Canadian Tire_W2023

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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

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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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Canadian Tire’s key quantitative information about supply chain include: Procurement Costs - Canadian Tire's total procurement cost in 2020 was approximately CAD 7.3 billion, with local procurement accounting for around 60% of the total cost. Number of Suppliers - Canadian Tire works with around 3,000 suppliers globally, with over 70% of them located in North America. Lead Times - Canadian Tire's average lead time for procuring goods from overseas suppliers is around 75 days, while the lead time for local suppliers is typically around 30 days. Cycle Times - Canadian Tire's average cycle time for moving goods through its supply chain is around 60 days. Inventory Levels - Canadian Tire had a total inventory of around CAD 4.1 billion in 2020, with an average inventory turnover rate of around 4 times per year. Inventory Ratio - Canadian Tire's inventory-to-sales ratio in 2020 was approximately 0.82, while its days inventory outstanding (DIO) was around 110 days. Number of Warehouses - Canadian Tire operates around 25 distribution centers and warehouses across Canada, with a total warehouse space of over 10 million square feet. Revenue - Canadian Tire's total revenue in 2020 was approximately CAD 13.5 billion, with its retail segment accounting for the majority of the revenue. Canadian Tire has been investing heavily in its e-commerce capabilities in recent years, with online sales accounting for around 5% of its total revenue in 2020. The company has also been focused on improving its supply chain efficiency and sustainability, with initiatives such as reducing packaging waste and implementing more sustainable transportation practices. Supply Chain Objectives Canadian Tire has several supply chain objectives. They include Canadian Tire's financial goals such as generating revenue, keeping a strong balance sheet, and maximizing profits while minimizing expenditures. This may be accomplished through lowering operating expenses, raising client satisfaction levels, and enhancing inventory control. Performance Measurements: Performance measurements for Canadian Tire should include tracking customer satisfaction levels, inventory levels, delivery times, and cost savings. Measuring these key performance indicators will help Canadian Tire understand how well the supply chain is running and identify areas for improvement. CANADIAN TIRE SUPPLY CHAIN REPORT 6

Key Success Factors: Key success factors for Canadian Tire include establishing strong customer relationships, maintaining efficient supply chain processes, optimizing inventory levels, and ensuring reliable delivery times. These factors are essential for Canadian Tire to be able to provide a high-quality service to its customers. KPI: Key performance indicators (KPI) for Canadian Tire should include the on-time delivery rate, inventory turnover rate, supplier performance, cost of goods sold, and customer satisfaction. These KPIs will help Canadian Tire understand how well its supply chain is running and where improvements are needed. Productivity: To increase productivity, Canadian Tire should monitor and increase the efficiency of its warehouse operations, optimize the use of resources, and reduce operational costs. Doing so will help Canadian Tire maximize efficiency and minimize costs, ultimately leading to increased profitability Logistics Activities and Information Technology Forecasting and Sales and Operations Planning Similar to other distribution centres, Canadian Tire uses forecasting methods and production planning to generate a statistical model, estimate and manage customer demand for its products, and maximize its inventory levels. This allows them to manage safety stocks and avoid stockouts by having the right products on hand at the right time. In doing so, Canadian Tire utilizes historical data based on seasonal patterns and sales trends to forecast demand and plan production accordingly. For example, in the winter season, Canadian Tire experiences an influx of sales in snowblowers, heaters, and winter tires and prepares ahead of time. The retail company also uses point-of-sale (POS) data to track sales in real-time, allowing it to adjust inventory levels and make informed decisions about future sales. The same technique is applied to new products, in which Canadian Tire uses the historical data from similar products to predict and forecast future demand. Once the forecast metrics are determined, the sales and marketing departments make adjustments based on promotions of new and existing products. The warehousing team then examines the sales forecast to assess if the capacity is adequate to handle the forecasted volumes or units. Next, members from the sales, marketing, finance, and operations departments attend a meeting to review the forecast and address any issues. Based on the information gathered, top executives and senior-level management will make a final decision and convert it into the operating plan. Information System and Information Technology The information system (IS) at Canadian Tire is primarily computerized, as the majority of the data is entered and processed electronically across multiple channels. The retailer manages its operations using a range of hardware and software tools, such as point-of-sale (POS) systems, web-based applications, enterprise resource planning (ERP), supplier relationship management CANADIAN TIRE SUPPLY CHAIN REPORT 7

software, customer relationship management (CRM) software, warehouse management system (WMS), and inventory management software, for members to share information efficiently. The company's ERP system employs a combination of SAP software and Google Cloud, giving them the ability to manage inventory, production, purchasing, and procurement, as well as customer engagement, in real-time for synchronization. The company also uses RFID technology in their inventory management to track stock levels and ensure that products are replenished as needed. This helps the company maintain customer satisfaction and increase sales. Additionally, Canadian Tire uses a range of hardware tools, including desktop and laptop computers, mobile devices, barcode scanners, and SKUs, to facilitate the smooth operation of its distribution centers. Canadian Tire has been implementing Google Cloud and Quantum Metrics in their customer relationship management (CRM) system to gain valuable insights into customer behaviour and identify areas for improvement (Canadian Tire: Revolutionizing Customer Service With Advanced Data Analytics). By collecting and analyzing data from its Triangle Rewards Loyalty Program, Canadian Tire has been able to better understand its customers and tailor its marketing efforts to suit their individual needs. One way Canadian Tire is able to accomplish this is through personalization (Grill-Goodman, 2019). Personalization allows Canadian Tire to offer targeted promotions and recommendations to customers based on their purchase history, ultimately improving the customer experience by providing value and driving sales. For example, if a customer frequently purchases outdoor products, Canadian Tire will send out promotions related to camping or outdoor sporting equipment. This strategy of rewarding customers that are more profitable than others has proven to be a massive success, as Canadian Tire has witnessed a significant increase in their return on investment (ROI) (Grill- Goodman, 2019). "With Google Cloud and Quantum Metric, we will continue to advance our Better Connected strategy with new and improved services to customers, improving our incentives, and strengthening our loyalty program to transform engagement with our digital and physical stores." —Martin von Wenckstern, VP of Personalization, Customer, and Digital Analytics, Canadian Tire Corporation (CTC) In an effort to elevate their supply chain process and become Canada’s number one retailer, Canadian Tire has implemented various automation and technology solutions to increase efficiency and streamline its operations. One of the most notable examples of Canadian Tire’s automation is its distribution centre (DC), located in Bolton, Ontario (Foxman, 2018). This facility serves as a hub for the company’s supply chain, receiving and distributing products to 500 Canadian Tire stores across the country. The Bolton DC is equipped with automated systems, including automated guided vehicles (AGV) and gantry systems (Foxman, 2018). The gantry cranes, which had only been used in manufacturing facilities, were optimized to ensure it performed well in a retail warehouse, capable of processing up to 42,000 tires weekly and operated by a central computer system (Foxman, 2018). In addition to the gantry cranes, Canadian Tire has also implemented other advanced technologies in its DC, such as robotic picking and loading, automated storage and retrieval systems, and a state-of-the-art warehouse management system (WMS) (Foxman, 2018). These CANADIAN TIRE SUPPLY CHAIN REPORT 8

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technologies work together to optimize the flow of products through the DC and ensure that orders are processed quickly and accurately. In 2021, Canadian Tire partnered up with NuPort Robotics, Canada’s first autonomous trucking company backed by the Canadian government, to operate the first-of-its-kind autopilot technology. The partnership aims to revolutionize the retail industry by reducing delivery times and increasing overall efficiency. This move towards automation reflects Canadian Tire's commitment to innovation and will revolutionize the retail industry by reducing delivery times and increasing efficiency. The trucks would be retrofitted and include sensors designed to prevent blind spots, with drivers present. Manual Activities and Procedures Despite Canadian Tire's efforts to move towards automation and computerized systems, the company still uses warehouse associates to carry out manual tasks and processes. For instance, completing paperwork for shipments and returns and balancing inventory discrepancies. These manual processes may take more time and be less effective than automated systems, but they are essential to maintaining accuracy and supply chain control. Communication with Customers According to Allan MacDonald, Chief Executive Vice President (EVP), Canadian Tire regularly communicates with its customers in-store and online through personalized weekly emails and via their mobile app. The app includes features such as personalized recommendations, product reviews, and easy-to-use checkout options (Grill-Goodman, 2019). The company also uses social media to engage with users and provide customers with support. Communication with Suppliers Canadian Tire communicates with its suppliers through a variety of web-based channels using SAP software and email in order to track orders and shipments and adjust inventory levels. The Vendor Gateway application enables suppliers to perform tasks such as requests for quotes (RRQ) and submitting contractual information (See Appendix A). In addition, the Data Vault application allows suppliers to store product descriptions, such as packaging and SKU numbers, as well as other non-contractual information, providing a centralized location for Canadian Tire employees to access and utilize this data as necessary for visibility. Competition, Comparisons and Other Relevant Issues Over the years, Canadian Tire has faced competition from other retailers in the same space, and it has also expanded into new markets to stay ahead of the game. Canadian Tire faces stiff competition from other retail companies in Canada, including Walmart, Costco, and Home Depot. These companies have also developed sophisticated internal supply chain operations to remain competitive in the market. Walmart, for example, has developed a robust logistics network that includes a fleet of trucks, distribution centers, and automated inventory CANADIAN TIRE SUPPLY CHAIN REPORT 9

management systems. Costco, on the other hand, emphasizes its supply chain operations on product sourcing and vendor management, which enables the company to offer quality products at competitive prices. Canadian Tire has created a vertically integrated supply chain system that includes everything from product development to inventory management and distribution. Canadian Tire is able to control costs, decrease lead times, and respond fast to market changes because of this integrated approach. The corporation has also invested in technology to improve the efficiency of its supply chain operations. Canadian Tire, for example, employs RFID (Radio Frequency Identification) technology to track inventory and enhance order accuracy. Furthermore, the organization has introduced an automated warehouse management system, which lowers manual labour while increasing productivity. Walmart's supply chain operations, on the other hand, are primarily concerned with logistics and distribution. The logistics network of the organization includes more than 140 distribution centres strategically situated around the country to facilitate timely delivery to stores. Walmart has also introduced an automated inventory management system, which ensures prompt inventory replenishment and decreases out-of-stock situations. Costco's supply chain operations are primarily focused on product sourcing and vendor management. The company maintains strong relationships with suppliers and works closely with them to offer quality products at competitive prices. Additionally, Costco uses a just-in-time inventory system, which minimizes inventory holding costs and ensures efficient use of warehouse space. One of Canadian Tire's biggest competitors is Home Depot, which is a home improvement retailer. Home Depot offers a wide range of products that overlap with Canadian Tire's offerings, such as tools, hardware, and appliances.Home Depot's supply chain is focused on providing high-quality products at competitive prices, while also maintaining a high level of customer service. The company has a large network of distribution centers, which it uses to quickly and efficiently move products throughout the supply chain. Home Depot also uses automated warehouses and a just-in-time inventory system to manage inventory levels and reduce costs. To further enhance its supply chain operations, Home Depot has invested in technology such as automated conveyor systems and RFID tags to track inventory and optimize the processing of orders. The company also uses data analytics to monitor and predict demand, allowing it to adjust its inventory levels and improve its delivery times. While both Canadian Tire and Home Depot have invested heavily in technology to improve their supply chain management, there are some key differences between their supply chain strategies. Canadian Tire's supply chain is focused on maintaining a high level of customer service, while minimizing costs and maximizing efficiency. The company has a large network of distribution centers and warehouses, which it uses to quickly and efficiently move products throughout the supply chain. Canadian Tire also uses RFID technology and a vendor-managed inventory system to manage inventory levels and reduce costs. CANADIAN TIRE SUPPLY CHAIN REPORT 10

In recent years, Canadian Tire has also faced competition from e-commerce companies like Amazon.Amazon Canada's supply chain operations are highly automated, with a focus on speed and efficiency. Amazon Canada's warehouses are highly automated, with robots picking and packing products for shipment. These online retailers offer the convenience of shopping from home, and they often have lower prices than traditional brick-and-mortar stores. However, Canadian Tire has been able to compete by offering online shopping options and by expanding its e-commerce capabilities. Overall, Canadian Tire's internal supply chain operations are highly effective and efficient, allowing it to compete with other retailers in the Canadian market. Canadian Tire's focus on collaboration, flexibility, and sustainability sets it apart from its competitors and helps it to deliver high-quality products to its customers at competitive prices. Future Trends and Developments Future Trends In 2021, the value of the Canadian tire market was worth USD 5.42 billion. It is projected to experience a Compound annual growth rate of 5.3% by generating approximately USD 7.68 billion in revenues by the end of 2028. With the expansion of the Canadian Automotive industry, the market for tires is predicted to grow. Thus, the company can predict an increase in revenue to meet the market demand. As it relates to the company, the consolidated comparable sales (excluding petroleum) are expected to be over 4% when averaged annually. Moreover, the (ROIC) is expected to be 15% in comparison to the 13.6% earned in 2021. Also, the company’s diluted (EPS) is expected to be $26.00 or higher which is twice the value in 2019, which was $12.5. Future Developments In 2022, the company announced its $3.4 billion investment over the next four years to boost its omnichannel capabilities and long-term growth. With this investment, the company can improve its operations and generate more revenue. Supply Chain The company is investing $675 million to strengthen its supply chain operations and automation. This involves: ● Adding 1.6 million sq ft of warehouse space across Canada ● Opening a 1.3 million sq ft state-of-the-art eCommerce fulfillment facility in the Greater Toronto Area ● Expanding the Montreal distribution centre by 322,000 sq ft CANADIAN TIRE SUPPLY CHAIN REPORT 11

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● Implementing innovative robotics automated systems in DCs located in Calgary, Brampton and Montreal Information Technology Canadian Tire is investing $500 million to modernize its IT infrastructure and drive efficiency in its business operations. This includes: ● Continued investment in data and analytics to support Triangle’s Rewards program by personalizing its services ● Investing in a new Digital Core Banking platform ● Implementing large-scale infrastructure in key areas such as Transportation Management and Human Capital Management Customer Experience The company is investing $2.2 billion to create an omnichannel customer experience. The company’s objectives include: ● Expanding its current Triangle Rewards program to drive customer engagement. This program allows customers to earn Canadian Tire money while shopping at their favourite stores. After which, it can be redeemed to get discounts. ● Expanding their bank product offerings by introducing Global Money Transfer. This feature will now be available when using their Triangle Mastercard allowing customers to transfer money across the globe. ● Drive loyalty sales from 58% to more than 63% Connection of Digital and Physical Channels Approximately $1.2 billion of Canadian Tire’s investment will be allocated to improve the connection of digital and physical channels. This involves: ● Improving the experience and speed for same-day pick up and introducing automated “click and collect lockers ● Increasing digitization to create “connected stores” which involves using electronic shelf labels, digital wayfinding and enhancing the in-store mobile app experience Expansion Plans The company continues to dominate the market by expanding its operations and stores. This involves improving the connection of both digital and physical channels to enhance customer experience. The company has expanded by introducing a new format called Remarkable Retail for its stores. As a result, these stores will have over 100,000 sq ft. CANADIAN TIRE SUPPLY CHAIN REPORT 12

In 2022, the company opened two of these stores in Welland and Ottawa, with another targeted to open in Calgary by 2025. The goal of this new concept is to deliver seamless shopping options such as curbside pickup, click and collect and home delivery. Moreover, the Remarkable Retail concept allows customers to see the breadth and depth of the company’s products, ultimately bringing the brand experience to life. Environmental Issues In 2022, Canadian Tire was listed as the most sustainable company in Canada by Corporate Knight’s Global 100 most sustainable companies for the third time. Although the company was awarded for its sustainable efforts, the company still faces environmental issues such as waste generation and greenhouse gas emissions. According to 2021 reports, the total GHG emissions for the company were 3,393 thousand tonnes of CO 2 equivalents, an increase of 4.3% over 2020. This encompasses all three scopes of emissions. Scope 1 emissions are from stationary fuel combustion, Scope 2 are related to indirect emissions from on-site generation and the purchase of electricity while Scope 3 involves indirect emissions arising from the company’s value chain. The company aims to reduce both Scope 1 and 2 emissions by 40% by 2030. As it relates to waste management, Canadian Tire generated a total of 35.6 thousand tonnes of waste in 2021. This figure highlights a 3% increase over 2020. Although the company diverted 28.1 thousand tonnes of its waste, 7.5 thousand tonnes were sent to landfills during the same year. Thus, the company aimed to divert 90% of its waste by 2022 and will be aware of the final results by the end of 2023. Recommendations Provide Effective Training Programs With the rollout of advanced technology, the company must ensure its employees are well- trained and capable of using the different technologies available. This will help to avoid operational failures while improving customer satisfaction. Focus on Sustainability Even though the company has been awarded for its sustainable efforts, there is room for improvement. The company must introduce strategies to reduce its waste generation and carbon emissions. Explore New Markets CANADIAN TIRE SUPPLY CHAIN REPORT 13

The company should consider exploring markets outside of Canada. With its apparent success, the company can diversify its revenue streams by expanding into international markets. Assess Technologies Frequently As the company introduces more technology into its supply chain operations, it’s necessary to ensure that the different systems are maintained frequently. This involves checking for bugs and hardware issues and updating systems frequently. To ensure the company can deliver enhanced customer service, its technologies must be maintained. Conclusions Overall, Canadian Tire is the largest supply chain network in Canada, with many different departments and functions. Each of these functions are responsible for specific tasks and activities that are essential to the supply chain running efficiently. The company’s step-by-step process involves receiving products from suppliers, warehousing, inventory management, transportation, and delivery to designated stores. Their current information system and technology activities play a crucial role in managing the supply chain. This includes both manual and computerized elements involving forecasting, sales, and production planning, and communication with customers and suppliers, as well as software and hardware tools and manual activities and procedures necessary to maintain accuracy and visibility. Quantitative factors that affect the company's operations and overall financial performance include the number of suppliers, lead times, cycle times, inventory levels, inventory ratios, number of warehouses, revenue, and the number of suppliers. However, Canadian Tire needs to evaluate and improve its supply chain to meet the evolving needs of customers and stay competitive against competitors like Home Depot by providing effective training, exploring new markets, and assessing technology frequently. These recommendations can help Canadian Tire build a more resilient, agile, and customer-focused supply chain that will drive its growth and success, making them the number retailer. CANADIAN TIRE SUPPLY CHAIN REPORT 14

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Appendix Figure A: Vendor Gateway Supplier Portal This was taken the Canadian Tire website which directs you to a link of the Vendor Gateway Supplier Portal to login with the vendor credentials CANADIAN TIRE SUPPLY CHAIN REPORT 15

References Canadian Tire Corporation, L. (2022, January 19). Canadian Tire Corporation named most sustainable retailer among Canadian peers on Corporate Knights' 'global 100 most sustainable corporations' . Cision Canada. Retrieved April 7, 2023, from https://www.newswire.ca/news- releases/canadian-tire-corporation-named-most-sustainable-retailer-among-canadian-peers-on- corporate-knights-global-100-most-sustainable-corporations--830296008.html Canadian Tire Corporation unveils its $3.4 Billion investment strategy designed to bolster omnichannel capabilities and drive long-term growth . canadian tire. (n.d.). Retrieved April 7, 2023, from https://corp.canadiantire.ca/English/media/news-releases/press-release-details/ 2022/Canadian-Tire-Corporation-unveils-its-3.4-billion-investment-strategy-designed-to-bolster- omnichannel-capabilities-and-drive-long-term-growth/default.aspx Canada Tire Market & Forecast, 2018-2028 . TRAC. (n.d.). Retrieved April 8, 2023, from https://tracanada.ca/industry-news/canada-tire-market-forecast-2018-2028/ Circularity: Operational waste . Canadian tire. (n.d.). Retrieved April 7, 2023, from https://corp.canadiantire.ca/English/Environmental-Social-Governance/Environment/Circularity- Operational-Waste/default.aspx Foxman, S. (2018, November 15). Automation Makes Canadian Tire Distribution Centre a Model of Efficiency. Retail Council of Canada. Retrieved April 6, 2023, from https://www.retailcouncil.org/community/supply-chain/automation-makes-canadian-tire-dc-a- model-of-efficiency/#:~:text=The%20gantry%20cranes%20select%20the,DC%20a%20hub %20of%20innovation. Google. (n.d.). Canadian Tire: Revolutionizing Customer Service With Advanced Data Analytics. Google. Retrieved April 6, 2023, from https://cloud.google.com/customers/canadian-tire Grill-Goodman, J. (2019, November 12). How Canadian Tire Is Turning Customer Data and Personalization Efforts into ROI. RIS News. Retrieved April 5, 2023, from https://risnews.com/how-canadian-tire-turning-customer-data-and-personalization-efforts-roi Plc, G. D. (n.d.). Canadian tire: Greenhouse gas emissions in 2021 . GlobalData. Retrieved April 7, 2023, from https://www.globaldata.com/data-insights/retail-amp-wholesale/canadian-tire- greenhouse-gas-emissions-2137585/ Reyes, A. (2022, September 25). Where are Cooper tires made? The exact answer is here! (update 2023) . DrivingPress. Retrieved April 10, 2023, from https://drivingpress.com/where-are- cooper-tires-made/ Schniederjans, D. G., Curado, C., & Khalajhedayati, M. (2020). Supply chain digitization trends: An integration of knowledge management. International Journal of Production Economics , 220 , 107439. CANADIAN TIRE SUPPLY CHAIN REPORT 16

Seyedghorban, Z., Samson, D., & Tahernejad, H. (2020). Digitalization opportunities for the procurement function: pathways to maturity. International Journal of Operations & Production Management , 40 (11), 1685-1693. Toneguzzi, M. (2022, October 30). Canadian Tire expanding large format 'remarkable retail' store concept as it marks 100 years [interview] . Retail Insider. Retrieved April 7, 2023, from https://retail-insider.com/retail-insider/2022/10/canadian-tire-expanding-large-format- remarkable-retail-store-concept-as-it-marks-100-years-interview/ Triangle rewards: Sign up & earn today | triangle . (n.d.). Retrieved April 9, 2023, from https://triangle.canadiantire.ca/en.html CANADIAN TIRE SUPPLY CHAIN REPORT 17

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