The Digital Supply Chain - Creating skills for the future January 2018 - Supply Chain Canada
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The Digital Supply Chain Creating skills for the future January 2018
CONTENTS
Acknowledgements ....................................................................................................................................................... 3
Executive Summary ....................................................................................................................................................... 4
Supply Chain Overview.................................................................................................................................................. 5
Digital Technologies ...................................................................................................................................................... 9
Autonomous Vehicles .............................................................................................................................................. 9
Adoption Rates .................................................................................................................................................. 9
Alberta Example in Action ................................................................................................................................ 10
Impact on Job Skills and Labour Requirements ................................................................................................ 10
Robotics & Automation.......................................................................................................................................... 12
Adoption Rates ................................................................................................................................................. 12
Alberta Example in Action ................................................................................................................................ 12
Impact on Job Skills and Labour Requirements ................................................................................................ 13
Big Data Analytics .................................................................................................................................................. 14
Adoption Rates ................................................................................................................................................. 14
Alberta Example in Action ................................................................................................................................ 14
Impact on Job Skills and Labour Requirements ................................................................................................ 15
Drones .................................................................................................................................................................... 16
Adoption Rates ................................................................................................................................................. 16
Alberta Example in Action ................................................................................................................................ 16
Impact on Job Skills and Labour Requirements ................................................................................................ 17
Mobility Internet and the Internet of Things ......................................................................................................... 18
Adoption Rates ................................................................................................................................................. 18
Alberta Example in Action ................................................................................................................................ 18
Impact on Job Skills and Labour Requirements ................................................................................................ 19
Blockchain .............................................................................................................................................................. 20
Adoption Rates ................................................................................................................................................. 20
Alberta Example in Action ................................................................................................................................ 20
Impact on Job Skills and Labour Requirements ................................................................................................ 21
Job Skills in a Digital World.......................................................................................................................................... 22
National Occupational Standards .......................................................................................................................... 22
Future Skills: Areas of Focus .................................................................................................................................. 23
Material Handler .................................................................................................................................................... 25
Procurement Officer .............................................................................................................................................. 26
1|Page
Supply Chain Manager ........................................................................................................................................... 27
Transportation Manager ........................................................................................................................................ 28
Logistics Analyst ..................................................................................................................................................... 29
Store Keeper and Parts Clerk ................................................................................................................................. 30
Computer and Information Systems Manager....................................................................................................... 31
Logistics Manager .................................................................................................................................................. 32
In Conclusion ............................................................................................................................................................... 33
Research Methodology ............................................................................................................................................... 34
Outcomes ............................................................................................................................................................... 34
Technology Review ................................................................................................................................................ 34
Research ........................................................................................................................................................... 35
Connections ...................................................................................................................................................... 35
Employment and Skills Trends Review .................................................................................................................. 35
Heat Map .......................................................................................................................................................... 35
Surveys, Roundtables and Reviews .................................................................................................................. 36
Task Assessment ............................................................................................................................................... 36
Connector Tool Assessment ............................................................................................................................. 36
Appendix A: Research Contributors ............................................................................................................................ 37
Notes ........................................................................................................................................................................... 38
2|Page
ACKNOWLEDGEMENTS The Canadian Supply Chain Sector Council would like to acknowledge contributions from the following people: Our Partners We would like to recognize the Calgary Logistics Council for all of their expertise and contributions to this project. Our Research Team Triskele Logistics is a supply chain consulting company that enables its customers to achieve cost reduction and efficiency in their supply chain. In addition, we manage projects and complete supply chain research using our industry knowledge, connections and expertise. Founded in 2013 by Corrie Banks and with current President Steve Banks, Triskele applies simple, efficient change methodologies to work with you to achieve your vision and execute your projects. From strategy to project execution to sustainment, Triskele Logistics brings it all together. The Triskele Team (Corrie Banks, Steve Banks, William Merrill, Eric Rasmussen) enjoyed working with the CSCSC on this project to produce a product that we are proud of. For more information on Triskele Logistics, please visit www.triskelogi.com. Our Project Advisory Committee Karen Baldwin, Southern Alberta Institute of Technology Brad Beerling. Meridian Manufacturing Inc. Chris Beringer, Economic Development & Trade, Government of Alberta Steve Bromley, Cando Rail Services Pat Campbell, Canadian Supply Chain Sector Council Siobhan Chinnery, Schenker of Canada Heather Dewald, CERT Logistics, Metro Supply Chain Group Wendy Ell, JWN Energy Darryl Galliott, DHL Supply Chain Deborah Gee, Sysco Foods Marius Ghinescu, Raytheon Canada Dan Giurescu, TerraHub Jeff Griffiths, GO Productivity Moses Idah, Supply Chain Management Association Alberta Tracey Johnson, Workforce Initiatives Branch, Ministry of Labour, Government of Alberta Miko Kutac, Brewers Distributor Ltd. Jean-Marc Lacasse, City of Chestermere, Alberta Masoud Sahebkar, Teck Resources Marjerie Salisse, TransCanada PipeLines Limited Shaun Shaw, Big Rock Brewery Sarah Stata, Sherritt International Jan Taszlikowicz-Tunnell, Royal Bank of Canada Denean Tomlin, Western Canadian Defence Industries Association The Province of Alberta is working in partnership with the Government of Canada to provide employment support programs and services. 3|Page
economic growth, it is experts believe that the labour
EXECUTIVE SUMMARY
imperative that Canada seek to force will be impacted by
The Canadian supply chain is a accelerate improvement technology within the next 3 to 5
critical part of the Canadian through the use of digital years. These industry leaders
economy, enabling $1 trillion technology in the supply chain expect that the increased use of
worth of goods movement, sector. autonomous vehicles, robotics and
generating $66 billion in gross automation, blockchain, and drones
domestic product (GDP), and Many technological will have a moderate to very high
employing more than 878,000 advancements, particularly the impact on the labour force. They
people (excluding truck internet of things, big data also believe adopting technologies
drivers) across Canada. analytics, mobility internet, such as the internet of things (IoT),
robotics, and blockchain will mobile internet, and big data
The sector is growing, creating transform the supply chain analysis will lead to higher job
new jobs at an average of 1.5% sector by providing greater creation than losses.
annually, and is faced with visibility, data, analytics, and
labour force challenges in opportunity for improvement. This document discusses six
filling vacancies due to new technologies (autonomous
retirement and workforce However, as industry leaders vehicles, robotics and
turnover. adopt new technologies, they automation, big data analytics,
may have difficulty finding drones, mobility internet and
In addition to the labour force employees who have the the internet of things, and
challenges, the Canadian required skill sets. The factor blockchain) and the impact that
Transportation Act Review with the greatest impact on the they will have on job skills and
2016 report identified that all talent shortage is changing job labour requirements. It also
Canadian industries and requirements. Today, the ideal highlights a number of
transportation have a less than employee has both tactical/ innovative companies in Alberta
41% use of advanced operational expertise and that have already adopted new
communication technologies, professional competencies such technologies. And finally, a
with the majority below 30%. as analytical skills. Tomorrow’s labour skills report provides
Canada is ranked 14th among talent must also excel at examples of the changing skill
nations in the World Bank’s leadership, cross- functional set required in the near future
Logistics Performance Index. business unit collaboration, for a number of supply chain
global team management, occupations.
The Organisation for Economic
strategic thinking, innovation,
Co-operation and In conclusion, Canadian
and high-level analytics.
Development (OECD) forecasts companies adopting new
that, over the next 30 years, The global adoption rate for all technologies must also actively
the Canadian economy will of these technologies is within develop the corresponding skills
grow at a slower rate than the next 1 to 5 years, and it is and capabilities. Technological
those of many of our key anticipated that they will be advancements and the growth
competitors. widely adopted (i.e., they will of the supply chain sector are
become the way we do creating a demand for new
Considering the need for
business) by 2025. skills, and smart companies
experienced and skilled labour,
must work to build those skills
the late adoption of technology, According to research by the
before the technology
the current ranking of Canada’s Canadian Supply Chain Sector
advancements reach a critical
logistics performance, and the Council (CSCSC), industry
adoption rate.
possibility of its slowed leaders and supply chain
4|Page
SUPPLY CHAIN face challenges in
filling jobs created
OVERVIEW
by this growth, as
The supply chain is one of the well as vacancies
most essential sectors of the caused by
Canadian economy. The success retirement and job
of this sector in meeting its turnover.
human resources and labour
market challenges has the In Alberta, the
potential to positively influence supply chain
the future of Canada and the system is a critical
quality of life that we all enjoy.1 part of the
province’s
The transportation and logistics economic growth, competitiveness in the global
sector is itself a critical part of accounting for $20 billion in economy.
Canada’s economic base. This gross domestic product (6.6% of
sector: Alberta’s total GDP) and The Conference Board of
enabling $62.6 billion dollars in Canada’s International Ranking
• accounts for nearly of Labour Productivity Growth
manufacturing shipments.
$66 billion in gross notes that, as of March 2013,
Despite slower economic
domestic product Canada’s productivity is
growth from weak oil prices,
• represents more than 4% of Alberta is still growing faster, negatively affected by “weaker
Canada’s total gross at 2.9%, than all of the other inward and outward foreign
domestic product2 Canadian provinces.6 direct investment, low R&D
• employed 878,264 intensity, a weak innovation
Canadians in 20163 Alberta is also diversifying record, and the relatively small
and has a rapidly growing percentage of Canadians with
Additionally, the transportation information and technology advanced degrees in science
system moves more than sector that is contributing and technology.” 8
$1°trillion worth of goods each $16°billion in gross domestic
year; its efficiency is an product (5.1% of total GDP If this characterization applies
important competitive factor across all industries).7 to transportation, which has a
across the economy.4 Growth in this sector allows major input across sectors,
innovation and creativity to competitive problems could be
From 2010 to 2016, the supply
be cornerstones of the compounded. Over time, such a
chain sector added an average
Alberta marketplace, driving competitiveness gap could
of 10,721 new jobs per year,
change and improving negatively impact Canadians’
representing an estimated
Alberta’s productivity and prosperity relative to the rest of
annual labour force growth rate
competitiveness in the the world. The Organisation for
of 1.5%. In the future, the
marketplace. This is Economic Co-operation and
sector is expected to see similar
important because Development (OECD) forecasts
growth, potentially adding over
productivity levels in Canada that, over the next 30 years, the
50,700 jobs between 2016 and
have been a longstanding Canadian economy will grow at
20215.
concern of governments and a slower rate than the
It is also expected that over the industry, since productivity economies of many of our key
next few years, the sector will affects the country’s competitors. According to
5|Page
Figure 1 Projected Worldwide Economic Growth Source: Canadian Transportation Act Review 2016 report
the OECD forecast, the gross identified that all Canadian The World Economic Forum
domestic product per person of industries and transportation highlights that, if all countries
countries such as the United have a less than 41% use of reduce supply chain barriers
Kingdom and Australia will advanced communication halfway to global best practice,
surpass that of Canada.9 technologies, with the majority then global GDP could increase
below 30%. Canada is ranked by 4.7% and world trade would
The Canadian Transportation 14th among nations in the increase by 14.5%.
Act Review 2016 report World Bank’s Logistics
Performance Index. 10
Figure 2 Impact of Efficient Supply Chains on the World
6|Page
Figure 3 Industrial Revolutions over Time Source: Google Images
These benefits caused by unprecedented mobile devices, manufacturing, mixed reality
changes in supply chain costs processing power, storage tech, and renewable energy.13
far outweigh those from the capacity, and access to
elimination of all import tariffs. knowledge. These advances are The Canadian Supply Chain
It is estimated that eliminating magnified by advances in Sector Council (CSCSC)
tariffs could increase global GDP artificial intelligence, drones, conducted two surveys of
by 0.7% and world trade by autonomous vehicles, robotics, Alberta and international supply
10.1%.11 the internet of things, chain professionals and experts.
blockchain, additive The surveys were designed to
Consulting firm PwC identified
that companies that operate
How Much Will Technology Impact Your Supply Chain in the Next 3 to 5 Years?
best-in-class supply chains have
50% higher sales growth and
are 20% more profitable.12 In
other words, increasing
innovation and productivity
results in higher success and
greater economic profitability.
Alberta’s focus on innovation
and technology is crucial to
improving productivity and
Canada’s supply chain sector.
We are in the midst of the
fourth industrial revolution – a
digital revolution – the speed of
which has no historical
precedent. The fourth
industrial revolution is evolving
at an exponential rather than Figure 4 Survey of Canadian Supply Chain Professionals August 2017
linear pace, with
7|Page
attain industry feedback on the impact digital technologies will have on the supply chain workforce. The surveys highlighted that industry professionals believe that aerospace and defence, agri- business, natural resources, pharmaceuticals, industrial manufacturing, financial services, and supply chain will be highly impacted by technology within the next 3 to 5 years. In October 2017, the CSCSC held two international web-based roundtables. These roundtables were attended by industry and supply chain professionals who discussed the rapid changes to the physical supply chain and labour force due to the adoption of digital technologies. Attendees of these roundtables reported that they believe that the labour force will also be impacted by technology within the next 3 to 5 years. The technologies that are anticipated to impact supply chain most significantly are autonomous vehicles, robotics and automation, big data analytics, drones, mobility internet and the internet of things, and blockchain. 8|Page
DIGITAL TECHNOLOGIES
AUTONOMOUS VEHICLES
An autonomous vehicle (also
known as a driverless car, self-
driving car, robotic car, and
unmanned vehicle) is
a vehicle that is capable of
sensing its environment and
navigating without human
input.14 This technology will Figure 5 Technical Outline of an Automated Vehicle Source: Google Images
have huge impacts on the
supply chain sector, with a In 2015, 161,902 people were
potential to automate forklifts, injured in collisions in Canada.16 of self-driving vehicles in public
trucks, trains, and ships. Any Autonomous-vehicle scientists spaces, so most are used in
vehicle currently requiring a believe that 75% to 95% of closed private environments.
driver can become semi- or fully collisions will be avoided with However, countries around the
autonomous. autonomous vehicles.17 world are beginning to adopt
policies that will enable
Autonomous vehicles utilize Supply chain nodes will be able autonomous vehicles to
many environment sensors such to communicate with each operate on public roads. For
as LIDAR (light detection and other in real time through cloud example, earlier this year the
ranging), radar, GPS, and applications between U.S. House of Representatives
cameras. Using these sensors, autonomous vehicles. approved a new law that
an autonomous vehicle has an
enables up to 100,000 self-
enhanced ability to view its ADOPTION RATES driving cars per year to operate
surroundings that far surpasses
Currently, policies limit the use outside of current safety
human capabilities. LIDAR, for
example, washes its
surroundings with lasers to
create a digital image. This
image can be very detailed and
can even help an autonomous
vehicle to “see” around objects.
Autonomous vehicles have
superior ability to react and
respond quickly to traffic flow.
This allows them to drive closer
to other vehicles, which should
have the effect of easing
congestion and increasing the
flow of traffic.15
Figure 6 Projected Worldwide Car Sales by Level of Autonomy
9|Pagestandards, thus allowing
companies to get self-driving
cars on the road more quickly,
which in turn will encourage
development and innovation in
the technology.18
In Canada, cities such as
Ottawa, Edmonton, and Calgary
are creating test zones to
determine how well
autonomous vehicles will
operate in colder environments.
Calgary is planning to have
autonomous vehicles on its Figure 7 Ford Lyft Autonomous Vehicle
roads by 2021.19
Currently, many of these
IMPACT ON JOB SKILLS AND
communications are completed
ALBERTA EXAMPLE IN LABOUR REQUIREMENTS
by dispatch and logistics
ACTION
A debate is on within the supply analysts who track vehicles,
Suncor Energy is currently chain community regarding the couriers, and trucks, and let
utilizing autonomous heavy need for an autonomous vehicle customers know where the
hauling trucks in its oil sands to have a driver. Many believe assets are and how much work
operations. After a test run, that we will always need a has been completed for the day.
Suncor engaged in a contract person present at the time of But, if an autonomous vehicle is
with a Japanese manufacturer delivery – and they might be connected to the cloud via
to eventually replace its entire right. However, in confined electronic logging device (ELD),
fleet with autonomous vehicles. spaces, such as yards, ports, internal computer systems, or
The initial test was for 12 and mining operations, there sensors, then it can
vehicles, with the new contract are other uses where the communicate where it is, how
adding more than 40 activities completed can be geo- much work it has done, and
autonomous vehicles to its fenced, predicted, planned, and what its operating status is to a
fleet.20 automated. The Suncor case is wide network without any
an example of the early human intervention.
In 2015, while discussing the
adoption of technology to
success of the program, a In this case, the administration
improve productivity.
Suncor company spokesperson required to manage the
stated that a standard operator The use of autonomous vehicles business will be reduced.
cost is about $200,000 per year. will impact more than just Analysts, dispatchers, and other
With 52 vehicles in the fleet, the drivers; the job skills and labour employees who manage
annual labour cost reduction is requirements in other areas of operations will have more
thus greater than $10 million. the labour force will be affected network visibility and more data
Also, the use of autonomous as well. Consider the impact of at a faster rate. Their role will
vehicles has reduced tire wear, a connected vehicle (with or change – instead of primarily
maintenance, and fuel without a driver) that is capable operating the network, they will
consumption by 5% to 15%.21 of communicating its current be managing the network. In
location to other organizations.
10 | P a g ethis new role, they will require
more analytical, leadership and
problem-solving skills. They will
need to understand how the
new technology communicates
and what to do when it doesn't.
Also, the issues they manage
will become more technical in
nature.
Based on the survey issued by
the CSCSC, 30.3% of supply
chain professionals believe that
autonomous vehicles will have
low to very low impact on the
supply chain (Figure 7).
However, as can be seen in
Figure 8 CSCSC Survey of International Supply Chain Professionals
Figure 9, over 80% of
respondents feel that
autonomous vehicles will have a
moderate to very high impact
on the labour force.
In summary, over the next three
years, as personal and supply
chain vehicles become
increasingly automated, there
will be impacts to the supply
chain labour force. The most
obvious change will be to the
number of drivers required;
however, the administrative
and management functions
within the supply chain sector
will also be impacted.
Figure 9 CSCSC Survey of International Supply Chain Professionals
11 | P a g eROBOTICS & AUTOMATION
Robots are machines capable of
automatically carrying out a
complex series of actions.
Previously, robots were
stationary, blind, and relatively
unintelligent, which slowed
down the adoption rate of
robots in the supply chain
sector. Today, next-generation
robots are lighter, more flexible,
and more affordable. They use
cameras to “see” and have
much better grip and sensor
technologies. Robots equipped
with high-resolution cameras
and learning capabilities assist
workers in warehouses with
tasks such as picking, packing, Figure 10 Projected Worldwide Spending on Robotics
and sorting. For example, DHL
Global Supply Chain has the capabilities of robotics develop. occupations have a medium risk
robot “Effi-BOT,” which is a fully In their 2013 study, Carl of automation.24
automated trolley that follows Benedikt Frey and Michael
pickers through the warehouse Osborne from the University of ALBERTA EXAMPLE IN ACTION
and takes care of most of the Oxford cited that an estimated
In July of 2017, Sobeys Canada
physical work.22 47% of occupations in the USA
opened a highly automated
have a high risk of automation,
warehouse in Balzac, Alberta.
while an additional 19% of
ADOPTION RATES
According to a white paper from
the University of Tennessee,23
robotics is one of the most
advanced technologies in supply
chain today, in terms of its
proliferation and application.
With the dramatic rise and
forecast continued growth in
e-commerce, the demand for
warehousing services will
continue to increase. This will
accelerate the need to find
cost-reduction solutions
through automation.
Many basic occupations face
Figure 11 Sobeys Vaughan Automated Warehouse
automation as the technical
12 | P a g eThis warehouse permits one on the supply chain labour employee to complete work force. previously done by four. It is a replica of Sobey’s Vaughan, As an additional example of the Ontario facility, where the new impacts on labour, Changing Witron automated case picking Precision Technology Company and palletizing system, called operates a factory in China. It OPM (order picking machinery), replaced 90% of its employees can receive 720 cases an hour in 2016 with robotics and (320,000 cases daily). In a automation, and saw a conventional distribution stunning 250% increase in centre, humans pick an average productivity and an 80% of 160 to 180 cases per hour. decrease in defects.27 These The new OPM system can pick results bring a staggering 500 cases per hour. difference to an organization’s Without humans, errors and profitability. damage to goods on pallets has been effectively eliminated.25 A typical warehouse can hold anywhere from 8,000 to 12,000 SKUs (stock keeping units). The Vaughan distribution centre can hold one and a half times more. Across Canada, Sobeys has reduced its labour force by 1,300 workers and, in Alberta, it has reduced its labour force by 40026. IMPACT ON JOB SKILLS AND LABOUR REQUIREMENTS Robotics and automation will Figure 12 CSCSC Survey of International Supply Chain Professionals have one of the largest impacts on the labour force. By nature, the work that robots and automation will replace is manual, highly repetitive, and inefficient. As in the Sobeys example above, 75% of the warehouse workforce was removed. In our survey, 56.3% of responders expect robotics and automation to have a very high or high impact 13 | P a g e
BIG DATA ANALYTICS
Big data analytics is the
process of examining large and
varied data sets – i.e., big
data – to uncover hidden
patterns, unknown
correlations, market trends,
customer preferences and
other useful information that
can help organizations make
more informed business
decisions. Data is being
created at an expansive rate
and, when analyzed, useful
information can be drawn
from its results.
infrastructure, new businesses, can eliminate the human
While this concept has always new monopolies, new politics process of exporting
been true, the sheer amount of and – crucially – new data, mining spreadsheets, and
data that can be analyzed now economics. Many a battle will performing complex data
adds new challenges and be fought over who should analysis. It does this
benefits. With big data own, and benefit from data.” by leveraging the latest
analytics, the volume of data advancements in computational
– The Economist
allows for organizations to get linguistics and machine
greater insights from their learning.
data, including higher accuracy The Gartner group predicted a
For example, a user could ask
when forecasting and 60% to 80% growth in data
Chata, “What were the profit
monitoring operations. from sources other than
margins for each store in the
Ultimately this allows for data- business transactions in 2017.28
last quarter?” and it would
enhanced business decisions.
generate and present the data
ALBERTA EXAMPLE IN in a visual way that helps the
ADOPTION RATES ACTION user make decisions faster. This
There is a growing industry Calgary-based start-up Chata.ai type of technology will enable
sentiment that “data is the is building tools that allow users anyone to analyze his or her
new oil.” Many industry to ask the data a normal business and profitability with
leaders view data as a highly human-language question and little to no data expertise.29
valuable asset and resource receive an immediate response,
that can be leveraged to complete with bar charts,
create beneficial results. graphs, analysis, or other
information. This technology
will eliminate the need to
“Data are to this century what create queries and will provide
oil was to the last one: a driver the user with instantaneous
of growth and change. Flows answers to analytical questions.
of data have created new Its intelligent assistant
14 | P a g eindirect and induced
employment are factored in, in
2016, there was a total labour
force of approximately 43,700.
ICTC projects that, by 2020,
43,300 data analytics specialists
will be directly employed in
Canada, an increase of 33%.
When indirect and induced
employment are included, this
will result in a total labour force
Figure 13 Data Storage Growth from IoT Sensors of 56,000 by 2020.30
The Information and Our survey highlighted that
IMPACT ON JOB SKILLS AND
Communications Technology almost half (48.5%) of supply
LABOUR REQUIREMENTS
Council (ICTC) estimates that, in chain professionals are not
The labour impact of big data 2016, there were approximately aware of these potential labour
and predictive analytics is a 33,600 data analytics specialists force changes and the
positive one. Here we directly employed across increasing need for big data
anticipate job creation for Canada, the majority of whose analysts. The results of the
engineers, computer science roles were an outgrowth of survey contrast significantly
majors, data managers, and traditional database analysis with ICTC’s predicted increase
analysts. Knowing how to and administration positions. A in the number of data analytics
capture, manage, and transform much smaller percentage were specialists in the labour force.
data into content that can be employed in more specialized
used for predictive analytics and roles that intersect with
decision making will be a engineering, systems
cornerstone activity in this new management, business analysis,
digital age. and programming. When
Figure 14 CSCSC Survey from International Supply Chain Professionals
15 | P a g eDRONES
Often called unmanned aerial
vehicles (UAVs), drones cross
the benefits of advanced
robotics with the versatility of
small aerial craft. By adding
sensors, cameras, scanners,
hooks, and “hands” to small
flying vehicles, drones can assist
in accomplishing tasks with a
new degree of efficiency, industries such as airports and
ADOPTION RATES
effectiveness, and versatility. aerodromes, agriculture and
Based on a report from market
livestock, construction and
Drones have many designs, but analysis firm Tractica,
engineering, energy and
in general their style is similar to worldwide sales of consumer
renewables, forest resources,
that of airplanes or helicopters. drones reached $1.9 billion in
transportation, infrastructure
Most drones are made in a 2015, and the market will
and utilities, mining and
helicopter style, which has the continue to grow for the next
aggregates, public safety,
versatility of vertical takeoff and few years. Tractica forecasts
security and emergency
landing and so increases that worldwide consumer
response, lodging and remote
opportunity of use. These UAVs drone shipments will increase
accommodations. For these
are typically electric with many from 6.4 million units in 2015 to
commodities, Aerium provides
rotors, and often they have 67.7 million units annually by
3D modeling, videography, new
autonomous features. Some 2021.31
vegetation spectography,
drones are designed with
orthophotogrammetry, and
combustion or hybrid engines, ALBERTA EXAMPLE IN wildlife and environmental
depending on the application. ACTION monitoring.32
Uses for drones are widespread Calgary-based Aerium Analytics
and include parcel delivery, is providing unmanned aerial
rural deliveries, surveillance, vehicle or drone services to
surveying, and reading barcodes
and RFID (radio frequency
identification). Drones can have
a variety of components added
to them; this adaptability allows
drone technology to benefit any
industry. Business applications
aside, drones are being
produced as a consumer toy
with sizeable markets and
growing demand.
16 | P a g eIMPACT ON JOB SKILLS AND
LABOUR REQUIREMENTS
Drones have the potential to
enhance many different types
of activities previously done by
humans. Small-package
delivery, land surveys, CAD
analysis, videography, herd
counting, forest growth
measurement, stocking shelves,
inspecting well sites, and
inspecting rail tracks are just
some examples where drone
technology can enable
employees to work faster and
more efficiently.
As evidenced by the responses
from the CSCSC surveys of
supply chain professionals,
21.9% believe that drones will
Figure 16 CSCSC Survey of International Supply Chain Professionals
have a high or very high impact
on the labour force, while 50%
expect drones to have little
impact on labour.
In the near term, regulatory
challenges in Canada will limit
drone use to within line of sight,
which means the adoption rate
of the technology in Canada will
be slow and the overall impact
low. However, as drone use
increases, employees will need
to be trained and licensed in
drone operation and will need
to understand how to operate,
manage, and understand the
data collected by drones.
17 | P a g eMOBILITY INTERNET AND
THE INTERNET OF THINGS
The internet of things (IoT)
involves connecting devices to
increase machine-to-machine
communication via the internet.
For example, the IoT enables
communication between a
truck and a warehouse to
coordinate timing for deliveries.
The IoT includes virtually any
device or object that has a
connection to the internet.
Examples range from wearable computing devices (e.g.
technologies and smart phones, ADOPTION RATES
smartphones, tablets,
to connected household goods, Of all the advancements in smartwatches, etc.) will
to sensors found in equipment digital technology, few have comprise 10 billion.33
that automatically more impact than the sensors
communicate data. used to create the internet of ALBERTA EXAMPLE IN
things. In a June 2016 Business ACTION
This connectivity is conducted Insider Intelligence report, it
by moving data through the was predicted that there will be OPIsystems is a Calgary-based
cloud. By utilizing cloud 34 billion devices connected to tech company and a global
computing, businesses and the internet by 2020, up from leader in optimizing grain
consumers have mobility of 10 billion in 2015. Internet of quality for higher returns and
internet; i.e., there is easy things devices will account for
access to devices anywhere. 24 billion, while traditional
Additionally, devices can store
significant amounts of data in
the cloud, which reduces the
size of required hardware.
The internet of things enables
the remote sensing of
anything, helping businesses
to be more transparent and
proactive. Sensors can be
used to help track the location
and qualities of products as
they move through a supply
chain. This will help to
determine where products
are, and if changes occur as
products are handled and
moved.
Figure 17 Number of Devices in the Internet of Everything
18 | P a g eimproved safety. OPIsystems’
sensor-based technology
measures the temperature and
moisture content of stored
grain, and through the use of
processing algorithms and
aeration fans, it automatically
controls the condition of the
grain to prevent shrinkage and
spoilage. This technology works
on all types of grain, including
wheat, corn, oats, rice, and
canola. Since grain is sold by
weight, grain with higher
Figure 18 Survey of International Supply Chain Professionals
moisture content has greater
value and OPIsystems’ start the paperwork on the
IMPACT ON JOB SKILLS AND
technology keeps the grain at a claim, and customer service can
LABOUR REQUIREMENTS
constant moisture level. divert the load for cleanup prior
Sensors and devices will provide to delivery to the customer.
If a hot spot is detected, more information faster, enabling
indicating that the grain is faster employee input and The majority of those surveyed
beginning to spoil, the system decision making. Sensors will by the CSCSC agree that IoT will
automatically turns on the fans collect, update, and manage data, have a significant impact on
to cool the area to eliminate the eliminating the need for humans supply chain technology, with
problem, then turns the fans off to enter, clean, and manage data. 87.8 of responses falling in the
when the job is done to prevent This shift will give employees time moderate to very high impact
the grain from drying out and to to focus on ways to be proactive categories. However, survey
save energy costs for the with the data instead of spending results also indicated that over
farmer. Having this control over time entering it.35 half of the supply chain
grain drastically increases the professionals surveyed feel that
length of time the grain can be Sensors will also IoT and mobility internet will
stored, which gives farmers collect data on events cause no change to jobs.
control over when they sell it. and provide visibility
OPIsystems’ technology also to issues as they
eliminates the need to enter happen. For example,
the bin to manipulate the grain if a load shift in transit
by hand, which can be very results in damages,
dangerous.34 load sensors will
provide information
to the customer
service and claims
analyst before the
truck arrives at the
destination. The
claims analyst can
Figure 19 CSCSC Survey of International Supply Chain Professionals
19 | P a g eother non-value-added activities
BLOCKCHAIN
within the supply chain are
Blockchain is a technology that sizeable.
uses a general ledger for all
participating parties to create a ADOPTION RATES
secure record of asset transfer.
Blockchain as a technology is in
Due to its design, this general
the very early stages of
ledger is unchangeable,
other records management creation. There are early
resulting in security and
activities, such as identity leaders in the space, with
accessibility for the members of
management, transaction Etherium (Microsoft) and
the chain. This creates
processing, documenting Hyperledger (IBM) being two of
transparency of the value of
provenance, or food the more visible solutions.
goods transferred from one
traceability.36 There are hundreds, if not
party to another, ensuring
thousands, of companies
partners in the chain have the
In the supply chain sector, entering the blockchain race
same important information. A
blockchain has the capability of and over 57% of the world’s
key component of blockchain is
collecting operational data, large companies surveyed by
that there is no one owner of
rating the operational events Juniper Research are
the information. The technology
(applying a cost), and then considering their own
operates on a distributed
generating invoices for services blockchain solutions.38
network, instead of a traditional
rendered electronically.
centralized network.
Considering the amount of ALBERTA EXAMPLE IN
Blockchains are secure by paper currently used to track a ACTION
design and are an example of a shipment, legally accept or
transfer liability of a shipment, ATB Financial, a commercial
and then pay for services banking organization in Alberta,
“The societal power of is leading the way in blockchain.
pertaining to that shipment,
blockchain to positively blockchain (and the business In July 2016, ATB successfully
bring disparate—and process flows that are required transmitted $1,000 via Ripple.
even competitive— to manage it) has the potential Ripple connects banks, payment
providers, digital asset
interests together can’t to bring together all of the
exchanges, and corporations via
be overstated…” other technologies and unify
them under one platform. 37 RippleNet to provide a
Bill Whitelaw - JWN Energy – frictionless way to send
June 23, 2017 It is not without challenges. In money.39
order for blockchain to be
effective, it requires Ultimately, ATB wanted to see if
distributed computing system
collaboration, clear contract it could use blockchain to move
with very low opportunity for
application, documented and real money to a real financial
error (i.e., a high Byzantine fault
agreed-upon rates for service, institution, in real time.
tolerance). Decentralized
and “if this happens then what Traditional transactions
agreement to a set of contractual
do we do” processes currently take 3 to 6 business
conditions is therefore achieved
established. If the rigor days; Ripple has the potential
through a blockchain. This makes
required is achieved, then the to reduce this to mere seconds.
blockchains potentially suitable
for the recording of events, reduction in administration,
medical records, and dispute resolution, claims, and
20 | P a g ethere was an 11-time-zone
difference.
Ultimately, the blockchain proof
of concept was highly
successful, with $1,000 being
sent by ATB (in Canada) to
ReiseBank (in Germany) in only
eight seconds, using the Ripple
protocol.40
IMPACT ON JOB SKILLS AND
LABOUR REQUIREMENTS
Blockchain will significantly
change how we manage a
Figure 20 Projected Blockchain Growth and Adoption supply chain. The collection of
ReiseBank has a unique core Ripple network. However, since operational data mapped to
banking system for its special ReiseBank lacked a customer- financial rules and payment for
business needs, servicing its facing front end, an essential services will fundamentally
clients with the possibility of part of this project was to build change processes pertaining to
carrying out SEPA (Single Euro a web-based user interface proof of delivery, shipment
Payments Areas) transactions properly aligned with its management, and financial and
without an account. ReiseBank’s business model. accounting activities.
deep knowledge of cash-based
When the decision was made to These changes will require
transfers that comply with both
partner with ReiseBank, the advanced leadership, negotiation,
German and EU anti-money
ATB teams needed to adapt to contract management, business
laundering regulations is now
work with the reality that process, and collaboration skills.
being implemented in the
Of all the changes in supply chain,
blockchain will result in the most
fundamental changes to a wide
array of roles within the sector.
The CSCSC survey highlighted
that, while many (71%) of the
responders feel that blockchain
will have a sizeable impact on
the supply chain labour force,
there are still 29% who believe
that blockchain will have little
impact. This belief may be due
to the fact that blockchain is a
new technology and industry is
still learning what it is and how
it can be implemented within
Figure 21 CSCSC Survey of International Supply Chain Professionals the sector.
21 | P a g eJOB SKILLS IN A DIGITAL WORLD
Digital technologies are impacting supply chains around the world, transforming how we get goods to market, improving
productivity and efficiency, and changing labour skills needed to perform many jobs in the sector. A report by MHI
(Material Handling Institute) on the transformation to the digital supply chain identifies that, in this new era of digital
technology, one of the top challenges for supply chain leaders will be hiring and retaining a skilled workforce. 41
Based on projected digital and technical transformations in the supply chain sector, the top four new skills that will be
required by supply chain professionals are likely to be:
• strategic thinking and problem solving
• ability to collaborate across different business units, customers, and functions
• leading and developing others
• ability to manage global and diverse teams
In Deloitte’s Third Annual Supply Chain Talent of the Future Report, survey results highlight that not only are supply chain
employers using advanced and digital technology, but they also expect their teams to be using digital technology in the
near future. 42
Figure 22 Source: The 2017 MHI Annual Industry Report Next-Generation Supply Chains: Digital, On-Demand and Always-On
NATIONAL OCCUPATIONAL STANDARDS
Currently, there are 48 supply chain occupations recognized by the CSCSC and the Canadian government.43 These
occupations are coded to describe the roles involved in the industry and the details imperative to each occupation.
The occupational standards should be considered the guideline for employers, employees, and institutions in
understanding supply chain career paths.
22 | P a g eEach occupational standard outlines the necessary skills to be successful in that occupation. Our analysis examined
eight occupations from the list of 48:
• Procurement Officer • Logistics Manager
• Material Handler • Transportation Manager
• Logistics Analyst
• Supply Chain Manager
• Store Keeper and Parts Clerk • Computer & Information Systems Manager
FUTURE SKILLS: AREAS OF FOCUS
From a future skills perspective, our research has found that there are specific areas of focus required for development as
we prepare our workforce for future supply chains.
Figure 23 DHL Survey of Tools Currently Used vs. Expected to Use
Reduction of administrative tasks in favour of analysis and problem solving
With the proliferation of data and automation, many repetitive tasks are set to disappear. Weekly reports that had to be
manually created can be automatically created if the correct infrastructure is in place. For example, an inventory count
that requires a worker to count with a pen and paper could easily be done through IoT or by having a drone scan
products as it moves through aisles.
Jobs where tasks become automated will require an increased capability for problem solving where discrepancies occur in
the system. Although processes occur automatically, workers will still need to understand them in order to fix issues and
propose improvements.
Increased need for leadership skills and strategic vision
As supply chain management becomes increasingly prominent in organizations, leadership and strategic thinking will be
crucial for success. Harnessing technology to improve supply chains will help to improve efficiencies and potentially create
entirely new business models.
23 | P a g eIncreased need for adaptability and understanding of new technologies With many technological changes occurring at all levels of the organization, digital literacy will impact a wide range of workers. According to a study by PwC (a multinational professional services network), lack of digital culture and training is the biggest challenge facing transportation and logistics companies. 44 Managers and analysts will use new methods of sharing data through blockchain, while material handlers and store keepers will increasingly work alongside robots and be aided by augmented reality or other IoT devices. As identified by the CSCSC LMI (labour market information) tool45, the eight occupations we reviewed will have the highest growth rate over the next one to three years. 24 | P a g e
MATERIAL HANDLER
Occupational Standard: www.supplychaincanada.org/assets/u/CSCSCOSFinalMaterialHandler.pdf
Material handlers handle, move, load and unload materials by
hand or using a variety of material-handling equipment. They are
employed by transportation, storage and moving companies, and
by a variety of manufacturing and processing companies, and retail
and wholesale warehousing operations.
Many manual and repetitive tasks currently carried out by
material handlers are expected to become automated. Aided by
emerging technologies such as guidance and remote support
through augmented reality sets, material handlers will be able to
carry out more complex tasks. Working alongside robots, they will
program machines for specific tasks, oversee work, and potentially handle day-to-day maintenance.
Examples of Changing Job Skills
Key Tasks Examples of Changes New Skills
Read work orders or Receive instructions through an augmented reality set. Digital literacy to receive
receive oral instructions work instructions and
Evolar sells a “pick-by-vision” augmented reality device for
for work assignments. guidance
warehouse management. It also offers smart glasses (for
picking or sorting) that direct employees and scan
barcodes.46
Use a handheld device, computer on the forklift, or other
computing device instead of a paper pick ticket or job sheet to
pick an order.
Operate, navigate, or Monitor, service, or manage more than one automated Ability to use and monitor
drive mechanized device or piece of equipment at a time. Take on greater technology systems to carry
material-handling responsibility to maintain equipment and manage the flow or out daily activities
equipment. network of goods in the warehouse instead of physically
picking orders.
Pack containers and Supervise tasks that are completed by robots. Ensure that Flexibility: ability to adapt
repack damaged robots are working effectively and that the packaging and change, as this role
containers. assembly line is working effectively. may require the ability to
work alongside robots
Robots are being used for the inspection and packaging of
pharmaceutical products in the manufacturing stage. One of
the major advantages of robot use in this area is the
reduction in risk of contamination generated by human
contact.
25 | P a g ePROCUREMENT OFFICER
Occupational Standard: www.supplychaincanada.org/assets/u/CSCSCOSFinalProcurementOfficer.pdf
Procurement officers process purchasing transactions for
equipment, materials, supplies, capital goods, and services.
They are employed by a wide range of establishments, such as
manufacturing firms, utility companies, and the service sector,
throughout the private and public sectors.
The main trend that will shape the jobs of future procurement
officers will be increased access to data and the capability that
provides to make better decisions. Repetitive and administrative
tasks will become automated, with time spent on value-added
activities increasing. A strong understanding of data analysis will
be key to success in this field.
Examples of Changing Job Skills
Key Tasks Examples of Changes New Skills
Establish and negotiate Use analytics software to perform dynamic analysis of Ability to use and monitor
contract terms and purchases and contracts. technology systems to aid in
conditions, and maintain decision making
EY expects procurement decision making to be significantly
supplier relationships.
influenced by high-quality data analytics by 2025. As
analytics becomes more powerful, procurement will
become increasingly central to business decision making.
This means that procurement officers will have more tools
to effectively manage demand, costs, and risk.47
Process purchase These tasks will become increasingly automated and Digital literacy as purchasing
requisitions/orders within streamlined as technologies such as blockchain become processes become
purchasing authority and integrated into operations. automated
reconcile or resolve value
According to Accenture, blockchain technology has the
discrepancies.
potential to provide huge operational benefits in terms of
speed, greater security, and decreased workload by
facilitating the exchange of information.48
Prepare and maintain With greater availability of data, the load of administrative Technical/analytical
purchasing records, tasks decreases, as reports become easier to generate knowledge as administrative
reports and price lists. through software. time is reduced and more
time is spent on analysis for
For example, IoT-connected devices in warehouses will be
problem solving to increase
able to accurately track details of every delivery. The
organizational efficiency
individual performance of suppliers can then be tracked
with great accuracy. If specific suppliers are consistently
late or inaccurate with deliveries, then changes to
contracts can be made automatically.49
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