortage of reasons to celebrate at CAMSC’s 13th-Annual Business Achievement Awards Gala at Toronto’s Liberty Grand Entertainment Complex September 28. The event honours suppliers and corporate partners across Canada that are supplier diversity leaders. CAMSC president and CEO Cassandra Dorrington told the audience there was much to laud in 2017, which represents Canada150. It was also good timing to recognize the country’s growing diversity. “That’s wonderful because guess what, that fits in really well with what we do,” she said during welcoming remarks. “The CAMSC mission is to ensure that Aboriginal and minority-owned businesses are able to and are celebrated for their contributions to the economic growth of our country.” Organizations with diverse workforces are enshrining diversity in their supply partnerships, Dorrington said. This supports flexibility, increases market share, improves product quality and opens organizations to new markets while providing new revenue streams, she said. CAMSC’s corporate members now number between 80 and 90, she said. The organization’s supplier database now numbers about 800, with over 300 of those members fully certified. Also speaking was Chief Stacey LaForme of the Mississaugas of the New Credit First Nation, upon whose traditional ancestral land the gala was held. LaForme sent a message not only of inclusion and diversity but also of environmentalism. “We once knew the value of the lands and the water and we relied on her,” he said during an opening prayer. “We still rely on her but we’ve forgotten our responsibility. I want everybody to try to find that connection.” Hosted by Galit Solomon, former broadcaster and now director of operations and PR for On Q Communications Inc., other highlights included the CAMSC supplier spotlight speaker, Kacee Vasudeva. Vasudeva spoke of immigrating to Canada in 1971 and starting his business, Maxi-Flow, from his garage before building it into a $100 million group of six automotive manufacturing plants. More recently, Vasudeva formed a company focused on dealing with insects. Earlier this year his product, GreenStrike’s Mosquito Preventor, was successfully pitched to CBC’s Dragon’s Den. And the winners are…
Supplier of the year Trinity Tech Inc. won supplier of the year. An engineering service provider to the auto industry, it has over 150 employees in six offices and five production facility across North America. Its services include software re-flash, quality containment, launch support, supplier representation, rework and light assembly. Procurement business advocate of the year Kiruba Sankar of RBC took home the procurement business advocate of the year award. As director of IT PS procurement, Sankar develops relationships with internal partners who foster supplier diversity across departments. He has created responsible procurement training and applied an inclusive supplier policy. CATA technology innovation award Pallet sourcing company Ongweoweh Corp. has over $196 million in revenues and services companies across North America. It evaluates customer needs, providing stretch film, bags, buckets, corrugate, pallet design, lumber species and other items. The company has also more than doubled its size in the past five years. Collaboration award Collaboration award winner EY has a diversity and inclusiveness procurement team trained in supplier diversity. The company helps to build connections and expand markets for its suppliers. EY’s initiatives include mentorship, EY Entrepreneur of the Year and Entrepreneurial Winning Women. Small business of the year award The Carter Bennette Group, winner of the small business of the year award, is a janitorial and maintenance company that was recently involved in developing cleaning and maintenance standards for a concept shop. The project took top prize at the Retail Design Institute’s International Store Design Awards. Corporation of the year ABC is an automotive systems and components manufacturer covering plastics processing technologies and systems and components. ABC Group works with diverse suppliers and an open bidding process is now part of it’s practice. B2B PurchasingB2B.ca | October 2017 |
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ALL ABOUT THE JOURNEY
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ach year, the Supply Chain Management Association (SCMA) recognizes those who have contributed to the field. The SCMA Awards of Distinction are presented at the association’s national conference, held this year in Winnipeg. Glenn Gray, FSCMP, was one of two winners of the 2017 SCMA Fellow, the highest honour the association can bestow on its members. Fellows are recognized for demonstrating the highest excellence in supply chain management and dedication to promoting the profession. 16
Q: How did you get involved in procurement and supply chain? Soon after joining Manitoba Hydro, fleet services department in 1979 I became involved in sourcing and ordering parts and accessories for various types of fleet vehicles. Enjoying that type of work, I decided to become more involved in procurement and supply chain. I met with the supervisor of the purchasing department to discuss any future employment opportunities. It became apparent that due to my lack of education, skills and
experience, becoming a supply chain professional was attainable however there was lots of work ahead. I made it one of my personal goals to pursue supply chain as a career. I enrolled in the Purchasing Management Association of Canada and at the University of Manitoba-Extended Education. In 1985, I accepted my first position as a junior buyer with the purchasing department. My career evolved into a 38-year profession in many different and challenging capacities.
Image: Dan Harper
Glenn Gray is one of two winners of the 2017 SCMA Fellow Award
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Q: What career highlights stand out, and what do you like most about your job? In general, supply chain Management was a very rewarding career choice. It’s a very diverse profession. However related, no two business situations are the same. Experience becomes very important to success. I spent the majority of my career with Manitoba Hydro, holding various positions in many capacities that covered most aspects of supply chain management. One of the most memorable and rewarding positions was purchasing agent of major projects and logistics. I oversaw the tendering and contract awards for major capital projects and the transportation and logistics sector for the corporation. It was during the Red River flood of 1997 and the Quebec ice storm in 1998 where I played a role in arranging the transportation and logistics for manpower, equipment and materials to assist communities along the Red River in Southern Manitoba, Minnesota, and North Dakota. It was declared the most severe flood of the Red River since 1826. The Quebec ice storm of 1998 was declared one of the largest natural disasters in Canadian history. It was very rewarding to assist these communities in state of emergency. Q: What’s your education background and why is continuing education important? After receiving my four-year certificate in management from the University of Manitoba in 1989 and my Certified Professional Purchaser (CPP) designation in 1992, I pursued and received my Certificate in Traffic and Transportation (CITT) in 1998 and finally my four-year bachelors degree in business administration from the University of Winnipeg in 2014. I believe the key to a fulfilling career is to continue to develop your educational skills and experience to meet the ever-changing work environment. Q: Why did you earn your SCMP designation? Like others, supply chain management was not my initial career choice. During and after high school I worked in the automotive field where I considered apprenticing as an automotive mechanic. It was after I joined Manitoba Hydro fleet ser-
vices in 1979 as an equipment parts supply man that I received my introduction to supply chain management and my career began to evolve. I decided to become more involved in supply chain management. New to the industry and lacking the necessary education, skills and experience I joined the Purchasing Management Association of Canada’s (now SCMA) professional development program which provided me with a dynamic career choice and the foundation for personal growth and development. Joining also provided the opportunity to meet and network with peers and supply chain professionals—all of whom have a common goal.
Q: What does receiving the 2017 SCMA Fellow Award mean to you? Receiving the highest honor bestowed by SCMA was one of the greatest highlights of my career. Receiving the prestigious SCMA Fellow designation acknowledged the hard work and dedication that I contributed to the profession throughout my 38-year career. I have reached the mountain peak and joined a select group of professionals who have made significant contributions to the supply chain profession. I now have a bookmark in the history of SCMA. I feel very fortunate to have crossed paths with so many great people and thank all the work associates and friends who highlighted and acknowledged my accomplishments and contributions. Q: What future plans do you have in the field? I plan to continue consulting and teaching within supply chain. My adventures overseas in East Timor and Saudi Arabia have greatly expanded my knowledge and understanding of international business. I hope to continue consulting and continue to develop a supply chain module for Manitoba Hydro International and support SCMA when they ask. I retired from Manitoba Hydro in November 2016. Consulting and teaching are great opportunities to pay it forward. Q: Tell us something about yourself that most people in supply chain wouldn’t know. I consider myself a handyman and an educated gear head. As a handyman over time I have completed several home and cottage renovation projects and sev-
eral automotive restoration projects. My most memorable restoration project was on the first car I ever owned, a 1966 Mustang that I still own and drive. In addition, I obtained my class one driving license and on occasion drive a semi tractor-trailer. I also bought my first Harley Davidson motorcycle in 2003 and my second in 2011. I enjoy annual biking adventures with family and friends.
Q: What skills, background or education will procurement and supply chain require in the future? I believe that change is understated in terms of the evolution of today’s supply chain. It’s becoming more about linking nations. The world is getting smaller and becoming more complex. Borders are opening and closing and the global market is expanding. Supply chain management professionals will have to become more aware and adaptable to globalization to ensure overall best value is achieved. Many baby boomers are close to retiring. The demand for trained supply chain professionals has never been so great. I believe this trend will continue to grow. Diversity in skills and experience and ongoing education will be very important to the supply chain profession. I also believe networking through business media and with peers within the supply chain profession will without a doubt become more advantageous in the future. Q: What advice would you give those just starting out, or considering a career in procurement and supply chain? The procurement and the supply chain profession are—and will continue to be—among the most dynamic and diverse professions. It will continue to open doors and provide experiences and career opportunities for the next generation of supply chain professionals. The bar has been raised and will continue to do so. My career has provided me with a variety of business opportunities in other countries. International business is very challenging and rewarding. At times you may have had to go back to the fundamentals and at other times advance to innovative strategic sourcing strategies. For those familiar with Harley Davidson, here’s a quote: “It’s all about the journey, not the destination.” B2B PurchasingB2B.ca | October 2017 |
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Traveller
Focused Policy A better strategy for travel procurement By Scott Gillespie
F
or too long travel procurement pros have been focusing on the wrong thing. New evidence shows that traditional cost savings is the wrong goal. What’s the better goal? Maximizing the business impact of all those trips. Over 750 US-based road warriors were surveyed (see box at end) about the impact their business travel and their corporate travel policies had on their personal and professional lives. The responses were split into subsets based on the type of travel policy each road warrior thought best described their employer’s approach to travel management.
One group identified their travel policies as cost-focused; the other group identified their policies as traveller-focused. Travellers managed by cost-focused travel policies reported: • Twice the level of traveller friction, as measured by nine symptoms of travel-related wear and tear; • Significantly more interest in job offers from firms with better travel policies; • Notably lower levels of willingness to travel; and • For the kicker: 22 percent fewer effective trips taken over the last 12 months.
How Does Travel Policy Impactthe Value Add? Estimated per road warrior per year
Does this
affect this?
$35,000
$3,500
Air & Hotel Expense, Domestic Travel
10% Savings
Source: scott@tclara.com
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$600,000
Road Warrior's Value-Add
What procurement professional would knowingly buy a basket of business trips that had a 22-percent scrap rate? Or advocate for a procurement strategy that resulted in higher attrition and lower productivity among its most valuable subset of travellers? Try this perspective on for size: The average road warrior who travels within North America spends roughly US$35,000 on air and hotel expenses. His salary is roughly $150,000, which means his estimated annual value-add is likely at least $600,000 (at four times salary, per my analysis of public data). Would you rather focus on saving an additional two percent on a road warrior’s spend, or find a way to increase the road warrior’s value-add by 22 percent? There is a right answer here. The better goal is clearly the one that delivers the largest business impact. It can’t be about saving a few percentage points on the price of an airline ticket or hotel room. It can’t be about forcing inconvenient, uncomfortable and non-productive travel requirements onto those folks that are on the front lines, travel-wise. Road warriors who are managed by cost-focused travel policies want very different things from their employers, compared to their peers who are managed in more traveller-friendly environments. The following are at the top of their list:
| October 2017 | PurchasingB2B.ca | TRAVEL MANAGEMENT
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• Non-stop flights; • Premium economy seats on short haul flights; and • Business class seats on long haul flights. “Don’t waste my time.” “Don’t make me sit where I can’t open my laptop.” “Please give me half a chance at a decent night’s sleep on an overnight flight.” If you spent over 250 hours a year stuck inside an airplane, and had to cross 135 time zones, as these folks do every year, you’d be begging for more productivity, too. Travel procurement done right So what does a much more valuable travel procurement strategy look like? For starters, it uses the same pieces as the classic cost-focused strategy. The big difference is the goal. The classic procurement effort looks at the travel supply chain with an eye toward reducing cost. I see this in most every negotiation with suppliers, technology providers and travel management companies. The same holds true of procurement’s efforts to shape travel policies.
Tough travel policies, such as requiring an extra stop, or an economy seat on a 12-hour flight, result in lower-cost trips. The better approach is one designed to achieve more value added by the road warrior. Instead of trying to reduce cost throughout the travel supply chain, the challenge is to maximize the chain’s ability to help travellers deliver higher value. This starts with giving travellers higher-quality trips—no extra connections, roomy seats, high-quality and convenient hotels, access to airport lounges and expedited customs and security lanes… pretty much anything that improves a road warrior’s health, safety, productivity and engagement. Procurement’s challenge is to curate the travel suppliers that are best able to deliver these productivity improvements, support travel policies that help retain road warriors, and negotiate on price, of course. Will these higher-quality trips and more traveller-friendly travel policies cost more? Yes, just as a smartphone costs more than an old flip phone. The
real question is about payback—can the higher cost be justified? The framework is simple. Compare what it costs to give a road warrior a year’s worth of better trips, and divide that by his or her estimated annual value-add. If it costs an extra $30,000, and his annual value add is $600,000, then you need a five-percent improvement in his value-add to break even. Surely a good procurement buyer can find travel suppliers that are capable of supporting that type of modest goal. B2B Scott Gillespie is a thought leader in the corporate travel industry. He is CEO of tClara, a travel benchmarking firm based near Cleveland, Ohio. He holds an MBA from the University of Chicago. “Travel Programs – Insights From U.S. Road Warriors”, conducted by MMGY Global, sponsored by American Express GBT, Airlines Reporting Company and tClara, 2017.
EMPLOYER ON-SITE TRAINING cost savings and convenience, on-site training can be customized to meet different business needs. On-site training ensures consistent learning across the board from a single team to an entire organization.
WHY CHOOSE SCMAO TO PROVIDE YOUR TRAINING? Expert Instructors – Our expert instructors are leading supply chain academics and experienced practitioners who have real-world SCM experience. Our Programs – Our programs are designed to enhance skills development, professional competence and strategic perspective of SCM professionals at all levels of career progression from entry, to mid, and executive levels of functional responsibility. Our Reputation – As the leading supply chain association in Ontario, SCMAO has established a reputation for excellence in education and professional training. Over 70% of our corporate training is provided to repeat clients.
For more information on corporate training with SCMAO, please contact Carol Ship Spencer, Professional Development Lead at 416-977-7566 x2146 or csspencer@scmao.ca.
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| 19 TRAVEL MANAGEMENT | PurchasingB2B.ca | October 2017 2017-10-05 11:01 AM
2017-10-13 3:15 PM
Business solutions
It’s Party
TIME
Products to help keep the office party season festive
T
he holiday season is almost upon us, and that means many companies will be holding office parties. Organizers of these events will be looking to ensure corporate get togethers are enjoyable and well stocked with holiday treats. Fortunately, there’s no shortage of supplies out there to help get the office party going. Below is a sampling of some supplies for office parties and corporate events that are available on the market.
From Nestle comes the Nestle Coffee-Mate Original Whitener. This original rich and delicious coffee enhancer provides a smooth, dairy-free cup of coffee. The whitener is lactose and cholesterol free and contains no trans fats. The container is easy-open, easy-pour and contains 311g. Photo: Grand & Toy
This brown, protective sleeve for hot drink cups is made from corrugate cardboard. One package contains 200 sleeves and they are for use with 10oz cups and larger, which are sold separately. Photo: Grand & Toy
cold in a classic champagne flute. The MADD Virgin Brut is suitable as an Aperitif, with a light dinner, desserts, cheese and so on. The 750ml (26fl-oz) bottle has one-third the calories of Champagne. Contents are under pressure. Photo: MADD
gold-tone filter and charcoal water filter. Additionally, it comes with a three-year limited warranty. It’s dimensions are 10 1/4”W x 9 1/2”D x 14 1/2”H. Photo: Grand & Toy
Photo: Office Depot
Keeping hydrated in an office environment is essential for optimal performance. Nestle Pure Life Bottled Natural Spring Water is 100-percent natural spring water and Kosher certified. Made in Canada, the product comes in a 100-percent recyclable bottle. There are six bottle in a case, and each bottle contains 1.5L of water. Photo: Staples Business Advantage
From Cuisinart comes the Coffee PLUS 12-Cup Programmable Coffeemaker and Hot Water System. There is a 12-cup carafe with a drip-free pour spout and hot water system. It’s fully automatic and equipped with a programmable blue backlit LCD screen. The unit includes a
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These 34.5-oz containers of Planters peanuts for a salty alternative to sweet snacks. The re-sealable plastic jar helps to keep the contents fresh. The peanuts are kosher and are a source of calcium, iron and protein.
Mothers Against Drunk Driving (MADD) has its own line of non-alcoholic party beverages, including the MADD Virgin Brut. Presented with a “cork & cage” closure, this beverage can be served ice
From Office Depot comes an assortment of gourmet dessert bars for office parties and functions. The assortment includes eight bars each of the following: Summerberry Stack; Chocolate Peanut Butter Stack; 7 Layer Bar; Lemon Crumb Bar; Apple Crumb Bar; Totally OREO Brownie; Fabulous Chocolate Chunk Brownie; Toffee Crunch Blondie. The bars are kosher dairy certified and contain zero trans fats. Photo: Office Depot
| October 2017 | PurchasingB2B.ca
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The Keurig Van Houtte Colombian – medium K-Cup Pack comes with 24 pods per pack. Colombian coffee boasts a round body, lively acidity and a sweet, wine-
inch plates are compostable and come in packs of 250. They are an environmentally preferable choice made from 100-percent sugarcane fibre. Durable and microwave safe, they are biodegradable after two years. Photo: Staples Business Advantage
like flavour. Photo: Staples Business Advantage
From Staples Business Advantage’s own brand comes Staples sustainable Earth Compostable plates. The white, nine-
From Mothers Against Drunk Driving (MADD) comes a non-alcoholic red wine that’s light, fruity and similar to a Beaujolais Nouveau. The beverage is meant to be consumed at room temperature or slightly chilled for 30 minutes in the fridge before opening. The bottle has 750ml (26fl-oz) and has roughly half the calories of a red wine. Photo: MADD
π
This decorative tin is filled with butter-flavoured cookies. The reusable tin is 24oz and contains 24 cookies. The product is manufactured by Original Gourmet Food and available at Office Depot. Photo: Office Depot
GOING SHOPPING? To search for these and other office party products, visit these sites: www.eway.ca www.grandandtoy.com www.maddvirgindrinks.com www.officedepot.com
OVER 32,500 ITEMS ALWAYS IN STOCK
SHIPPING SUPPLY SPECIALISTS
ORDER BY 6 PM FOR SAME DAY SHIPPING
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The Law
The Resource And Training Gap Proper resources are necessary to meet this public procurement crisis
Paul Emanuelli is the general counsel of the Procurement Law Office.
By Paul Emanuelli
T
he ability to manage resources for the greater good remains the ultimate litmus test of advanced economies. Governments are largely measured by what they build or fail to build in the public interest; however, across Canada, public institutions have failed to adequately resource and train the procurement staff that is responsible for translating tax revenues into social spending. This training gap represents a growing crisis that should be immediately rectified if Canada hopes to maintain its first-world status.
However, someone needs to keep these procurement systems running properly so that the social supply chain that maintains our living standards can continue to function. If our procurement systems fail, the underpinnings of our advanced economy will quickly erode.
them to be basic entitlements; however, building and maintaining that infrastructure and delivering those services is no easy task. While select groups of predominantly large private-sector suppliers enjoy the profits of servicing our public infrastructure and systems, the public officials responsible for maintaining the public procurement process of translating taxes into government spending, tend to toil away in obscurity, until something goes wrong. While government operating departments receive annual budget allocations to fund their procurement projects, procurement departments, which are often dismissed as operational overhead, tend to get shortchanged in those annual allocations. Procurement professionals are expected to keep purchasing systems running on shoestring budgets and outdated technologies so that government operating departments can keep awarding contracts to the private companies that help maintain the infrastructure and systems that give us access to the clean water, electricity, health care, education, transportation, law enforcement and national defence that we typically take for granted.
A rapid action plan At the end of the day, though, each public institution remains accountable for its own spending. Senior decision makers within our public institutions need to allocate greater portions of their departmental spending towards updating their central procurement systems and enhancing training programs for their procurement staff. These programs should include training on the proper drafting of contract specifications and bid evaluation criteria, on using tendering formats that help avoid legal risks, on properly documenting group evaluations and bidder debriefings, and on properly conducting contract negotiations and managing awarded contracts. Finally, public institutions should also train staff on how to properly handle bid disputes under the new trade treaties before they escalate into formal bid protest proceedings. It should be a self-evident proposition that the procurement professionals responsible for properly spending vast amounts of public funds should have access to the necessary resources and training to ensure value-formoney and to protect the public interest. Given the rising tide of complexity washing across our public procurement systems, we cannot afford to maintain a business-as-usual approach. We can either meet this challenge head on with proper resources and training for our procurement departments, or we can watch the rapid erosion of the social infrastructure that we will no longer be able to take for granted. B2B
Penny wise, pound reckless By enacting the Comprehensive Economic and Trade Agreement (CETA) with the European Union, along with the domestic Canadian Free Trade Agreement (CFTA), our federal, provincial and territorial governments have exposed public institutions at all levels of government to an unprecedented level of complexity based on international procurement rules and standards. Serving the public interest However, the agencies, municipalities, universities, colleges, school boards Public institutions in Canada spend billions of dollars and health sector entities responsible for providing most of the front-line serannually to maintain our standard of living. Citizens vices to the public have been left to fend for themselves when it comes to alloin advanced economies tend to take their public cating resources and training to keep their procurement systems running. infrastructure and services for granted and consider Sadly, senior-level governments have been quick to set up rules that allow suppliers to sue public institutions over spending disputes, but slow to fund the “Someone needs to keep these procurement systems systems and training necessary to avoid running properly so that the social supply chain that the bad practices that lead to lawsuits in maintains our living standards can continue to function.� the first place.
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Epic Awa PB2B_E
Who Said Conferences Can’t Be Fun?
April 16 -18, 2018 Hyatt Regency Toronto
The
EPIC Awards are coming to
Canada!
The Premier Celebration of Professional Achievement for Indirect Procurement The EPIC Awards are an annual celebration to recognize and celebrate the most innovative, dynamic, and accomplished procurement leaders. ProcureCon is pleased to announce that we’ve partnered with PurchasingB2B to bring the awards to Canada. The 2018 EPIC Awards categories are for individual and team innovation, rising star, lifetime achievement, and supplier excellence. The awards are a great opportunity to motivate your team and recognize their hard work, while also celebrating your sourcing success. The winners of each category will be announced and showcased at the ProcureCon Canada conference in April.
The call for nominations is now open! Visit www.PurchasingB2B.ca/Awards for more information and nomination forms. The EPIC Awards are brought to you by CANADA’S SUPPLY MANAGEMENT MAGAZINE
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“Taking this course almost feels like a mentorship. You can bounce ideas off of other people in the industry—and the coaches are irreplaceable. Never having had that formal education of leadership, this course has just opened my eyes. It’s a challenge with work sometimes but there is so much flexibility with AU … that’s the only thing that has allowed me to be successful.”
Chad Fenrick Assistant Branch Manager, Sales Manager Ardel Steel
Manufacturing Management Certificate Practical experience and technical mastery are important; today`s managers also need business acumen to establish competitive advantage in a rapidly changing global context.
Qualifies for Canada-Provincial Job Grant $2,955 Investment
Online, no time spent away from work
Study with students from across Canada
Short, 4 week courses. Flexible ― work when it`s convenient for you
8 courses, no prerequisites — complete certificate within 1 year › Quality Management › Safety Management › Human Resources Management
In partnership with:
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› Cross Cultural Leadership › Financial Decision Making › Supply Chain Management
› Manufacturing Management › Project Management
FOR MORE INFORMATION on our MMC: 1.800.561.4650 business.athabascau.ca/mmc
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