Canadian Tire_W2023

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Humber College *

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MKTG 2500

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Management

Date

Apr 3, 2024

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docx

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18

Uploaded by CoachRiver8343

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TABLE OF CONTENTS 1.0 Executive Summary 2 2.0 Organizational Structure 3 2.1 Broader Supply Chain 4 3.0 Internal Supply Chain 4 4.0 Supply Chain Objectives 7
5.0 Logistics Activities and Information Technology 8 5.1 Forecasting and Sales and Operations Planning 8 5.2 Information System and Information Technology 8 5.3 Manuel Activities and Procedures 10 5.4 Communication with Customers 10 5.5 Communication with Suppliers 10 6.0 Competition, Comparisons and Other Relevant Issues 11 7.0 Future Trends and Developments 12 7.1 Future Trends 12 7.2 Future Developments 13 7.3 Expansion Plans 13 7.4 Environmental Issues 14 8.0 Recommendations 14 9.0 Conclusions 15 10.0 Appendix 16 11.0 References 17 Executive Summary This report will outline how Canadian Tire operates its supply chain and the processes it uses to meet its supply chain objectives. It will also look at the logistics activities that take place in order for Canadian Tire to handle the demand of its customers. The competition that Canadian Tire currently faces will be addressed, as well as how the company plans to deal with future trends and developments. The report will conclude with recommendations for Canadian Tire in order to maintain and grow their market share. CANADIAN TIRE SUPPLY CHAIN REPORT 1
Organizational Structure Canadian Tire’s organizational structure is as shown above. The CEO manages the overall operations of Canadian Tire and is responsible for implementing the policies and decisions made by the Board of Directors.The CFO is responsible for overseeing the financial operations CANADIAN TIRE SUPPLY CHAIN REPORT 2
at Canadian Tire. The accounting and finance department is responsible for managing the financial aspects of the company The CTO is responsible for overseeing the technology strategy and implementation. The business architecture department is responsible for defining the structure, operations, and processes that Canadian Tire uses.The corporate financing department is responsible for managing financial activities. The network performance department is responsible for ensuring that the company’s network is performing optimally, with minimal downtime and maximum efficiency. The legal department is responsible for managing the legal affairs of Canadian Tire. The human resources department is responsible for hiring new employees and ensuring that the company’s workforce is well-trained, motivated, and productive. The brand and consumer division is responsible for managing Canadian Tire’s brand image and building relationships with its customers. This includes departments such as consumer brands, digital marketing, store operations, and merchandising. The supply chain and infrastructure services department is responsible for managing Canadian Tire’s supply chain operations, including sourcing, procurement, logistics, and distribution. The department's primary focus is to ensure that the company's products and services are delivered to customers on time, at the right cost, and with high quality. The final department, retail, is the one that everyday shoppers have the most interaction with as they are responsible for managing the company's physical retail stores and online e-commerce platforms. This department's primary focus is to create a positive and engaging customer experience that drives sales and brand loyalty. Broader Supply Chain When Canadian Tire was initially launched in 1922 its focus was on buying tires at discount prices. Tires and the automotive department as a whole are still a critical part of Canadian Tires’s brand identity. Canadian Tire sources its tires from various tire manufacturers worldwide, including major brands such as Michelin, Goodyear, Bridgestone, Continental, and Pirelli. Canadian Tire also has its own private label brands such as MotoMaster, which are manufactured by different tire makers such as Cooper and BF Goodrich to Canadian Tire's specifications. These suppliers must pass rigorous inspections tests to ensure that they, and any subcontractors they work with, are compliant with the Supplier Code of Business Conduct. This is done to maintain ethical sourcing practices and ensure that Canadian Tire’s brand image of integrity is kept intact. Using the Cooper Tire & Rubber Co. as an example, which supplies Canadian Tire with some of its MotoMaster tires, we can see where Canadian Tire is obtaining its products. Cooper has 4 manufacturing plants located in the USA and these are located in Albany, GA, Findlay, OH, Texarkana, AR and Tupelo, MS. Each tire that is made at one of its USA plants will have a plant code located on the tire so that you can identify its place of production. Cooper also has 6 subsidiaries with some that produce tires in the UK (Avon Tyres) and China (Roadmaster Tires). As an example, all Cooper truck tires are made at a plant in Hangzhou, China. Internal Supply Chain Process CANADIAN TIRE SUPPLY CHAIN REPORT 3
Canadian Tire conducts the largest supply chain network in Canada covering 180 acres of land. With products derived from 3400 suppliers, approximately 800-1000 employees staffed at the distribution centre, 39 Automated Guided Vehicles (AGVs), and a 40-inch wide conveyor to move the products. The company’s primary focus is to stress the importance of faster turnarounds and greater accuracy. 1. The shipment arrives at Canadian Tire’s Bolton Distribution Centre to be received and AGVs pick up and deposit pallets in areas that assist outbound order picking activities. 2. The Distribution Centre (DC) is divided into three warehouses to optimize facility capabilities. Products are unloaded and received by the Warehouse Management System. 3. The products are then placed on pallets in the building where the conveyor is as they are picked up by the AGVs. 4. AGVs will then place the products into storage that will feed the pick module. The pick module can serve large bulk products. 5. Store orders will go to an automated arranging area for organizing products into bigger quantities. This step is conducted before they are sent to the lanes for shipping. 6. The operators at the DC use voice technology to choose and process orders that are outbound. Orders are transferred to a consolidation organizing area to be processed and prepared. 7. The orders are now headed to a cross-belt sortation system that has specific chutes for each store. Once the chutes are full, they are picked up by an AGV and transported to the shipping docks. 8. Products are then ready to be shipped to their designated store. Canadian Tire is termed as the leading retail organization. It offers a wide range of products, which include home appliances, automotive parts, and sporting products (Foxman, 2018). To meet the rising clients’ demand, the organization has a large distribution center, which applies advanced automation technology to guarantee improved productivity and efficiency. The analysis aims at outlining the internal supply chain of the Canadian Tire Distribution Centre. In the Canadian Tire Distribution Centre context, its supply chain starts with the receipt of materials from the suppliers. They are responsible for delivering the needed materials to the company’s distribution Centre. Upon arrival, they are received by the company’s inbound team. The company has a team of professionals, who assess the quantity and the quality of the materials, and later store the received products for inventory (Foxman, 2018). The inventory is handled by a team of professionals who track organizational inventory levels, the forecast anticipated demand, and ensure the required products' availability at the needed time. A sophisticated inventory management system allows the company to easily monitor its real-time inventory levels and make informed decisions based on the right time to replenish stock. The second step is order processing. It entails receiving orders from retailers and clients, where appropriate inventory products are selected to fulfill the orders. To simplify the process, the company uses an advanced automated system. Technology is applied to transport the ordered inventories to the processing areas (Foxman, 2018). The application of technological innovation is directed at minimizing time and maximizing efficiency in processing orders. CANADIAN TIRE SUPPLY CHAIN REPORT 4
The third step is quality control and assurance. It plays a significant function in the company’s supply chain. The process ensures the company’s products meet quality standards. Additionally, the step helps ensure any issue or defect is identified and addressed promptly (Seyedghorban, Samson & Tahernejad, 2020). Advanced technologies and manual inspections are applied to ensure the products are of high quality. In a nutshell, the company has made increased investments in the supply chains to improve its productivity and efficiency. The inventory managers, schedulers, quality control specialists, and transport and logistics professionals play significant roles in ensuring the supply chain is efficient and smooth. Thus, leading to organizational success and client satisfaction. Supply chain management is a complex process, entailing various functions working together. The ultimate result is effective and efficient operations, particularly those regarding operations from suppliers to customers. The company has some supply chain functions, each with unique roles.The functions are receiving materials from suppliers, management of the inventories, operations, quality control, and scheduling. The functions' success depends on the roles and performances of inventory personnel, operations, quality control, schedulers personnel, drivers, and buyers. The drivers are tasked with transporting materials from the company’s distribution center to the various stores in Canada. Essentially, their main tasks are ensuring the safe delivery of the company’s inventories on time. The buyers source and buy materials from suppliers, negotiate business terms, and maintain positive relationships with the suppliers. The inventory personnel's main activity is tracking inventory levels, ensuring accurate and optimized inventory, and carrying out cyclic counts (Schniederjans, Curado & Khalajhedayati, 2020). The operational personnel picks, pack and accurately ship the products. They also maintain the company’s inventories in the warehouse. The quality personnel inspect the products and ensure they meet the set quality standards. They carry out inspections and conduct audits. Finally, the schedulers manage delivery and ensure the timely delivery of products. CANADIAN TIRE SUPPLY CHAIN REPORT 5
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