SCM-Canandian Tire Inc

8/3/2019 SCM-Canandian Tire Inc

1/21

GLOBAL SUPPLY

CHAIN GROUPPROJECT

PRESENTED BY

DARRYL COUTINHOGURSIMRAN KAURROSHNI PATELSUNNY SHARMA


2/21

CANADIAN TIRE

CANADIAN TIRE CORPORATION

CANADIAN TIRE CORPORATION

Canadian TireRetail Store

Canadian TireRetail Store

Canadian TirePetroleum

Canadian TirePetroleum

Part SourceStores

Part SourceStores

CUSTOMER NEEDS

CUSTOMER NEEDS

Canadian TireFinancialServices

Canadian TireFinancialServices

Mark's WorkWarehouse

Mark's WorkWarehouse


3/21

STRUCTURE OF THE COMPANY

MANAGEMENT(PAUL BRENNAN)

OFFICE

CUSTOMER SERVICE

PROMOTION

CASH

PROJECTS

CLEANING

LOGISTICSPARTS

HARDWARE

HOUSEWARE

SPORTS

SEASONAL

MERCHANDISE


4/21

SUPPLY CHAIN OF PRODUCTS

FORECASTING SUPPLIER

(NESCAR)

WAREHOUSE(BRAMPTON)

RETAIL STORE(DUNDASSTREET)

FINAL

CONSUMER


5/21

LOGISTIC FUNCTIONS

Space Utilization Receiving Customer service Packaging and assembly Marketing and Finance

Buying Warehousing

Operations Transportation

Inventory


6/21

DISTRIBUTION CENTER

Distribution centres: 1- Calgary, 1- Montreal and 2- Brampton

Dundas West outlet gets the inventory from Brampton

WMS interacts with distributed shipping sorting system

Adopted the cross dock process


7/21

WAREHOUSING

Orders are released to the floor in cycles Each cycle = orders for up to 28 stores that can be picked in

1 to 2 hours

Associates pick for 1 store at a time and 1 cycle at a time

WMS wont release the next cycle until the 1st cycle iscomplete


8/21

INVENTORY MANAGEMENT

Location of warehouses

Product Line

Canadian Tire Pacific Associates

Research

Lead Times

No of customers


9/21

TRANSPORTATION & DEMAND FORECASTING

Creates a 26-week demand forecast (per stock keepingunit).

Translates this demand data into logistics capacity and

resource requirements, both warehousing andtransportation.

Information shared: retailers, distribution centers andcarriers.

Goal: Lock-in and pre-pay for capacity 3 weeks in advance.


10/21

PROCUREMENT

Procurement

Planning

Solicitation

Planning

Solicitation

Source

Selection

Contract

Management

Contract

Close-Out


11/21

TECHNOLOGY

Streamlines its

replenishment

processes.

Reduce inventories.

Speed up order cycle times.

Helps support complexpricing and promotion

requirements.

Helps support the

substantial volume of

order-lines per day that its

distribution operations

generate.

AS400

Products

Trends

Sales

Data,

Stats,

Order

Cycle

AS400


12/21

TECHNOLOGY

Continue improvements of their technology infrastructureto streamline internal processes and reduce costs ofcustom-built technology solutions.


13/21

STRATEGIC OBJECTIVES


14/21

2010 FINANCIAL HIGHLIGHTS

Total retail sales $ 10,328 mn

EBIT $ 597 mn

Net Earnings $ 453.6 mn

Earnings per share $ 5.05 i.e.18.5%higher than 2009


15/21

GROSS OPERATING REVENUE BY SEGMENTS


16/21

PERFORMANCE MEASUREMENT

Objective Approach

Benchmarking

Financial

Sales

Supply Chain Responsiveness

Environmental Factor


17/21

KEY SUCCESS FACTORS

Unique Business mixture

Reach and Scale

Continuous Innovation

Excellent Supply Chain and Inventory control systems

Be Canadian

The stringent dealer selection procedure

Strong Financial position


18/21

BUSINESS RISKS


19/21

CANADIAN TIRE AND COMPETITION

The expansion of the domestic retailers

Entrance and expansion of international retailers

Wal-Mart, HomeD

epot, Rona and Lowes

Target group acquiring Zellers

Specific Industry Segment and across the sector

Acquired one of its competitor Forzani Group Ltd


20/21

FUTURE NEEDS FOR SUCCESS

Diversified And Upgraded Product Offerings

New Store Looks

Mobile Shopping Apps And Digital Signage

Improved And Highly Efficient Supply Chain


21/21

CANADIAN TIRE

Documents

SCM-Canandian Tire Inc