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Canada’s logistics and supply chain technology sector vital to economy

By 07/01/2021No Comments
Canada's LSCT sector

Canada’s logistics and supply chain technology sector. (GACG)

Canada’s logistics and supply chain technology (LSCT) sector is still in early stages, but some players are making inroads in this niche, but vital sector of the economy.

Broadly, LSCT can be defined as advanced tools, processes, software, data, machinery and equipment used to analyze, predict, track, schedule, and implement the flow and storage of goods and services throughout the distribution system in a manner that enables integration, accountability, transparency and efficiency. The LSCT sector in Canada is a subset of the broader ICT industry.

The logistics and transportation sector is an important driver of a country’s, and firms’, competitiveness because it enables connections between domestic and international markets. The performance of a country’s transportation and logistics sector correlates directly with its measure of economic development. Globally, the logistics market was estimated to have surpassed $4 trillion, or roughly 10-12% of the world’s GDP.

Last year, Global Advantage Consulting Group for Global Affairs Canada undertook a comprehensive study in order to better understand the drivers, trends, Canadian capabilities, and investment opportunities in the LSCT sector.

Canada’s LSCT industry

GACG has identified 162 active Canadian companies in the LSCT sector. Most companies are located in Ontario (87) and Quebec (29), which are situated in the Great Lakes-St. Lawrence region, North America’s most vital trade corridor. These two provinces contain half of Canada’s population, make up 60% of its GDP and are responsible for 60% of goods and services trade. Over 30% of U.S.-Canada economic activity takes place along the St. Lawrence waterway.

Sub-categories of Canada’s LSCT industry include:

  1. Enterprise Supply Chain Management
  2. Freight
  3. Warehousing and Fulfillment
  4. Last-Mile Delivery
  5. Supply Chain Cybersecurity
  6. Manufacturing
  7. Food Supply Chain
LSCT-sub-categories

Sub-categories of Canada’s LSCT industry. (GACG)

Within LSCT, the sub-sectors with the highest number of companies were in Supply Chain and Logistics Analytics (45), Fleet Management (43), and Sensors and Asset Tracking (39). The new and emerging technologies that were most used by companies were enterprise software, big data analytics, artificial intelligence and cloud computing.

Transforming supply chains in Canada

Canada’s research and applied strengths in artificial intelligence and machine learning, Internet of Things, data-driven optimization methods and increasingly blockchain technologies position Canada as a leader in Industry 4.0. Manufacturers believe that a combination of smart devices, AI and machine learning hold the key to solve global supply chain issues.

Further development of capabilities in robotics and automation, connected and autonomous vehicles (as the Ontario government is embracing) and UAVs would give Canadian companies a competitive advantage and help solve issues of potential future workforce shortages.

How Global Advantage can help you

Global Advantage Consulting Group offers a variety of services customized to your organization’s needs. To see more about how our products can help shape your organization’s understanding of Canada’s research and develop innovation ecosystem, visit our portfolio of work here.