THE MASSIVE ISSUES AND OPPORTUNITIES FACING SUPPLY CHAIN LABOUR IN CANADAand how YOUR business can prepare for growth

03 Introduction

05 Chapter 1Labour shortage in supply chain and logistics: What you need to know

11 Chapter 2Find and retain your future workforce: 6 tips for supply chain recruiting

17 Chapter 3Are women the solution to the supply chain labour shortage in Canada?

24 Chapter 4The millennial solution to the supply chain labour shortage

29 Chapter 5What you need to know about the new supply chain

occupational standards

39 Chapter 6Where to get an education for supply chain management jobs in Canada – A Calgary Region case study

44 CloseThe future of the supply chain labour in Canada: A crisis or an opportunity

Several studies warn Canada is facing significant shortage of

skilled workers over the next few decades as millions of baby

boomers reach retirement. Canada’s work environment is also

transitioning to a knowledge economy that relies on a well-

trained and highly educated workforce. Canadians without the

necessary skills could soon find themselves unemployable. These

changes leaves Canada’s labour market with two pools of people:

Those who can’t find workThose who can’t find workers

The Canadian Chamber of Commerce estimates in 2016, there will be 550,000 unskilled workers unable to find work. By 2021, it says the number could be well over a million. At the same time, it’s estimated there will be 1.5 million skilled job vacancies this 2016 year, and 2.6 million by 2021.

Read on to learn more about the labour shortage in the supply chain sector and the critical information your company needs to stay ahead of this trend.

Introduction

03

Canada is deep into a skills gapThe gap between those who need skilled workers and those who are looking for work is called a skills gap. This skills mismatch is especially true in the supply chain sector. In fact, the sector is in dire need of skilled tradespeople, managers and executives. Nearly every supply chain position need employees who aren’t available. According to the Canadian Supply Chain Sector Council’s Human Resource Study, between 2012-2017 there will be over 356,747 vacant/new supply chain positions across Canada.

Urgent Help NeededEmployers, such as Scott Calver, Chief Financial Officer of trucking firm Trimac Transportation Ltd., says the shortage in the transportation industry is dire—and worsening.

“Trimac and other trucking firms are having trouble getting unemployed drivers to move to places where there are jobs,” Mr. Calver says. “What is disappointing is how limited many Canadians are in their ability to relocate.”

Calver argues that for this to change, immediate measures must be taken over the next decade.04

Chapter

01

Labour shortage in supply chain and logistics: What you need to know

Throughout Canada, the supply chain and logistics industry is

scrambling to find the right people due to a lack skilled labour

for all kinds of jobs at all levels, including senior executives,

middle management and entry level positions.

So is there any GOOD NEWS?

Yes, immediate measures are being taken across the industry.

New solutions for severe labour shortage In fact, there are numerous initiatives from the Canadian government, educational institutions and private/public sectors partners to address the looming labour shortage in the supply chain.

“These initiatives include ideas about how to secure and retain the right people to keep your total landed costs down in the long-term, ” said Reg Johnston from RJT&L Consulting Ltd.

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Here are three ideas in implementation: 1. Partnerships in the trucking industryAn example of a new approach to solving the supply chain labour shortage in Canada involves non-traditional partnerships. Basically, two partners come together to work on new solutions to the labour shortage.

One example of this type of partnership is the work between the Private Motor Truck Council (PMTC) of Canada and the Truck Training Schools Association of Ontario (TTSAO). These two organizations are working together to identify TTSAO-certified drivers and help these drivers find employment.

“It is an exciting time at TTSAO and we are very pleased that the PMTC sees value in working together on the many issues we are challenged with in our industry,” says Yvette Lagrois, President of the TTSAO.

“Carrier members of PMTC will find that the TTSAO schools produce an excellent entry-level driver that will fit in nicely with the private sector. It is our goal to work with associations like PMTC and the Ontario Trucking Association (OTA) on key industry initiatives.”

Other partnerships of this nature are emerging throughout Canada.07

2. Movement to attract womenTraditionally, the supply chain sector has been male dominated, but current trends in some parts of the sector show this is changing.

The supply chain work is strongly suited to female workers. As a result, there is a movement underway to recruit more women into the sector.

Soft skills such as collaboration, creativity and problem solving are in high demand by employers and many women are entering the industry because of the collaborative nature of this type of work.

See WISC (Women in Supply Chain) for an overview of a voluntary initiative in Canada that is connecting women to the supply chain by:

• Creating awareness of the supply chain sector• Spotlighting the vast career opportunities for women• Providing networking• Encouraging employers to consider their retention and succession strategies that include women• Knowledge sharing through resources and seminars/conferences08

3. Educating tomorrow’s workforce Across Canada, we are fortunate to have a number of educational institutions offering a range of learning options to those who wish to establish or expand their supply chain knowledge and skills.

Organizations such as the Van Horne Institute have partnered with the Haskayne School of Business at the University of Calgary to lead the formation of a Calgary-based Canadian Centre for Advanced Supply Chain Management and Logistics (C-ASL).

Membership in the Van Horne Institute includes blue chip companies from across Canada whose activities center on supply chain and logistics—a perfect bridge to ensure a seamless knowledge and skills transfer between the business community and the School.

The C-ASL’s academic program develops high-level graduates ready and able to fulfill the needs of the supply chain and logistics sector.

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The purpose of the C-ASL is to deliver a stable supply of high-quality graduates who are:

1. Prepared to work in businesses specializing in supply chain management and logistics and with substantial potential for strategic management and leadership positions in the future.

2. Equipped with substantial mode specific knowledge (air transport and airport management, railway transportation, road haulage, maritime transportation and seaport management, pipelines, intermodal transport), gained as a result of ‘solving’ multiple case studies related to each mode, with a special (though not exclusive) focus on energy and the natural resources industries.

These options include post-secondary certificates, undergraduate degrees and graduate studies.

To remain competitive on a global scale, Canada’s supply chain and logistics industry needs immediate solutions for to encourage young people to follow a career path in supply chain and logistics. This is the essential for keeping total landed low and competitive.10

Chapter

02

Find and retain your future workforce: 6 tips for supply chain recruiting

It’s no secret that the face of the supply chain industry

has changed dramatically over the past two decades.

Only 15 years ago, the field of supply chain was just emerging. There

was little to no focus on high school, college and university programs

for the field. Today, this has all changed.

The supply chain has garnered new levels of attention and is now

viewed as being one of the most promising and dynamic career

paths.

Greg Keft from GT Nexus explains the changes on how supply chain managers are valued in today’s businesses.

“We used to walk in and hit the button for the basement. Now we ride the elevator to the 34th floor.” - Fortune 2016

Is this good news? Not if you are an employer trying to recruit and retain high-caliber talent for supply chain positions in this highly competitive environment.

Severe shortage of qualified supply chain labour The global economy and the sophistication of technology in the supply chain have changed the skillset required to be a professional in the industry. Competition for finding and retaining employees is only increasing. Manufacturers are reporting a severe shortage of qualified workers.12

The Canadian Government is projecting the labour shortage to become worse in the next few years. It is also estimated that five percent of manufacturing jobs—600,000 positions in Canada nationally—go unfilled due to the lack of qualified workers.

Universities and colleges are now offering undergraduate and master’s programs to fill this void, but they are unable to keep up with the demand for qualified supply chain talent.

You need a plan to attract talent With the tough competition for supply chain professionals, you will need to develop a plan to attract qualified individuals and retain them.

While there is no simple solution to solving the shortage of supply chain employees, there are some actionable steps that can help you attract fresh talent and keep current employees engaged and committed.

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Here are a six ways to attract the top talent:

1. Establish your company brand Organizations need to have an articulated brand that communicates vision and mission. With the projected worker shortage, employees will be able to shop for the right position. You will want to be sure you have professionally packaged and communicated your company’s identity to attract the right talent.

2. Focus on an employee’s career pathYou will want to look at defining career growth opportunities for employees in your organization. Opportunities for career advancement will provide an atmosphere for ongoing and consistent learning. Employees will be more committed if they can see career growth opportunities.

3. Promote diversityCompanies that have programs in place to promote a diverse workforce are coming out on top. Diversity is healthy for companies because it brings people of varying points of view and backgrounds together and expands a company’s knowledge base.

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4. Always be recruiting Make the recruitment for qualified employees an ongoing process. With the competitive arena for supply chain employees, it is good practice to always be on the lookout for qualified employees.

5. Provide strong mentorship programsWhether through an official program or informal support, strong mentorship is an essential key to retaining talent. Mentorship programs create an environment for collaboration and understanding between employees at different levels and career stages.

6. Foster a learning environmentEncouraging employees to develop professionally, such as attending

conferences or taking courses, to build loyalty while strengthening your

workforce. With the rise of online education, there are ample opportunities for

employees to get involved in professional certifications, topic-specific training

and webinars.

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These are simply a few ideas on how to attract and retain qualified supply chain talent. If you are looking for new ideas, have coffee with a few millennials and get their input.

The old school for employee and employer relationships is changing. Millennials have a new way of doing business. Their outlook and working culture is changing how we do business in Canada.

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Chapter

03

Are women the solution to the supply chain labour shortage in Canada?

A simple question: Is attracting and retaining more

women to a career in supply chain a solution to this labour

shortage?

Answer: Yes, definitely.

What is the challenge and why the urgency? Supply chain functions and occupations cross all sectors and industries, and according to Perrin Beatty, President and Chief Executive Officer of the Canadian Chamber of Commerce.

Not having a skilled workforce is a critical issue for the Canadian economy. “We have to have a real sense of urgency. We are trying to sound an alarm,” says Mr. Beatty.

Attracting women to the supply chain sector is not a women’s issue, it’s a talent issue. It’s about responding to a Canadian workforce experiencing shortages in skilled supply chain workers now and into the future.

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Recruiting women to supply chain“Recruiting and training more women is a viable solution to the challenge of maintaining a skilled supply chain workforce in Canada,” explains Corrie Banks, President, Triskele Logistics Ltd.

Women are significantly under-represented in supply chain management positions. By engaging more women, there’s an opportunity to reduce the severity of current and future labor shortages.

What is supply chain management?Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.

Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

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Types of supply chain management jobs availableWhile not intended to be a comprehensive list, here are examples of jobs coming available:

Warehouse ManagerSystems AdministratorCustomer Service SupervisorDispatcherInventory Control ClerkEquipment OperatorPurchasing AgentChief Procurement OfficerCustomer Service CoordinatorManager, Logistics PlanningLogistics CoordinatorWarehouse ManagerVice President of TransportationDirector of Business DevelopmentStrategic Operations AnalystFreight AuditorAdministrative Reception Coordinator20

What can employers do?To reduce the severity of the current and future supply chain shortages, employers need to develop a human resources plan that includes:

• Employee attraction and retention• Training and development of the future supply chain workforce• Succession planning• Identifying opportunities usually overlooked because men held traditionally held these roles

According to Corrie Banks, the supply chain sector has a bit of an image problem.

“Often, when people think of the supply chain, they think trucking and warehouses. On the front lines, they see a need to be physically strong,” she says. “In reality, this is not the case at all. This is an an old way of thinking about the supply chain and it needs to go.”

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Ms. Banks says the key to adding women to the supply chain workforce is education. “When women are making career choices, there are not aware of all the amazing work opportunities that are available to them in the supply chain. Also, women working in another industry are not aware of the potential to change careers.

“There are so many rewarding careers in supply chain for women, but they are just not aware of the opportunity. We need to educate women about this.”

Women in Supply ChainThe Van Horne Institute and its partners have launched a drive to draw women into the traditionally male-dominated supply chain sector. The initiative is called Women in Supply Chain (WISC).

WISC believes in bringing the men and women of the supply chain management community together, to learn from inspiring leaders, from each other with networking opportunities.

The Van Horne Institute is recognized in Canada and globally as a leading institute of public policy, education, and research in transportation, supply chain and logistics, and regulated industries. 22

Be part of the solutionThe need to bring more women into the supply chain industry is immediate and growing.

Women are not a future solution. It is a solution for NOW.

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Chapter

04

The millennial solution to the supply chain labour shortage

By 2025, the massive population of baby boomers will have

left the workforce. Businesses in the supply chain sector are

facing the dual challenge of an aging baby boomer workforce

rapidly approaching retirement age and an increasing

demand for people with supply

chain related skills.

We’ve mentioned woman as a solution to the supply chain talent gap. Are there any other areas where the supply chain talent pool can be found?

How about the millennials?

According to the Pew Research Centre analysis of US Census Bureau data: More than one-in-three American workers today are Millennials (adults ages 18 to 34 in 2015), and this year they surpassed Generation X to become the largest share of the American workforce

You’ll also see similar numbers in Canada, where Millennials have become the largest generation in the workforce. Canadian Business (Statistics Canada) 25

Tough competition to attract millennialsOne of the challenges facing the supply chain sector is millennials entering into the business world with different job expectations than previous generations.

Employers are looking for professionals with strong skills. At the same time, the millennials are looking for jobs that meet a lifestyle different than boomers.

This misalignment between expectations and reality is leading to fierce competition for young, future talent.

A recent Brookings Institution report called Unemployment among young adults, Exploring Employer-led solutions suggests that companies involved in the supply chain need to do a better job of bringing young people into the industry.

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The researchers analyzed the dynamics of the young-adult labour market, reviewed workforce development and human resources practices. Here are five key findings of the report:

1. Distribution & transportation offer promising futuresDistribution and transportation are two of the most promising fields for 18- to 24-year-olds without a bachelor’s degree—a group that is particularly challenged finding full-time employment.

2. Industrial nature of jobs is unattractiveMany young people say they feel an aversion to the “industrial” nature of these jobs.

3. Workforce development is keyThe report challenges companies not to be passive consumers of employees. Instead, they must integrate workforce development into their business strategies. This includes providing a clear description of the skills and abilities necessary for entry-level jobs.

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4. A bachelor’s degree is not always requiredThe report suggests that companies should be more willing to recognize that a bachelor’s degree may not be required to perform certain jobs. It outlines how companies need to do a better job of assessing potential employees by using such tools as aptitude tests or a Predictive Index Assessment.

The Predictive Index Assessment is a skill and behavior test that allows companies to evaluate how a potential employee might respond to workplace situations and management practices.

Watch Shawn Achor discuss the “Happy Secret to better work’

5. Foster relationship between business & educationThe report recommends employers develop flexible relationships with the educational institutions. This could be millennials working part-time while earning tuition and attending a college or university.

Opportunities waitingThe supply chain labour shortage is not a new problem. It’s been top-of-mind in the industry for a long time. What’s new is how to attract and retain the millennial generation who do business and life different than the baby boomers. 28

Chapter

05

What you need to know about the new supply chain occupational standards

If you’ve been involved in the supply chain sector,

you’ve experienced frustration with the lack of job standards. Or,

you’ve struggled matching potential employees with jobs based

on their skills.

This has now changed.

The Canadian Supply Chain Sector Council has finished a highly anticipated two-part, two-year project. The results of the program will include first time occupational standards for supply chain roles, and an online skills assessment tool specific to work in the supply chain.

Easy-to-use online assessment toolThis project includes an online assessment tool identifying an individual’s strengths and deficiencies relative to any of the occupational standards for a supply chain job.

Thirty-three existing supply chain occupational standards were developed through earlier projects. Now, 15 new profiles have been added to the mix. This means there are now 48 occupational standards - a first on global scale for the supply chain.29

Linking education and training resourcesThe online tool will link to the Council’s Education and Training Compendium, indicating to the user where further education or training can be found to fill gaps pinpointed through the assessment.

Individuals can use this information to develop career plans; employers will have the information they need to direct their education and training investments or to assist in finding the right hire for a position.

Occupational standards to support a global economyOccupational standards can be used to develop job descriptions and job-performance tools, plan education and training programs, identify career paths and more. See the Council’s existing supply chain occupational standards.

The project focused on transportation-type occupations, particularly in areas where occupational standards are non-existent including:

• Marine• Port operations• Rail, including intermodal facilities• Pipelines• Air cargo30

In addition, the project looked at functions on recent trade initiatives related to the gateway and corridors on both coasts and mid-continent.

Finally, the project focused on emerging occupations in trade, sourcing and global procurement. New occupational standards apply to the following:

Airport Ramp AttendantAirport Ramp Services SupervisorCargo Security Screening GuardDelivery and Courier Services Driver Emergency and Continuity ManagerExpediterLogistics AnalystLogistics Planner Longshore WorkerLongshore Worker SupervisorRate ClerkRegulatory/Compliance ManagerSecurity Risk Management Specialist Security and Safety ManagerTerminal Manager31

Online skills matching for supply chain occupationsUsing the Connector online assessment tool, individuals can now identify occupation-focused strengths and skill gaps. They can connect to education and training resources from a wide variety of Canadian providers: universities and colleges, training organizations and industry associations. The web application will be useful to:

Employers, who will use the assessments and learning activities to gauge and upgrade their employees’ skills

Employees, who will use the tools to assess and upgrade their skills in relation to current or desired occupations

Job seekers, who will use the website to explore careers, assess their strengths and weaknesses, and determine where to go to upgrade their skills

The new supply chain online skills-assessment launched in November, 2015 in Calgary, Alberta at the Sustainable Supply Chain & Transportation, Four Pillars to a Productive Business conference.32

Chapter

06

Where to get an education for supply chain management jobs in Canada

With the emergence of global markets, the need for diversity

training in supply chain and logistics management has become

more critical.  

Hiring and retaining skilled employees in the supply chain is one of the most effective ways of lowering total landed cost and staying ahead of your competition.

Estimated job growth is the primary reason educational institutions across Canada are increasingly offering programs in supply chain and logistics.

The types of educational programs being offered in the supply chain is now more standardized on a national level under the leadership of highly esteemed organizations such as:

VanHorne Institute

Supply Chain Management Association

Canadian Supply Chain Sector Council

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The above organizations offer digital skills matching programs, new job descriptions for careers in supply chain and highly recognized accreditation programs.

A Calgary Region case studyThe Calgary Region, one of Canada’s supply chain and logistics hubs, has some of the nation’s best educational programs for training tomorrow’s workforce.

Groups like Van Horne Institute are working with colleges and universities in the Calgary Region to help meet the growing demand for the supply chain management jobs in Canada.

While not comprehensive, the list below will highlight some of the programs being offered in the Calgary Region. The intent is not to single out the Calgary Region. Rather to show just how much progress is being made in unifying educational programs in regions across Canada.

The following highlights programs that have been offered in the Calgary Region in the past year. It will give you an understanding of how advanced the education program across Canada have become:34

1. Mount Royal University Bachelor of Business Administration - Supply Chain ManagementThis degree concentration explores the fundamental topics and components of working within supply chains, including:

• Distribution• Inventory and warehouse control• E-business• Procurement strategies

Students are given a broad overview of how different parts of the supply chain fit together and the critical role each plays in the success of all organizations. The program takes a business approach that focuses on integration and partnerships at every touch point in the supply chain.

It has been in place now for 12 years having graduated 250 plus students, most working in supply chain management (SCM) roles in the Calgary Region. 35

A variety of excellent opportunities are available to students completing the program including:

Import/Export AgentResearch import/export best practices, build effective transportation routes for goods, oversee movement of goods, and ensure delivery deadlines are met.

Transportation AnalystImprove transportation safety and efficiency while reducing costs and minimizing environmental impact.

Work with data pertaining to traffic of goods via land, air, and sea.

Logistics CoordinatorOrganize personnel, assist with employee training, oversee budgets and courier expenses, and complete and maintain quality assurance checks. The program is accredited by the Canadian Supply Chain Sector Council through its National Accreditation Program (the NAP).

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2. SAIT Polytechnic  Supply Management Training (SMT)SAIT’s SMT program is designed for individuals working in junior and intermediate supply chain positions.

Students develop skills and confidence to support increasingly complex upstream and downstream supply chain management activities.

SAIT delivers this high-quality program on behalf of the Supply Chain Management Association (SCMA)—the leading and largest association for supply chain management professionals in Canada.

Students also acquire other important skills such as negotiation, contract management, marketing, accounting and more.

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3. University of Calgary, Haskayne School of Business  The Bachelor of Commerce degree at the Haskayne School of Business includes supply chain management as one concentration.

Students choosing this concentration are required to take three core courses: Materials and Supply Chain Management, Transportation Systems and Analysis, and a Senior Project course. They are exposed to diverse topics such as service operations management, negotiation, regulatory economics, transportation planning, services marketing, and project management.

The curriculum will often include industry-based projects.The following summarizes the types of positions graduates are prepared for:

PurchasingIdentify global sources of materials, select vendors, and manage negotiations, contracts, and relationships. Coordinate with materials management and ensure timely delivery of appropriate materials.

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LogisticsSupervise a variety of functions, including warehouse and distribution operations, forecasting, planning, inventory management, logistics information systems, and customer service. Develop and maintain cooperative relationships with logistics suppliers and other members of the supply chain.

ConsultingWork with client organizations to enhance supply chain performance through strategic planning, process reengineering, and/or information technology implementation. Develop supply chain tools, processes, and knowledge bases needed to create customer value, build competitive advantage, and boost profitability.

Positions Obtained by Recent GradsExport ManagerFleet ManagerInventory AnalystLogistics ManagerPurchasing ManagerSupply Chain CoordinatorTransportation/Logistics AnalystWarehouse Manager39

4. Athabasca University  Supply Chain Management CourseAthabasca University (AU) is a leading Canadian online university. It offers an online six-credit course in supply chain management (SCM). This in-residence elective focuses on various tools, techniques, and approaches for SCM, with supply chain integration as an underlying theme.

It also looks at the practical application of technology and close collaboration, which are key components in SCM.

Students study a variety of supply chain contexts: e.g. for-profit versus not-for-profit (NFP); humanitarian logistics along with the role of SCM in the production and distribution of goods, services, and information.

The program includes a special focus on SCM in the services context.The goal of this course is for participants to understand the big picture of SCM, apply analytical tools, and make recommendations for supply chain performance improvement.

Students also study alternative perspectives on logistics vis-à-vis SCM, which define the breadth and depth of SCM.40

Start your career in supply chain management todayAs the economy grows so does the demand for goods and services. With all that demand, the need for supply chains workers explodes.

The time is right to consider your educational options in your preferred business centre in Canada.

If you are without work, an upgrade in your education can open up a vast field of work for you in the supply chain.

If you are a new student, supply chain education can pretty much guarantee you future employment in the supply chain.

Check out the Canadian Supply Chain Sector Council’s new “recruitment and

retention toolkit.

This new tool is for both employers seeking supply chain talent and those who are

looking at a supply chain career.

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The future of the supply chain labour in Canada:

A crisis or an opportunity

What’s your talent strategy?Supply chain managers face a coming shortage of talent. The best should be putting strategies in place now to prepare for the future. With the rapidly shrinking pool of a qualified labour workforce, there’s an immediate need to address the growth of our supply chain industry.

As mentioned earlier…The Canadian Chamber of Commerce estimates in 2016, there will be 550,000 unskilled workers unable to find work. To prepare for this growth in our industry, as well as address potential labour shortages, current and future employees must be equipped with the necessary traditional (e.g. accounting, economics, logistics management, mathematics, etc.) and non-traditional skills sets such as:

• Integrate quantitative and qualitative to develop solutions for market opportunities or risk mitigation

• Being a multi-level communicator horizontally and vertically within the organization, across communities of trading partners, to customer markets, as well as non-supply chain stakeholders

• Flexible and adaptable: to work effectively in uncertain environments

Close

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This labour development strategy helps secure those equipped to handle the complex challenges of today’s marketplace environment.The economic downturn has placed more demands on supply chain organizations. We need qualified employees equipped with the crucial talents to succeed in this new era.

If those in academia and the human resources sector take these labour warnings seriously, we can proactively address ways to develop employees and be competitive on a global scale.

Employers and employees must create a customized development career plan including experiential and formal education needed for employees to achieve their goals.

The supply chain sector must ensure the future labour talent is well prepared to maintain Canada’s position as one of the worldwide leaders in supply chain growth.

You can help by collaborating with others to define new business models and strategies (e.g. emerging economy customer bases, global expansion, new technology deployment and omni-channel distribution). The success of your organization is directly correlated with the investments you make in your employees. 43

Calgary Regional Partnership would like to thank the following for

their contributions to this e-book:

- Reg Johnston, P. Eng., RJ T&L Consulting Ltd.

- Corrie Banks, Triskele Logistics Ltd.

- Van Horne Institute at the University of Calgary

- Jim Brown, JRSB Logistics Consulting Ltd.

Acknowledgements

www.calgaryregion.ca • 403-851-2509 • Box 2093, Cochrane, AB, T4C 1B8