Canadian Tire

Done By : Eddie Leow

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2155 words

Content

Pages

1. Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 3
2.
3.
4.
5.
6.

Situation
Solution
Gantt Chart
Conclusion
Reference

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Introduction
Canadian Tire, being the countrys largest tires company with history of nearly decade old. It
all started from the year 1922, when the founders John D Gates and Peter L Gates combine
their saving of $600 to buy over a garage by the name of Bull Tires and Garage Ltd at a
corner of Gerald and Hamilton Street in Toronto. In the year 1924, the brothers sold away
Bull Tires and Garage Ltd and move on to a larger premise at the corner of Yonge and Gould
in Toronto under the name of Canadian Tire Corporation. Over the years, the brothers work
hard and expanded their business tremendously and in the year 1934, Canadian Tire open it
first associate store. The store is in Hamilton and it served as a catalyst for the development
of Canadian Tires highly successful nationwide dealer-operation network of Canadian tire
associate stores. In the year 1958, Canadian Tire Founder John D Gates and Peter L Gates
open its first Gas station in Toronto which has tires services in the gas station. So Patron
can go to the gas station to have their tires changed or serviced. They also introduced
discount coupon for their patron if they have their petrol pumped in Canadian Tire gas station
The coupon act as money and its redeemable at any Canadian Tire stores. In the year 1970,
Canadian Tire open its first distribution Centre in Toronto which allows them to distribute
their stocks to their retail outlet as for the past few years, Canadian Tires focus on opening
gas station with tire retails in it over the state of Canada. So as to allow the Distribution
Centre to be put to use. Over the years , Canadian Tire Integrate financial services from the
bank of Canada and it help Canadian tire expand at a faster pace .By the year 2000, Canadian
Tires operating revenue exceeded a total of $5Billion . With the new Generation of people
arising , Canadian Tires introduce a new store format in the year 2003 that allows the people
to buy their tires online and get it delivered and change at the customer place of delivery.
In the Year 2015, Canadian Tires have not only come from a long way to achieve this
milestone. Canadian tires now own 4 large Distribution Centre that is spread around Canada,
and they also own up to 470 Tire retails outlet all around Canada.

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The picture above briefly show where the Distribution Centre are located, from the first
Distribution Centre which is located at Toronto to the latest built Distribution Centre which is
located in Fredericton. These 4 Distribution Centre are located at the best strategy location in
Canada , they can cater to order from the retails store in their district. Up to date, Canadian
Tires, has recently installed a YMS( Yard Management System ) , WMS ( Warehouse
Management System ) and TMS ( Transport Management System ) with these system,
Canadian tires management are expecting a improved performance in all operations but they
are not getting it. Due to this situation not meeting the expectation, the previous logistic
supervisor could not take the stress and left the company. So I was promoted to his position
as a logistic supervisor and take over his job to make full use of the 3 system bought.
Expectation of installing these 3 system is that Canadian Tires should have a improved
performance in over-the-road transportation equipment utilization , driver productivity, and
warehouse dock/door utilization. The Company was told by the previous logistic supervisor
that by buying these 3 system will help to company cut cost and fully utilize the current
assets of the company, but after the company implemented it and bought the 3
system/software, it is not implemented.
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Situation
There are 3 major problems that the company is facing currently, There are as follows;
Transportation
Transporting Tires to the retails shop has always been a problem for the company as the
driver will not usually be able to reach the customers place on time in another words on time
delivery due to many unforeseen circumstances such as traffic jams, accidents. Another issues
is that trucks tend to leave the distribution center when its not fully filled this will result in an
increase in the cost price because the truck may only be able to do 1 trip and not able to do a
round trip so the truck will go there half or fully filled but when its on his way back to the
distribution center, its empty, this will affect the companys revenue. This is because, the
company will have to cover for the trucks petroleum for it to come back to the distribution
center with no profit in it due to the truck being empty.
Warehouse
Warehousing problem occurs in almost every warehouse. Our warehouse man will have
picking problem that leads to picking errors, wrong batch number, take the product from the
wrong location and picking the wrong product. Picking the wrong batch number will lead to
finished goods not utilized properly such as the newer goods are being sold first rather than
those older goods. As our warehouse practices FIFO ( first in first out ) , as a matter of fact ,
the older goods might get defected or they might be to old to be sold and hence, its left in the
warehouse to rot and eventually destroyed by the company itself. This will also affect the
companys revenue because the company spends money to manufacture the tires and its left
in the distribution center because of the pickers mistake by overlooking the batch number.
Thus, the money is spend for letting the finished goods stay in the distribution center and by
letting the goods stay in the distribution center will also affect the companys revenue as the
space is able to be utilize until its destroy or sometimes bring out for delivery. Sometime the
Distribution Center personnel will also be putting the goods be it raw material or finished
goods all around the distribution center rather than putting them in a systematical place. This
will result in a wastage of time travelling from point A to point B just to take the things.
Yard
The problem with the yard is that, the admin will tend to truck in the containers for the raw
material at once which will congest the space available in the dock of the distribution center.
The movement of the truck and trailer and forklift will be able to utilize efficiently
Therefore , time will be wasted and manufacturing of the goods may not be able to finish on
time, as a result delaying the delivery promised date to the customers.

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Solutions
By having the 3 system, it can help improve in the companys performance.
Transport Management System
A Transport Management System (TMS) help the company to move freight (Truck) from
origin to destination efficiently, reliably, and cost effectively. TMS encompasses solutions for
moving freight in all modes and also includes intermodal movements. using transportation
assets owned either by the company or an outside service provider. The freight managed by a
TMS ranges in size from parcels to bulk commodities. Transport Management System (TMS)
is to reduce freight spend. It achieves these savings based on process enforcement, analytics,
and optimization; with virtually no other supply chain application offering so many different
forms of optimization eg , Routing.
TMS gives you confidence that your customers are receiving their shipments on time, it
allows you plan better for your inventory you have on hand. Having an accurate forecast of
your inventory is increasingly important as it continues to increase for the foreseeable future.
As a result it will help u Decrease inventory and thus, decrease in cash flow issues. Example
of TMS is Oracle
Warehouse Management System
Warehouse Management System (WMS) will help to overlook the entire warehouse, such as
telling the warehouse personnel to go to which place to pick the goods and not picking at
where they want, WMS also will indicate to the warehouse personnel about where to put the
finished goods after they are being manufactured. Not forgetting that WMS will also allows
better flows of inventory because intensive checks are kept at each and every stage which
safeguards against possibilities of errors in inventory records. As the items are systematically
stored and retrieved in the system, no time is wasted in searching for items physically in the
warehouse not in stock and more than one order can be processed at any given time. This
results in the increase of efficiencies, eliminating wastage of time due to errors.
WMS also help keeps an intensive check of the goods or stock units meant for different
customers and flashes an alarm/warning if the goods meant for one customer are mistakenly
placed in cartons meant for other thus , no mistake will be given to the transportation
department. This will not lead to any return goods unless the goods are damaged or defected.
Hence, it will prevent sending your goods down for another time to your customer. Example
of WMS is Red Prairie
Yard Management System
Yard Management System (YMS) is often used in conjunction with warehouse management
systems (WMS) and transportation management systems (TMS). It may also have radio
frequency identification (RFID) technology built in for faster and more accurate tracking.
YMS provides real-time information on the location of trailers in the yard and allows yard
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employees to move trailers from staging to docks to fill orders in an efficient manner.Hence
saving much more time. Example of YMS is SAP

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Gantt Chart

TMS
Jan
Implementing
Phase
Eliminating all
problems
Staff Training
Monitoring

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

WMS
Jan
1) Implementing
Phase
2) Eliminating all
problems
3) Staff Training
4) Monitoring

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

YMS
Jan
1) Implementing
Phase
2) Eliminating all
problems
3) Staff Training
4) Monitoring

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

Oc
t

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

1)
2)
3)
4)

TMS/WMS/YMS

Sept

1) Monitoring
2) Reporting to
management

After all the implementation, a report is given to the head management so as to tell them what
done to the structure of the company after having these 3 Management system.

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Conclusion
In Conclusion, All the Management System can help to save the company 15-30% in
inventory and time . Not only that it will provide the company with immediate and
long term gains because there will not be holding on to inventory for the warehouse
department, there also wont be any wrong item delivery for the transportation
department and lastly the yard department will get to fully utilize the space they
have. Therefore time could be saved on this task and staff could move on to the next
task.

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Reference
1) S. Jaya Krishna
Transportation management: imperatives and best practices
Icfai University Press, 2007
2) Gwynne Richards
Warehouse Management 2nd Edition: A Complete Guide to Improving Efficiency and
Minimizing Costs in the Modern Warehouse
3) Varun Uppuleti
Customizing Extended Warehouse Management with SAP ERP: SAP PRESS
Essentials #69

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